BP Quits US Trade Associations

  • BP Quits US Trade Associations (c) BPBP Quits US Trade Associations (c) BP

BP had decided to quit three trade associations in the US, stating they are no longer aligned with its ambition to become a net zero carbon emissions company by 2050. The organizations are American Fuel and Petrochemical Manufacturers (AFPM), the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA).

“BP will pursue opportunities to work with organizations who share our ambitious and progressive approach to the energy transition,” said Bernard Looney, CEO of the UK-headquartered group “And when differences arise, we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.”

During the past six months, BP has reviewed 30 trade associations across Europe, North America and Australia to see how their climate-related activities and policy positions align with its own. It plans to conduct another review in about two years’ time.

The energy giant said it decided to leave AFPM and WSPA because of differences regarding policy positions on carbon pricing. It also cited material differences around the federal regulation of methane as well as asset divestments in the states in which the organization is active as reasons for not renewing membership with the WEA, The latter organization represents more than 300 companies involved in the exploration and production of oil and natural gas in the western US.

There are another five associations with which BP said it is only partially aligned on climate policies. These are the American Petroleum Institute, Australian Institute of Petroleum, Canadian Association of Petroleum Producers, National Association of Manufacturers and the US Chamber of Commerce.

The European and German chemical industry associations CEFIC and Germany’s VCI are among the list of 22 associations that BP found to be aligned with its climate policies.

Last month, BP outlined five aims to help it become net zero in carbon emissions by 2050 or sooner. As part of its ambition, it pledged to halve both the carbon intensity of the products it sells as well as the methane intensity of its operations.

Over time, the group also intends to increase the proportion of investment into non-oil and gas businesses.

Currently, the greenhouse gas emissions from BP’s global operations stand at around 55 million t of CO2 equivalent a year and the carbon from its oil and gas production is around 360 million t CO2 equivalent – both on an absolute basis.

Under the plans, BP will dismantle its existing and largely autonomous upstream and downstream business segments and reorganize into 11 teams. The heads of these teams will make up BP’s new leadership team.

“We need to reinvent BP. Our historic structure has served us well but, in order to keep up with rapidly-evolving customer demands and society’s expectations, we need to become more integrated and more focused,” said Looney.

BP’s performance and growth will now be led by four business units: Production & Operations; Customers & Products; Gas & Low Carbon Energy; and Innovation & Engineering.

 

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