Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

BP abandons goal to cut oil output, resets strategy

reuters.com

Post reply on HN
Print view View original

11–20 of 90 posts

Re: BP abandons goal to cut oil output, resets strategy

#11

Post by tw04 »

JohnMakin wrote: post #3

> BP (BP.L), opens new tab has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence, three sources with knowledge of the matter said. > The company continues to target net zero emissions by 2050. "As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more foc…

They’re claiming to target 2050 in the hopes that the EU won’t come down on them with a sledge hammer.

The fact they’ve cut all targets for 2030, and cut back all renewable plans tells you there’s no actual plan to hit net zero.

This was a pretty obvious end result when the head of their renewables group resigned in April and instead of replacing her they decided to “shrink the executive group” by exactly one headcount.

https://www.reuters.com/business/energy/bp-cuts-size-executi...

Re: BP abandons goal to cut oil output, resets strategy

#12

Post by gffrd »

schiffern wrote: post #4

Pioneering systems theorist Donella Meadows makes a highly salient point. The problem with BP isn't because there are "bad people" at the top, and the solution isn't to replace them with "good people." The problem is that the decision-makers are constrained to act a certain way . If they made different decisions then.... those people won't be the decision-makers anymore! The same is true for politicians, consumers, e…

A great point.

What examples do we have of publicly-traded megacorps that have successfully made shifts at the scale which we see oil companies trying to make? (With extrinsic motivation being a primary driver?)

Cigarette companies?

Re: BP abandons goal to cut oil output, resets strategy

#13

Post by freefal67 »

JohnMakin wrote: post #3

> BP (BP.L), opens new tab has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence, three sources with knowledge of the matter said. > The company continues to target net zero emissions by 2050. "As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more foc…

My cynical interpretation is that the current CEO needed to begin taking steps to meet this 2030 goal and determined they didn't make financial sense. The 2050 goal is also unrealistic but is his successor's problem.

Re: BP abandons goal to cut oil output, resets strategy

#14

Post by cortesoft »

imglorp wrote: post #6
schiffern wrote: post #4

Pioneering systems theorist Donella Meadows makes a highly salient point. The problem with BP isn't because there are "bad people" at the top, and the solution isn't to replace them with "good people." The problem is that the decision-makers are constrained to act a certain way . If they made different decisions then.... those people won't be the decision-makers anymore! The same is true for politicians, consumers, e…

That saying that goes, we are the only species that will become extinct because survival wasn't profitable enough. To the systems point we really, really really, really really need to stop subsidizing fossil fuels to 7 trillion a year globally. We have to stop making it profitable and encouraged by the system. https://www.imf.org/en/Blogs/Articles/2023/08/24/fossil-fuel...

I feel like we aren't actually unique in this respect, except in the sense that we are able to see our own doom but still not able to act on it.

In essence, our extinction (if it were to happen) would be because we were unable to solve the collective action problem... each individual choosing their own best course dooms the entire species.

When looked at it this way, lots of species go extinct for this reason; resource exhaustion due to uncapped expansion.

The difference is that we don't expect animals to be able to reason through the situation and realize that individuals would need to sacrifice for the greater good of the species.

Re: BP abandons goal to cut oil output, resets strategy

#16

Post by jbstack »

fullshark wrote: post #5
schiffern wrote: post #4

Pioneering systems theorist Donella Meadows makes a highly salient point. The problem with BP isn't because there are "bad people" at the top, and the solution isn't to replace them with "good people." The problem is that the decision-makers are constrained to act a certain way . If they made different decisions then.... those people won't be the decision-makers anymore! The same is true for politicians, consumers, e…

The libertarians constantly spouting that CEOs have a fiduciary obligation to shareholders are making the best argument for increased government regulation possible.

A reasonable libertarian however would require that all externalities be paid for (under the principle of doing no harm). If the price per unit of oil includes the cost of all the negative externalities (e.g. selling that unit comes with a requirement to remove the air pollutants and CO2) then it isn't really a problem (at least for the purpose of this discussion) if CEOs have to seek profit for shareholders.

Re: BP abandons goal to cut oil output, resets strategy

#17

Post by cortesoft »

tw04 wrote: post #7

> as investors focused on near-term returns rather than the energy transition. If the justification for burning the earth to the ground continues to be “investors focused on short term returns” then governments need to start telling companies like BP they are legally and financially responsible for the effects those policies have on insurance rates and everything else. At some point if they can’t do the right thing b…

The way to do this is to price in the effect of the transactions on global climate. The reason the market will never solve this issue is because the cost is an externality; if we made it so every good sold included the cost to offset the damage to the environment, the market could address this issue.

Re: BP abandons goal to cut oil output, resets strategy

#18

Post by skybrian »

schiffern wrote: post #4

Pioneering systems theorist Donella Meadows makes a highly salient point. The problem with BP isn't because there are "bad people" at the top, and the solution isn't to replace them with "good people." The problem is that the decision-makers are constrained to act a certain way . If they made different decisions then.... those people won't be the decision-makers anymore! The same is true for politicians, consumers, e…

The word "required" is not exactly wrong, but not exactly right either. Corporate governance is complicated and CEO's have a lot of room to maneuver. Some more than others.

Incentives are not destiny, though they are often persuasive. Peoples' decisions do matter, which is why there are people in the system and it's not just some idiot algorithm.

Also true of consumers and politicians.

Re: BP abandons goal to cut oil output, resets strategy

#19

Post by jimbob45 »

linkjuice4all wrote: post #8

It's depressing to see companies moving back towards a carbon-burning future. It seemed like electric vehicles, battery technology, and solar power advancement was finally starting to kill the market for ICE engines and 'dirty' thermal power. Between reversions like this, RTO mandates, and global conflicts that seem to include blowing up oil refineries it seems like there's absolutely no hope or interest from any maj…

Does it not seem like electric vehicles will eventually swallow the world? It feels like it's 1900 and you're fighting tooth-and-nail to combat horse maltreatment while the rest of the world is surging toward a car-laden future. Would it not make more sense to simply focus efforts on EV adoption?

Re: BP abandons goal to cut oil output, resets strategy

#20

Post by bamboozled »

linkjuice4all wrote: post #8

It's depressing to see companies moving back towards a carbon-burning future. It seemed like electric vehicles, battery technology, and solar power advancement was finally starting to kill the market for ICE engines and 'dirty' thermal power. Between reversions like this, RTO mandates, and global conflicts that seem to include blowing up oil refineries it seems like there's absolutely no hope or interest from any maj…

It's not just depressing, it's ruinous. We will be ruined as a species from this.

I'm still pressing a head with my personal contribution by cladding our new house in panels!

Post reply on HN