* Dudley says sector needs to find role in energy transition
* Warns oil sector risks losing trust of society
By Ron Bousso
HOUSTON, March 12 (Reuters) - The oil industry should engagewith proponents of the "Green New Deal," a Democratic initiativeseeking to radically reduce U.S. dependence on fossil fuels, BPChief Executive Officer Bob Dudley said on Tuesday.
Dudley made the rare foray into U.S. politics in a keynotespeech at the largest U.S. annual gathering of the oil andnatural gas sector in Houston, urging peers to engage with youngpeople or lose the trust of society.
"We need to demonstrate that we share the common goal of alow-carbon future and that we are in action towards it," Dudleysaid in the speech at the CERAWeek conference by IHS Markit.
Burning of oil and gas accounts for the majority ofgreenhouse gas emissions blamed for climate change, rising sealevels and severe storms.
Energy companies including BP have increased theirinvestments in renewable energies such as solar and wind inrecent years as they look for a new business model in a worldseeking to reduce carbon emissions.
But U.S. rivals Exxon Mobil and Chevron havemade fewer investments in clean energy in recent years, drawinggrowing pressure from investors and climate activists.
"Our focus has to be on developing an energy system that iscleaner, better and kinder to the planet," Dudley, a U.S.citizen, said.
"But we can only fully play our part if we have the trust ofsociety and the confidence of our shareholders. That meansengaging more with the young people who will take to the streetson Friday," he said, referring to scheduled protests in morethan 70 countries where kids plan to skip school to demand moreaction on climate change.
"It means improving the dialogue we have with policymakersaround the world, including those behind the Green New Deal,"Dudley said.
The "Green New Deal" resolution was introduced earlier thisyear, seeking to create large, government-led investments inclean energy, infrastructure and social programs.
Republican lawmakers oppose the proposal, saying it is tooexpensive and would raise taxes and energy costs. RepublicanPresident Donald Trump's administration opposes action onclimate change and favors boosting U.S. production of oil, gasand coal.
Dudley said demand for oil and gas will remain strong fordecades as the world's population grows and economies such asChina and India expand.(Reporting by Ron BoussoEditing by Chris Reese)