Former CEO of BP, John Browne, discusses the oil industry's knowledge on climate change and the impact of fossil fuels on conflict. The podcast explores the need for action, challenges in reducing carbon emissions, and shifting subsidies. It also highlights the role of state-owned companies in fossil fuel production and the consequences of the British government's climate policies.
Values, trade, and resources are the three main areas of conflict identified by John Brown, with values including cultural submersion and power imbalances, trade being a significant factor that can lead to conflicts when exploited, and resources, such as oil and gas, creating tensions among nations.
The oil and gas industry, including BP, was aware of climate change since the late 1970s, but it took time for the industry to take action; John Brown broke ranks in 1997, emphasizing the importance of reducing greenhouse gas emissions and promoting growth in the renewable sector.
Deep dives
Conflicts over values, trade, and resources
The podcast episode discusses the three main areas of conflicts identified by John Brown: values, trade, and resources. He mentions that values, such as cultural submersion and power imbalances, can lead to conflicts. Trade is also a significant factor, as many nations rely on it, and when it goes wrong or is exploited, conflict can arise. Finally, the unequal distribution of resources, including oil and gas, can create tensions and conflicts among nations.
The role of oil and gas industry in climate change
The podcast addresses the role of the oil and gas industry in climate change. John Brown, the former CEO of BP, acknowledges that the industry was aware of climate change as early as the late 1970s. However, he notes that it took time for the industry to align itself and take action. Brown broke ranks with the industry in 1997, acknowledging the problem and offering a solution to reduce greenhouse gas emissions. He emphasizes the importance of taking action and highlights the need for growth in the renewable sector.
The challenge of state-owned oil companies
The episode highlights the challenge posed by state-owned oil companies. It is revealed that a significant majority, around 80-85%, of fossil fuels are produced by state-owned companies. These companies operate differently from private oil majors, making it challenging to pressure them or hold them accountable for their actions. The focus of criticism often falls on the super majors, while state-owned companies continue to produce and control a majority of fossil fuels.
The need for collective action and government intervention
The podcast emphasizes the need for collective action and government intervention. John Brown stresses the importance of nations working together to address climate change, acknowledging that different nations have different agendas. He suggests that governments should take the lead by setting standards and leveraging their procurement budgets to drive demand for carbon-free products. Additionally, he calls for capital investment from developed countries to help emerging and developing economies transition to cleaner energy sources. Brown also emphasizes the necessity of commitments made in global meetings like the COP meeting and suggests that legislation and international treaties alone may not be enough to address the climate crisis.
John Browne, Chairman of BeyondNetZero, was CEO of BP from 1995 – 2007. In 1997, he broke ranks with the industry and delivered a landmark speech on the impact of burning fossil fuels on the climate. But this was two decades after Exxon had hired their own climate scientists and buried the results.
John explains what he and his executive team knew in the mid-nineties, insisting they began working solutions as soon as they understood the planet was heating up. However, as I point out, there are clues on BP’s website which suggest the company knew beforehand. We also discuss the impact of resources and particularly fossil fuels on conflict with John revealing he was invited to the Pentagon around the time of the Iraq war to estimate how much oil was in the Middle East nation.
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