BP, the company formerly known as British Petroleum, said demand for oil may have reached its peak and faces a decades-long decline.
In its annual report to investors, the company said a series of policies and shifts in societal preferences have led to a decline in hydrocarbons like coal, oil and natural gas that will continue for decades. Renewable energy sources could account for a majority of global energy by the early 2040s, the company said.
“This new decade is a pivotal time for BP. We will continue to be an energy business, but a very different kind of energy business in years to come,” said BP CEO Bernard Looney. “Our destination is a thriving, sustainable energy business in a net zero world.”
Earlier this year, BP announced it would cut back on its oil and gas business and invest more in renewable energy. The company said it would halt oil and gas exploration in new countries, slash oil and gas production by 40% and lower carbon emissions by a third.