1 00:00:00,400 --> 00:00:03,160 Speaker 1: I'm Dana Perkins, and you're listening Switched on the B 2 00:00:03,279 --> 00:00:06,400 Speaker 1: and F podcast. Today we have an external guest on 3 00:00:06,440 --> 00:00:10,240 Speaker 1: the show, Julia Kerkia, and she is the executive vice 4 00:00:10,240 --> 00:00:13,960 Speaker 1: president of Strategy and Sustainability at BP. She talks to 5 00:00:14,000 --> 00:00:17,760 Speaker 1: me today about the energy transition from an energy company perspective. 6 00:00:18,079 --> 00:00:21,360 Speaker 1: Last year, BP announced a net zero target for the company, 7 00:00:21,400 --> 00:00:25,600 Speaker 1: which was organized into five points net zero across BPS 8 00:00:25,720 --> 00:00:29,120 Speaker 1: operations on an absolute basis by twenty fifty or sooner. 9 00:00:29,560 --> 00:00:32,760 Speaker 1: Net zero on carbon in VP's oil and gas production 10 00:00:32,840 --> 00:00:35,600 Speaker 1: on an absolute basis by twenty fifty or sooner. A 11 00:00:35,720 --> 00:00:38,760 Speaker 1: fifty percent cut in the carbon intensity of products VP 12 00:00:38,880 --> 00:00:43,040 Speaker 1: cells by twenty or sooner, installation of methane measurement at 13 00:00:43,040 --> 00:00:46,000 Speaker 1: all of vps major oil and gas processing sites by 14 00:00:47,000 --> 00:00:51,480 Speaker 1: three and to reduce methane intensity of their operations by 15 00:00:51,600 --> 00:00:55,200 Speaker 1: and lastly, to increase the proportion of investment into non 16 00:00:55,280 --> 00:00:58,640 Speaker 1: oil and gas businesses over time. In order to accomplish 17 00:00:58,720 --> 00:01:01,920 Speaker 1: these aims, a few new teams were formed, including a 18 00:01:02,000 --> 00:01:06,000 Speaker 1: strategy and sustainability team that has led by Julia. So 19 00:01:06,080 --> 00:01:08,880 Speaker 1: today we speak with Julia about BP and why she 20 00:01:08,959 --> 00:01:11,840 Speaker 1: thinks they are well positioned to achieve this important target, 21 00:01:12,200 --> 00:01:14,960 Speaker 1: her views on some of the most discussed technologies in 22 00:01:15,000 --> 00:01:18,080 Speaker 1: the energy transition, and a little bit about her and 23 00:01:18,120 --> 00:01:20,440 Speaker 1: how she came to find herself last year in this 24 00:01:20,520 --> 00:01:22,959 Speaker 1: newly formed role. B and e F research on the 25 00:01:23,040 --> 00:01:26,120 Speaker 1: energy transition can be found on the Bloomberg terminal at 26 00:01:26,160 --> 00:01:28,520 Speaker 1: benof go, on b NF dot com or the BENF 27 00:01:28,600 --> 00:01:31,000 Speaker 1: mobile app. As a quick reminder, we do not provide 28 00:01:31,000 --> 00:01:33,440 Speaker 1: investment of strategy advice, and you can hear a more 29 00:01:33,480 --> 00:01:36,160 Speaker 1: complete disclaimer at the end of the show. And now 30 00:01:36,440 --> 00:01:46,720 Speaker 1: let's speak with Julia about the energy transition. Julia, thank 31 00:01:46,720 --> 00:01:48,080 Speaker 1: you so much. It's really good to have you on 32 00:01:48,080 --> 00:01:50,600 Speaker 1: the show today to talk about the future of the 33 00:01:50,680 --> 00:01:53,840 Speaker 1: energy transition and oil and gas industry. Thank you very 34 00:01:53,880 --> 00:01:56,280 Speaker 1: much for having me. It's a pleasure to be here. 35 00:01:56,640 --> 00:01:59,920 Speaker 1: I'd love to start with your story and what original 36 00:02:00,400 --> 00:02:03,120 Speaker 1: drew you into the oil and gas industry, and then 37 00:02:03,160 --> 00:02:05,960 Speaker 1: how you ended up at BP, because you've spent most 38 00:02:06,000 --> 00:02:09,080 Speaker 1: of your career working in the consulting with a number 39 00:02:09,120 --> 00:02:13,720 Speaker 1: of different stakeholders. So let's start maybe by telling you 40 00:02:13,960 --> 00:02:16,880 Speaker 1: a little bit more about myself and how I actually 41 00:02:17,160 --> 00:02:20,760 Speaker 1: ended up joining BP. So I think there's like redefining 42 00:02:20,919 --> 00:02:23,520 Speaker 1: things in my life. I think the first one is 43 00:02:24,280 --> 00:02:26,520 Speaker 1: I'm half a town in half Belgium, grew up from 44 00:02:26,560 --> 00:02:29,920 Speaker 1: London and then we moved to Italy from then Spain 45 00:02:30,240 --> 00:02:34,720 Speaker 1: bustl Spain. So I think change is really something which 46 00:02:34,760 --> 00:02:37,520 Speaker 1: is ingrained in my d NA since I was a child. 47 00:02:37,639 --> 00:02:39,600 Speaker 1: The second thing I would say is, yeah, I had 48 00:02:39,639 --> 00:02:42,160 Speaker 1: a pretty strong role model and my father who always 49 00:02:42,160 --> 00:02:46,800 Speaker 1: told me to not confirm with my comfort zone, and 50 00:02:46,840 --> 00:02:49,400 Speaker 1: so challenge is also something that has always been in 51 00:02:49,440 --> 00:02:51,720 Speaker 1: my DEA. And the fat thing is I have too 52 00:02:52,320 --> 00:02:55,480 Speaker 1: little children thirteen year old natenniar old who are actually 53 00:02:55,560 --> 00:02:58,960 Speaker 1: quite demanding in their questions on the energy transition. And 54 00:02:59,000 --> 00:03:01,200 Speaker 1: I remember this if I moment when I was working 55 00:03:01,240 --> 00:03:06,120 Speaker 1: in McKinsey where we're looking at potential temperature pathways linked 56 00:03:06,160 --> 00:03:08,239 Speaker 1: to a potential energy transition paths and there was this 57 00:03:08,320 --> 00:03:12,480 Speaker 1: businessess usual case which took us to a pathway of 58 00:03:12,520 --> 00:03:16,600 Speaker 1: more than three degrees by and I literally thought, well 59 00:03:17,080 --> 00:03:20,680 Speaker 1: twenty six, my children will be in their fifties. And 60 00:03:20,760 --> 00:03:23,720 Speaker 1: so I think that has actually contributed over time to 61 00:03:23,760 --> 00:03:28,120 Speaker 1: build this significant sense of purpose. And yeah, I spent 62 00:03:28,240 --> 00:03:31,320 Speaker 1: fifteen years in McKinsey. I left the firm as a 63 00:03:31,360 --> 00:03:34,640 Speaker 1: senior partner. I was leading the global downtre more than 64 00:03:34,720 --> 00:03:39,000 Speaker 1: gas practice, working quite extensively with clients to actually shape 65 00:03:39,040 --> 00:03:41,400 Speaker 1: energy transition. And I loved it, and I think I 66 00:03:41,520 --> 00:03:44,040 Speaker 1: learned a lot of around how do you actually structure 67 00:03:44,400 --> 00:03:48,640 Speaker 1: complex topics. But when VP approached me end of twenty 68 00:03:48,760 --> 00:03:52,080 Speaker 1: nineteen and Bernard approached me, I jumped on it, and 69 00:03:52,160 --> 00:03:55,000 Speaker 1: you know, talk about and I I said, I like change. 70 00:03:55,560 --> 00:03:57,760 Speaker 1: There was a brutal change, and there was even more 71 00:03:57,760 --> 00:04:01,640 Speaker 1: of a change because then COVID actually hit immediately after 72 00:04:01,720 --> 00:04:04,520 Speaker 1: me joining, you know, and then I views one of 73 00:04:04,560 --> 00:04:07,080 Speaker 1: the biggest challenges that one can think about in terms 74 00:04:07,160 --> 00:04:10,240 Speaker 1: of our generation and probably the next generation to come. 75 00:04:11,000 --> 00:04:13,880 Speaker 1: And I was a huge privilege in terms of sense 76 00:04:13,880 --> 00:04:17,800 Speaker 1: of purpose to actually have the ability to help contribute 77 00:04:18,000 --> 00:04:21,440 Speaker 1: to shaping the PAS gen journey through the energy transition. 78 00:04:21,760 --> 00:04:24,080 Speaker 1: So yeah, those are the reasons why I decided to 79 00:04:24,160 --> 00:04:27,800 Speaker 1: join the oil and gas industry and then VP very specifically, 80 00:04:28,200 --> 00:04:33,400 Speaker 1: I was immediately bought into the new purpose re imagined 81 00:04:33,560 --> 00:04:35,919 Speaker 1: energy for people on the planet, which was at the 82 00:04:35,960 --> 00:04:39,240 Speaker 1: time being shaped the ambition. And then as I was 83 00:04:39,279 --> 00:04:43,000 Speaker 1: talking to the two the leadership team, just that the 84 00:04:43,160 --> 00:04:46,359 Speaker 1: buying from everybody on the willingness to actually embark on 85 00:04:46,440 --> 00:04:49,920 Speaker 1: this What is it about BP that you think differentiates 86 00:04:49,960 --> 00:04:53,680 Speaker 1: them in this space, and that it's it's quite progressive 87 00:04:53,800 --> 00:04:56,520 Speaker 1: to say that you're that you think that an oil 88 00:04:56,520 --> 00:04:58,840 Speaker 1: and gas firm is the exact right place to be 89 00:04:59,440 --> 00:05:04,080 Speaker 1: in looking at decarbonization and the energy transition. I actually 90 00:05:04,120 --> 00:05:07,039 Speaker 1: think that if we want to play a critical role 91 00:05:07,320 --> 00:05:12,880 Speaker 1: getting to the Paris Alignment and decarbonizing energy systems, we 92 00:05:12,960 --> 00:05:15,479 Speaker 1: need to work with energy companies. I think that's the 93 00:05:15,520 --> 00:05:19,640 Speaker 1: first element, which is you can't just decarbonize energy systems 94 00:05:19,680 --> 00:05:23,039 Speaker 1: by working with green companies. But if we really want 95 00:05:23,040 --> 00:05:25,600 Speaker 1: to get to the Paris Alignment, we need to actually 96 00:05:26,040 --> 00:05:29,640 Speaker 1: support companies such as OURS, which you know, energy plus 97 00:05:29,680 --> 00:05:33,599 Speaker 1: industry plus transport represents so many percent of global emissions. 98 00:05:33,640 --> 00:05:35,920 Speaker 1: So we need to really work with companies such as 99 00:05:35,960 --> 00:05:39,560 Speaker 1: BP and other willing gas companies to actually help them 100 00:05:39,600 --> 00:05:43,000 Speaker 1: decarbonize and go along that journey. So I don't see 101 00:05:43,400 --> 00:05:46,560 Speaker 1: joining your company such as VP and annointing gas company 102 00:05:46,560 --> 00:05:50,599 Speaker 1: which is committed to actually decarbonizing as a progressive journey. 103 00:05:50,680 --> 00:05:54,080 Speaker 1: I think it's actually very much aligned towards the ambition 104 00:05:54,120 --> 00:05:57,680 Speaker 1: and the purpose in terms of what is unique about VP. 105 00:05:58,480 --> 00:06:02,600 Speaker 1: When I actually had my first conversations with Bernard at 106 00:06:02,600 --> 00:06:06,720 Speaker 1: the time when I was actually considering joining, Bernard had 107 00:06:06,760 --> 00:06:13,159 Speaker 1: already embarked on a series of multiple conversations with multiple 108 00:06:13,400 --> 00:06:18,920 Speaker 1: types of stakeholders, from institutional stakeholders e g. Government stakeholders, 109 00:06:19,040 --> 00:06:22,880 Speaker 1: with investors across the world, and with you know less 110 00:06:22,880 --> 00:06:26,440 Speaker 1: hope your stakeholders such as NGOs and some of the 111 00:06:26,520 --> 00:06:29,560 Speaker 1: most challenging in GEO. So there was a whole process 112 00:06:29,600 --> 00:06:32,840 Speaker 1: of listening which was going on, and that process of 113 00:06:32,880 --> 00:06:36,520 Speaker 1: listening actually very much shaped his perspective and also the 114 00:06:36,680 --> 00:06:39,800 Speaker 1: lt S perspective, the leadership team's perspective. So what I 115 00:06:39,880 --> 00:06:45,200 Speaker 1: was actually struck by was the super strong alignment within 116 00:06:45,320 --> 00:06:49,359 Speaker 1: the whole leadership team and within the company itself on 117 00:06:49,480 --> 00:06:52,520 Speaker 1: this ambition to transition. You know, at the end of 118 00:06:52,600 --> 00:06:54,560 Speaker 1: the day, if you're actually working in an oil and 119 00:06:54,600 --> 00:06:59,040 Speaker 1: gas company and you're delivering energy to the world, you 120 00:06:59,279 --> 00:07:01,680 Speaker 1: also want to feel good about what you're doing. And 121 00:07:02,000 --> 00:07:05,240 Speaker 1: in equivocably, we are delivering energy to the world, and 122 00:07:05,279 --> 00:07:07,120 Speaker 1: in the frame of the energy transition, we have the 123 00:07:07,160 --> 00:07:10,240 Speaker 1: capabilities and the skills to continue doing so through the 124 00:07:10,360 --> 00:07:14,280 Speaker 1: energy transition and UH and towards the low Carbonwell, what 125 00:07:14,440 --> 00:07:16,880 Speaker 1: sort of things have been done in order to drive 126 00:07:16,920 --> 00:07:19,680 Speaker 1: a culture shift within the organization and to really rally 127 00:07:19,880 --> 00:07:22,240 Speaker 1: around the net zero target or did it just really 128 00:07:22,280 --> 00:07:25,720 Speaker 1: happen very organically at all levels of the business. Well, 129 00:07:25,720 --> 00:07:29,240 Speaker 1: I think there were several initiatives, right. It all started 130 00:07:29,480 --> 00:07:33,720 Speaker 1: with the announcement when Bernard started on February twelve of 131 00:07:33,840 --> 00:07:36,800 Speaker 1: the new purpose like re imagine energy for people on 132 00:07:36,840 --> 00:07:39,640 Speaker 1: the planet, the ambition and the aims the net the 133 00:07:39,840 --> 00:07:44,240 Speaker 1: reins that was thereafter, if you wish, underpinned by the 134 00:07:44,360 --> 00:07:47,880 Speaker 1: strategy which was actually announced on August fourth and then 135 00:07:48,120 --> 00:07:52,720 Speaker 1: detailed in September. It was also accompanied by a full 136 00:07:52,840 --> 00:07:57,360 Speaker 1: reorganization of BP, which we call reinvent BP, which is 137 00:07:57,560 --> 00:08:03,040 Speaker 1: really targeted towards moving away from the upstream downstream model 138 00:08:03,480 --> 00:08:06,640 Speaker 1: to an organizational model which aligns to the energy transition. 139 00:08:06,880 --> 00:08:11,000 Speaker 1: Right with business lines which are production and operations. Were 140 00:08:11,000 --> 00:08:15,240 Speaker 1: focused on our hydrocarbons businesses. Business line on gas and 141 00:08:15,280 --> 00:08:18,040 Speaker 1: low common which is really the growth engine in terms 142 00:08:18,040 --> 00:08:21,240 Speaker 1: of low carbon customers and products, which is really focusing 143 00:08:21,240 --> 00:08:25,120 Speaker 1: on the growth engine around customers and then you know 144 00:08:25,400 --> 00:08:28,200 Speaker 1: enablers in terms of trading in terms of digital and 145 00:08:28,280 --> 00:08:31,560 Speaker 1: region cities and solutions or integrators as we call them. 146 00:08:31,720 --> 00:08:36,679 Speaker 1: What that did was it really reframe the organization towards 147 00:08:37,440 --> 00:08:40,840 Speaker 1: alignment with the strategy. So it was really all the 148 00:08:40,920 --> 00:08:43,880 Speaker 1: building blocks that came together in terms of ambition, in 149 00:08:44,000 --> 00:08:47,760 Speaker 1: terms of integrated strategy, in terms of organization supporting it, 150 00:08:48,080 --> 00:08:51,960 Speaker 1: and then a lot of communication around cascading the story 151 00:08:52,080 --> 00:08:55,240 Speaker 1: and implications for all of the different people in the organization. 152 00:08:55,320 --> 00:08:59,600 Speaker 1: So if you are in production and operations business, yes 153 00:08:59,760 --> 00:09:03,120 Speaker 1: we might be in the world worth was we are 154 00:09:03,160 --> 00:09:08,559 Speaker 1: reducing production by but you are literally funding the energy transition. 155 00:09:09,000 --> 00:09:11,160 Speaker 1: So it really is a game of and we need 156 00:09:11,200 --> 00:09:14,120 Speaker 1: you to deliver today to be able to actually transition 157 00:09:14,160 --> 00:09:16,720 Speaker 1: the company. So you have a fundamental role to play. 158 00:09:17,240 --> 00:09:19,640 Speaker 1: At the same time, the growth engines need to deliver. 159 00:09:19,800 --> 00:09:22,959 Speaker 1: So we really did an exercise of cascading if that 160 00:09:23,440 --> 00:09:25,640 Speaker 1: strategy into what does it mean for the different parts 161 00:09:25,640 --> 00:09:30,000 Speaker 1: of the organization. So about a decade ago, BP was 162 00:09:30,400 --> 00:09:33,880 Speaker 1: really pushing the limits in terms of a focus on 163 00:09:33,960 --> 00:09:37,600 Speaker 1: sustainability with the Beyond Petroleum kind of ambitions and campaign, 164 00:09:38,200 --> 00:09:42,120 Speaker 1: and since then specifically focusing on kind of the renewable 165 00:09:42,160 --> 00:09:45,000 Speaker 1: assets that PP had. Many of them were sold off 166 00:09:45,040 --> 00:09:46,880 Speaker 1: and we went through this period where that was really 167 00:09:46,920 --> 00:09:50,680 Speaker 1: not a favorable part of the industry for the business 168 00:09:50,720 --> 00:09:53,440 Speaker 1: to be in. Now it seems like there's a look 169 00:09:53,520 --> 00:09:56,720 Speaker 1: at renewables again. And my question in this really is 170 00:09:57,240 --> 00:09:59,679 Speaker 1: do you think that in order for an oil and 171 00:09:59,720 --> 00:10:03,280 Speaker 1: gas for him to transition into an energy company, do 172 00:10:03,280 --> 00:10:07,280 Speaker 1: you think that a large percentage of the revenues can 173 00:10:07,320 --> 00:10:10,319 Speaker 1: actually come from renewables or is that not the right 174 00:10:10,320 --> 00:10:12,839 Speaker 1: way to look at how the company is going to 175 00:10:12,920 --> 00:10:15,800 Speaker 1: look to change and grow and diversify. There is no 176 00:10:16,280 --> 00:10:19,560 Speaker 1: one size, fit soul strategy in terms of oil and 177 00:10:19,600 --> 00:10:25,280 Speaker 1: gas companies decarbonizing. We've seen companies, for example, in the US, 178 00:10:25,360 --> 00:10:29,760 Speaker 1: actually focusing very heavily on carbon capture. We've seen other 179 00:10:29,880 --> 00:10:34,439 Speaker 1: companies actually focusing more heavily on retail power to consumers. 180 00:10:34,840 --> 00:10:39,280 Speaker 1: Our answer is one where we do see low carbon 181 00:10:39,320 --> 00:10:42,880 Speaker 1: technologies altogether having to play a critical role in the 182 00:10:42,960 --> 00:10:47,559 Speaker 1: energy transition. And I'm talking about really multiple technologies coming 183 00:10:47,600 --> 00:10:51,719 Speaker 1: to play. So we have technologies which today, like renewables, 184 00:10:51,760 --> 00:10:55,960 Speaker 1: are proven and are extremely cost competitive, and the challenge 185 00:10:55,960 --> 00:10:58,160 Speaker 1: is one of how do you accelerate the deployment of 186 00:10:58,200 --> 00:11:01,199 Speaker 1: those technologies and rollouts, which talking about moving from one 187 00:11:01,240 --> 00:11:04,760 Speaker 1: hundred and fifty gigawatts of added capacity in the recent 188 00:11:04,840 --> 00:11:08,040 Speaker 1: years to something like three hundred and fifty or five 189 00:11:08,120 --> 00:11:10,280 Speaker 1: hundred and fifty and a well below two debrecent erra 190 00:11:10,360 --> 00:11:14,480 Speaker 1: on one point five degresoner. We have other technologies that 191 00:11:14,559 --> 00:11:16,720 Speaker 1: are proven but need to be scaled up, and this 192 00:11:16,840 --> 00:11:21,560 Speaker 1: is for example, hydrogen or carbon capture. We have technologies 193 00:11:21,559 --> 00:11:23,720 Speaker 1: which are more at a pilot level but might have 194 00:11:23,840 --> 00:11:26,520 Speaker 1: a very critical role to play, for example in the 195 00:11:26,640 --> 00:11:30,480 Speaker 1: carbonizing aviation, such as synthetic fuels or refuels, and then 196 00:11:30,520 --> 00:11:35,240 Speaker 1: they still have fossil fuels of having to actually bridge 197 00:11:35,280 --> 00:11:38,440 Speaker 1: the energy transition and in particular, as an example, gas 198 00:11:38,480 --> 00:11:41,360 Speaker 1: having to provide that firm capacity as renewables come in. 199 00:11:41,760 --> 00:11:44,360 Speaker 1: So we don't see this as do you need to 200 00:11:44,400 --> 00:11:47,240 Speaker 1: invest in renewables to the sake of renewables. I think 201 00:11:47,240 --> 00:11:52,160 Speaker 1: it really is a multi technology strategy where one of 202 00:11:52,160 --> 00:11:54,640 Speaker 1: the critical advantages that are companies such as US can 203 00:11:54,679 --> 00:11:59,040 Speaker 1: actually bring is the integration of all those different technologies 204 00:11:59,240 --> 00:12:03,120 Speaker 1: to provide firm capacity in terms of energy and low 205 00:12:03,120 --> 00:12:07,600 Speaker 1: corbon energy. So I don't think this is a renewables 206 00:12:07,720 --> 00:12:10,800 Speaker 1: only play, but we definitely see in a world where 207 00:12:10,800 --> 00:12:14,959 Speaker 1: renewables actually get to accounts to proximately sixty of power 208 00:12:15,000 --> 00:12:19,720 Speaker 1: generation by renewables have a critical role to play, and 209 00:12:19,720 --> 00:12:22,400 Speaker 1: they can integrate into hydrogen, they can integrate with gas 210 00:12:22,400 --> 00:12:25,000 Speaker 1: to provide that firm capacity. So it's really around that 211 00:12:25,080 --> 00:12:28,440 Speaker 1: integration and which these technologies that are still I mean 212 00:12:28,480 --> 00:12:31,360 Speaker 1: you're mentioning hydrogen and ccs and synthetic fuels, I mean 213 00:12:31,559 --> 00:12:36,040 Speaker 1: very much on the edge in that they're quite expensive 214 00:12:36,080 --> 00:12:38,600 Speaker 1: to deploy at this point in time. Which of these 215 00:12:38,600 --> 00:12:41,040 Speaker 1: did you say you're most excited about and why From 216 00:12:41,040 --> 00:12:44,800 Speaker 1: a technology standpoint, I'm really excited about this notion of 217 00:12:45,320 --> 00:12:50,720 Speaker 1: multiple technologies and the integration across multiple technologies because if 218 00:12:50,760 --> 00:12:54,520 Speaker 1: you think about it, you know, with renewable penetration increasing significantly, 219 00:12:54,880 --> 00:12:57,240 Speaker 1: you have a challenge in terms of how do I 220 00:12:57,320 --> 00:13:01,360 Speaker 1: provide flexibility and stability to assist and batteries can provide 221 00:13:01,360 --> 00:13:03,960 Speaker 1: it intra day, I need gas to back that or 222 00:13:04,080 --> 00:13:07,760 Speaker 1: hydrogen as it actually acceleerates to provide the flexible capacity. 223 00:13:07,840 --> 00:13:11,199 Speaker 1: So it's really the first thing ANCE is really excited 224 00:13:11,240 --> 00:13:16,400 Speaker 1: about the integration of those technologies. We are therefore so 225 00:13:16,679 --> 00:13:20,840 Speaker 1: extremely excited about the renewable acceleration. We are very excited 226 00:13:20,880 --> 00:13:26,200 Speaker 1: about hydrogen as a potential technology. Hydrogen could, as I 227 00:13:26,280 --> 00:13:30,920 Speaker 1: was saying, get to account for approximately of primary energy 228 00:13:31,760 --> 00:13:35,040 Speaker 1: in twenty fifty. We're talking about increasing from seventy million 229 00:13:35,080 --> 00:13:38,199 Speaker 1: tons per annum today in terms of hydrogen production to 230 00:13:38,280 --> 00:13:42,280 Speaker 1: potentially in a one point five degree scenario six hundred 231 00:13:42,400 --> 00:13:45,839 Speaker 1: or north of six hundred and fifty. And that will 232 00:13:45,880 --> 00:13:48,040 Speaker 1: have to be clean, be it blue or be it green. 233 00:13:48,240 --> 00:13:49,959 Speaker 1: So I think that is an area in which we 234 00:13:50,080 --> 00:13:55,920 Speaker 1: are very excited. We see obviously a need to abate 235 00:13:56,440 --> 00:14:00,720 Speaker 1: the cost of hydrogen as we look towards twenty thirties 236 00:14:00,800 --> 00:14:04,040 Speaker 1: in a world where today blue hydrogen is more expensive 237 00:14:04,080 --> 00:14:07,720 Speaker 1: than gray hydrogen and green hydrogen is more expective than blue, 238 00:14:07,920 --> 00:14:10,720 Speaker 1: and we expected to be the case for until probably 239 00:14:10,760 --> 00:14:15,959 Speaker 1: limit the early thirties. So we will require support to 240 00:14:16,160 --> 00:14:19,120 Speaker 1: accelerate hydrogen. But we think hydrogen will be a critical 241 00:14:19,280 --> 00:14:23,280 Speaker 1: element to decarbonize hard to eight sectors. In that same line, 242 00:14:23,640 --> 00:14:26,680 Speaker 1: I think CCS has a critical role to play. We 243 00:14:26,760 --> 00:14:30,280 Speaker 1: see five point five gigatons of c O two emissions 244 00:14:30,960 --> 00:14:34,560 Speaker 1: of c O two to be captured through CCS and 245 00:14:34,480 --> 00:14:37,080 Speaker 1: and at zero scenario d I a just release a 246 00:14:37,080 --> 00:14:40,440 Speaker 1: scenario which talks to seven point six gigatons of c 247 00:14:40,600 --> 00:14:44,240 Speaker 1: O two and then at zero scenario. So CCS we 248 00:14:44,400 --> 00:14:47,280 Speaker 1: think has a critical role to play, and it also 249 00:14:47,320 --> 00:14:50,720 Speaker 1: allows to actually half the cost of the energy transition 250 00:14:51,080 --> 00:14:53,400 Speaker 1: as we try to align with the Paris Agreement. And 251 00:14:53,440 --> 00:14:55,400 Speaker 1: it obviously has a critical role to play in terms 252 00:14:55,400 --> 00:14:58,560 Speaker 1: of blue hydrogen. I think other technologies such as sim 253 00:14:58,640 --> 00:15:02,560 Speaker 1: fuels E fields have a role to play. They are 254 00:15:02,800 --> 00:15:05,720 Speaker 1: less mature and need to be proven if you wish, 255 00:15:05,720 --> 00:15:07,960 Speaker 1: in terms of in terms of adoption, and I think 256 00:15:07,960 --> 00:15:10,120 Speaker 1: they will take a bit longer in terms of adoption. 257 00:15:10,600 --> 00:15:13,680 Speaker 1: So looking at these technologies, you did mention that some 258 00:15:13,760 --> 00:15:15,840 Speaker 1: of them some forms of hydrogen or more expensive than 259 00:15:15,840 --> 00:15:19,920 Speaker 1: others and even more more still, so this requires investment 260 00:15:19,960 --> 00:15:22,680 Speaker 1: and reinvestment into the business and into technologies and R 261 00:15:22,720 --> 00:15:26,120 Speaker 1: and D. What has been the reception by the investment 262 00:15:26,160 --> 00:15:30,400 Speaker 1: community and really those shareholders looking at BP saying you know, 263 00:15:30,440 --> 00:15:33,200 Speaker 1: maybe I'm not getting the same dividend payments that I 264 00:15:33,240 --> 00:15:35,600 Speaker 1: was getting in the past, and you know, yeah, really, 265 00:15:35,600 --> 00:15:40,440 Speaker 1: what has been the response regarding bps net zero future. 266 00:15:40,840 --> 00:15:44,240 Speaker 1: So I think the response has been very positive. It's 267 00:15:44,320 --> 00:15:48,400 Speaker 1: been very positive across eholders, so it's been very positive 268 00:15:48,440 --> 00:15:51,560 Speaker 1: for our own employees who very much embarked on the 269 00:15:51,560 --> 00:15:55,000 Speaker 1: new purpose and the new strategy. It's been very positive 270 00:15:55,040 --> 00:15:58,360 Speaker 1: if you think about external stakeholders and end us, and 271 00:15:58,440 --> 00:16:01,080 Speaker 1: I think in terms of investors, we had a very 272 00:16:01,120 --> 00:16:05,320 Speaker 1: positive response on the strategic direction and at the same 273 00:16:05,360 --> 00:16:08,600 Speaker 1: time and acknowledgements that the focus now is very much 274 00:16:08,600 --> 00:16:12,200 Speaker 1: an execution and I think that's what we've been focused on. 275 00:16:12,520 --> 00:16:15,440 Speaker 1: And the dialogue with investors is very much one of 276 00:16:16,200 --> 00:16:20,400 Speaker 1: ongoing dialogue with individual investors such as well as UM 277 00:16:20,800 --> 00:16:23,680 Speaker 1: you know, Climate Action one hundred plus and yeah, just 278 00:16:23,760 --> 00:16:27,960 Speaker 1: continuing to show those proof points, continuing to drive transparency 279 00:16:28,120 --> 00:16:31,920 Speaker 1: and to some extent help our investors come with us 280 00:16:31,960 --> 00:16:33,680 Speaker 1: on the journey. And this is also the reason why 281 00:16:34,200 --> 00:16:37,240 Speaker 1: this year we've actually changed our disclosures to actually align 282 00:16:37,320 --> 00:16:41,000 Speaker 1: also are disclosures to the new strategy, so that we 283 00:16:41,040 --> 00:16:45,640 Speaker 1: can actually help investors understand the value in the different 284 00:16:45,680 --> 00:16:48,240 Speaker 1: elements of the strategy. Well, and this might be dry 285 00:16:48,320 --> 00:16:50,280 Speaker 1: for many people, but really if you're looking at this, 286 00:16:50,400 --> 00:16:54,520 Speaker 1: the different frameworks are important, and the disclosure element is 287 00:16:54,680 --> 00:16:57,440 Speaker 1: how you communicate with the investment community. I really want 288 00:16:57,480 --> 00:16:59,840 Speaker 1: to know which frameworks you find to be most of 289 00:17:00,080 --> 00:17:03,040 Speaker 1: lable and really give the most accurate view of what's 290 00:17:03,080 --> 00:17:06,520 Speaker 1: actually happening. It is indeed an area in which we 291 00:17:06,560 --> 00:17:09,760 Speaker 1: see quite a multitude of initiatives. So I think when 292 00:17:09,840 --> 00:17:11,800 Speaker 1: when you try to answer that question, the way we 293 00:17:11,880 --> 00:17:14,080 Speaker 1: actually tack on it is what are we trying to 294 00:17:14,160 --> 00:17:17,200 Speaker 1: achieve in terms of in terms of disclosures and metrics 295 00:17:17,320 --> 00:17:19,200 Speaker 1: we try to answer that question. I think the first 296 00:17:19,200 --> 00:17:22,040 Speaker 1: element is very much transparency, so that we can create 297 00:17:22,840 --> 00:17:26,320 Speaker 1: understanding for the investors not only of the risks associated 298 00:17:26,359 --> 00:17:29,960 Speaker 1: with a potential company and its transition strategy, but also 299 00:17:30,000 --> 00:17:33,239 Speaker 1: the opportunities it actually is exposed to, as well as 300 00:17:33,280 --> 00:17:37,359 Speaker 1: comparability across companies. So if those are the two objectives, 301 00:17:37,400 --> 00:17:40,200 Speaker 1: then you get into okay, so what do those disclosures 302 00:17:40,280 --> 00:17:42,840 Speaker 1: actually need to have? And I think they need to 303 00:17:42,880 --> 00:17:46,360 Speaker 1: be simple, yet not too simple, because I do acknowledge 304 00:17:46,400 --> 00:17:49,080 Speaker 1: that only in gas industry has a very complex value 305 00:17:49,119 --> 00:17:52,600 Speaker 1: chain and there is a risk of ultra simplification, and 306 00:17:52,680 --> 00:17:55,760 Speaker 1: they need to be as much as possible standardized. And 307 00:17:55,840 --> 00:17:59,359 Speaker 1: so when we look at disclosures. We very much favor 308 00:17:59,400 --> 00:18:03,040 Speaker 1: disclosures which obviously have a very strong element on in 309 00:18:03,119 --> 00:18:06,840 Speaker 1: terms of carbon and by common we definitely include scope 310 00:18:06,880 --> 00:18:11,560 Speaker 1: PREE because in our industry very specifically it represents eight 311 00:18:12,600 --> 00:18:16,920 Speaker 1: total emissions and forward looking carbon metrics, so not only 312 00:18:16,960 --> 00:18:19,280 Speaker 1: in terms of your own track record and position today, 313 00:18:19,320 --> 00:18:21,320 Speaker 1: but you know what are you actually himing to or 314 00:18:21,359 --> 00:18:26,640 Speaker 1: targeting too. We're looking for disclosures which include financial lead 315 00:18:26,760 --> 00:18:29,840 Speaker 1: indicators which give an indication of how you're actually aiming 316 00:18:29,880 --> 00:18:32,040 Speaker 1: to transition the company, such as, for instance, what's your 317 00:18:32,080 --> 00:18:37,000 Speaker 1: share of topics into low carbon versus Orno gas. And 318 00:18:37,040 --> 00:18:40,119 Speaker 1: we're looking for disclosures which actually also allow us to 319 00:18:40,160 --> 00:18:47,560 Speaker 1: showcase some of the qualitative elements such as governance, board composition, incentives, 320 00:18:48,000 --> 00:18:51,840 Speaker 1: efforts in terms of advocacy, so we're collaborating with many 321 00:18:51,840 --> 00:18:56,080 Speaker 1: different initiatives. I would call out TCFD, I would call 322 00:18:56,119 --> 00:18:59,360 Speaker 1: out obviously SASPY, the I I G C C SO 323 00:18:59,480 --> 00:19:03,400 Speaker 1: nanzero standard for Ordan gas companies, which we've worked very 324 00:19:03,400 --> 00:19:07,119 Speaker 1: extensively with to try and actually shape what those forward 325 00:19:07,119 --> 00:19:09,679 Speaker 1: looking metrics could actually apply for, in particular for the 326 00:19:09,680 --> 00:19:12,639 Speaker 1: oorin gas industry, and this year we will start also 327 00:19:12,720 --> 00:19:17,240 Speaker 1: disclosing along CDP. So disclosure speaks to everyone in the 328 00:19:17,280 --> 00:19:20,040 Speaker 1: community is really looking to better understand what's actually going 329 00:19:20,080 --> 00:19:22,080 Speaker 1: on in terms of how you're going to get there 330 00:19:22,280 --> 00:19:24,720 Speaker 1: and and where you are in the process. And you know, 331 00:19:24,720 --> 00:19:28,000 Speaker 1: when I was asking about the traditional investors who maybe 332 00:19:28,600 --> 00:19:31,359 Speaker 1: aren't keen on reinvestment, there's the other side, there's the 333 00:19:31,400 --> 00:19:34,440 Speaker 1: E s G investors who are or even a step further, 334 00:19:34,480 --> 00:19:37,760 Speaker 1: the activist investors. And we've seen this recently with Excen 335 00:19:37,880 --> 00:19:41,720 Speaker 1: where they ended up giving multiple board seats after substantial 336 00:19:41,720 --> 00:19:44,359 Speaker 1: pressure from activist investors to take it a step further. 337 00:19:44,600 --> 00:19:47,639 Speaker 1: And what areas are you getting pressure from E s 338 00:19:47,680 --> 00:19:51,320 Speaker 1: G investors to do more that you know you think 339 00:19:51,480 --> 00:19:54,480 Speaker 1: might be an interesting place to discover in the future 340 00:19:54,520 --> 00:19:57,000 Speaker 1: that maybe BP is not yet ready for. We are 341 00:19:57,840 --> 00:20:01,879 Speaker 1: very much engaging with s G investors and non E 342 00:20:02,000 --> 00:20:04,040 Speaker 1: s G investors by the way, as we navigate through 343 00:20:04,040 --> 00:20:07,679 Speaker 1: the energy transition, and I would say the dialogue is 344 00:20:08,480 --> 00:20:12,080 Speaker 1: a very rich dialogue which has also allowed us to 345 00:20:12,760 --> 00:20:17,600 Speaker 1: progress and progress together with our investors. So as an example, 346 00:20:18,000 --> 00:20:21,240 Speaker 1: in ten we actually got a joint resolution with Climate 347 00:20:21,240 --> 00:20:25,000 Speaker 1: Action one hundred plus, which was a resolution on precisely 348 00:20:25,040 --> 00:20:29,440 Speaker 1: disclosures and transparency. So I think that engagement is actually 349 00:20:29,680 --> 00:20:33,639 Speaker 1: extremely helpful because we value the challenge, right, We value 350 00:20:33,680 --> 00:20:37,320 Speaker 1: the challenge and the ability to actually, you know, take 351 00:20:37,359 --> 00:20:39,439 Speaker 1: a step back, think through do we have all the 352 00:20:39,480 --> 00:20:41,600 Speaker 1: elements embedded within what we're aiming to do. And it 353 00:20:41,640 --> 00:20:45,040 Speaker 1: was very much at the core towards one the new ambition, 354 00:20:45,240 --> 00:20:47,840 Speaker 1: the net zero aims, as well as a strategy that 355 00:20:47,880 --> 00:20:51,000 Speaker 1: we actually announced. So we're actually very much looking forward 356 00:20:51,000 --> 00:20:54,239 Speaker 1: to continue that engagement with individual investors as well as 357 00:20:54,280 --> 00:20:57,239 Speaker 1: with organizations such as Climate Action one hundred PLUSS as 358 00:20:57,240 --> 00:21:00,520 Speaker 1: we continue to execute on the strategy. Now for a 359 00:21:00,600 --> 00:21:06,639 Speaker 1: very short break, stay with us, So switching tracks a 360 00:21:06,640 --> 00:21:08,800 Speaker 1: little bit. We started off talking about you and then 361 00:21:08,840 --> 00:21:11,240 Speaker 1: we went straight into the business. Let's go back to 362 00:21:11,320 --> 00:21:14,879 Speaker 1: you and your role within the business. And clearly you 363 00:21:14,920 --> 00:21:16,840 Speaker 1: know a lot in regard to you have a lot 364 00:21:16,880 --> 00:21:18,480 Speaker 1: to say, that's the right way to phrase it. You 365 00:21:18,480 --> 00:21:21,119 Speaker 1: have a lot to say in regard to the different 366 00:21:21,119 --> 00:21:23,479 Speaker 1: frameworks the company is looking at in your strategy. And 367 00:21:23,520 --> 00:21:26,040 Speaker 1: you're in a role that is new for VP, is 368 00:21:26,080 --> 00:21:28,120 Speaker 1: it not, And could you talk to us a little 369 00:21:28,119 --> 00:21:31,960 Speaker 1: bit about what that role was designed to accomplish and 370 00:21:32,200 --> 00:21:35,240 Speaker 1: and how you see it fitting within the organization. It 371 00:21:35,359 --> 00:21:38,240 Speaker 1: is indeed a new role and a new organization. It 372 00:21:38,400 --> 00:21:43,040 Speaker 1: was created within the frame of the reorganization of BP 373 00:21:43,359 --> 00:21:45,840 Speaker 1: is one of the integrators and what we did create 374 00:21:45,840 --> 00:21:49,320 Speaker 1: that role. The role is basically the strategy and sustainability 375 00:21:49,400 --> 00:21:54,520 Speaker 1: organization of the group. Is we very much concentrated within 376 00:21:54,600 --> 00:21:58,760 Speaker 1: that organization, the group strategy, so we no longer really 377 00:21:58,760 --> 00:22:03,000 Speaker 1: have beyond operational strategy of strategy teams within the different 378 00:22:03,000 --> 00:22:06,040 Speaker 1: businesses and the same is true for sustainability. So we 379 00:22:06,040 --> 00:22:08,960 Speaker 1: were aiming for two things. I think the first thing 380 00:22:09,160 --> 00:22:15,160 Speaker 1: was really to bring together strategy and sustainability and policy 381 00:22:15,280 --> 00:22:18,080 Speaker 1: living to that. The reason being that as we navigate 382 00:22:18,119 --> 00:22:20,720 Speaker 1: through the energy transition and by the way, even more 383 00:22:20,800 --> 00:22:24,880 Speaker 1: after and the COVID pandemic, the two are very much 384 00:22:25,280 --> 00:22:29,000 Speaker 1: coming together and a sustainable strategy as a strategy which 385 00:22:29,040 --> 00:22:32,119 Speaker 1: is resilient for the future. So the first objective was 386 00:22:32,160 --> 00:22:35,119 Speaker 1: to bring the two together. The second one was very 387 00:22:35,200 --> 00:22:40,280 Speaker 1: much one of actually creating this central BP Strategy and 388 00:22:40,320 --> 00:22:44,639 Speaker 1: Sustainability team which would actually basically help the different businesses 389 00:22:44,760 --> 00:22:48,720 Speaker 1: and organizations to craft the strategy which would actually take 390 00:22:48,800 --> 00:22:51,200 Speaker 1: us through the energy transition and deliver on the aims 391 00:22:51,200 --> 00:22:56,040 Speaker 1: which were announced by Bernard. Really optimizing for the group 392 00:22:56,400 --> 00:22:59,480 Speaker 1: was breaking a little bit of maybe the upstream downstream 393 00:22:59,560 --> 00:23:02,560 Speaker 1: silo that could have been present in the past. So 394 00:23:02,640 --> 00:23:06,439 Speaker 1: it's really an organization which is focused on working with 395 00:23:06,480 --> 00:23:10,439 Speaker 1: all the different businesses and obviously finance and the and 396 00:23:10,520 --> 00:23:16,439 Speaker 1: the functions to actually craft what's the optimal path. And 397 00:23:16,480 --> 00:23:19,240 Speaker 1: that optimal path is really an optimal path in terms 398 00:23:19,320 --> 00:23:22,600 Speaker 1: of delivering on the aims, the purpose and the ambition, 399 00:23:22,680 --> 00:23:27,040 Speaker 1: but also delivering a performance today and our shareholder investor 400 00:23:27,119 --> 00:23:31,200 Speaker 1: value proposition. So you joined, then there was a global pandemic, 401 00:23:31,440 --> 00:23:36,560 Speaker 1: and how has that changed how you are getting your 402 00:23:36,640 --> 00:23:39,560 Speaker 1: job done and maybe even just the scope of the role, 403 00:23:39,640 --> 00:23:42,560 Speaker 1: because surely you know the things that you were setting 404 00:23:42,560 --> 00:23:45,920 Speaker 1: out initially to do have in some way it's probably 405 00:23:45,960 --> 00:23:49,560 Speaker 1: been modified by this. I joined, indeed, and then the 406 00:23:49,600 --> 00:23:53,080 Speaker 1: global pandemic hit, and you know, what I thought was 407 00:23:53,680 --> 00:23:56,359 Speaker 1: made a pretty interesting challenge became even more of a 408 00:23:56,440 --> 00:24:00,600 Speaker 1: challenge because creating an organization and the strategy when you're 409 00:24:00,680 --> 00:24:04,760 Speaker 1: working remotely and you do not know necessarily the team 410 00:24:05,000 --> 00:24:07,400 Speaker 1: is not something which is the easiest task that one 411 00:24:07,400 --> 00:24:10,520 Speaker 1: could actually lay out. It is actually quite incredible how 412 00:24:11,400 --> 00:24:15,600 Speaker 1: the organization of raw has adapted to the remote working 413 00:24:15,960 --> 00:24:19,879 Speaker 1: and how incredibly efficient we have been in terms of 414 00:24:19,920 --> 00:24:25,040 Speaker 1: actually really moving into virtual and driving the reorganization design 415 00:24:25,040 --> 00:24:27,560 Speaker 1: and driving the strategy. I think what we've done through 416 00:24:27,600 --> 00:24:31,119 Speaker 1: the pandemic is actually the detailed design of the organization 417 00:24:31,400 --> 00:24:34,160 Speaker 1: and that has slightly morphed as we were going through 418 00:24:34,200 --> 00:24:36,480 Speaker 1: the detailed design, but it would have been the same 419 00:24:36,680 --> 00:24:40,480 Speaker 1: vel without pandemic. I think what the pandemic actually did 420 00:24:40,560 --> 00:24:45,520 Speaker 1: do is that through the pandemic, I think we have 421 00:24:46,320 --> 00:24:50,040 Speaker 1: witnessed an acceleration at these in terms of momentum and 422 00:24:50,359 --> 00:24:54,040 Speaker 1: intense in terms of energy transition. And so what the 423 00:24:54,040 --> 00:24:58,000 Speaker 1: pandemic had it actually done is it has one confirmed 424 00:24:58,160 --> 00:25:01,720 Speaker 1: the strategy that we were shaping, and two helps us 425 00:25:01,800 --> 00:25:05,159 Speaker 1: on board the organization on the strategy and on the 426 00:25:05,200 --> 00:25:09,840 Speaker 1: need to actually re reorganize along the new structure. So 427 00:25:09,960 --> 00:25:14,639 Speaker 1: it sounds like you're actually fairly hopeful, and recently we 428 00:25:14,760 --> 00:25:17,640 Speaker 1: looked well. So some forecasts are showing that we may 429 00:25:17,640 --> 00:25:21,359 Speaker 1: reach that one point five degree C before pre industrial 430 00:25:21,440 --> 00:25:24,520 Speaker 1: levels that that International Planel on Climate Change really put. 431 00:25:24,600 --> 00:25:26,600 Speaker 1: Is this line in the sand regarding where that we 432 00:25:26,640 --> 00:25:29,560 Speaker 1: think we're going to start to see some more catastrophic 433 00:25:29,680 --> 00:25:33,119 Speaker 1: responses to climate Where do you have reasons to be 434 00:25:33,200 --> 00:25:37,440 Speaker 1: hopeful within the oil and gas industry that we may 435 00:25:37,520 --> 00:25:41,560 Speaker 1: be able to, you know, limit climate change to one 436 00:25:41,560 --> 00:25:44,439 Speaker 1: point five C when it looks like that year is 437 00:25:44,840 --> 00:25:50,200 Speaker 1: very very near. I think the challenge is indeed very big. 438 00:25:50,640 --> 00:25:53,640 Speaker 1: At the same time, I am hopeful, and I'm hopeful 439 00:25:53,760 --> 00:25:57,119 Speaker 1: for several reasons. I'm hopeful, first of all, because I 440 00:25:57,160 --> 00:26:00,960 Speaker 1: think the world is accelerating. It's celerating in terms of 441 00:26:01,000 --> 00:26:06,400 Speaker 1: definitely society towards the energy transition, it is accelerating towards 442 00:26:06,920 --> 00:26:10,640 Speaker 1: in terms of regulatory frameworks, policy frameworks. I mean, let's 443 00:26:10,640 --> 00:26:14,760 Speaker 1: not you know, needless to mention the new new US 444 00:26:14,720 --> 00:26:21,480 Speaker 1: screen deal, the UK Turndpoint Plan, the EU production ambition, 445 00:26:21,800 --> 00:26:27,320 Speaker 1: and by twenty thirty China's common Neutrality. By the recent 446 00:26:27,320 --> 00:26:31,800 Speaker 1: announcements on call, so I think altogether we are seeing 447 00:26:32,160 --> 00:26:35,480 Speaker 1: an acceleration. We also seeing in acceleration as we discussed 448 00:26:35,480 --> 00:26:38,600 Speaker 1: in terms of investor focus on the energy transition, and 449 00:26:38,720 --> 00:26:41,120 Speaker 1: we're seeing an acceleration in terms of companies. I think 450 00:26:42,160 --> 00:26:46,240 Speaker 1: we saw one five hundred new companies commit to net zero. 451 00:26:46,520 --> 00:26:49,960 Speaker 1: We are seeing quite some momentum. The other reason why 452 00:26:50,200 --> 00:26:53,119 Speaker 1: I'm hopeful is because I think we do have the 453 00:26:53,240 --> 00:26:56,200 Speaker 1: technologies right, and some of those technologies, as I was saying, 454 00:26:56,240 --> 00:26:59,199 Speaker 1: are really extremely competitive, such as renewables. Other need to 455 00:26:59,240 --> 00:27:01,520 Speaker 1: be proven at gale. I think the fab reason I 456 00:27:01,520 --> 00:27:05,600 Speaker 1: am actually hopeful is that we are seeing tremendous growth. 457 00:27:05,680 --> 00:27:07,879 Speaker 1: So if I look at the last ten years in 458 00:27:07,960 --> 00:27:10,600 Speaker 1: terms of renewable penetration, we saw an average of sixty 459 00:27:10,720 --> 00:27:13,879 Speaker 1: giga what's added in terms of at IT capacity. In 460 00:27:13,920 --> 00:27:16,159 Speaker 1: the last few years, we've already reached one hundred and 461 00:27:16,160 --> 00:27:18,320 Speaker 1: fifty gigo what's and yes we need to ramp that 462 00:27:18,440 --> 00:27:21,520 Speaker 1: up to more than three hundred and five hundred and 463 00:27:21,560 --> 00:27:23,680 Speaker 1: fifty in a well below two degrees or one point 464 00:27:23,720 --> 00:27:27,280 Speaker 1: five degrees scenario, but it is still significant acceleration. If 465 00:27:27,320 --> 00:27:30,240 Speaker 1: you look at CCS, I think there are twenty six 466 00:27:30,480 --> 00:27:34,760 Speaker 1: projects ongoing operating in terms of CCS, and in the 467 00:27:34,840 --> 00:27:38,960 Speaker 1: last three years there's been thirty announcements, so almost as 468 00:27:38,960 --> 00:27:41,679 Speaker 1: many announcements in the last three years as we have 469 00:27:41,960 --> 00:27:45,960 Speaker 1: projects operating to date. At the same time, it is 470 00:27:46,000 --> 00:27:49,840 Speaker 1: a challenging journey and I think a lot still needs 471 00:27:49,840 --> 00:27:54,719 Speaker 1: to happen from a regulatory and policy standpoint to enable 472 00:27:54,760 --> 00:27:58,000 Speaker 1: and accelerate the journey to mention a few We very 473 00:27:58,080 --> 00:28:02,840 Speaker 1: much believe in the need for global carbon economy system 474 00:28:03,240 --> 00:28:06,560 Speaker 1: which can actually accelerate the transition and in link to 475 00:28:06,600 --> 00:28:09,960 Speaker 1: that carbon border adjustment so that that actually becomes more 476 00:28:10,000 --> 00:28:14,360 Speaker 1: efficient and effective. We also need to have policy support 477 00:28:14,400 --> 00:28:17,320 Speaker 1: for hard to abate sectors as a transition, and that 478 00:28:17,400 --> 00:28:19,560 Speaker 1: can actually be either in the form of mandates or 479 00:28:19,560 --> 00:28:22,520 Speaker 1: other structures. But if you think about how to abate 480 00:28:22,600 --> 00:28:25,560 Speaker 1: sectors av agency of cement, we will need to have 481 00:28:25,840 --> 00:28:29,200 Speaker 1: support in terms of policy to make that happen. The 482 00:28:29,280 --> 00:28:32,919 Speaker 1: ecosystem will also need to support what we call greening 483 00:28:32,960 --> 00:28:36,400 Speaker 1: companies such as ours, as long as they're committed to transitioning, 484 00:28:36,680 --> 00:28:39,480 Speaker 1: both because we need those emissions to actually reduce, but 485 00:28:39,640 --> 00:28:42,800 Speaker 1: also just in terms of the sheer scale and size 486 00:28:42,920 --> 00:28:48,080 Speaker 1: to actually drive the investment into the alternatives. So the 487 00:28:48,200 --> 00:28:50,960 Speaker 1: VP is not alone. I mean the oil majors are 488 00:28:51,000 --> 00:28:54,160 Speaker 1: looking at this and then getting pressure from the investment community. 489 00:28:54,400 --> 00:28:56,960 Speaker 1: Let's so from the national oil companies that aren't getting 490 00:28:56,960 --> 00:29:02,240 Speaker 1: that external pressure. In what ways is BP working directly 491 00:29:02,320 --> 00:29:05,920 Speaker 1: with some of your competitors and other oil companies around 492 00:29:05,960 --> 00:29:09,000 Speaker 1: the world, whether they be oil majors, r n ocs, 493 00:29:09,080 --> 00:29:13,200 Speaker 1: on sharing best practices or trying to find a path 494 00:29:13,240 --> 00:29:16,440 Speaker 1: forward for these ambitions because to your point, the industry 495 00:29:16,480 --> 00:29:18,520 Speaker 1: is going to need to move not just to BP. 496 00:29:18,840 --> 00:29:24,560 Speaker 1: We are working indeed across companies to actually try to 497 00:29:25,160 --> 00:29:27,640 Speaker 1: enable the transition. And that's a different level. So if 498 00:29:28,000 --> 00:29:31,000 Speaker 1: I look at our fruts, clearly O g c I 499 00:29:31,200 --> 00:29:33,640 Speaker 1: plays a role. It plays a role in terms of 500 00:29:33,880 --> 00:29:39,040 Speaker 1: knowledge sharing and in particular around working among oil and 501 00:29:39,080 --> 00:29:42,840 Speaker 1: gas companies to really set the standards and the ambitions 502 00:29:42,840 --> 00:29:46,959 Speaker 1: in terms of how do you actually develop hydrocarbons business 503 00:29:46,960 --> 00:29:50,680 Speaker 1: which are really low emissions hydrocarbons business. So the o 504 00:29:50,800 --> 00:29:54,440 Speaker 1: g c I is an example, has invested with nineteen 505 00:29:54,640 --> 00:29:59,840 Speaker 1: investments into projects to reduce methane emissions and projects to 506 00:30:00,000 --> 00:30:03,640 Speaker 1: reduce carbon dioxide emissions, into projects to to actually also 507 00:30:03,720 --> 00:30:06,920 Speaker 1: look into accelerating technology such as CCS egen at zero 508 00:30:07,000 --> 00:30:09,680 Speaker 1: tea side and also setting some of the ambitions right 509 00:30:09,720 --> 00:30:14,120 Speaker 1: the methane intensity ambition of zero point to zero percent 510 00:30:14,480 --> 00:30:17,440 Speaker 1: is one example. So I think there is a collective 511 00:30:18,040 --> 00:30:22,120 Speaker 1: industry effort in terms of actually within that focus trying 512 00:30:22,200 --> 00:30:27,560 Speaker 1: to set those practices, standards and advanced solutions towards lower emissions. 513 00:30:27,560 --> 00:30:30,040 Speaker 1: So you mentioned methane, which I think is really interesting 514 00:30:30,080 --> 00:30:33,800 Speaker 1: because there's so much fixation on the carbon aspect that 515 00:30:34,240 --> 00:30:38,040 Speaker 1: methane has talked about so much less in many circles, 516 00:30:38,480 --> 00:30:40,560 Speaker 1: but maybe not as much within the oil and gas 517 00:30:40,640 --> 00:30:43,840 Speaker 1: base or the energy companies. Do you think that methane 518 00:30:43,880 --> 00:30:48,160 Speaker 1: should be talked about more as a potent greenhouse gas 519 00:30:48,320 --> 00:30:51,640 Speaker 1: or is the balance about right? I think there is 520 00:30:51,720 --> 00:30:54,600 Speaker 1: quite a lot of focus on methane at please within 521 00:30:54,800 --> 00:30:58,000 Speaker 1: the oilan gas industry and the energy sector. And yes, 522 00:30:58,440 --> 00:31:01,640 Speaker 1: it is definitely are the called topic that we need 523 00:31:01,720 --> 00:31:04,240 Speaker 1: to address, and it is one which we have actually 524 00:31:04,280 --> 00:31:07,600 Speaker 1: framed as one of our aims. So our aim for 525 00:31:07,840 --> 00:31:11,360 Speaker 1: within our net zero aims is very much around deploying 526 00:31:11,760 --> 00:31:16,040 Speaker 1: measurement in terms of methane in our operating sites by 527 00:31:16,120 --> 00:31:19,480 Speaker 1: twenty three and they're naming to actually half our methane intensity. 528 00:31:19,520 --> 00:31:22,120 Speaker 1: And this is actually something which is quite unique because 529 00:31:22,520 --> 00:31:27,600 Speaker 1: today methane emissions are calculated on an estimated basis, so 530 00:31:27,680 --> 00:31:30,360 Speaker 1: actually a shift from estimated basis to a measure the 531 00:31:30,360 --> 00:31:33,360 Speaker 1: basis is a very very strong commitment, but there is 532 00:31:33,560 --> 00:31:37,840 Speaker 1: significant collaboration within the industry. There is significant collaboration with 533 00:31:38,080 --> 00:31:40,880 Speaker 1: organizations such as e d F in terms of setting 534 00:31:40,880 --> 00:31:45,600 Speaker 1: the standards on methane and advocating for mefane regulation, and 535 00:31:45,640 --> 00:31:48,160 Speaker 1: I think there is quite a lot of also engagement 536 00:31:48,320 --> 00:31:52,959 Speaker 1: with regulators to support mefane regulation, both in Europe as 537 00:31:52,960 --> 00:31:55,600 Speaker 1: well as in a geography such as a US. One 538 00:31:55,640 --> 00:31:58,400 Speaker 1: potential strategy for a company in order to have their 539 00:31:58,440 --> 00:32:01,480 Speaker 1: company appear to be much more environmentally friendly is to 540 00:32:01,520 --> 00:32:05,240 Speaker 1: sell off their most polluting assets. What is to stop 541 00:32:05,320 --> 00:32:08,240 Speaker 1: companies from doing that? And where do you think there 542 00:32:08,320 --> 00:32:11,440 Speaker 1: is a place for leadership in trying to make sure 543 00:32:11,520 --> 00:32:14,120 Speaker 1: that that is you know, visible in the industry to 544 00:32:14,160 --> 00:32:20,080 Speaker 1: the investors. I think divestments is, as we've shared, one 545 00:32:20,120 --> 00:32:22,720 Speaker 1: of the critical elements actually of our strategy. The way 546 00:32:22,760 --> 00:32:26,240 Speaker 1: we actually look at divestments as one of the critical 547 00:32:26,240 --> 00:32:30,920 Speaker 1: elements of the strategy is that divestments basically helps in 548 00:32:30,960 --> 00:32:34,240 Speaker 1: our case, advanced the world towards that zero. And the 549 00:32:34,280 --> 00:32:38,320 Speaker 1: reason for it is we're actually divesting assets and we 550 00:32:38,400 --> 00:32:43,800 Speaker 1: are reinvesting the proceeds into creating a low carbons supply, 551 00:32:44,560 --> 00:32:47,080 Speaker 1: so it's not divestment for the sacred divestments, it's really 552 00:32:47,120 --> 00:32:51,400 Speaker 1: divestments and reinvestment into low carbon supply, and so that 553 00:32:51,520 --> 00:32:54,760 Speaker 1: actually advances the world in the energy transition in the 554 00:32:54,840 --> 00:32:58,600 Speaker 1: sense of actually bring in that capacity, that additional low 555 00:32:58,680 --> 00:33:02,160 Speaker 1: carbon capacity in solution online. And I think it also 556 00:33:02,360 --> 00:33:06,360 Speaker 1: enables bp TO itself to advance towards its Natzi ra 557 00:33:06,360 --> 00:33:09,720 Speaker 1: aim and position in the world, which is paris aligned 558 00:33:09,920 --> 00:33:14,959 Speaker 1: in the future. The world is very much evolving towards 559 00:33:15,480 --> 00:33:19,480 Speaker 1: increasing transparency on emissions. So I don't really think there 560 00:33:19,560 --> 00:33:23,520 Speaker 1: is a world where we can imagine that you know, 561 00:33:24,120 --> 00:33:28,640 Speaker 1: buyers of potential divested assets will not be put on 562 00:33:28,800 --> 00:33:33,640 Speaker 1: the you know, transparency requirements in terms of emissions reporting 563 00:33:33,640 --> 00:33:38,000 Speaker 1: and emissions progress. And while divestments do not take assets 564 00:33:38,000 --> 00:33:40,640 Speaker 1: out of a system in terms of aidin gas production, 565 00:33:41,040 --> 00:33:44,160 Speaker 1: I think it helps advance in the energy transition. I 566 00:33:44,160 --> 00:33:46,440 Speaker 1: think it's also fair to say that if you look 567 00:33:46,480 --> 00:33:49,400 Speaker 1: at scenarios and you look at a well below two 568 00:33:49,400 --> 00:33:52,040 Speaker 1: degree scenario or one point five degree scenario, he's still 569 00:33:52,040 --> 00:33:57,720 Speaker 1: having tent of the primary energy mix, which is actually 570 00:33:57,760 --> 00:34:02,520 Speaker 1: linked to point in gas. So we will need to 571 00:34:02,600 --> 00:34:06,360 Speaker 1: oil and gas production as we transition and the question 572 00:34:06,480 --> 00:34:08,920 Speaker 1: is is really one of who's abist owner for the 573 00:34:08,920 --> 00:34:11,840 Speaker 1: assets in the frame of the individual strategies. Well, and 574 00:34:11,840 --> 00:34:14,080 Speaker 1: then the other question is for how long? So you 575 00:34:14,160 --> 00:34:18,319 Speaker 1: have this zero target? But where do you think the 576 00:34:18,320 --> 00:34:22,120 Speaker 1: inflection points are? Because there has been some discussion around 577 00:34:22,120 --> 00:34:25,480 Speaker 1: the fact that emissions today are much more impactful than 578 00:34:25,520 --> 00:34:28,520 Speaker 1: emissions in three years, five years, ten years. Where do 579 00:34:28,600 --> 00:34:33,120 Speaker 1: you think the most important year is? Given that these 580 00:34:33,160 --> 00:34:36,440 Speaker 1: are industries that take a long time to turn and 581 00:34:36,480 --> 00:34:39,399 Speaker 1: to make these changes, so it can't be six months 582 00:34:39,400 --> 00:34:41,600 Speaker 1: from now. What do you think is the biggest inflection 583 00:34:41,640 --> 00:34:45,759 Speaker 1: point between now and we have very much shaped it 584 00:34:46,239 --> 00:34:51,560 Speaker 1: with a short term, medium term and long term aim 585 00:34:51,760 --> 00:34:54,160 Speaker 1: so very completely. You know, we have to look at 586 00:34:54,160 --> 00:34:56,640 Speaker 1: on net zero names. We have five ames which are 587 00:34:56,680 --> 00:35:00,600 Speaker 1: focused on getting BPT to net zero by sooner. Aim 588 00:35:00,640 --> 00:35:02,520 Speaker 1: one is very much around scope on and scope too 589 00:35:02,600 --> 00:35:05,240 Speaker 1: from our own operations. Aimed two as a carbon content 590 00:35:05,320 --> 00:35:08,560 Speaker 1: of our oil and gas production. Aim free is around 591 00:35:08,719 --> 00:35:12,239 Speaker 1: the intensity the carbon intensity of our marketing products. Aimed 592 00:35:12,239 --> 00:35:14,919 Speaker 1: for is a methane intensity, as we discussed and named 593 00:35:14,960 --> 00:35:18,760 Speaker 1: five as a lead indicator in terms of capets into 594 00:35:18,960 --> 00:35:23,440 Speaker 1: low carbon. For each of those we have set a target, 595 00:35:23,640 --> 00:35:26,239 Speaker 1: and we have set at twenty thirty am on the 596 00:35:26,280 --> 00:35:30,040 Speaker 1: way to the let's see your own for me in 597 00:35:30,160 --> 00:35:35,919 Speaker 1: terms of reassuring investors, in terms of and other stakeholders, 598 00:35:35,920 --> 00:35:39,319 Speaker 1: in terms of efforts and trajectories, but also just in 599 00:35:39,400 --> 00:35:42,160 Speaker 1: terms of actually informing strategies, because a lot of the 600 00:35:42,200 --> 00:35:45,839 Speaker 1: decisions that make today will be required to actually frame 601 00:35:45,880 --> 00:35:48,839 Speaker 1: where you're trying to actually head to towards twenty and 602 00:35:49,040 --> 00:35:51,920 Speaker 1: uh and towards. We believe that in that frame you 603 00:35:51,960 --> 00:35:55,879 Speaker 1: actually do need to have short term targets, medium term 604 00:35:55,880 --> 00:35:59,000 Speaker 1: as we described them as being ten years, twenty thirty games, 605 00:35:59,080 --> 00:36:02,080 Speaker 1: and then the longer term objective. And I think that's 606 00:36:02,880 --> 00:36:06,960 Speaker 1: now there's debate, but I think it actually aligns quite well. 607 00:36:07,239 --> 00:36:09,600 Speaker 1: Were for instance, when you look at some of the 608 00:36:09,640 --> 00:36:12,200 Speaker 1: potential initiatives, which are looking at a five year and 609 00:36:12,239 --> 00:36:15,600 Speaker 1: a fifteen tents of fifteen year confering. So it's impossible 610 00:36:15,640 --> 00:36:18,000 Speaker 1: to think about the future as a parent without thinking 611 00:36:18,000 --> 00:36:20,400 Speaker 1: about your kids. So you talked about your two young children. 612 00:36:20,480 --> 00:36:22,840 Speaker 1: I've got two of them as well. They've been probing, 613 00:36:23,000 --> 00:36:26,000 Speaker 1: they've been asking you very pointed questions you said around 614 00:36:26,640 --> 00:36:29,480 Speaker 1: the future and climate and in your role, what advice 615 00:36:29,560 --> 00:36:32,920 Speaker 1: have you given them regarding where they should be looking 616 00:36:33,040 --> 00:36:36,120 Speaker 1: in terms of, you know, maybe their future careers or 617 00:36:36,160 --> 00:36:42,239 Speaker 1: even education choices. Oh that's the tricky one. In full transparency, 618 00:36:42,360 --> 00:36:45,240 Speaker 1: my my children are actually looking into pretty different careers. 619 00:36:45,360 --> 00:36:47,759 Speaker 1: So one of them wants to be a criminologist, the 620 00:36:47,760 --> 00:36:50,640 Speaker 1: other one wants to be a doctor. It's very it's 621 00:36:50,680 --> 00:36:55,120 Speaker 1: actually pretty distant from anything loosely related to the energy 622 00:36:55,120 --> 00:36:58,360 Speaker 1: transition now, but I think they do indeed have pretty 623 00:36:58,360 --> 00:37:03,080 Speaker 1: probing questions. And the probing questions are literally around elements 624 00:37:03,120 --> 00:37:06,160 Speaker 1: such as what car are you driving and for the record, 625 00:37:06,239 --> 00:37:09,480 Speaker 1: I don't have a car, Or how is recycling we 626 00:37:09,520 --> 00:37:12,440 Speaker 1: do actually contributing as an oil and gas company, what 627 00:37:12,480 --> 00:37:15,319 Speaker 1: are you doing right in terms of energy transition? And 628 00:37:15,320 --> 00:37:18,520 Speaker 1: and that is actually fueled by both the personal interests, 629 00:37:18,560 --> 00:37:21,960 Speaker 1: but what they hear and what they actually also engage 630 00:37:22,000 --> 00:37:24,600 Speaker 1: on as activity at school. So I think that's another 631 00:37:24,640 --> 00:37:29,400 Speaker 1: reason to be hopeful, Dana, which is I think the 632 00:37:29,440 --> 00:37:33,080 Speaker 1: generations to follow are very very much focused in terms 633 00:37:33,120 --> 00:37:38,000 Speaker 1: of energy transition, but also more generally sustainability also linked 634 00:37:38,000 --> 00:37:40,880 Speaker 1: to just transition and other topics. I would certainly agree 635 00:37:40,920 --> 00:37:42,839 Speaker 1: with that. They definitely have grown up with this as 636 00:37:42,880 --> 00:37:45,359 Speaker 1: being a focus so a reason to be hopeful about 637 00:37:45,360 --> 00:37:47,880 Speaker 1: the future. Well, Julia, thank you very much for sharing 638 00:37:48,120 --> 00:37:51,040 Speaker 1: your vision for the future and what's going on at 639 00:37:51,080 --> 00:37:53,560 Speaker 1: BP and then your personal journey with us here today. 640 00:37:53,800 --> 00:38:04,480 Speaker 1: Thank you very much for having me Dana. Today's episode 641 00:38:04,480 --> 00:38:06,719 Speaker 1: of Switched On was edited by Rex Warner with Grace 642 00:38:06,719 --> 00:38:09,360 Speaker 1: Stoke Media. Bloomberg Any App is a service provided by 643 00:38:09,360 --> 00:38:12,920 Speaker 1: Bloomberg Finance LP and its affiliate. This recording does not constitute, 644 00:38:13,000 --> 00:38:16,600 Speaker 1: nor should it be construed as investment advice, investment recommendations, 645 00:38:16,680 --> 00:38:19,480 Speaker 1: or a recommendation as to an investment or other strategy. 646 00:38:19,520 --> 00:38:21,960 Speaker 1: Bloomberg an e F should not be considered as information 647 00:38:22,000 --> 00:38:25,280 Speaker 1: sufficient upon which to base an investment decision. Neither Bloomberg 648 00:38:25,280 --> 00:38:28,839 Speaker 1: Finance LP nor any of its affiliates makes any representation 649 00:38:28,920 --> 00:38:31,360 Speaker 1: or warranty as to the accuracy or completeness of the 650 00:38:31,400 --> 00:38:34,400 Speaker 1: information contained in this recording, and any liability as a 651 00:38:34,440 --> 00:38:35,960 Speaker 1: result of this recording is expressly