BP Takes Aim at Permian Flaring

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BP has announced plans to eliminate the routine flaring of natural gas in the Permian Basin by 2025, becoming the latest major to take strategic aim at cleaning up its US operations. BP said its flaring target is enabled by its newly invigorated Grand Slam facility, in which it has replaced much of the gas-driven equipment, compressors and generators with an electrified central oil, gas and water handling facility. “Electrification of the field has been a game-changer,” said Kim Krieger, vice president of operations for BP’s shale oil business BPX Energy. “We are cutting emissions while significantly increasing the reliability of our field operations enabling a 20% uplift in production.” BP has worked to align its production with legacy infrastructure, and the net effect has been reduced flaring, the firm said (OD Sep.11'20). At the end of 2019, BP had a flaring intensity of 15%, which has dropped down to 2% more recently, BP America CEO David Lawler said in a LinkedIn posting. Major Changes Whether through voluntary operational shifts or supporting the restoration of federal methane emissions regulations, the industry’s largest companies are taking public positions on their engagement with the energy transition. Just a few days ago, Royal Dutch Shell said it would give its shareholders a nonbinding vote on its energy transition plan for the first time during its May annual meeting (IOD Apr.15'21). The company's strategy is “aligned with the more ambitious goal of the Paris Agreement, to limit the increase in the average global temperature to 1.5°C above pre-industrial levels," said Shell Chairman Chad Holliday, adding that it will “help investors and wider society gain a better understanding of how Shell is addressing the risks and opportunities of the energy transition.” Similarly, when Total’s shareholders meet next month, they will make a first-time advisory vote on the firm’s strategy for sustainable development and the energy transition. US producers ConocoPhillips, Chevron and Exxon Mobil, along with their European counterparts, have backed some form of a carbon price for several years, but their calls are growing more proactive (OD Apr.14'21). Majors' Emissions Reduction Targets BP -Net zero Scope 3 emissions by 2050

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