Page 11: of Marine Technology Magazine (November 2020)

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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