Climate Change Policy

1
Climate Change Policy

• Gordon Harvey

2
The extent of the challenge

• Global emissions need to peak no later than 2030
  and be lower in 2050 than they are now.
• In the developed countries there is increasing
  alignment that GHG emission reductions of 60 to
  80 vs 1990 will be required by 2050.
• We recognise that these targets will have
  profound implications on our business.

3
Climate change context BPs point of view

• Climate change is happening there are costs of
  both mitigation and adaptation. Doing nothing is
  not an option
• Policy needs to be put in place to reduce
  emissions over time, significantly in the case of
  developed countries.
• A carbon-constrained economy creates business
  opportunities for BP as well as potentially
  creating some additional costs.
• But
• The provision of cheap and reliable energy has
  been a major factor in the economic and social
  development of the world
• New technologies will increasingly be needed to
  supply low carbon energy
• Fossil fuels will play an important part in
  energy supply for several decades to come

4
Our global presence
Oil Gas Chemicals Refining Market positions
An opportunity and a responsibility
5
BP in the North Sea

• 15 of UK production
• 45 producing fields
• 33 platforms in operation
• 10 pipeline systems
• 3000 BP staff contractors
• gt2bn Capex Opex per annum
• Production over 400mbd
• Total resources circa 3.5 billion barrels

bn boe
6
The climate change journey
2001 BP achieves its 2010 target nine years
early, having reduced GHG emissions by energy
efficiency projects and cutting flaring of
unwanted gas.
2003 Based on work at Princeton, BP sets out a
range of technology options to stabilize GHG
emissions over 50 years, including increases in
solar, wind, gas-fired power and carbon capture
and storage.
1999 BP initiates the CO2 capture project with
other companies and governments, studying methods
of capturing and storing CO2 at power plants.
2005 BP announces plans for the worlds first
industrial-scale hydrogen power plant. BP
launches BP Alternative Energy
1997 BP publicly acknowledges the need for
precautionary action to cut GHG emissions after
exiting the Global Climate Coalition.
2002 BP announces plans to build a wind farm at
Nerefco, the Netherlands.
2000 BP begins funding the Carbon Mitigation
Initiative at Princeton University, exploring
solutions to climate change.
2004 BPs solar business moves into profit and
announces plans to double production. BP launches
CO2 capture and storage project at the In Salah
gas field in Algeria.
1998 BP sets target to cut emissions from our
operations to 10 below 1990 levels by 2010
7
Innovation Magnus EOR project
Magnus
Gas Injection Line
Gas Export Line
Live Crude
FLAGS
Sullom Voe
SHETLAND ISLANDS
Gas to Market
8
Cost curve
9
Carbon price funnel is the key framework for
future explicit carbon prices and transitional
incentives