UK-based Oil Company reeling from activists, investors supported resolution calling for more transparency on climate change issues, as 5th Gulf of Mexico anniversary approaches.
Last week has driven BP (NYSE:BP) “environmentally crazy”. It was reported by the Guardian newspaper last week that the company has invested billions of pounds on its research of clean and low carbon energy projects in the 80’s and 90’s, only to later abandon them and lock their research papers away. The program employed over 4000 workers based in Cleveland Ohio and Sunbury Berkshire among other locations.
Shareholders have supported a resolution with a vote of more than 98% at the company’s shareholder meeting due to strong activist investor’s initiative. After the vote, the company has expressed its commitment in publishing information on many ranges of issues, from the value of its oil and gas reserves by limits on carbon emissions to its investments in low-carbon technology to the scale of carbon dioxide emissions from its operations. Though it is yet to be seen that if the company will also publish the 80’s and 90’s research publications that have been locked away.
The UK based oil and gas company, while committing itself to the cause of transparency, has made it clear that it would not be providing targets to curb greenhouse gases, without providing clear reasons, other than seeing that it will be counterproductive. However, it did point out its commitment by moving over to gas from oil, campaigning for global carbon price against the Oil Prices and putting higher focus on efficiency on renewable energy, though it had come under fire for selling off this sector, feeding anger among activists that BP may be turning its back on it. In response, the oil company stated that they had to sell it due to stressful financial situation to pay for the Gulf of Mexico cleanup.
With the 5th anniversary of the Gulf of Mexico approaching, and with cleanup still ongoing, the company has been facing the wraths from activists who claim that not enough has been done to speed the cleanup and quickly process settlement requests. The latest news consist of reports that the detergents being used to clean up the spill is causing growing health problems for the community who live around the devastated area. On the contrary, BP rejected those claims, pointing out that the US regulators certified them, or they would not have proceeded with it. BP Senior Vice President, Geoff Morrell, pointed out that Gulf has not been damaged anywhere near the expectations of the people. BP stock price closed at $43.07, a rise of 0.40%.