BP CEO Looney Aims to Drive Down Breakeven Price to $40 by 2021

The transcript discusses BP's approach to oil price modeling, emphasizing the unpredictability of future prices and the need for cash flow models. It highlights BP's strategy to lower its break-even point to $40 per barrel, ensuring resilience across various scenarios. The company aims to balance shareholder priorities, including gearing, dividends, and energy transition. BP is committed to capital discipline, maintaining a $15-17 billion range, and plans to increase investments in low-carbon businesses while reducing oil and gas investments. The investment framework focuses on generating scale, adding value, and ensuring competitive returns.

What is the company's target break-even price for 2021?

• $30

• $40

• $50

• $60

Which three priorities are the company committed to balancing?

• Dividends, oil prices, and cash flow

• Gearing, dividends, and energy transition

• Energy transition, oil prices, and gearing

• Cash flow, dividends, and oil prices

What is the company's stance on capital discipline?

• They will reduce capital discipline

• They have no clear stance

• They plan to increase capital spending

• They are committed to it

How does the company plan to manage its capital allocation?

• By increasing investment in oil and gas

• By focusing on high-quality opportunities

• By reducing dividends

• By ignoring shareholder priorities

What is the company's approach to investing in new businesses?

• Ignoring low to no carbon businesses

• Prioritizing oil and gas investments

• Focusing on scale, added value, and competitive returns

• Investing without considering returns