Energy Efficiency and Renewables Conference
Opening remarks
June 10, 2019
Good morning.
It is a pleasure to be able to address you this morning as you start a two day event focused on a topic of great Global importance and one which Trinidad and Tobago has a role, which it both wants and needs to play.
BP Trinidad & Tobago is honoured to sponsor this event for a second year because we believe that it provides an ideal forum for the generation of ideas - and discussions - that are needed to chart a course to a lower carbon future for Trinidad and Tobago.
I note that this conference has evolved from the ‘Clean Energy Conference’ to one whose focus is on the role of both Energy Efficiency and Renewables.
This highlights the point that the discussion on a lower carbon future cannot be centered on renewable energy alone, but rather on the energy transition.
Globally there is a mounting sense of urgency on climate issues, although there are significant regional differences in how this sense of urgency shows up. If you are in Europe at the moment - it is tangible and visible.
The Paris Agreement (signed in 2016) recognized the impact of climate change on our planet and our way of existence. It calls for rapid reductions in greenhouse gas emissions in the context of sustainable development and efforts to eradicate poverty.
Yet recent research shows that CO2 emissions reached an all time high in 2018.
Trinidad and Tobago – like most countries in the world – is grappling with the challenge of the desire to provide a cleaner, greener future, and the complexities and associated costs of delivering this.
As you all know - this is no easy task. It is easy to assume:
• someone else will do this,
• someone else will pay for this,
• or even this is not our problem.
At BP we understand that the world needs more energy - but it wants it in a way that is kinder to our planet.
We call this the dual challenge:
How does the world meet growing energy needs while at the same time reducing greenhouse emissions?
Consider this:
1. The world economy is set to grow - mainly from increases in productivity
2. Demand for energy will grow and global population is heading towards 9 billion by 2040 - an increase of around 23%
3. 80% of the world’s population today live in countries where increases in energy consumption are likely to go hand-in-hand with significant improvements in living standards
4. Lifting 2.5bn people from low incomes
5. Over the next 20 years the increase in energy demand is concentrated in developing countries - 50% from India and China
6. Natural gas demand will continue to grow in almost every country
7. Global LNG exports will increase significantly - leading to a more competitive, globally-integrated gas market.
8. Renewables are set to be the fastest-growing energy source in history. They could be 14%-15% energy consumption in 2040. These points demonstrate that the world is changing rapidly, and energy markets and policies must evolve at pace to meet those changing needs.
However, how we meet those needs presents both challenges and opportunities.
We do not see the energy transition as a race to renewables.
But rather a race to lower carbon in which energy is cleaner, better - and both natural gas and renewables play a key role.
At a global level, BP is approaching this through our RIC framework - Reduce, Improve, Create.
That is:
1. Reducing our emissions in our operations
• Changing designs of new activity and modifying current activity
2. Improving our products to help customers reduce their own emissions – which includes
• Producing more natural gas as an alternative to coal in the power sector and as a partner for intermittent renewable energy.
• Developing more efficient and lower carbon fuels, lubricants and petrochemicals
3. Creating new low carbon and renewables businesses, includingo BioFuels, wind and solaro We have partnered with Lightsource, Europe’s largest solar development company, now present in 5 non-European countries (Egypt, Australia, Brazil, India, USA) We have acquired the largest electric vehicle charging company in Europe
• Investing $500 million/year in low carbon activities
• Collaborating through the Oil and Gas Climate Initiative’s $1 billion fund for research and technology.
That’s on a global level.
What about closer to home?
Trinidad is party to the Paris Accord and ratified this on 22nd Feb 2018.
This confirmed the official Nationally Determined Contribution which is a commitment to reducing cumulative greenhouse gas emissions by 15% from
• industry,
• power and
• transport - by 2030.
A milestone on this path is an ambition to have 10% of energy from renewable sources by 2021.
So T&T has its own dual challenge – meeting this commitment to lower emissions while at the same time maximizing the country’s contribution to meeting energy demand. Both of which have to be achieved while maintaining long term economic stability.
While Government has a pivotal role in setting policy frameworks consistent with this - companies (whether privately or state owned) - and individual citizens - must play their part if together Trinidad is to meet both its global role and improve the prosperity of the country.
BPTT is playing its role.
On the supply side we are harnessing technology to maximize our production. Whether this is:
The use of data to create a digital twin of our production systems allowing us to simulate and better optimize production day to day.
Or working on the application of -for example - triple zone completions to allow us to access smaller and smaller accumulations of technically more challenging resource
In terms of Emissions Reductions
We have developed a multi year lower carbon mission and plan with a focus on:
• power generation
• energy efficiency
• facility design
• operational activities, and
• logistics
In developing our plan we did not do this top down. We engaged our employees across our business. We received hundreds of ideas and innovative approaches to reducing emissions in our operations. We have prioritized many of these ideas and have teams across our business working on progressing these. It was energizing to see how invested our staff are in our efforts to create a low carbon future.
Technology will support our ambitions in this area - for example we are planning on installing gas cloud imaging cameras at Beachfield which have the capability to continuously monitor and identify leaks earlier than daily routine inspections can.
In addition, we are looking to support national emissions reduction efforts and working with our partners to help Trinidad and Tobago achieve both its emissions and renewable energy targets. On improving Efficiency
At BP, we are using data and technology to transform our business, including seeking out ways to improve our own energy efficiency.
This focus is not just good for the environment it’s also good business. The less energy we use to run our operations means the more gas available to send to the petrochemical and LNG markets.
We are exploring a new concept for our next generation of offshore platforms that will address both sides of the dual challenge. The minimal NUI - or normally unmanned installation - concept is expected to reduce development costs which could make commercially marginal resource pools more competitive and the new design will also operate with lower emissions.
Additionally, we are also looking at promoting opportunities for all our employees to understand how they personally could contribute, without subsidies, to improving the energy efficiency and emissions of Trinidad and Tobago.
But that’s not all that we are doing – we are also looking at opportunities to be part of T&T’s renewable energy future.
BP globally is investing in renewables, fast charging for EV’s and other low carbon ventures and we are exploring how we can bring some of these low carbon solutions to Trinidad and Tobago. That is a brief look at how BP is confronting the dual challenge in terms of meeting demand, reducing emissions, improving efficiency and considering renewable energy opportunities. I am certain that over the next two days of this conference there will be ample discussion on the ways in which the private and public sector can work towards achieving these country goals.
Which brings me to my last point: Collaboration is essential as we seek to ensure a lower carbon future. This conference is valuable in connecting the dots but there is also a need to use that momentum to turn the discussions into actionable viable solutions.
It will take effort from all of us – companies, citizens, civil society and government to make the step changes that are likely needed.
I wish all of you an enjoyable next two days.
Thank you.