BP abandons goal to cut oil output, resets strategy

74 pointsposted 14 hours ago
by baanist

84 Comments

schiffern

14 hours ago

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

It's a systems problem requiring systems solutions, not a problem of (as movies simplistically tell us) "bad people."

https://www.youtube.com/watch?v=HMmChiLZZHg

imglorp

14 hours ago

That saying that goes, we are the only species that will become extinct because survival wasn't profitable enough.

To the systems point we really, really really, really really need to stop subsidizing fossil fuels to 7 trillion a year globally. We have to stop making it profitable and encouraged by the system.

https://www.imf.org/en/Blogs/Articles/2023/08/24/fossil-fuel...

cortesoft

14 hours ago

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

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

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

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

FpUser

13 hours ago

>"...individuals would need to sacrifice for the greater good of the species."

This old song. I am all for a sacrifice... As long as it starts from the top. Wake me up when that happens.

cortesoft

9 hours ago

I am not disagreeing with this statement, and don't think we can solve the collective action problem by just choosing as individuals to sacrifice (that is what makes is a collective action problem). It would take societal change to happen.

buzzy_hacker

14 hours ago

> subsidizing fossil fuels to 7 trillion a year globally

This is misleading. See https://www.slowboring.com/i/145942190/the-case-of-the-myste...

> The vast majority of the “subsidies” are “implicit subsidies,” which include “undercharging for environmental costs.” In other words, they are characterizing governments’ failure to impose a carbon tax as a “subsidy” for fossil fuel use.

david38

13 hours ago

If I have to pay to clean up your mess to live in a world the way it was before you polluted it, it’s a subsidy

nradov

12 hours ago

Before fossil fuels our cities were ankle-deep in horse shit, and when a horse died the owner dumped the carcass in the river. Some level of pollution is in inescapable price of civilization. We shouldn't be reckless or wanton about it but it's unreasonable and uneconomic to ever clean up all of the mess.

nielsbot

6 hours ago

All or nothing fallacy. The argument is not to eliminate pollution, the argument is to stop generating greenhouse gases. You can already see the effects of climate change and it's guaranteed to get worse.

I don't understand why you're making excuses for carbon pollution.

njtransit

13 hours ago

But you don’t know the cleanup cost yet, so how can you put a dollar amount on the subsidy?

7thaccount

11 hours ago

There are estimates for the social cost of carbon. It isn't super exact.

oblio

13 hours ago

Not paying for pollution we know they cause is an implicit subsidy, feels quite obvious.

gottorf

13 hours ago

Then the same "implicit subsidy" goes for literally every facet of human activity. Do builders of wind turbines and solar farms also pay commensurately for the pollution in the manufacturing and development process?

Everything is implicitly subsidized because every action that any living being takes affects some other living being and the ecosystem as a whole, because we all live on the same planet. It's a meaningless statement.

dpkirchner

13 hours ago

> Do builders of wind turbines and solar farms also pay commensurately for the pollution in the manufacturing and development process?

Sure, we can assign those costs to builders, why not? There's already lots of discussion about the true cost of EV batteries and how they're subsidized.

> Everything is implicitly subsidized because every action that any living being takes affects some other living being and the ecosystem as a whole, because we all live on the same planet.

Actions don't all have the same effect so I think it's totally fair to consider their true costs.

I think where it gets a little tricky is how you decide to assign costs to people that have children or are children. But that's really getting in the weeds.

yencabulator

9 hours ago

Don't forget that the oil industry requires a lot of manufacturing and development too. They also cause stuff on top of that.

pfdietz

13 hours ago

What an exercise in false equivalence. Does every facet of human activity have the same impact as CO2 emission from fossil fuel combustion?

nradov

12 hours ago

Why focus on CO2 emissions? That's only one aspect of pollution.

pfdietz

12 hours ago

Because of its enormous global impact.

nielsbot

6 hours ago

Ok, where should we focus it then?

schiffern

14 hours ago

  >  we are the only species that will become extinct because survival wasn't profitable enough
This a very good quip, but I have to ponder: how could we know that for sure?

If some other species had a comparable concept used to organize themselves, I doubt humans would even be aware of that nuance.

saintfire

14 hours ago

Single celled organisms do it all the time, on a local scale.

If you fill a jar with some yeast and sugar water, they'll feast and multiply at an accelerating pace until they've turned their environment toxic.

Painfully analagous to humans.

palata

14 hours ago

Well because other species don't manage to break the barriers as efficiently as we do.

The way regulation works is that species are limited by their environment. If there are many antelopes, there can be many lions. But if there are two many lions, the population of antelopes goes down to the point where not all the lions can survive, right? This is simplistic, but that's the idea (the higher the population, the bigger the impact of a disease, etc).

Because we are really good at changing our environment in order to be more individuals who consume more resources, we escape those regulation mechanisms. By doing this, we destroy most species, including ours.

Now let's not pretend that ants would be better: if they somehow escaped those mechanisms, they wouldn't suddenly vote and stop growing (presumably). The fact is that they haven't escaped them, and we have. Well for a while. Now it's very likely that some kind of mechanism will end up regulating us. Maybe it will finish destroying most species, and it will take thousands of years to "recover" (with some definition of "recover").

What's interesting with us is that we do know we are destroying ourselves and the biodiversity (which is arguably one of the enjoyable things in life), but we can't seem to find a way to fix it.

baanist

13 hours ago

Most of what you've said is true but what exactly does it mean to "break barriers"? We can not escape the laws of chemistry, physics, and thermodynamics because we live on a compact manifold with finite resources which must be recycled eventually by the surrounding ecology. This is why plastics are now found in all newborns, the chemicals produced by our factories are recycled back into the ecology and our internal biomes.

palata

3 hours ago

Totally. I just meant that those are less direct. Species usually don't reach a point where they change the climate because they are stopped by other mechanisms long before. Our cycle is slower, which gives us time to destroy more stuff before we "get regulated", I suppose.

__MatrixMan__

14 hours ago

Sometimes it's pretty visible. Some slime molds (dictyostelids) form multicellular bodies when food is scarce and they have to hunt, and then go back to single-celled life when conditions are more favorable.

nostrademons

13 hours ago

Other species don't call it profit because they don't have language, but if you broaden this to "We are the only species that will become extinct because short-term individualistic concerns trump ecological stability" ... it isn't true. Predator/prey dynamics and ecosystem collapse are common to a lot of ecosystems; I remember studying them in calculus at the same time as exponential growth and logistic curves. Locusts are a very familiar example where they act like common grasshoppers when food is abundant, but then start a swarming behavior that destroys whole ecosystems and kills off the vast majority of locusts once they detect that there isn't enough food to go around.

jvanderbot

13 hours ago

I'm reading "The Unthinkable". It's a great book about diaster response at the personal and policy level.

One thing that stands out is that well intentioned policies often cause diaster if they don't simply trust the ability of humans (and by extension communities) to adapt and incorporate new information as it comes.

I believe that these subsidies are a prime example. They intend to help by alleviating the shock of world events, and it's only through an increase in trust/courage at all levels that we can overcome this tendency.

user

13 hours ago

[deleted]

shadowtree

13 hours ago

The internet you use to transmit this message wouldn't exist without fossil fuels - and I am not talking about energy, but computer and networking materials.

Ditto the fertilizer and many other things that keep you alive to type on here too.

It's very hard to maintain modern civilization without oil/gas products. Unless you want to be Amish.

sunshinesnacks

13 hours ago

I think reducing fossil fuel use is separate from petroleum product use. We can have petroleum products without burning fossil fuels. Costs of petroleum extraction might go up, though, I imagine.

dml2135

13 hours ago

I’d rather be Amish than dead!

Krssst

13 hours ago

And while I agree it's hard, I think that keeping an industrial society should be possible. (although it means reworking almost all the production apparel to be carbon neutral (concrete/steel/fertilizer production, transports, agriculture, ...). Not going to happen in the short-term without an extremely strong political push and more research, on the world scale)

Actual production may become lower than today, but I'd like to believe we don't have to go full Amish.

gottorf

13 hours ago

> stop subsidizing fossil fuels to 7 trillion a year globally

We need to stop bandying about this $7T figure. 80% of it is "implicit subsidies", meaning made-up numbers based on carbon pricing and environmental impacts and whatnot. It's like saying we implicitly subsidize solar power by not accounting for the environmental impacts of covering up square miles of land under panels, or of the pollution from the production of panels. If you go back far enough, it's like telling the caveman not to light sticks on fire to keep himself warm, because of the carbon emissions that aren't being priced in.

Fossil fuels are, with present-day technology, the best source of energy for humanity to develop and maintain high living standards. It's easy to stop using them if we're OK with dialing back our living standards two hundred years. It will be easy to stop using them at some point in the future when we have abundant, clean, cheap energy from a proliferation of nuclear power, or some battery technology breakthrough that will let us economically harness wind and solar energy. However, currently, it's not easy. Oil and gas is profitable because it makes us all richer, let's not forget that.

nitwit005

13 hours ago

I think you have to take the owner or investor view on this. Say you own a big portion of an oil company, and you decide renewable energy is the future. What do you do? Probably sell your shares and invest elsewhere.

Oil companies are full of oil experts. There's no reason to think they'll do well competing with companies full of renewable energy experts.

skybrian

14 hours ago

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

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

Also true of consumers and politicians.

_spduchamp

13 hours ago

I agree with this, and what is amazing is that one particular layer in our systems with the biggest impact is electoral systems. Most people are blind to the fact that we live in the side effects of bad math that leads to less accountability. Electoral reform has trouble getting traction in some places. (Canada, USA, UK, and all these other fantastic "democracies" https://en.wikipedia.org/wiki/First-past-the-post_voting)

If we all had better representation, maybe we could have some accountability in governments to help enact policy that we actually want.

heresie-dabord

13 hours ago

> It's a systems problem requiring systems solutions

It's a people problem requiring people to coordinate their actions for the net good of all people, instead of coordinating their abdication of responsibility for the good of the corporation.

ksec

12 hours ago

>those people won't be the decision-makers anymore! The same is true for politicians, consumers, etc.

Is that another way of saying the "Market" will dictate everything?

I never thought about it this way in terms of politics. But may be some food for thought.

gffrd

14 hours ago

A great point.

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

Cigarette companies?

fullshark

14 hours ago

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

jbstack

14 hours ago

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

JohnMakin

13 hours ago

Who is it that decides what these externalities are and who enforces this?

linkjuice4all

14 hours ago

It's depressing to see companies moving back towards a carbon-burning future. It seemed like electric vehicles, battery technology, and solar power advancement was finally starting to kill the market for ICE engines and 'dirty' thermal power.

Between reversions like this, RTO mandates, and global conflicts that seem to include blowing up oil refineries it seems like there's absolutely no hope or interest from any major governments, businesses, or organizations to do anything to address global warming and climate change or even maintain our carbon outputs.

bryanlarsen

14 hours ago

It's the standard cycle of progress. "First they ignore you, then they laugh at you, then they fight you, then you win". (misattributed to Gandhi).

Moving from one stage to the next is not guaranteed, but EV's, battery & solar and definitely well past the first two stages. I'd argue that solar might even be in column 4 -- China installed 100 GW of it in the first six months of 2024, and the rest of the world a similar amount.

layoric

13 hours ago

I'd say you are right that solar is at your stage 4.. for countries with particular geographical features. If you have a large land mass to distribute solar utility sites over, the power curve becomes predictable since weather that impacts solar production is also geographically distributed (its highly unlikely to be cloudy everywhere in a large country). With this predictability comes the ability to use the least amount of storage (cheaper) for continual, reliable power. And China being responsible for the continual price drops of production of panels, and storage, it makes sense they will be the first to achieve this, despite other countries (Australia for example) having a more favorable irradiance, and larger land mass.

Countries without a large land mass can't do this, a good example being Singapore. And even then, solar is being a potential large reliable power source by getting Australia to literally cable power thousands of kilometers.[0]

Solar has won IMO, it will just take a while for it to reach stage 4 everywhere.

[0] https://www.aljazeera.com/news/2024/8/21/australia-greenligh...

Spooky23

14 hours ago

Nothing changed. We’re literally in an auto market flooded with EVs. Solar is a ROI positive investment that is gobbling up farmland in a problematic way.

If you’re a geek, you probably got hyped up by Elon when he was saving the world with electric cars. Now that he’s regressed to his effort to offer himself for impregnation services to repopulate and installing fascist dictatorships, the electric car stuff has gone by the wayside.

Cults of personality usually end up toxic.

delecti

13 hours ago

Based on some back of the envelope math, if the US met 100% of its electricity needs with solar, it'd take about 1.6% as much area as the US currently has farmland (22k sqmi vs 1.4mm sqmi). Considering some solar is on non-arable land, and how much excess corn the US grows (enough that some is turned back into fuel), and that 1.6% ballpark, the idea that it's problematic that we're turning some farmland into solar doesn't pass the sniff test. Do you have any more info about that being a problem?

https://elements.visualcapitalist.com/how-much-land-power-us...

https://en.wikipedia.org/wiki/Agriculture_in_the_United_Stat...

Spooky23

10 hours ago

It’s a problem that you don’t see when you look at aggregate numbers and don’t look at the future.

You tend to need commercial solar installations nearish to people - projects in say Nebraska have a lower ROI than say New York or Massachusetts. There’s much more limited amounts of land and farmable land in particular.

With climate change, aquifer depletion and other factors, farmland imo is a strategic resource that should be protected. The corn bounty is not likely to continue forever.

passwordoops

14 hours ago

1-it's not companies, it's nation-states such as China and all across the "developing" world making the economic decision to use the cheapest, most easily accessible and reliable energy source (still fossil). And anyone providing examples of "yes, but..." should include an verifiable explanation as to why GHG emissions are not only increasing but accelerating

2- Carbon is much more than energy. Take a look at medicine, for example. Remove plastics, the field as we know it stops. Stop the flow of primary feedstock from refineries and no more medicines. Coal is another excellent example. You can replace as many coal plants as you want with renewables, you still need it to make the high-grade steel required to manufacture the renewables. Which is one reason why China is digging up more coal per year than any country ever had since the Industrial Revolution.

Dylan16807

13 hours ago

2 - The vast majority is being burned. If they want to increase production, it's not because of the other uses.

bamboozled

14 hours ago

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

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

nomel

13 hours ago

This is an unpopular question, where people assume things about me, but by what mechanism would the human species be ruined? It seems that would require that all innovation towards climate mitigations stops, when it hasn't really even started yet. Reversing climate change probably isn't going to happen, but mitigation is still on the table, from routing fresh water from wetter northern climates to desalinization plants [1] to sun shading [2].

[1] Desalinization, where 300 million are currently services: https://www.usgs.gov/special-topics/water-science-school/sci...

[2] Block 2% to reduce warming by 1.5C. https://www.carbonbrief.org/explainer-six-ideas-to-limit-glo...

foobarian

13 hours ago

Perhaps once all the easy obtainable fossil resources are gone, and climate change settles down on a new equilibrium, humanity will also settle on a long-term sustainable way of living. Perhaps that will even be a civilized way, but it may also well end up a hunter-gatherer existence akin to what Europeans found in North America a few centuries ago.

nomel

13 hours ago

> but it may also well end up a hunter-gatherer existence akin to what Europeans found in North America a few centuries ago.

How could finding naturally growing plants eventually be more successful than technological innovations around agriculture, in a drier climate (our future)? This doesn't seem logical/rational, since every desert civilization moved away from a hunter-gather existence. Irrigation has existed for millennia, invented by people that lived in dry places [1], because it wasn't optional.

[1] https://eprints.nwisrl.ars.usda.gov/id/eprint/815/1/1070.pdf

jimbob45

14 hours ago

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

numpad0

9 hours ago

Does, but also does seem to me that a lot of parties were in for potential to disrupt top of the food chain of car industry, and now that it became clear that it does the opposite of that, they're not interested in it anymore.

stonogo

13 hours ago

I think EVs are the 80% solution. They're great in cities and in suburbs. If you regularly make longer trips, they're a massive pain in the ass, primarily due to the poor-quality charging infrastructure. There are vast swaths of America where someone is already trucking gasoline and diesel to fuel stations but there's no reliable expectation of charging infrastructure of any kind, much less high-quality charging. It's really frustrating to run into, for instance, trying to drive from Bozeman to Seattle. It's currently fashionable to ignore this problem, but it's one we're going to have to solve.

nomel

13 hours ago

> 80% of the solution

In the US, only 39% of emissions are from fossil fuels used for transportation [1]. Where I am, around 60% of my EV power comes from natural gas plants that run at night, where electricity is 3.5x cheaper (electricity costs more than gas during peak hours where I am).

With the lack of new nuclear, and the required 25-50% increase in our power grid, a quick (as in 20 year) change in EV adoption would almost certainly mean that more of these natural plants come online when charging happens, negating at least some of the CO2 savings.

80% seems fictitious.

[1] https://www.eia.gov/tools/faqs/faq.php?id=307&t=10#:~:text=C....

stonogo

12 hours ago

I apologize for being insufficiently specific. I wasn't talking about a solution to climate change in general, but a 'solution' to getting rid of internal-combustion personal transport. What I was trying to say that current EVs are suitable replacements for personally-owned internal combustion vehicles for about 80% of use cases.

tcfhgj

12 hours ago

EVs aren't great in cities. Cycling and public transportation is

bamboozled

14 hours ago

I'm not trying to blame this on "Elon" but that guy basically kicked off the revolution and is kind of destroying it. His cult following, toxic views and enthusiasm for conspiracies are starting to make EV ownership something for "weirdos" at a time when owning an EV was already contentious. At least in the US.

There was a time when I dreamed of owning a Tesla, there is absolutely no way I'd drive one now.

I think China is going to steam ahead towards Solar, Nuclear and EVs, so maybe there is hope there!

Supermancho

13 hours ago

> Does it not seem like electric vehicles will eventually swallow the world?

I don't believe so. As I understand it, there are not enough rare metals available, with the known battery technologies. I don't think will ever be the production capacity to construct and maintain (replace) electric-based equivalents to the solutions fossil fuels fit. Fossil fuels came to dominance because of a number of maximal equations. eg The energy demand to move goods, on the scale of trains, is impractical. Operating electronics in extreme temperatures, is impractical.

kieranmaine

13 hours ago

From "Most electric-car batteries could soon be made by recycling old ones" - https://www.economist.com/science-and-technology/2024/09/19/...

Apologies for the paywalled article. The following quote sums up the article:

"Globally, the mining of raw ingredients for battery manufacturing could peak by the mid 2030s, reckons RMI, an American think-tank. This will be caused by a combination of better recycling and continuing advances in battery chemistry, which boosts the energy density of cells so that batteries can be made with fewer raw materials. This, RMI believes, might see mineral extraction for batteries being avoided altogether by 2050."

Caius-Cosades

9 hours ago

Expecting in magical science to magically break laws of physics wasn't the winning strategy. The energy exchange rate was never there despite all the virtue signalling.

tw04

14 hours ago

> as investors focused on near-term returns rather than the energy transition.

If the justification for burning the earth to the ground continues to be “investors focused on short term returns” then governments need to start telling companies like BP they are legally and financially responsible for the effects those policies have on insurance rates and everything else.

At some point if they can’t do the right thing because it’s a sound long term investment strategy, they need to pay the real price of their short term focused strategy.

cortesoft

14 hours ago

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

wahnfrieden

14 hours ago

Govts are in on the spoils of it. There’s no reason for govts to attain power over people and use it to lose their own power by destroying their economy.

stonethrowaway

9 hours ago

Yeaaaahh you keep saying that to yourself.

The lack of action by people while expecting the government to do something is farcical.

“There ought to be a law!” the outraged but impotent mob cries - and there will be one, when you take matters into your own hands and write it, just like the people who established this government did.

animal_spirits

8 hours ago

Soon I hope there will be a Github-for-law that we can all at least contribute requests to, with the proper structure, formatting, review process, and validation.

netsharc

12 hours ago

Anyone got the math, there's something like x degrees C more warming already calculated as future profits by oil companies: they've seen the oil fields, they know how much they can extract, and that amount of oil, burned, will cause those x degrees of warming. Asking them to keep it in the ground is like asking them to give up some billions of dollars of future profit ..

bawana

13 hours ago

In 'The War Below' by Ernest Scheyder, I learned about the complexities of mining companies profiteering vs the rights of 'the land' as represented by the indigenous people and environmental activists. This is another example of how we use our knowledge to eviscerate the planet's resources developed over millenia for short term gains and enjoyment. And if you thought the oncoming demographic bomb and population collapse in the US, Europe, China and Japan will reduce demand, think again. The 0.1% who own this planet, will simply produce AI driven robots to do the work that humans cannot so they can continue to fly their jets and cruise in their yachts. How can we be so complacent when religious fanatics elsewhere are killing each other over so much less?

taeric

14 hours ago

I'm rather torn on the discourse on this. I can understand disappointment that people are adjusting down on goals. What I don't understand is that this seems rather removed from outcome measures.

Specifically, in this context, they are still reducing output. Just not as aggressively. Do we have reporting on what this means in real impact terms? Last reporting I have seen, the majority of carbon emissions are from locations that we aren't governing. Such that this is akin to yelling at people for not eating all of their food, because someone somewhere is starving.

JohnMakin

14 hours ago

> BP (BP.L), opens new tab has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm's energy transition strategy to regain investor confidence, three sources with knowledge of the matter said.

> The company continues to target net zero emissions by 2050. "As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more focused, and higher value company," a BP spokesperson said.

Bit confused by the discrepancy of these statements. Is this because this is an insider source that has not been officially announced (seems like it), or are they saying "We still plan to cut emissions by 2050... maybe sometime later" (seems less likely).

tw04

14 hours ago

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

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

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

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

freefal67

14 hours ago

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

user

14 hours ago

[deleted]

denkmoon

14 hours ago

[flagged]

saintfire

14 hours ago

Crack may have been a poor choice. Many dealers cut crack supplies all the time with other drugs, borax, detergents etc.

dang

14 hours ago

Maybe so, but please don't post unsubstantive comments to Hacker News.