BP plc BP announced that it has set up a $100-million fund to support new Upstream projects that will generate further reductions in greenhouse gas (GHG) emissions.
The funds will be made available over the next three years and enable the company to meet targets. In January, BP announced that evolution toward the sustainable emission-reduction target has been included as a factor in the compensation of 36,000 employees.
This fund is in addition to the $500 million that the company spends on low-carbon activities each year. The investments are allocated toward venturing activities and its major alternative energy business.
In April 2018, BP set specific and short-term goals that are intended to lower emissions and propel it toward the energy transition. The company targets to achieve 3.5 million tons of sustainable GHG emission reductions across the group during the 2016-2025 period and aims at a methane intensity of 0.2%.
Since April 2018, BP’s total direct GHG emissions fell by 1.7 million tons CO2 equivalent, in spite of a 3% increase in Upstream oil and gas production. By the end of 2018, the company achieved 2.5 million tons of sustainable GHG emission reductions throughout its businesses since 2016. For 2018, BP’s methane intensity was 0.2%, which was in line with the estimate.
All employees and businesses associated with BP’s Upstream operating businesses are being encouraged to forward ideas and recommend projects for the new funding.
BP’s aim to lower emissions in operations is part of its ‘reduce-improve-create’ (RIC) approach to the energy transition. Also, the initiative is targeted to improve products that will enable customers to reduce emissions as well as produce and develop new low-carbon businesses.
Zacks Rank & Key Picks
Currently, BP carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Antero Resources Corporation AR, CrossAmerica Partners L.P. CAPL and SEACOR Holdings, Inc CKH. While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy), SEACOR Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.
CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.
SEACOR Holdings is a diversified holding company, mainly focused on domestic and international transportation, logistics as well as risk management consultancy. The bottom line for 2019 is expected to inch up 1.7% year over year. The company delivered an average positive earnings surprise of 20.5% in the trailing four quarters.
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