BP Reports Strong Quarterly Profits Amid Controversial Oil Expansion Plans

BP has announced a robust quarterly profit of nearly $2.8 billion (£2.2 billion), exceeding analyst expectations and prompting the company to outline plans for a new oil hub in the Gulf of Mexico. This announcement comes as BP prepares to distribute a multibillion-dollar payout to shareholders, despite facing backlash from environmental groups over its decision to advance the Kaskida project, which could tap into 10 billion barrels of oil located 250 miles southwest of New Orleans. The company’s financial performance for the three months ending in June showed a profit of $2.76 billion, surpassing forecasts of $2.54 billion. However, BP also revealed a $2 billion writedown related to a significant reduction in its refining operations at the Gelsenkirchen biofuels refinery in Germany, a move attributed to declining demand. This decision has drawn criticism from climate advocates who argue that BP is retreating from green investments while prioritizing fossil fuel projects. Despite these controversies, BP's CEO, Bernard Looney, emphasized the company's commitment to transitioning into an "integrated energy company." Plans include developing five to ten green hydrogen projects aimed at producing sustainable aviation fuel and decarbonizing refining operations. Additionally, BP claims leadership in biofuels, biogas, and electric vehicle charging infrastructure. While BP's underlying replacement cost profit reached $2.8 billion, the reported results reflected a £129 million loss due to the refinery writedown, contrasting with a profit of £1.8 billion in the same quarter last year. Environmentalists continue to call for accountability from BP, urging the company to prioritize sustainable practices over fossil fuel expansion.