Feb 13, 2020 - Energy & Environment

BP's climate move could mean new pressure on Exxon and Chevron

Illustration: Rebecca Zisser/Axios 

BP's new emissions pledge could create more pressure on U.S.-based giants Exxon and Chevron.

Why it matters: European oil behemoths have been more active on climate than their U.S. counterparts.

Context: BP vowed "net-zero" emissions from its operations and oil and gas it produces by 2050 and a 50% cut in emissions intensity from products it sells.

The big question: Now the question is whether BP's plan — which is the most aggressive among super-majors, albeit lacking detail — will change the landscape.

  • "If we do see capital flowing into BP, that may force the U.S. majors to rethink the speed at which they move on carbon reduction targets," Noah Barrett of the asset management firm Janus Henderson told Bloomberg.
  • But he does not see the U.S. companies "adopting a BP-like strategy in the near future."

Where it stands: One big dividing line between European and U.S. majors is companies' willingness to set any kind of goals around Scope 3 emissions.

  • Those are the emissions from the use of a company's products in the economy from driving and so forth, and they're vastly larger than emissions from companies' direct operations and energy use.
  • BP's Scope 3 target is a mix of commitments: an absolute net-zero target for the use of the oil and gas it produces, but the intensity target once you include the oil and gas they buy from other companies to process and sell.

What they're saying: An HSBC note this morning calls the new plan "potentially a game-changer for the company and the industry."

  • "For a company of BP’s scale, a net zero scope 3 footprint from its own production introduces a climate-related ambition on an unprecedented scale."
  • "It also points to a dramatic transformation of the business, including an inevitable shrinkage of the upstream business over time."

Go deeper: BP vows to "fundamentally" change with net-zero emissions target

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 8:30 p.m. ET: 5,490,954 — Total deaths: 345,962 — Total recoveries — 2,228,915Map.
  2. U.S.: Total confirmed cases as of 8:30 p.m. ET: 1,662,250 — Total deaths: 98,218 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 26 mins ago - Politics & Policy

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Details: Law enforcement stepped up beach patrols, and there were crowded scenes in several places, notably at Lake of the Ozarks bars in Missouri and at Daytona Beach and on the Gulf Coast in Florida, per AP. Police dispersed crowds in some places, ABC notes. But many Americans did take precautions against COVID-19 as they ventured outside for the long weekend, some three months after the pandemic began in the U.S.

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