BP boss Bob Dudley has said the oil major is starting to invest again with a sleuth of new projects expected to be approved next year.
The chief executive was speaking at this year’s Oil and Money Conference in London when he said the “bar” for a project being sanctioned is much higher than before.
According to the Wall Street Journal Dudle,y said “investments are back” but added it was only going to be “the very best”.
He said he did not expect demand to “fall of a cliff” but said the issue was one of “over-supply”.
Dudley said there were currently three challenges with the price of competitiveness, the challenge of carbon and the challenge of choice.
He said: “The industry is going through profound change – but it Is change for the better.
“At $100 oil, industry costs drifted up and all kinds of projects looked attractive.
“At today’s prices, we have to maximise efficiency and minimise costs. We have to focus on the highest quality projects and develop them with great capital discipline.
“Every dollar we have is scarce and we must invest it wisely and carefully. The world is now hyper competitive for capital.
“This is driving a lot of innovation and reform in our industry. And there will be a good future for the most competitive businesses.”
Dudley said the industry was “playing catch-up, but catching up fast.”
He added: “I think we face two particular issues – an issue of trust, and one of talent.
“Trust is not just an issue for oil and gas leaders.
“There is a lack of trust across society, in corporations, but also in governments, and big institutions such as the EU, the UN, even in sporting bodies.
“In BP we have had our own experience with this after the tragic Deepwater Horizon accident in 2010. We retained the support of important partners – though it was touch and go for a while –
but we have had to rebuild trust.
“The lesson for us has been that you can rebuild trust, but it takes time.”
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