London Daily

Focus on the big picture.
Saturday, Dec 09, 2023

BP scales back climate targets as profits hit record

BP scales back climate targets as profits hit record

Energy giant BP has reported record annual profits as it scaled back plans to reduce the amount of oil and gas it produces by 2030.

The company's profits more than doubled to $27.7bn (£23bn) in 2022, as energy prices soared after Russia invaded Ukraine.

Other energy firms have seen similar rises, with Shell reporting record earnings of nearly $40bn last week.

It has led to calls for energy firms to pay more tax as people's bills soar.

BP boss Bernard Looney said the British company was "helping provide the energy the world needs" while investing the transition to green energy.

But it came as the firm scaled back plans to cut carbon emissions by reducing its oil and gas output.

The company - which was one of the first oil and gas giants to announce an ambition to cut emissions to net zero by 2050 - had previously promised that emissions would be 35-40% lower by the end of this decade.

However, on Tuesday it said it was now targeting a 20-30% cut, saying it needed to keep investing in oil and gas to meet current demands.

Climate campaign group Greenpeace, whose voice the BBC has included because of the impact of oil and gas production on the environment, said BP's new strategy "seems to have been strongly undermined by pressure from investors and governments to make even more dirty money out of oil and gas".

Energy prices had begun to climb following the end of Covid lockdowns but rose sharply in March last year after Russia invaded Ukraine, sparking concerns about global supplies.

The price of Brent crude oil reached nearly $128 a barrel, but has since fallen back to about $80. Gas prices also spiked but have come down from their highs.


It has led to bumper profits for energy companies, but also fuelled a rise in energy bills for households and businesses.

Last year, the government introduced a windfall tax - called the Energy Profits Levy - on the "extraordinary" profits being made at energy companies.

The rate was originally set at 25%, but has now been increased to 35%, and only applies to profits made from extracting UK oil and gas. Oil and gas firms also pay 30% corporation tax on their profits as well as a supplementary 10% rate, taking their total tax rate to 75%.

However, they can reduce the amount of tax they pay by factoring in losses or spending on things like decommissioning North Sea oil platforms.

BP said its UK business, which accounts for less than 10% of its global profits, will pay $2.2bn in tax for 2022, including $700m due to the Energy Profits Levy.


'Windfalls of war'


Andrew Griffith, Economic Secretary to the Treasury, who the BBC spoke to for the government's position, said the windfall tax struck the "right balance" between helping families with the cost of living and securing the UK's energy supplies. He said its aim was to encourage re-investment of the sector's profits back into the economy

Nick Butler, previously a senior executive at BP and now a visiting professor at Kings College, who the BBC spoke to because of his industry experience, said oil and gas prices would not remain "exceptionally high" forever.

"This is a temporary situation. Oil and gas prices are going down and the windfall these companies are making won't last."

Labour and the Liberal Democrats, who we've included to explain the opposition's point of view, said the profits were outrageous and called on the government to increase the windfall tax.

The government has had to step in to limit household energy bills, with the average home now paying £2,500 a year, although this is still more than double what it was a year ago.

The cap on bills will also rise to £3,000 from April, although analysts expect households to pay less than that due to a recent drop in gas prices.

As well as announcing record profits, BP increased its payout to shareholders by 10%.

BP's results follow similarly strong profits announced by rivals Shell, Exxon Mobil and Chevron last week.

Newsletter

Related Articles

London Daily
Close
0:00
0:00
"New Beginnings: Greece and Turkey Agree to Repair Relations
You Are So Beautiful
Finland's Supreme Court Prevents Extradition of Russian Terrorism Suspect to Ukraine
Postmodern Jukebox European Tour Version
UK Proposes Streamlined Financial Advice to Reduce Costs for Consumers
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
UK's Labour Party Conducts Review of Financial Services to Boost City's Growth Potential
Sattahip Motor Show 20
London City Hall Condemns Blast Targeting Clean Air Zone Camera
SONATE AU CLAIR DE LUNE - Moonlight sonata
Venezuela Steps Up Claim on Guyana's Essequibo Region
A kiss to build a dream on
Spain's First AI Model Earns Up to $10,000 Monthly
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Spotify Plans Workforce Reduction of Nearly 20% Despite Reporting £55 Million Profit
Mean Blues
Former President Restricted from Leaving Ukraine Amid Alleged Plan to Meet Hungary's Viktor Orban
La Chansonnette
Ikea Commits £10 Million for 2024 Pay Raises for UK Employees
Pattaya Addicts
Ant and Dec, our favorite jungle jesters, have thrown a curveball. They're suggesting a 'politician-free' season of 'I'm A Celebrity. Get Me Out Of Here!'
Franz Liszt - Liebestraum - Love Dream
Trump’s lawyers say he did not take an oath ‘to support the Constitution’
Dream a little dream of me
Henry Kissinger, the influential American diplomat, Nobel Peace Prize laureate, and former Secretary of State, passed away at 100 at his Connecticut home.
Unchained Melody sung like you've NEVER heard!
Thai Deputy Prime Minister and Foreign Minister Dr. Parnpreeb Commends ICRC's Role in Hostage Release
Dave Brubeck - Take Five
Sam Bankman-Fried, founder of the crypto exchange FTX who was convicted of fraud earlier this month, is adjusting to his new life in the detention center where he awaits sentencing.
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Sam Bankman-Fried, founder of the crypto exchange FTX who was convicted of fraud earlier this month, is adjusting to his new life in the detention center where he awaits sentencing.
Rondo Alla Turca
The political network founded by the billionaire industrialist brothers Charles and David Koch has endorsed Nikki Haley in the Republican presidential nominating contest
Kiss of fire
Charlie Munger, Warren Buffett's longtime investing partner, dies at 99
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Robert De Niro told an awards ceremony a speech he was reading had been edited without his knowledge, removing critical comments about Donald Trump
Israel Cachao López - Guajira Clásica
Standard Chartered is in the early stages of a search for its next chair as the bank prepares for the departure of Jose Vinals, who’s entering his eighth year in the role
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Eurostar to Suspend Amsterdam to London Service for 6 Months
Strauss - Radetzky March - Karajan
California is not considered a racist place. Or so it seems.
La vie en rose
Sam Altman's return to OpenAI marks a significant turn of events for Microsoft and its relationship with the AI giant.
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Radical immigrants set on fire police cars and loot shops in Dublin.
Orlando Cachaito Lopez Redencion
The BBC Caught Again with Questionable Journalistic Standards, as Ugly Facts Undermine Its Attractive Yet Flawed Arguments
Edith Piaf - NON, JE NE REGRETTE RIEN
This video reveals that Target's Black Friday promotions are entirely fake, with no actual discounts. The prices before and after are identical!
RADETZKY MARCH-2008-Wien, New Year Concert
Israel's Spokesperson Mark Regev's Response to Comparisons Between Palestinian Teenage Terrorists and Young Innocent Victims of Hamas Captivity
Only you (And you alone)
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Strangers In The Night
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Charles Aznavour - La Boheme
Bill Gates Envisions a Possible 3-Day Work Week with AI
Summer time
Viktor Orban's Provocative Assertions and Their Significance in Europe
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Orban's Blunt Challenge to Brussels: Embracing National Sovereignty in Migration Policy
Aux Champs Elysees
OpenAI Staff Rebellion: 500 Employees Demand Board Resignation in Dramatic Standoff
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
OpenAI Staff Rebellion: 500 Employees Demand Board Resignation in Dramatic Standoff
La Mer (Beyond the Sea) – Avalon Jazz Band
Over 200 Convicted in Italy's 'Ndrangheta Mafia Trial
She
In a scandalous revelation at the COVID-19 inquiry, UK Prime Minister Rishi Sunak is under fire for an alleged remark that suggests a chilling indifference to human life during the pandemic
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Abu Dhabi-Backed Fund Poised to Assume Control of UK's Telegraph Media Group
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Sam Altman and Greg Brockman Join Microsoft Amidst OpenAI Developments
Radiohead - Creep
Reporters Without Borders Unveils News Platform to Counter Russian Propaganda
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Singer Shakira will pay a fine of eight million euros after being accused of evading taxes worth 14.5 million euros during the years 2012-2014.
Perhaps, Perhaps, Perhaps - Multi-Couples
Hungary's Orbán Asserts Ukraine Is Far from EU Membership
Pentatonix Havana
Racial Bias in AI Leads to Wrongful Arrest Due to False Recognition
Paula Cole - Autumn Leaves
Orban Stresses Hungary's Need to Reform the EU Rather Than Exiting It
Oscar Benton Bensonhurst Blues
Biden Advocates for Palestinian Authority to Govern Gaza and West Bank
OH NANANA vs ABUSADAMENTE
Brigitte Macron Opens Up About Her Marriage to Younger President Emmanuel Macron
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Apple and Disney Halt Ads on X Following Elon Musk's Antisemitic Post, US Reacts
NIGHTWISH - The Phantom Of The Opera
Finland Shuts Four Crossing Points on Russia Border
Motorshow 2016 Tanjay Negros Oriental
Viktor Orbán Welcomes Cameron's Political Return
Monica Bellucci - Ti Amo
The UK’s Supreme Court, in a move that surprised no one who respects international law and human rights, has just delivered a landmark ruling against Prime Minister Rishi Sunak’s immigration strategy.
Michael Jackson - Billie Jean Milena The Voice France 2018
YouTube has introduced an AI feature named Dream Track that can mimic the voices of celebrities such as Demi Lovato and John Legend, enabling users to compose brief songs by specifying lyrics and mood
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×