The natural gas market has great potential and the future of renewable energy can be expected-Interview with Dai Sipan, chief economist of BP Group

Recently, Dai Sipan, chief economist of BP Group, shared with Chinese media some findings on the 70th edition of the "BP World Energy Statistical Yearbook" online, and accepted an interview with Chinese media
.

Regarding carbon emission reduction: net zero emissions become the focus of the world, the world pays attention to China's carbon market

Regarding carbon emission reduction: net zero emission has become the focus of the world, the world pays attention to China's carbon market Regarding carbon emission reduction: net zero emission has become the focus of the world, the world pays attention to China's carbon market

Reporter: China has officially launched carbon emissions trading.
How do you evaluate its role in global emissions reduction?

Dai Sipan: The carbon price is relatively low now, so this price mechanism has not been effectively used so far, but I think China is sending out a good price signal, which is a good start
.

In addition, the price information of the carbon market can be seen elsewhere in the world, which will have a significant impact on the composition of energy

Reporter: When will we see that the economy grows while the carbon dioxide decreases?

Dai Sipan: We have to do two things: First, to further improve energy intensity, which means that the energy intensity required for each GDP growth is decreasing, so we must improve energy efficiency; second, we must continuously improve the entire GDP The intensity of carbon dioxide, which means to reduce the use of fossil energy, and use more solar, wind, and renewable energy
.

Only when we all work together and act quickly and on a large scale to promote change can we achieve the above goals

Regarding oil and gas transformation: oil and gas investment still needs to continue to be optimistic about the natural gas business

Regarding oil and gas transformation: oil and gas investment still needs to continue to be optimistic about natural gas business Regarding oil and gas transformation: oil and gas investment still needs to continue to be optimistic about natural gas business

Reporter: Now many oil and gas companies have begun to increase investment in clean energy, but this kind of investment may put greater pressure on the performance of oil and gas companies in the short term.
How to solve this problem?

Dai Sipan: BP has made a commitment to achieve the net zero goal by 2050 and help the world achieve the net zero goal
.

We will gradually reduce the output of oil and natural gas, while rapidly increasing low-carbon or zero-carbon businesses

Reporter: Under the goal of energy transition and net zero emissions, major energy companies are reluctant or dare not to invest in oil and gas investment.
Will this make oil and gas in short supply?

Dai Sipan: One point of the International Energy Agency is that under the net zero emission scenario, there should be no new oil and natural gas investment projects.
We should invest in existing oil and natural gas projects
.

In the next 10 years, the amount of investment in existing oil and natural gas projects should reach 300 billion U.
S.
dollars a year, and it will decline after 2030, to 170 billion U.
S.
dollars a year
.

However, we must clearly realize that oil and gas will remain indispensable for maintaining human economic prosperity at least for the next 10 to 15 years

Reporter: Some people say that natural gas is a transitional energy, while others say that it is the ultimate energy.
What is your view? What is BP's development strategy for the natural gas business?

Dai Sipan: Natural gas is very resilient, much higher than oil, and will play a very important role in the energy transition
.

First of all, natural gas can help emerging economies reduce and decarbonize at a relatively rapid rate.

Second, natural gas + CCUS technology can be used to produce blue hydrogen, which can help reduce carbon intensity
.

To this end, a new project invested by BP is to deploy a blue hydrogen production base in Teesside in northeastern England using natural gas + CCUS technology.

　　Regarding new energy: hydrogen energy is indispensable, solar and wind energy can be expected to compete

Regarding new energy: Hydrogen energy is indispensable for the competitiveness of solar and wind energy.
Regarding new energy: Hydrogen energy is indispensable for the competitiveness of solar and wind energy.

　　Reporter: China's hydrogen energy development is relatively hot now
.

But we have also noticed a phenomenon.

　　Dai Sipan: I don't think the difference in opinions is very big.
Hydrogen energy really needs to play an important role in the global energy system
.

To achieve the goal of net zero emissions, first of all, electric energy can be low-carbon, electrified as much as possible, and use zero-carbon electricity to provide electricity for these electrified industries

　　Reporter: In the field of low-carbon energy, we see that many companies and institutions, including BP, regard solar and wind energy as the main growth force in the future.
What do you think are the competitiveness of these two types of energy compared with other renewable energy sources?

　　Dai Sipan: The competitiveness of wind energy and solar energy has increased substantially in the past 5 years.
The cost of electricity through wind energy has dropped by 40%, and the cost of electricity generation through solar energy has dropped by 55%
.
Of course, wind and solar power generation needs to consume a certain amount of land and resources, but these inefficiencies have been considered in the cost, so the total cost can still compete with other energy sources
.

　　We are also modeling the issue of land occupation, especially in countries with high population densities
.
Our point of view is that this is not a bottleneck in the development of wind and solar energy from the perspective of land resources in the world
.