Chris11 Apr 2022 13:19
Because UK oilers are under-priced as it is. That's my view anyway. With $100 oil, which lets be honest, will likely be the general norm for a large wedge of this year, the oil firms are absolutely raking it in and will be for a whilst yet. They/we/governments all saw this coming last year. It's why the energy price cap was announced so long ago, why they forecast prices being hefty even into this coming Winter, and why there's been an energy cost storm brewing for so long now.
Those Q1 results should be chunky, even with the Rosneft hit, which of course we will don't know how will pan out. We will take a chop on it, sure, but I just don't see us being stupid enough to just hand it over to Russia for nothing. We could have done that already if that were the plan.
Just keep reinvesting or enjoying those dividends, whilst BP et al push that green energy move over the next decade and beyond. Dumping Russian energy has just sped up that process and given it a more positive PR spin. The source of the energy matters not, its how profitable it is. And lets be honest, as with anything, will electricity suddenly cost the consumer much less when it's no longer mainly produced via oil and coal?/is much cheaper to produce? No, they will charge what they can charge, as with anything in life. People's ability to pay is the main driver in the cost of anything. Lower costs = more profits, simple.
Crude oil will be a core part of the planet's energy needs for another generation, but green has to be the norm going forwards. That will all just cause crude oil to cost more and more, to make up for the lower production/availability. A balanced green/oil roadmap seems sensible, and that's what BP are pioneering at.
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