BP boss: We need to work together.
BP boss calls for co-operation
The head of UK supermajor BP said increased global integration in energy trade is an essential response to the growing imbalance between energy supply and energy demand.
Tony Hayward said there is a need for genuine cooperation between oil companies and governments at the CERA Week conference in Houston today.
“If we want more investment, then businesses and governments must act together. We need fiscal, regulatory and climate change regimes that are stable and enduring,” he said.
Investing in technology is essential to achieve greater energy efficiency across the board and to bring new sources of energy to market, he said.
BP has invested over $30 billion in the US in the last five years to find and develop new sources of oil and gas, extend production from existing fields, improve the reliability of refineries, expand the wind and solar industry, create better biofuels and develop new, low carbon technologies.
The supermajor seeks to continue investing in the US at an average rate of $6 billion per year.
“The key is to frame regulation so the incentives encourage the outcomes we all want,” he said.
Energy demand is increasing and despite rapid growth of alternatives and renewables, fossil fuels will continue to play a major role in the future energy mix.
“The challenge for all is to not allow this cyclical fall to pitch us into a structural loss in capacity,” he said.