BP Plc anticipates strong growth in the US as President-Elect Donald Trump improves regulations on the oil and gas industry just as artificial intelligence boosts energy demand.
“We look forward to the Trump presidency,” BP Chief Executive Officer Murray Auchincloss said at the Energy Intelligence Forum in London on Monday. “We think this is a strong chance to help the US get back to putting construction forward, getting regulatory reform in place, getting faster permitting.”
While BP is based in London, more than half of its assets and cash flows are in the US, and Auchincloss was bullish about the company’s output there through 2030. Trump said repeatedly in the election campaign that he wanted to accelerate the growth of oil and gas output and curb regulations.
Not every US oil major has signed up fully to Trump’s agenda. Exxon Mobil Corp., BP’s biggest American rival, has publicly lobbied the president-elect to remain part of the Paris climate agreement. When asked about that, Auchincloss demurred and reiterated his optimism about regulatory reforms.
Still, global oil demand continues to surprise BP to the upside and Auchincloss said he expects strong growth in global consumption in the next five to 10 years. BP expects North American natural gas demand to expand by 20% to 30% this decade and sees opportunities to partner with energy-hungry AI firms known as hyperscalers, Auchincloss said. BP is also using AI in its own engineering, marketing and refining operations, and the CEO said he is “surprised at how fast and effective” the technology can be.
In the last few years, BP and its US peers have followed a different strategy in the transition to low-carbon energy, focusing on specific areas that they say complement their core businesses such as carbon capture and sequestration. Meanwhile, BP has ventured further into areas such as solar and wind power.
The depth of experience at BP’s trading business means it can do more in these areas than its US rivals, Auchincloss said.
“We have a bit more to offer through our trading business and so we have a few more integrated areas that we can pull in based on what our customer needs are,” Auchincloss said. “But I do see these things coexisting together. Who else is going to help nations decarbonize?”
Auchincloss sees opportunities across biofuels, electric vehicles and hydrogen. The company expects a new hydrogen site in the UK to be given the go-ahead soon, he added, which would be the company’s third such project.
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