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BP to keep betting on lower carbon, more economical offshore oil output
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HOUSTON (Reuters) – British oil major BP will continue betting on “lower carbon, more economical” offshore oil and gas exploration and production, a company executive said on Monday, warning that lack of
HOUSTON (Reuters) – British oil major BP will continue betting on “lower carbon, more economical” offshore oil and gas exploration and production, a company executive said on Monday, warning that lack of investment could lead to global oil scarcity.
Offshore operations allow better control of emissions, especially in the U.S. Gulf of Mexico, said Starlee Sykes, BP’s Senior Vice President for the Gulf of Mexico and Canada, during the Offshore Technology Conference (OTC) in Houston.
“We will continue to explore for oil, primarily close to current hubs,” she said. “More Gulf of Mexico oil and gas helps improve emissions globally”.
About a quarter of U.S. oil and gas output comes from federal lands and waters. More than 1,800 platforms in the U.S. Gulf of Mexico, the country’s primary offshore source of oil and gas, provided 1.7 million barrels per day (bpd) of crude production in 2021 mostly from deepwater fields, official data showed.
According to Sykes, BP is looking at natural gas as a “key transition fuel” to move away from crude and other fossil fuels. BP is also exploring opportunities for carbon capture projects, biofuels and hydrogen in the U.S. Gulf, the executive said.
(Reporting by Arathy Somasekhar and Sabrina Valle, writing by Marianna Parraga; Editing by Kirsten Donovan)
Offshore oil production refers to the extraction of petroleum from beneath the ocean floor, typically using drilling platforms. It is a significant source of global oil supply.
Carbon capture is a technology that captures carbon dioxide emissions produced from the use of fossil fuels in electricity generation and industrial processes, preventing CO2 from entering the atmosphere.
Natural gas is a fossil fuel composed mainly of methane, used as an energy source for heating, electricity generation, and as a fuel for vehicles.
Biofuels are renewable fuels made from organic materials, such as plant or animal waste, used as alternatives to fossil fuels for energy.
Deepwater drilling involves drilling for oil and gas in water depths greater than 1,000 feet, often requiring advanced technology and equipment.
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