RE: Brent 90.29$8 Feb 2022 16:47
Oil giant BP has rejected calls for a windfall tax on energy companies' bumper profits, saying it would reduce investment in UK gas and renewables.
BP posted a profit of $12.8bn (£9.5bn) for 2021 after oil and gas prices surged in the second half of the year.
That has prompted calls for a one-off tax to help support families struggling to pay their energy bills.
Labour said it was "only fair and right" that energy firms making higher profits should pay more tax.
But BP said: "Generally, a windfall tax on UK oil and gas producers would not encourage investment in producing the UK's gas resources.
"Very importantly, we also believe the UK should continue its [low carbon] energy transition as fast as possible. BP is committed to playing our part here," a company spokesperson said.
Last week, rival oil giant Shell also reported profits of $19bn on the same day that the energy regulator Ofgem announced UK householders would see a 54% rise in their domestic energy bills in April.
That has prompted criticism that energy firms are raking in excess profits on the back of fuel poverty and "creeping climate apocalypse".
But the oil giants argue they are facing an unprecedented challenge: while the global economy remains heavily dependent on fossil fuels, they are being urged to shift to lower carbon alternatives, and need big profits to fund that transition.
BP said over this decade the firm planned to invest more than twice what it made in Britain, the "great majority" in offshore wind, solar, hydrogen, carbon capture and storage and electric vehicle charging.
BP has moved further than many of its rivals, outlining a plan to increase its renewable power capacity 20-fold by 2030 and reduce its oil output by 40%, or more than 1 million barrels per day.
The strong results showed BP was doing what it had promised: "performing while transforming" BP chief executive Bernard Looney said.
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