Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  BP plc    BP.   GB0007980591

BP PLC

(BP.)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

REFILE-UPDATE 1-Pandemic's "great reset" pushes energy firms toward renewables, hydrogen - execs

share with twitter share with LinkedIn share with facebook
09/15/2020 | 05:19am EDT

(Corrects to remove extraneous letters in tag line)

* Petronas re-thinks portfolio after "great reset"

* Shell still sees "huge future" in hydrocarbons

* Vitol calls on energy industry to invest more in CCS

* Carbon pricing key for CCS to take off - Citi

SINGAPORE, Sept 15 (Reuters) - The economic trauma caused by the coronavirus pandemic has pushed energy companies to step-up investment in renewables, hydrogen and other low carbon alternatives, but fossil fuels will be their dominant business for the foreseeable future, industry executives said.

Reeling from the onset of the pandemic, global oil consumption shrank by more than 20% in the second quarter and prices hit their lowest in decades, making companies rethink how fast they should make the transition away from reliance on oil and gas.

"Everyone's talking about this great reset ... What do we need to do to survive this?" Arif Mahmood, Petronas' executive vice president and CEO of downstream, said at the virtual Platts APPEC 2020.

"Energy transition will be pushed forward much faster," he concluded.

The Malaysian state energy company posted a $5 billion loss in April-June and has set up a team to reshape its portfolio and expand in solar and wind for power generation.

Malaysia is the world's fourth largest exporter of liquefied natural gas, and Petronas would maintain its "gas agenda", Arif said, noting that the company was about to begin operations at a second floating LNG plant in Malaysia, and it was also working on an LNG joint venture in Canada.

Oil majors such as BP have set ambitious targets while Chinese state energy companies tiptoed into renewables as they continue to prioritize hydrocarbons for China's energy security needs.

Besides expanding into solar and wind for power generation, more energy companies are researching blue hydrogen produced from natural gas and using carbon capture and storage (CCS) to reduce emissions in the process. The hydrogen could be used in power plants and fuel cell vehicles.

Royal Dutch Shell is involved in biomethane, biofuels and hydrogen and has done "significant work" on CCS as the energy major strikes a balance between energy transition and its core hydrocarbons business, Mark Quartermain, Shell's vice president of crude trading & supply, told the conference.

"We've got to make sure we don't ignore the fact that oil and gas are going to remain essential fossil fuels," Quartmain said, before adding that going forward there will greater focus on climate change and energy transition.

"When it comes to energy transition we need to be in these markets," Quartermain said.

Heads of research at commodity trader Vitol and Citigroup expect CCS to be the next key area of development.

"Hydrogen and carbon capture are more likely in short term to be contributing to decarbonization," Giovanni Serio, Vitol's global head of research, said, calling on the industry to invest more in CCS.

"Some countries are finding ways through credit systems and other mechanisms to price carbons...It's what's really needed for carbon capture to take off," Ed Morse, managing director and global head of commodities research at Citigroup said.

However, "the cost structure of hydrogen is just not competitive enough...it's there but it could be end of the decade phenomenon," Morse said.

In the refining and petrochemical sectors, companies are exploring biofuels, producing chemicals for products that are more widely used in the pandemic such as gloves and for recyclable materials, industry executives said at APPEC. (Reporting by Florence Tan, Chen Aizhu and Koustav Samanta; Editing by Simon Cameron-Moore)

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC -2.84% 232.4 Delayed Quote.-49.28%
CITIGROUP INC. 0.81% 42.19 Delayed Quote.-47.19%
LONDON BRENT OIL 0.26% 41.82 Delayed Quote.-36.73%
ROYAL DUTCH SHELL PLC -1.49% 11.224 Delayed Quote.-56.45%
WTI -0.04% 40.225 Delayed Quote.-35.93%
share with twitter share with LinkedIn share with facebook
All news about BP PLC
02:27pConocoPhillips sees global oil demand returning, executive says
RE
09/23NIKOLA : talks with energy firms stalled after short-seller report - WSJ
RE
09/23Energy executives say U.S. oil production has peaked -Dallas Fed survey
RE
09/23UK shares rise as PM assures jobs protection; BP weighs on oil stocks
RE
09/23Premier Oil seeks another price cut for BP North Sea deal - sources
RE
09/23Vattenfall to focus on offshore wind power projects in Europe
RE
09/23CUE ENERGY RESOURCES : - Ironbark-1 Regulatory Approvals Complete
AQ
09/23UK shares rise as PM assures jobs protection; BP weighs on oil stocks
RE
09/22BP : Competition Law In Bahrain
AQ
09/21Vitol expects tough second half as oil trading flatlines
RE
More news
Financials (USD)
Sales 2020 188 B - -
Net income 2020 -20 685 M - -
Net Debt 2020 44 545 M - -
P/E ratio 2020 -2,42x
Yield 2020 11,3%
Capitalization 46 784 M 59 544 M -
EV / Sales 2020 0,49x
EV / Sales 2021 0,39x
Nbr of Employees 67 600
Free-Float 93,2%
Chart BP PLC
Duration : Period :
BP plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BP PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 4,77 $
Last Close Price 2,32 $
Spread / Highest target 198%
Spread / Average Target 105%
Spread / Lowest Target 20,9%
EPS Revisions
Managers
NameTitle
Bernard Looney Chief Executive Officer & Director
Helge Lund Chairman
Andy Hopwood COO & Executive VP-Upstream Strategy
Murray Auchincloss Chief Financial Officer
Angela Rosemary Emily Strank Chief Scientist & Head-Downstream Technology
Sector and Competitors
1st jan.Capitalization (M$)
BP PLC-49.28%61 424
RELIANCE INDUSTRIES LTD48.74%192 532
EXXON MOBIL CORPORATION-50.72%145 409
CHINA PETROLEUM & CHEMICAL CORPORATION-34.12%65 411
NESTE OYJ55.19%43 182
PTT-26.14%30 318