Why gas is vital for net-zero

Last week, I gave one of my final big policy speeches as BP’s chief executive. The venue was the Oil and Money conference, an annual event in London since the 1979 oil shock.

Coincidentally, 1979 was also the year I entered the industry. And now after forty years there’s change ahead for us both. I’m retiring from BP, and from next year Oil and Money is to be renamed the Energy Intelligence Forum – reflecting the evolving range of companies represented, and their diverse energy interests.

One thing I expect to stay the same is this conference’s role as a place for sharing new ideas. It was there two years ago that I explained why the energy transition shouldn’t be a race to renewables but a race to lower emissions. It was there last year that I shared why investment in oil and gas is essential to the energy transition.

This year, I decided to take advantage of one of the benefits of having announced that I’m stepping down, which is being able to speak more frankly. I used my slot to talk about something that’s really been bothering me – the way that gas as a source of energy is being vilified, and even demonised in some places in the world. And perhaps worse, marginalised – pushed out of the energy mix.

My speech drew more interest than I expected, so I thought I’d share some of my main points here.

Perhaps you’ll have noticed that, right now, some folks are saying that a role for gas conflicts with the world’s climate ambitions. But that’s a huge misconception. Gas has a vital role in the energy transition. We can’t reach the Paris goals without it.

Let me explain why. To achieve a net-zero energy system, we need every tool at our disposal. Renewable power, such as solar and wind, will be essential.

But the sun doesn’t shine all the time, and the wind doesn’t blow every day. Not all countries are blessed with abundant geothermal energy or hydro-power, and nuclear is falling out of favour in many countries.

That’s why gas is a great partner to renewables. It’s reliable and easily transported. It can be used to cook our meals, to heat homes, power cars, trucks and ships, and generate electricity.

And best of all, gas can be decarbonized.

The energy industry is already producing carbon neutral biogas, which when burnt releases only the carbon absorbed by the plants from which it’s made.

We can make carbon neutral synthetic gas. We are investing in carbon capture to decarbonize gas. And we can make hydrogen – which has many of the properties of natural gas, while being carbon-free.

Yes, a priority must be to tackle methane leaks and flaring. So that’s exactly what we’re doing, using drones and satellites so there’s no place to hide. We are also calling for the direct regulation of methane emissions.

Yet to exclude gas as a source of energy now – with so much at stake – is to take a huge and unnecessary risk with our energy system. It’s like attempting to achieve the energy transition with one hand tied behind our back. Even if we succeed, our energy system will be more expensive and less reliable than if we had included gas.

Of course, for decarbonized gas to take its share of the energy mix, it needs investment, development and new regulation. Read my full speech to find out the four steps I believe industry and government must take to ensure these happen.