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ingly outweighed ESG considerations in set sales should compensate in the short sentations are compelling, but will the the minds of investors. term, but it is still a lot of pro? t to ? nd to strategy pay off for shareholders, or is

There are skeptics who wonder wheth- sustain a business of BP’s current scale. BP moving too quickly in its transition er the sums add up. The aims are laudable, and the pre- from IOC to IEC? Time will tell.

BP intends to cut production at a fast- er rate than its own scenarios suggest is necessary to align with the Paris Agree- o ment and achieve <2 C of warming.

Also, the 600 mboe/d that it plans to divest by 2025 will not contribute to the

Paris goals, as the barrels will still be produced by someone else.

BP’s production contributed about $12/boe of net income in 2019 at aver- age Brent prices of $64/bbl. With the change in strategy, it will be producing 400 million fewer barrels in 2030 and so it will need to replenish $4.8bn of annual net income from alternative sources to make up for the foregone production. As- 7ZR1HZ526,QQRYDWLRQV 2QH%ULJKWHU2QH6PDUWHU

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