BP’s chief executive Meg O’Neill met with UK Prime Minister Andy Burnham to advocate for increased reliance on domestic oil and gas resources. O’Neill stated that the UK should prioritize energy generated within its own borders, citing benefits including job creation and tax revenue. She emphasized that the country currently derives 75% of its energy from fossil fuels and suggested that domestic North Sea resources should be developed before importing energy from external sources.
The comments come as BP announced plans to divest from the North Sea after 60 years of operations, describing such investments as uncompetitive within its broader portfolio. Despite this strategic shift, O’Neill expressed confidence that the company would attract interest from other buyers and that the assets would remain profitable under new ownership. She noted that BP had already received unsolicited acquisition proposals for its North Sea fields.
O’Neill’s remarks were made as BP reported significantly elevated quarterly earnings of $5.73 billion in the three months ending in June, more than double the previous year’s figure. These results were attributed to rising oil and gas prices stemming from ongoing Middle East disruptions to energy exports. The windfall profits come as the Burnham government faces a decision regarding approval of two disputed North Sea projects—the Jackdaw and Rosebank fields—amid growing scrutiny of industry profits and climate concerns.
The UK government is also considering potential reforms to the North Sea tax regime, with industry representatives arguing that existing tax rates accelerate the sector’s decline. O’Neill described Burnham as pragmatic and committed to working closely with business interests. Separately, Shell and Saudi Aramco also reported substantial profit increases during the same quarter, driven by similar market conditions, while environmental advocates criticized the oil industry’s expanded earnings as households continue struggling with elevated energy costs and climate impacts.
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