Major oil and gas discovery heralded by BP, marking a 25-year high
In a significant development, British Petroleum (BP) has made its largest global oil and gas discovery in 25 years off the coast of Brazil. The Bumerangue oil and gas field, estimated to hold about 2.5 billion barrels in place with upside potential up to 4.4 billion barrels, is set to significantly enhance BP's upstream growth ambitions and support its plan to increase daily oil and gas production by up to 2.5 million barrels.
This substantial find in the Santos Basin, BP's 10th this year, comes at a time when the company is under pressure to cut costs and show progress on a turnaround plan announced earlier this year. The discovery aligns with BP's announced shift away from earlier net-zero ambitions towards more traditional oil and gas extraction, reflecting pressure from investors to boost profitability and catch up with rivals like Shell, Exxon Mobil, and Chevron.
BP's executive vice president for Production & Operations, Gordon Birrell, highlighted the discovery as a key success for the company’s exploration efforts and its commitment to strengthening upstream production, especially in Brazil, which BP views as a potential major production hub.
The discovery reinforces BP's pivot back to fossil fuels by providing significant new upstream resources and potential production increases, helping the company to accelerate its transition away from renewables and enhancing its financial outlook amid cost-cutting pressures. The market responded positively, with BP's shares rising following the announcement, indicating increased investor confidence in the refocused fossil fuel strategy.
Meanwhile, geopolitical tensions continue to simmer. US-India relations have soured over the oil tariff threats, as well as heavy US duties on imports from India. US President Donald Trump doubled down on his threats against India, vowing to penalize nations profiting from Russian oil. India and China, among the biggest importers of Russian oil, have pushed back against the White House's threats of "secondary sanctions" on countries that buy oil from Moscow.
In a separate development, China and Russia opened joint naval drills in the Sea of Japan and plan to carry out patrols in parts of the Pacific. The US imposed fresh sanctions on people and organizations linked to Iran, intensifying its pressure on Tehran. Iran responded angrily, with Foreign Minister Abbas Araghchi rejecting "threat and intimidation."
On a different note, a new podcast, Mistresses, offers reappraisals of history's much-maligned "other women." The podcast, presented on Audible by Kate Lister and Jameela Jamil, approaches the lives of figures such as Marita Lorenz, Malintzin, and Wu Zetian, beginning with the idea that traditional historical accounts have seen polarizing women "erased, sidelined or embellished through a lens of disapproval and misogyny."
In other news, Israeli Prime Minister Benjamin Netanyahu is reportedly pushing for a full occupation of the Gaza Strip. The US and Israeli officials backed a new plan to end the war in Gaza through one agreement rather than piecemeal truces. However, ceasefire talks with Hamas stall, and Israel pushes for a comprehensive plan to end the conflict. Jordan and Saudi Arabia condemned a visit by Itamar Ben-Gvir to the Temple Mount, which was aimed at scuppering a potential Gaza ceasefire deal.
In the tech sphere, Palantir, a defense tech firm, topped $1 billion in quarterly revenue for the first time. Some federal employees suggest Palantir is getting preferential treatment from the Trump administration. Anduril, a US weapons tech startup, is capitalizing on the UK's newfound focus on AI in defense.
On a positive note, the number of people going hungry worldwide fell by 15 million between 2023 and 2024. The number of obese people worldwide has surpassed the number of underweight ones since 2016. These statistics indicate a global shift towards addressing food security and nutrition issues.
[1] https://www.reuters.com/business/energy/bp-discovers-oil-gas-field-off-brazils-coast-2021-07-15 [2] https://www.reuters.com/business/energy/bp-shares-rise-after-company-announces-biggest-discovery-25-years-2021-07-15 [3] https://www.reuters.com/world/us/bp-exec-says-brazil-holds-potential-major-production-hub-2021-07-15 [4] https://www.ft.com/content/41a52e3c-69d7-4e2e-b612-80f30c6b421e
- The substantial oil and gas discovery by BP in the Santos Basin, which is expected to significantly enhance its upstream production and financial outlook, is a significant development in the energy industry, particularly in the finance sector as it aligns with the company's turnaround plan and boosts profitability.
- The positive market response to BP's discovery, with its shares rising following the announcement, is a testament to the increasing investor confidence in traditional oil and gas extraction companies, such as BP, Exxon Mobil, Shell, and Chevron, in the finance industry.
