Greta Jimenez
BP is one of the highest greenhouse gas-emitting companies outside of the Gulf and Asia. In 2019, the company reported 6.6 million tons of CO2-equivalent pollution. BP has pledged to cut emissions to zero by 2050, but the company has provided few details on how it plans to achieve this goal. According to BP, the company emits about 55 million tons of greenhouse gases each year directly from its extraction operations and refineries. However, critics argue that BP is under-reporting its emissions, with Scope 3 emissions reported at 327.6 million tons compared to an estimate of 647.9 million tons. BP's sale of its Alaskan oil business has also been criticized as a greenwashing move, as production and emissions increased under the new owner, Hilcorp.
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What You'll Learn
BP's reported Scope 3 emissions
BP has set a target of net-zero Scope 3 emissions by 2050. Scope 3 emissions refer to the indirect emissions produced in a company's value chain. BP's Scope 3 emissions include the emissions from the combustion of its products, such as when motorists use its fuel. However, they exclude gases from oil products that BP sells to customers but buys from other producers.
According to BP's 2024 Basis of Reporting, the average carbon intensity of its sold energy products was 79gCO2e/MJh, representing a 6% reduction from its 2019 baseline. This improvement was driven by advancements in the well-to-tank emissions of sold products and changes in the sold product mix. The 2024 figures also included part-year accounting of sales from GETEC ENERGIE, as well as full-year accounting for BP bioenergy and Lightsource BP, which BP acquired full ownership of in October 2024.
In addition to its Scope 3 emissions reduction target, BP has set five aims to achieve net-zero emissions across Scope 1 and 2 by 2050 or sooner. These aims include maintaining near-zero methane intensity across its operated producing assets and reducing the carbon intensity of the energy products it sells. BP has also quadrupled its renewables development pipeline since the end of 2019, demonstrating its commitment to transitioning to low-carbon energy.
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BP's emissions from oil and gas burning
BP's carbon emissions rose in 2023 for the first time since 2019. The company's Scope 3 emissions, which are caused by the burning of oil and gas produced by BP, increased to 315 million metric tons in 2023, up from 307 million tons in 2022. This increase was attributed to higher production levels of fossil fuels, with BP starting new oil and gas projects and increasing overall production. The company's direct and indirect emissions, known as Scope 1 and Scope 2 emissions, also rose by 0.6% to 32.1 million metric tons.
BP's methane emissions, a potent greenhouse gas, rose by 10% in 2023, primarily due to increased flaring in the Azerbaijan-Georgia-Türkiye region and its Tangguh operations. BP's overall emissions had previously decreased by 10% in 2020 and by over 40% between 2019 and 2023. However, the company's recent decision to scrap its 2030 interim target to reduce oil and gas production by 40% is estimated to result in 72,000 additional heat deaths by the end of the century.
BP's Scope 3 emissions include the burning of its products by customers, such as motorists. However, they exclude gases from oil products that BP buys from other producers and then sells. In contrast, rival company Royal Dutch Shell emitted 1.38 billion tons of greenhouse gases from the combustion of fuels it produces, as well as from oil products produced by other companies.
BP's Alaskan oil business was sold as a step towards a greener future, but emissions under the new owner increased, and they became harder to track. While BP's decision to sell its Alaskan business reduced its emissions, the overall impact on the environment was not positive due to the subsequent increase in production and emissions by the new owner.
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BP's emissions from extraction operations
BP has acknowledged that oil and gas production will likely need to be reduced for the world to meet the goals of the Paris Agreement. The company has set a net-zero ambition with three aims. The first aim, "net-zero operations", includes Scope 1 and Scope 2 emissions from their operations across both Upstream and Downstream. These are the emissions generated in the actual extraction and processing of fossil fuels. Scope 1 emissions, or direct emissions from BP's operations, rose to 32.1 million metric tons of carbon dioxide equivalent in 2023, up from 31.9 million tons in 2022. This increase was attributed to temporary production-related changes, project startups, and acquisitions. BP aims to reduce its Scope 3 emissions (indirect emissions) by 10-15% by 2025 and 20-30% by 2030 from a 2019 baseline.
BP's second aim is to achieve "net-zero" on "oil and gas production", specifically Upstream, and covers the full life cycle of emissions (Scopes 1, 2, and 3) from production. This limits the expansion of oil and gas production by BP, but the degree of production reduction depends on the extent to which emissions from any remaining volumes in 2050 can be offset elsewhere. BP's third aim, "halving intensity", is a Downstream ambition that covers Scope 3 emissions of all the products BP sells, including crude extracted by others, but only on an intensity basis.
BP includes Scope 3 emissions from the combustion of its products when its customers, such as motorists, use them. However, it excludes gases from oil products it sells but buys from other producers. BP's methane emissions also rose by 10% in 2023, primarily due to increased flaring in its Azerbaijan-Georgia-Türkiye region and Tangguh operations. Methane is a potent greenhouse gas, more than 28 times more effective than carbon dioxide at trapping heat.
BP has pledged to cut emissions to zero but has provided few details on how it will achieve this goal. The company has agreed to conduct scenario work and set ambitions for 2050, aiming to cut the carbon emissions of its upstream production to zero on a net basis. This appears to be a significant step for an integrated oil and gas company, moving beyond intensity ambitions. However, BP's reorganisation combines Upstream and Downstream into a single business unit, which may impact installed refining capacity and earnings under conditions of weakening oil demand.
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BP's emissions from refineries
BP, formerly known as British Petroleum, is one of the world's largest oil and gas companies. It is a vertically integrated company, operating in all areas of the oil and gas industry, including exploration and extraction, refining, distribution and marketing, power generation, and trading. In 2015, BP was listed as Europe's fiercest opponent of action on climate change. In 2019, BP was ranked as the sixth-largest emitter of greenhouse gases globally.
BP has a history of environmental controversies. In 2003, California's South Coast Air Quality Management District (AQMD) filed a complaint against BP/ARCO, seeking $319 million in penalties for thousands of air pollution violations over an eight-year period. The agency alleged that BP illegally released air pollutants by failing to adequately maintain and operate equipment at its refinery, with some violations committed knowingly and willfully. BP settled the case in 2005, agreeing to pay $25 million in cash penalties and invest in environmental improvements and community health programs.
In 2009, the US Occupational Safety and Health Administration (OSHA) fined BP $87 million for failing to address safety hazards that led to the 2005 Texas City refinery explosion. BP was also fined $50 million by the state of Texas for violating emissions standards during and after the explosion.
BP has taken some steps towards reducing emissions and investing in renewable energy. In 2021, BP reported a 10% drop in overall emissions compared to the previous year. The company has also invested $269 million in its Cherry Point Refinery to improve efficiency, reduce carbon dioxide emissions, and increase renewable diesel production. Additionally, BP sold its Alaskan oil business, citing a commitment to a greener future.
However, the impact of this sale is disputed. While BP's emissions from the North Slope decreased, production and emissions under the new owner increased, and they became harder to track. Critics argue that the sale may not have resulted in a net positive environmental impact.
BP's refineries play a significant role in the company's emissions. The Cherry Point Refinery in Washington State is the company's largest refinery in the Pacific Northwest, processing approximately 250,000 barrels of crude oil per day. BP has invested in projects to improve the refinery's efficiency and reduce its carbon footprint, with a goal of achieving net-zero emissions across its operations by 2050 or sooner. The Whiting refinery in Indiana is BP's largest refinery, processing around 440,000 barrels of crude oil every day. While there is no specific information available on the Whiting refinery's emissions, BP has implemented initiatives to support the local community, including educational programs and environmental projects.
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BP's emissions compared to other energy companies
In 2023, direct greenhouse gas (GHG) emissions resulting from BP's business activities amounted to 31.9 million tons of CO2 equivalent, a decrease of around 5.8% compared to the previous year. GHG emissions attributable to BP and its subsidiaries have been steadily decreasing in recent years. However, in 2024, Scope 1 and 2 emissions increased due to growth in BP's portfolio, project start-ups, and operational issues at Tangguh, Indonesia.
BP, one of the world's largest gas and oil companies, has pledged to cut its carbon emissions and invest in solar and other renewable energy sources. In 2020, BP chief executive Bernard Looney announced the company's intention to achieve net-zero carbon emissions by 2050, aiming to “fundamentally transform” the organization. BP plans to reduce the carbon content of its products by 50% by 2050 by selling energy that does not come from fossil fuels and investing in methane measurement equipment to reduce leaks.
While BP has made strides towards reducing its emissions, there have been criticisms and setbacks. In 2023, the company scaled back its climate pledge, citing soaring oil profits. BP's lowered target was for a 20 to 30% reduction in carbon emissions, backing off from its earlier goal of 35 to 40%. This has cast doubt on the company's commitment to transitioning to cleaner energy, despite its investments in wind and solar, as well as projects to capture and bury carbon emissions.
Compared to other energy companies, BP's emissions and efforts towards reducing them are mixed. While BP is one of the world's largest gas and oil companies, it is not the largest emitter among its peers. For example, Shell posted higher profits than BP in 2022, indicating potentially higher emissions. Additionally, BP has made significant investments in renewable energy areas, such as Lightsource BP, a leading developer of utility-scale solar projects.
However, large European companies like Shell and BP are only investing around 25% of their capital expenditures in green energy, according to Goldman Sachs. This indicates that while BP is making efforts to reduce its emissions and invest in renewable energy, there is still room for improvement compared to other energy companies. Overall, BP's emissions and efforts towards reducing them are comparable to, but not significantly better than, other major energy companies.
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Frequently asked questions
BP emits about 55 million tons of greenhouse gases each year directly from its extraction operations and refineries. An additional 360 million tons are emitted when the oil and gas are sold and burned to fuel vehicles or heat homes.
Scope 3 emissions are emissions from the combustion of BP's products when its customers, for example, motorists, use them. BP reported Scope 3 emissions of 327.6 million tons, but this was estimated to be as high as 647.9 million tons.
Scope 3 emissions from BP include emissions from the combustion of fuels, such as gasoline, diesel, and aviation fuel, as well as emissions from the sale of oil and gas products.
BP, BHP, and Exxon are among the highest greenhouse gas-emitting companies outside of the Gulf and Asia. Of the ten companies with the largest carbon footprints, only Shell is over-reporting emissions, while most other energy companies are underestimating their Scope 3 emissions.
BP has pledged to cut its emissions to zero by 2050, aiming to eliminate or offset all planet-warming emissions from its operations and the burning of its oil and gas products. However, the company has provided few details on how it will achieve this goal.
