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FOIA Number: 2017-1094-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: WH Task Force on Climate Change Series/Staff Member: Roger Ballentine; Paul Bledsoe; Julie Anderson Subseries: OA/ID Number: 41300 FolderID: Folder Title: BP [British Petroleum] Stack: Row: Section: Shelf: Position: S 100 3 10 1 THE WHITE HOUSE Office of the Press Secretary For Immediate Release September 18, 1998 STATEMENT BY THE PRESIDENT I applaud the leadership demonstrated today by British Petroleum with its plan to dramatically reduce emissions contributing to global warming. By committing to reduce its greenhouse gas emissions 10 percent below 1990 levels by the year 2010, British Petroleum is setting a new standard in corporate responsibility. The company plans to meet its ambitious target through a cost-effective strategy that combines innovative market-based approaches with the latest in energy-efficiency technologies. British Petroleum's bold strategy is further proof that we need not choose between a healthy economy and a healthy environment. I urge other businesses to follow British Petroleum's lead and help meet the challenge of global warming. And I again call on Congress to help speed this effort by funding my proposals for new tax incentives and research investment to spur energy efficiency and clean energy technologies. ### British Petroleum Sets Goal of 10% Cut in 'Greenhouse' Gases http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/081-091898-idx.hl HOME SEARCH up If you could reduce your fund expenses 40 * 70% INGEX NEWS STYLE SPORTS CLASSIFIEDS PRINT EDITION TOP NEWS WORLD NATION POLITICS METRO BUSINESS WASHTECH OPINION WEATHER British Petroleum Sets Goal of 10% Cut in Online in-stock and right of your desktop. click here 'Greenhouse' Gases By Martha M. Hamilton Washington Post Staff Writer Friday, September 18, 1998; Page A06 Related Items Print Edition The group chief executive of British Petroleum Co. will pledge today Inside "A" Section to reduce the global oil company's "greenhouse gas" emissions by 10 Business percent below 1990 levels -- a commitment that far exceeds goals set Front Page Articles for the United States and other industrial nations last year in a controversial treaty in Kyoto, Japan. On Our Site Top News/Breaking News Sir E. John P. Browne, who in May 1997 became the first oil industry Neighborhoods official to acknowledge the role of fossil fuels in the buildup of Community pollutants that have been blamed for global warming, said in an Resources interview yesterday he believes BP can deliver on its promise without compromising either growth or profits. BP -- the world's third-largest publicly traded oil and gas com pany produced an estimated 40 million tons of carbon dioxide and other Denim greenhouse gases worldwide in 1990, according to the company. It $ YOUR Style* said it will reduce emissions by 4 million tons 12 years from now. The Captain's Tiger Browne said that BP will call on its 90 business units worldwide to reduce emissions, using strategies that include improving energy efficiency, using new technology and trading emissions. The company newest play set up an internal system for trading emissions with help from the Environmental Defense Fund and by drawing on the expertise of the company's oil traders. Emissions trading, which has been used in the United States to reduce pollution, sets targets for emissions reductions for companies (or business units). But the reduction doesn't have to be produced on site. For instance, one business unit might meet its target by paying another unit that can reduce emissions more cheaply to double its reductions. In the text of a speech to be delivered today at Yale University's School of Management, Browne said that the company has used technology that enhances oil flow to eliminate a number of pumping stations on the Trans Alaska Pipeline, resulting in the elimination of 236,000 tons per year of carbon dioxide emissions. Opponents of the Kyoto treaty have argued that science on the issue 1 of 3 9/29/98 6:15 PM British Petroleum Sets Goal of 10% Cut in 'Greenhouse' Gases http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/0811-091898-idx.ht isn't clear enough to warrant setting ambitious goals, that achieving those goals would be too costly and that the treaty doesn't require developing nations to do their part. The treaty, the details of which will be worked out further in November in Buenos Aires, set target reductions for the United States at 7 percent and for the world's industrialized nations at 5 percent. "This exceeds any of the goals," said Fred Krupp, executive director of the Environmental Defense Fund, which has worked with BP on emissions reductions but receives no funds from the company, according to Krupp. Robert N. Stavins, an environmental economist at the John F. Kennedy School of Government at Harvard University, said that the goals set by BP are "significant relative to the Kyoto targets." But he said that the emissions from the products that the oil company produces -- such as gasoline -- are more important than the emissions resulting from the company's production and refining operations. "They're of much greater magnitude than the emissions that come from production," he said. Kenneth E. Blower, BP America's director of health, safety and environment, said that society and BP will have to tackle those emissions, too, in part by developing new energy resources for transportation. "This is our internal step," he said. "We can't solve the whole problem, and corporate sector activity can't replace the public process which is going on through the conferences in Kyoto and Buenos Aires," Browne said in the text of his speech, which was made available yesterday. "But I hope we can show -- in a small way -- what can be done. And I hope we can help the process forward." Since Browne broke with the industry more than a year ago, calling for action on global warming, executives from other oil companies, including Royal Dutch/Shell Group of Cos. and Texaco Inc., have adopted similar positions and others have softened their rhetoric. "A number of companies are already doing things to control their carbon dioxide emissions, but I don't know if any companies will set their own targets and announce it," said William F. O'Keefe, executive vice president for the American Petroleum Institute. Spokesmen for Texaco and Fairfax-based Mobil Corp. said yesterday their companies are taking steps to reduce emissions and to find ways to measure what emissions were in 1990 and what they are now. "We're concerned about the impact of man-made gases, and because of that we're doing a number of things," said Mobil spokesman David 2 of 3 9/29/98 6:15 PM British Petroleum Sets Goal of 10% Cut in 'Greenhouse' Gases http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/0811-091898-idx.ht J. Dickson. O'Keefe said the API and the U.S. industry remain opposed to the Kyoto treaty "because it won't work and without the involvement of developing countries it will be a tremendous waste of resources." Energy demand is expected to grow fastest in the developing world, where approximately 2 billion people live without access to commercial energy sources. Developing nations have expressed concern that demands to curb energy consumption because of global warming might slow their economic development, leaving them at a permanent disadvantage to the already industrialized world. The Kyoto treaty set no targets for curbing emissions by developing countries. © Copyright 1998 The Washington Post Company washingtonport NEWS STYLE SPORTS CLASSIFIEDS PRINT EDITION TOP NEWS WORLD NATION POLITICS METRO BUSINESS WASHTECH OPINION WEATHER yellowpage Natcard VISA 8.9%* Upto the Minute Game Scores How can you go? 3 of 3 9/29/98 6:15 PM The New York Times Circ: 1,187,950 SEP 19 1998 British Petroleum Planning 'Firm' Cuts in Emissions By ALAN COWELL B2 earth's surface is increasing." Accordingly, he said, B.P. has initi- ated an internal program enabling LONDON, Sept. 18 - Setting a units within the company to trade figure for the first time on its emission rights - a system devel- planned reduction of greenhouse gas oped with the Environmental De- emissions, the British Petroleum fense Fund, a nonprofit advocacy Company announced today a "firm group in the United States, and also overall target" to cut emissions by urged by the Kyoto conference. Trad- 10 percent of their 1990 levels by ing in emission rights lets companies 2010. or countries reduce greenhouse gas A spokesman for the company in emissions either by outright cuts or London, Roddy Kennedy, said the by trading in excess reductions 1990 level of emissions was 40 million made by others. In a separate state- tons - a figure that would have risen ment, B.P. said a pilot trading pro- by 18 million tons over the next 12 gram would link 12 of its 90 internal years if no measures were taken to units accounting for about a quarter reduce them. of the company's emissions. The target reduction was an- In London, Mr. Kennedy, the nounced in a speech to the Yale spokesman, declined to comment on School of Management in New Haven how today's pledge would affect by Sir John Browne, British Petro- B.P.'s planned merger with Amoco, leum's chief executive, who said the announced in August and still await- promised cuts went deeper than ing regulatory approval. Amoco has those promised by industrialized differed with B.P. on global warm- countries last year. Greenhouse gas- ing, but Sir John said today that "as es include carbon dioxide and other our business grows, we will incorpo- pollutants that many think cause rate new activities into the base line global warming. of our calculation and into the tar- Last December, 160 countries get." agreed in Kyoto, Japan, to reduce One way B.P. has begun to reduce greenhouse gas emissions in indus- emissions, he said, is by cutting the trialized countries by 5 percent be- number of pumping stations on the tween 2008 and 2012. But, according Trans-Alaska pipeline and by reduc- to environmentalists, the agreement ing flaring - the burning-off of has met with strong resistance from waste gas - by two-thirds. He said oil and other companies and has not future reductions would come from been ratified. Many people in the technological advances, more effi- United States energy sector argue cient energy use and less flaring. that global warming is unproved. Fred Krupp, the executive director Breaking ranks with other oil pro- of the Environmental Defense Fund, ducers, however, Sir John first called which cooperated with B.P. in setting for action to limit greenhouse gases up its emission-trading system, last year, pledging to set a target for called today's announcement "a reductions. He said today that the really magnificent example of a cor- company would undertake the cuts poration acting responsibly." "in transparent ways so the reduc- While B.P.'s emissions represent- tion can be measured and verified by ed a small percentage of global emis- outside observers." sions, he said, B.P. had "set up a "For the oil and gas industry, the whole new level of expectations for dominant issue of public policy is other corporations within the oil and climate change," Sir John said, ac- gas industry" and had committed cording to a text of his address pro- itself to "do more than the Kyoto vided here. "Of course, the science of protocol requires independently of climate change is not proven. The whether it ever goes into effect." science is provisional and perhaps "It's small in percentage terms," always will be. But there is mounting Mr. Krupp said in a telephone inter- evidence that the concentration of view. "It's more significant because carbon dioxide in the atmosphere is of its signal. I believe this changes rising and the temperature of the the whole ball game." 26 Oil Firm Plans To Go Beyond Emissions Pact http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/2051-091898-idx.ht HOME STARCH Cup If you could reduce your fund expenses 40- 70% WORK NEWS STYLE SPORTS CLASSIFIEDS PRINT EDITION TOP NEWS WORLD NATION POLITICS METRO BUSINESS WASHTECH OPINION WEATHER JCPenney Oil Firm Plans To Go Beyond Emissions Pact British Petroleum's Target: 10% Cut in 'Greenhouse' Gases By Martha M. Hamilton Washington Post Staff Writer Related Items Friday, September 18, 1998; Page F01 Print Edition Business Articles The chairman of British Petroleum will pledge today to reduce the Monday's global oil company's "greenhouse gas" emissions by 10 percent below Washington 1990 levels -- a commitment that far exceeds goals set for the United Business Anicles States and other industrial nations last year in a controversial treaty in Front Page Articles Kyoto, Japan. On Our Site Stocks Page Sir John Browne, who in May 1997 became the first oil industry Business official to acknowledge the role of fossil fuels in the buildup of pollutants that have been blamed for global warming, said yesterday he JOURNEYto believes BP can deliver on its promise without compromising either growth or profits. SUCCESS STRAYER BP -- the world's third-largest publicly traded oil and gas company -- UNIVERSITY produced an estimated 40 million tons of carbon dioxide and other greenhouse gases worldwide in 1990, according to the company. It The Captain's Tiger said it will reduce emissions by 4 million tons 12 years from now. Browne said that BP will call on its 90 business units worldwide to newest play reduce emissions, using strategies that include improving energy efficiency, using new technology and trading emissions. The company set up an internal system for trading emissions with help from the Environmental Defense Fund and by drawing on the expertise of the company's oil traders. Emissions trading, which has been used in the United States to reduce pollution, sets targets for emissions reductions for companies (or business units). But the reduction doesn't have to be produced on site. For instance, one business unit might meet its target by paying another unit that can reduce emissions more cheaply to double its reductions. In his speech, Browne said that the company has used technology that enhances oil flow to eliminate a number of pumping stations on the Trans Alaska Pipeline, resulting in the elimination of 236,000 tons per year of carbon dioxide emissions. Opponents of the Kyoto treaty have argued that science on the issue 1 of 3 9/29/98 6:16 PM Oil Firm Plans To Go Beyond Emissions Pact http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/2051-091898-1dx.ht isn't clear enough to warrant setting ambitious goals, that achieving those goals would be too costly and that the treaty doesn't require developing nations to do their part. The treaty, the details of which will be worked out further in November in Buenos Aires, set target reductions for the United States at 7 percent and for the world's industrialized nations at 5 percent. "This exceeds any of the goals," said Fredd Krupp, executive director of the Environmental Defense Fund, which has worked with BP on emissions reductions but receives no funds from the company, according to Krupp. Robert N. Stavins, an environmental economist at the John F. Kennedy School of Government at Harvard University, said that the goals set by BP are "significant relative to the Kyoto targets." But he said that the emissions from the products that the oil company produces -- such as gasoline -- are more important than the emissions resulting from the company's production and refining operations. "They're of much greater magnitude than the emissions that come from production," he said. Kenneth E. Blower, BP America's director of health, safety and environment, said that society and BP will have to tackle those emissions, too, in part by developing new energy resources for transportation. "This is our internal step," he said. "We can't solve the whole problem, and corporate sector activity can't replace the public process which is going on through the conferences in Kyoto and Buenos Aires," Browne said in the text of his speech which was made available yesterday. "But I hope we can show -- in a small way -- what can be done," he said. "And I hope we can help the process forward." Since Browne broke with the industry more than a year ago, calling for action on global warming, executives from other oil companies, including Royal Dutch/Shell Group of Companies and Texaco, have adopted similar positions and others have softened their rhetoric. "A number of companies are already doing things to control their carbon dioxide emissions, but I don't know if any companies will set their own targets and announce it," said William F. O'Keefe, executive vice president for the American Petroleum Institute. Spokesmen for Mobil Corp. and Texaco said yesterday their companies are taking steps to reduce emissions and to find ways to measure what emissions were in 1990 and what they are now. "We're concerned about the impact of man-made gases, and because of that we're doing a number of things," said Mobil spokesman David J. Dickson. 2 of 3 9/29/98 6:16 PM FILE No. 510 01/26 '99 15:49 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 2 BP Amoco BP MOBILITY & CHOICE By SIR JOHN BROWNE CHIEF EXECUTIVE OFFICER BP AMOCO p.l.c. At The Economic Club of Detroit Detroit, Michigan January 25, 1999 FILE No. 510 01/26 '99 15:49 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 3 Ladies and Gentlemen, good morning. It is a great privilege and pleasure to be here today and to be invited to speak to you. It is a particular pleasure to come to a city which has sustained a great industry over the last 100 years The automobile industry has shaped the life of this century. It has created the suburbs and recreated the cities in this country and many others. And it will continue to do so. And, of course, the auto industry has helped to create the shape and the success of our industry. You're our largest customers. We have a degree of mutual dependence which is undeniable, even if sometimes it is uncomfortable. We haven't always agreed on everything but we've been an inseparable couple - and again I think that will continue to be the case. Now we both face the same complex and challenging world. A world of volatility - where despite successive years of economic progress in this country and elsewhere, there is great uncertainty and rapid swings of mood and confidence. A world which is much more intimately interlinked than ever before - so that events in one area can affect all of us almost instantaneously. A world subject over the last 18 months to a dramatic deflation of asset values - with world commodity prices falling by more than 30 per cent over the last year and with the oil price in particular falling by more than 45 per cent. 1 FILE No. 510 01/26 '99 15:50 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 4 And beyond those immediate issues there are some longer term trends - which are creating change on a different wavelength. population growth which is giving the world 10,000 extra citizens every hour. prosperity which has lifted more people out of poverty in last 50 years than in the last 500 and which has extended the average human life span by almost 20 years since the century began. and then - on another wavelength again - the spread of economic democracy. If there is any factor which has changed in the last 100 years it is the capacity of ordinary people to make choices. At the start of this century Henry Ford wasn't the only person who told people they could have any colour so long as it was black. Choice was a rare, exceptional luxury. Now it is taken for granted and no one can take it away. and that in turn has helped to create the new agenda of public debate - in this country and elsewhere - about the quality of life - or what Vice President Gore has called "liveability". prosperity and extended lifespans and choice are all to the good but with them have come the complications and the problems of abundance. I think that is most obvious in terms of the environment. In 1899 the world supported 1.5 bn people. Now it supports almost 6 bn and in a decade that will rise to nearly 7 bn. In 1899 no more than a third of that 1.5 bn lived in cities. By 2010 the estimate is that the urban population of the world will be almost 4 bn.. 2 FILE No. 510 01/26 '99 15:50 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 5 How do companies respond to all that ? How should we respond to the immediate pressures to the pace of change and to the longer term concern with the quality of human life. ? The fundamental test for any company, of course, is performance. That is the imperative and the only solid ground in uncertain times. Of course, some people use uncertainty and volatility as an excuse for underperformance, and for failing to deliver what they have promised. That is never acceptable. Uncertain times are the moments when you see who can really perform. Now, of course, in a period of change and volatility one of the ways to sustain and improve performance is to restructure. Last year saw the completion of more than a hundred mergers and take-overs of over $ 4 bn just in this country alone. And there are many more underway. Since one of those mergers was the marriage of BP and Amoco I have to be in favour of the process as a way forward. As well as the economies which go with scale mergers bring together experience and ideas. To give you just one example. BP Amoco spends over $ 2 bn a year drilling holes in the ground. If we can apply best practice from our most efficient operation to all the rest - the benefit would be substantial. A saving of just 5 per cent would mean $ 100 million of extra profits. So the process of change in corporate structures will, and should be, continuous. But we shouldn't think that the benefits are automatic. On their own mergers and take-overs are only an enabling mechanism. 3 FILE No. 510 01/26 '99 15:50 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 6 The completion of a transaction is really only the beginning. The real benefits depend on what you make of the potential which a merger creates. Realising the potential starts from being absolutely realistic. Size doesn't make you immune to market conditions. Size can't turn underperforming businesses into success stories. So you have to be acutely aware of the world is as it is. It would be wonderful if oil prices were back at $ 20 at barrel But they aren't. It would be wonderful if Asia didn't have economic problems. But it does. We and many others have been through phases of trying to ignore the present reality and trying to second guess the economic cycle. That never works. The only way is to be coldly realistic about the world in which you are operating and about your own strengths and weaknesses. And you have to act on that realism. To maintain performance you have to accept that even if particular activities have worked in the past, there's no guarantee that they'll keep working in changed circumstances. Paranoia is a good guide, as Andy Grove has said, particularly if you can couple it with the capacity for improvisation and creativity. That's why in any merger the people are so important. You need their positive energy and engagement. The challenge is both to minimise the uncertainty that inevitably follows restructuring and at the same time to inspire people to embrace change as a moment of opportunity. 4 FILE No. 510 01/26 '99 15:51 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 7 If you can do that you have begun to create a truly progressive company. But, of course, mergers and take-overs also generate serious public concern. I'm struck by the evidence of opinion surveys which show that a substantial proportion of the public distrust big business in general : and mergers in particular. The reason for the public concern seems to be that mergers and take-overs are thought to represent an unaccountable accumulation of power - at the expense of the consumer. The roots of that concern go very deep, and a long way back in history. Anyone who wants to understand why big business is unpopular should read Ron Chernow's wonderful biography of Rockefeller. To be successful, and to be acceptable, we have to take account of the fact that people have acquired the ability to make personal choices. Companies have to be seen to be adding to the competitive choice available to consumers - not taking it away. That is a lesson we are trying to learn as we merge BP and Amoco . Our customers want us to use our combined skills and know-how to give them a better choice. So success is not just about changing structures and cornering market power by putting two companies together. It is about understanding your customers' needs and adapting what you provide to match those needs. In BP Amoco we're only at the beginning of that process and it is one of our greatest challenges. 5 FILE No. 510 01/26 '99 15:51 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 8 Of course, for the oil and the auto industry - the expectations of performance are wider - because of the debate about the quality of life. I don't believe that companies can use their sheer size to pretend that the arguments aren't serious or that there is no issue. That would be a very arrogant position at a time when the nature of the relationship between the customer and the company has changed. Equally, it would be wrong to say that just because there is economic instability in the world we have to sacrifice everything to achieve financial performance. That assertion assumes there is a direct trade off between financial performance and attention to the natural environment. I don't believe there is - and indeed I think there is a positive correlation between the two which comes through the mechanism of consumer choice. 1 don't believe it is satisfactory to give customers a choice which consists of no more than two stark alternatives - you can have a powerful car, which is great to drive or you can have a car which doesn't damage the environment. I think drivers want both.. and I think the challenge for both our industries is to give them another choice - a choice which transcends the harsh trade off. I believe it is possible to explore for. produce. refine, distribute and use hydrocarbons in ways which don't damage the environment. Now, as you will know we've taken one small step - on climate change. 6 FILE No. 510 01/26 '99 15:51 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 9 We began by recognising that though the science is unproven and provisional, the evidence is too serious to ignore, and that there is therefore a powerful case for sensible precautionary action. Last year we went further. We set ourselves a target to reduce our own emissions - from our refineries and oil fields and petrochemical plants - by at least 10 per cent by the year 2010 from a 1990 baseline. That's a firm figure, which has now been extended to cover Amoco's activities and built into the year by year performance contracts of all our managers - because we see performance as indivisible. There is no trade off for any manager, at any level, between our environment targets and our financial targets. We're already taking a wide range of specific steps to meet our 10 per cent target, and we very much welcome the US Government's support for legislation which will give credit to companies who take early action. That is an important incentive to start making progress immediately. One of the steps we've taken is to set up a trading system within the company to ensure that we cut emissions in the most cost effective way possible. A number of trades have already taken place. Over the next 18 months we'll expand that system to include all the activities of BP Amoco. But the environment debate isn't just about long term issues such as climate change. The quality of the air we breathe is a more immediate challenge. The problem lies in the cities and that is where we must begin. Last year there were ozone excedances in cities as diverse as Atlanta, New York, Philadelphia Phoenix and Washington. In 1997 7 FILE No. 510 01/26 '99 15:52 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 10 129 metropolitan areas exceeded the standard level on at least one pollutant - and that affected more than 50 per cent of the US population. And, of course, the problems are not limited to the US. In Paris there were 11 days last year when motorists faced restrictions on bringing their cars into the city because of air quality. This is a challenge we can't ignore. In many different parts of the world, governments are imposing new and tighter standards on fuel quality and vehicle emissions, and at the same time tightening standards on air quality. All the evidence of public opinion is that such moves will continue. The choice is between an active and a passive response. We could delay and resist and wait for the standards or taxes to be imposed. Or we can accept the challenge - and start to provide the answer in a creative progressive way. What can we, in the oil and auto industries, do about this? I believe the right approach is to view the vehicle and its fuel as a single system, which can be optimised. Vehicle technology has advanced, and continues to do so. Fuels must change to keep pace with this new technology - to enable motorists to get the best possible emissions performance from their vehicles. The short term destination for gasoline is clear: Unleaded, low benzene, low sulphur or no sulphur. For diesel, low sulphur is also a priority. BP Amoco is committed to providing these fuels. This poses a challenge, because the conversion of refineries to produce clean fuels requires both time and investment. 8 FILE No. 510 01/26 '99 15:52 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 11 Today, though, many modern refineries can already produce limited quantities of fuels that meet even the toughest specifications required for advanced vehicle technology. Our intention is to use and build on this existing potential to make a new clean fuels offer to customers in a range of cities around the world. Within two years our intention is to take this new offer into more than 40 cities world-wide. To do that we will put together BP's experience in this area with Amoco's unique technology. For instance we can produce gasoline with an uniquely low sulphur content. Amoco Ultimate already has a sulphur specification, voluntarily accepted, of only 200 parts per million, and we are preparing for moves to much lower levels. In Europe, we will also make dramatic reductions in the sulphur levels of diesel fuel as well. Sulphur content is one example of the way in which we can move away from the idea that all fuel is the same. It isn't and it doesn't have to be. Of course the specific air quality issues are different in different parts of the world. Climate change is a global issue which needs a global solution. Air quality is a local issue which needs local answers. In cities such as Johannesburg and Istanbul the issue is taking the lead out of petrol. The priority in those areas is the growth of unleaded fuel. In Western Europe and the US, the issue is sulphur and the priority is to move to very low sulphur fuels. Of course we can't do everything at once, but we can do something 9 FILE No. 510 01/26 '99 15:53 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 12 Over the coming months we will make announcements in each of the individual cities. We'll learn as we go, and we'll set ourselves progressive higher targets. 1 believe that we can show, year by year, that the products we supply contribute to a progressive improvement in air quality - here in the US and elsewhere - without denying people the fundamental freedom of mobility. That combination - the combination of mobility and choice - is our new green agenda. But there is only so much we can do alone. We need the help of the automobile sector. We need to work together to create vehicles which can use these new fuels in the most efficient way. I was very struck by reading of Bill Ford's intention to make Ford a green company. We've been very encouraged by the help and support we've had in a range of initiatives in this area from General Motors. This morning 1 talked to Harry Pearce and I'm delighted to see that he is recovering well - and continuing to make a tremendous and inspiring contribution on all these issues. And I also pleased to say, as a member of their advisory Board, that Daimler Chrysler are doing great work in this area. None of this is a matter of proprietary knowledge - limited to one company. Nor is a matter of one industry taking advantage of another. Success is in the common interest of both industries because it is in the interests of our consumers. 10 FILE No. 510 01/26 '99 15:53 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 14 As President Clinton said when he spoke here three weeks ago economic growth and a clean environment do not have to be incompatible objectives. Ladies and Gentlemen, People often ask me why BP took the stance it did on climate change. Why did I argue that there was a case for precautionary action ? Why didn't I simply say that the science wasn't yet proved and that until it was proved there was nothing to be done. The answer is very straightforward. 1 simply got tired of being on the defensive - and so did our staff. I got tired of being told that it was all so complicated that there was nothing we could do. So did our staff. It isn't just a matter of science or technology. It is an emotional issue too. It can't be enough when you're confronted with a fundamental question about your business to say - I'm sorry, there is nothing I can do. That's hardly the way to give people the sense that they are working for a great organisation. It isn't the way to convince investors and customers that the business is in tune with the market. There are things that can be done on climate change and on clean air And with your help, we're determined to do them. Through this last century thee oil and auto industries have provided mobility to people who 100 years ago rarely travelled outside a single community. There is no sign that people want to give up that mobility, and no moral case for denying that same mobility to those people around the world now earning prosperity for the first time. 12 FILE No. 510 01/26 '99 15:53 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 13 To achieve that success we need both clean fuels and vehicles which can use them. In the US and Europe, we hear exciting reports about gasoline direct injection, and the impact this could have on fuel economy. Bring this technology to market and we will to be there with the low sulphur fuel it requires. In this country and elsewhere I believe there is an opportunity to create a new business by bringing LPG or CNG fuelled vehicles to the market and by providing the necessary infrastructure to fuel them. In those countries still moving to unleaded fuel the need is for vehicles which are properly equipped. We will supply the unleaded octane. Indeed our goal is to be a completely unleaded company world-wide within three years. And there are longer term issues. There is much talk and a considerable investment in fuel cell powered vehicles. I believe that sort of technical breakthrough will come sooner, and at a lower cost, if we work together. And even then even working together, we can't do it all alone. We need supportive regulation which works through targets and incentives rather than through prescriptive regulation and imposed costs. That regulation should, for instance, encourage trading - which I believe may have a major role to play in driving down fuel sulphur levels. We should welcome the moves in the direction of incentives and CO- operation which have been made by Governments both in this country and in Europe. And we should recognise that those moves offer us both a challenge and an opportunity. 11 FILE No. 510 01/26 '99 15:54 ID:BP NY EXTERNAL AFFAIRS 2124518088 PAGE 15 But they want a clean environment as well, and our challenge is to give them that choice. Henry Ford famously said that history was bunk. But the quote doesn't end there. He went onto say: " We want to live in the present and the only history which that is worth a tinker's damn is the history we make today". I think that is a great attitude with which to start the next 100 years. Thank you very much. 13 THE WHITE HOUSE Office of the Vice President For Immediate Release January 25, 1999 STATEMENT BY THE VICE PRESIDENT broaden I applaud British Petroleum's continued leadership on the issue of climate change. Today's announcement that by will their pledge to its dramatically reduce the its own ghy the co. emissions that contribute to global warming to their new partner Amoco, demonstrates British Petroleum's serious commitment to addressing climate change. Last year, the company announced that they would reduce greenhouse gas emissions by 10% by the year 2010 by combining innovative market-based approaches with the latest in energy-efficiency technologies. British Petroleum is proving that we need not choose between a healthy economy and a healthy environment and I urge other businesses to follow their lead and help meet the challenge of global warming. also addressing the threat of global worming. T? y? BP the toind leadership By Roston extenday their commetment to ine. Amoco, BP is showng the x det. kind of 1-ship vision need to meet we will chall of one the of Us the t realed cet, ew Detroit Economic Club. Mobility and Choice. (But to get we very DF use Ladies and Gentlemen, good morning. It is a great privilege and pleasure to be here today and to be invited to speak to you. It is a particular pleasure to come to a city which has sustained a great industry over the last 100 years . The automobile industry has shaped the life of this century. It has created the suburbs and recreated the cities in this country and many others. And it will continue to do so. And, of course, the auto industry has helped to create the shape and the success of our industry. You're our largest customers. We have a degree of mutual dependence which is undeniable, even if sometimes it is uncomfortable. We haven't always agreed on everything but we've been an inseparable couple - and again I think that will continue to be the case. Now we both face the same complex and challenging world. A world of volatility - where despite successive years of economic progress in this country and elsewhere, there is great uncertainty and rapid swings of mood and confidence. A world which is much more intimately interlinked than ever before - so that events in one area can affect all of us almost instantaneously. 1 A world subject over the last 18 months to a dramatic deflation of asset values - with world commodity prices falling by more than 15 per cent over the last year and with the oil price in particular falling by almost 40 per cent. pause And beyond those immediate issues there are some longer term trends - which are creating change on a different wavelength. population growth which is giving the world 10,000 extra citizens every hour. prosperity which has lifted more people out of poverty in last 50 years than in the last 500 and which has extended the average human life span by almost 20 years since the century began. and then - on another wavelength again - the spread of economic democracy. If there is any factor which has changed in the last 100 years it is the capacity of ordinary people to make choices. At the start of this century Henry Ford wasn't the only person who told people they could have any colour so long as it was black. Choice was a rare, exceptional luxury. Now it is taken for granted and no one can take it away. and that in turn has helped to create the new agenda of public debate - in this country and elsewhere - about the quality of life - or what Vice President Gore has called "liveability". prosperity and extended lifespans and choice are all to the good but with them have come the complications and the problems of abundance. I think that is most obvious in terms of the environment. In 1899 the world supported 1.5 bn people. Now it supports almost 6 bn and in a decade that will rise to nearly. 2 In 1899 no more than a third of those people lived in cities. By 2010 the estimate is that the urban population of the world will be over 4 bn. pause How do companies respond to all that ? How should we respond to the immediate pressures to the pace of change and to the longer term concern with the quality of human life. ? The fundamental test for any company, of course, is performance. That is the imperative and the only solid ground in uncertain times. Of course, some people use uncertainty and volatility as an excuse for underperformance, and for failing to deliver what they have promised. That is never acceptable. Uncertain times are the moments when you see who can really perform. Now, of course, in a period of change and volatility one of the ways to sustain and improve performance is to restructure. Last year saw the completion of more than a hundred mergers and take-overs of over $ 4 bn just in this country alone. And there are many more underway. Since one of those mergers was the marriage of BP and Amoco I have to be in favour of the process as a way forward. As well as the economies which go with scale mergers bring together experience and ideas. To give you just one example. BP Amoco spends over $ 2 bn a year drilling holes in the ground. If we can apply best practice from our most efficient operation to all the rest - the benefit would be substantial. A saving of just 5 per cent would mean $ 100 million of extra profits. 3 So the process of change in corporate structures will, and should be, continuous. But we shouldn't think that the benefits are automatic. On their own mergers and take-overs are only an enabling mechanism. The completion of a transaction is really only the beginning. The real benefits depend on what you make of the potential which a merger creates. pause Realising the potential starts from being absolutely realistic. Size doesn't make you immune to market conditions. Size can't turn underperforming businesses into success stories. So you have to be acutely aware of the world is as it is. It would be wonderful if oil prices were back at $ 20 at barrel But they aren't. It would be wonderful if Asia didn't have economic problems. But it does. We and many others have been through phases of trying to ignore the present reality and trying to second guess the economic cycle. That never works. The only way is to be coldly realistic about the world in which you are operating and about your own strengths and weaknesses. And you have to act on that realism. To maintain performance you have to accept that even if particular activities have worked in the past, there's no guarantee that they'll keep working in changed circumstances. Paranoia is a good guide, as Andy Grove has said, particularly if you can couple it with the capacity for improvisation and creativity. 4 That's why in any merger the people are SO important. You need their positive energy and engagement. The challenge is both to minimise the uncertainty that inevitably follows restructuring and at the same time to inspire people to embrace change as a moment of opportunity. If you can do that you have begun to create a truly progressive company. But, of course, mergers and take-overs also generate serious public concern. I'm struck by the evidence of opinion surveys which show that a substantial proportion of the public distrust big business in general and mergers in particular. The reason for the public concern seems to be that mergers and take-overs are thought to represent an unaccountable accumulation of power - at the expense of the consumer. The roots of that concern go very deep, and a long way back in history. Anyone who wants to understand why big business is unpopular should read Ron Chernow's wonderful biography of Rockefeller. To be successful, and to be acceptable, we have to take account of the fact that people have acquired the ability to make personal choices. Companies have to be seen to be adding to the competitive choice available to consumers - not taking it away. That is a lesson we are trying to learn as we merge BP and Amoco. Our customers want us to use our combined skills and know-how to give them a better choice. 5 So success is not just about changing structures and cornering market power by putting two companies together. It is about understanding your customers' needs and adapting what you provide to match those needs. In BP Amoco we're only at the beginning of that process and it is one of our greatest challenges. pause Of course, for the oil and the auto industry - the expectations of performance are wider - because of the debate about the quality of life. I don't believe that companies can use their sheer size to pretend that the arguments aren't serious or that there is no issue. That would be a very arrogant position at a time when the nature of the relationship between the customer and the company has changed. Equally, it would be wrong to say that just because there is economic instability in the world we have to sacrifice everything to achieve financial performance. That assertion assumes there is a direct trade off between financial performance and attention to the natural environment. 1 don't believe there is - and indeed I think there is a positive correlation between the two which comes through the mechanism of consumer choice. I don't believe it is satisfactory to give customers a choice which consists of no more than two stark alternatives - you can have a powerful car, which is great to drive or you can have a car which doesn't damage the environment. 6 I think drivers want both and I think the challenge for both our industries is to give them another choice - a choice which transcends the harsh trade off. I believe it is possible to explore for, produce, refine, distribute and use hydrocarbons in ways which don't damage the environment. Now, as you will know we've taken one small step - on climate change. We began by recognising that though the science is unproven and provisional, the evidence is too serious to ignore, and that there is therefore a powerful case for sensible precautionary action. Last year we went further. We set ourselves a target to reduce our own emissions - from our refineries and oil fields and petrochemical plants - by at least 10 per cent by the year 2010 from a 1990 baseline. That's a firm figure, which has now been extended to cover Amoco's activities and built into the year by year performance contracts of all our managers - because we see performance as indivisible. There is no trade off for any manager, at any level, between our environment targets and our financial targets. pause We're already taking a wide range of specific steps to meet our 10 per cent target, and we very much welcome the US Government's support for legislation which will give credit to companies who take early action. That is an important incentive to start making progress immediately. One of the steps we've taken is to set up a trading system within the company to ensure that we cut emissions in the most cost effective way possible. 7 A number of trades have already taken place. Over the next 18 months we'll expand that system to include all the activities of BP Amoco. pause.. But the environment debate isn't just about long term issues such as climate change. The quality of the air we breathe is a more immediate challenge. The problem lies in the cities and that is where we must begin. Last year there were ozone excedances in cities as diverse as Atlanta, New York, Philadelphia Phoenix and Washington. In 1997 129 metropolitan areas exceeded the standard level on at least one pollutant - and that affected more than 50 per cent of the US population. And, of course, the problems are not limited to the US. In Paris there were 11 days last year when motorists faced restrictions on bringing their cars into the city because of air quality. This is a challenge we can't ignore. In many different parts of the world, governments are imposing new and tighter standards on fuel quality and vehicle emissions, and at the same time tightening standards on air quality. All the evidence of public opinion is that such moves will continue. The choice is between an active and a passive response. We could delay and resist and wait for the standards or taxes to be imposed. Or we can accept the challenge - and start to provide the answer in a creative progressive way. What can we, in the oil and auto industries, do about this? I believe the right approach is to view the vehicle and its fuel as a single system, which can be optimised. 8 Vehicle technology has advanced, and continues to do so. Fuels must change to keep pace with this new technology - to enable motorists to get the best possible emissions performance from their vehicles. The short term destination for gasoline is clear: Unleaded, low benzene, low sulphur or no sulphur. For diesel, low sulphur is also a priority. BP Amoco is committed to providing these fuels. This poses a challenge, because the conversion of refineries to produce clean fuels requires both time and investment. Today, though, many modern refineries can already produce limited quantities of fuels that meet even the toughest specifications required for advanced vehicle technology. Our intention is to use and build on this existing potential to make a new clean fuels offer to customers in a range of cities around the world. Within two years our intention is to take this new offer into more than 40 cities world-wide. To do that we will put together BP's experience in this area with Amoco's unique technology. For instance we can produce gasoline with an uniquely low sulphur content. Amoco Ultimate already has a sulphur specification, voluntarily accepted, of only 200 parts per million, and we are preparing for moves to much lower levels. In Europe, we will also make dramatic reductions in the sulphur levels of diesel fuel as well. Sulphur content is one example of the way in which we can move away from the idea that all fuel is the same. It isn't and it doesn't have to be. Of course the specific air quality issues are different in different parts of the world. Climate change is a global issue which needs 9 a global solution. Air quality is a local issue which needs local answers. In cities such as Johannesburg and Istanbul the issue is taking the lead out of petrol. The priority in those areas is the growth of unleaded fuel. In Western Europe and the US, the issue is sulphur and the priority is to move to very low sulphur fuels. Of course we can't do everything at once, but we can do something Over the coming months we will make announcements in each of the individual cities. We'll learn as we go, and we'll set ourselves progressive higher targets. I believe that we can show, year by year, that the products we supply contribute to a progressive improvement in air quality - here in the US and elsewhere - without denying people the fundamental freedom of mobility. That combination - the combination of mobility and choice - is our new green agenda. pause But there is only so much we can do alone. We need the help of the automobile sector. We need to work together to create vehicles which can use these new fuels in the most efficient way. I was very struck by reading of Bill Ford's intention to make Ford a green company. We've been very encouraged by the help and support we've had in a range of initiatives in this area from General Motors. 10 This morning I talked to Harry Pearce and I'm delighted to see that he is recovering well - and continuing to make a tremendous and inspiring contribution on all these issues. And I also pleased to say, as a member of their advisory Board, that Daimler Chrysler are doing great work in this area. None of this is a matter of proprietary knowledge - limited to one company. Nor is a matter of one industry taking advantage of another. Success is in the common interest of both industries because it is in the interests of our consumers. To achieve that success we need both clean fuels and vehicles which can use them. In the US and Europe, we hear exciting reports about new technologies such as gasoline direct injection, and the impact this could have on fuel economy. Bring this technology to market and we will to be there with the low sulphur fuel it requires. In this country and elsewhere I believe there is an opportunity to create a new business by bringing LPG or CNG fuelled vehicles to the market and by providing the necessary infrastructure to fuel them. In those countries still moving to unleaded fuel the need is for vehicles which are properly equipped. We will supply the unleaded octane. Indeed our goal is to be a completely unleaded company world-wide within three years. And there are longer term issues. There is much talk and a considerable investment in fuel cell powered vehicles. I believe that sort of technical breakthrough will come sooner, and at a lower cost, if we work together. 11 And even then even working together, we can't do it all alone. We need supportive regulation which works through targets and incentives rather than through prescriptive regulation and imposed costs. That regulation should, for instance, encourage trading - which I believe may have a major role to play in driving down fuel sulphur levels. We should welcome the moves in the direction of incentives and co-operation which have been made by Governments both in this country and in Europe. And we should recognise that those moves offer us both a challenge and an opportunity. As President Clinton said when he spoke here three weeks ago economic growth and a clean environment do not have to be incompatible objectives. Ladies and Gentlemen, People often ask me why BP took the stance it did on climate change. Why did I argue that there was a case for precautionary action ? Why didn't I simply say that the science wasn't yet proved and that until it was proved there was nothing to be done. The answer is very straightforward. I simply got tired of being on the defensive - and so did our staff. I got tired of being told that it was all so complicated that there was nothing we could do. So did our staff. It isn't just a matter of science or technology. It is an emotional issue too. It can't be enough when you're confronted with a fundamental question about your business to say - I'm sorry, there is nothing I can do. 12 That's hardly the way to give people the sense that they are working for a great organisation. It isn't the way to convince investors and customers that the business is in tune with the market. There are things that can be done on climate change and on clean air And with your help, we're determined to do them. Through this last century thee oil and auto industries have provided mobility to people who 100 years ago rarely travelled outside a single community. There is no sign that people want to give up that mobility, and no moral case for denying that same mobility to those people around the world now earning prosperity for the first time. But they want a clean environment as well, and our challenge is to give them that choice. Henry Ford famously said that history was bunk. But the quote doesn't end there. He went onto say: " We want to live in the present and the only history which that is worth a tinker's damn is the history we make today". I think that is a great attitude with which to start the next 100 years. Thank you very much. 13 Oil Firm Plans To Go Beyond Emissions Pact http://search.washingtonpost.com/wp-srv/WPlate/1998-09/18/2051-091898-idx.ht. O'Keefe said the API and the U.S. industry remain opposed to the Kyoto treaty "because it won't work and without the involvement of developing countries it will be a tremendous waste of resources." Energy demand is expected to grow fastest in the developing world, where approximately 2 billion people live without access to commercial energy sources. Developing nations have have expressed concern that demands to curb energy consumption because of global warming might slow their economic development, leaving them at a permanent disadvantage to the already industrialized world. The Kyoto treaty set no targets for curbing emissions by developing countries. © Copyright 1998 The Washington Post Company washington.port NEWS STYLE SPORTS CLASSIFIEDS PRINT EDITION TOP NEWS WORLD NATION POLITICS METRO BUSINESS WASHTECH OPINION WEATHER TRADE NOW yellowpage DATEK ONLINE Up to the Minute Game Scores A $9.99 PER TRADE , of 3 9/29/98 6:16 PM BP NEWS The British Petroleum Company p.l.c. c/o BP America Inc. 535 Madison Avenue, New York, NY 10022-4121 (212) 421-5010 Embargoed until 8:00 a.m. Sept. 18, 1998 CONTACT: Tom Koch (212) 451- 8019 BP SETS 10 PERCENT TARGET FOR GREENHOUSE GAS EMISSION REDUCTIONS Corporate Goal Is Double That of Kyoto Accord NEW HAVEN, Conn., Sept. 18, 1998 --- British Petroleum today announced that it intends to voluntarily implement substantial reductions in its global greenhouse gas (GHG) emissions with a two-pronged program that will keep emissions, on an aggregated basis, constant while pursuing business growth, and by further reducing net emissions from existing facilities by 10 percent by the year 2010 against a 1990 baseline. Speaking to graduate students at the Yale School of Management's Leaders Forum, hosted by Dean Jeffrey E. Garten, BP Group Chief Executive John Browne explained that the reductions will be achieved across all BP businesses worldwide. The target exceeds the 5 percent average reduction committed to by the world's industrialized nations at the Climate Change Summit held in Kyoto, Japan. "We have set bold growth targets for ourselves over the next decade, including an increase in oil and gas production. But we intend to provide our customers with the products and services they want while not threatening the sustainability of the natural environment." Browne said. "Without taking any action, conducting business as usual would lead to an increase of about 18 million tons of greenhouse gas emissions above our base. That is unacceptable. We intend to offset this increase and go beyond that to achieve a net reduction in our emissions. We will do that progressively, year by year, and we'll do it in transparent ways, so that the reduction can be measured and verified by external observers. "That target will now sit alongside our financial targets. That means it is a promise and my colleagues in BP already have an established track record in delivering on such promises. We set bold targets and use them as a lever to deliver long-term business results," Browne said. "While we may not know fully how we will achieve our goals, bold targets inspire the innovation necessary to meet them. In this context, reducing greenhouse gas emissions is no different than delivering strong financial returns." BP has established the following targets for reducing GHG emissions: Growing all business sectors without a net increase in GHG emissions. Reducing GHG emissions by 10 percent, collectively, from existing facilities. Setting a goal for each facility to be in the top quartile in their industry sector with regard to GHG emissions. Meeting these targets by 2010. BP currently is one of the world's largest energy companies. As such, its operations produce significant GHG emissions. The company estimates its annual emissions to be 40 million tons of carbon dioxide and 30,000 tons of methane. Reduction of GHG emissions from BP operations will come from application of new technology, more efficient use of energy, elimination of flaring, and the increased use of renewable energy sources. BP also will increase emphasis on flexible mechanisms such as emissions trading, joint implementation, technology transfer and carbon sequestration. Credit for early action will be an important dimension of any voluntary reduction program. "We will not achieve our goal if we only focus on the easy targets. Reducing greenhouse gas emissions requires that we develop and implement programs that reflect the realities of a global company," Browne said. "We have worked with Battelle Memorial Institute to develop a technology strategy and with the Environmental Defense Fund on a pilot trading program in which twelve of our business units will participate. These innovative programs will provide the learning necessary to allow us to achieve our goals." ### Notes to Editors: Attached is background information on the emissions targets and emissions trading program BP has developed in conjunction with the Environmental Defense Fund. BP Where westand BP's Pilot Emissions Trading Program BP To Reduce Emissions Initial twelve units selected to reflect Using A Pilot Trading Program the spread of businesses geographically, by business type, and to maximize learning. Included in this pilot 31 In May 1997, BP established a joint program are refineries, chemical plants, partnership with the Environmental oil production facilities, and a pipeline. Defense Fund (EDF) to gain from their experience in solving environmental problems using market incentives. United States /3 UNITS Europe UNITS / II Achieving emissions reductions within a business-focused trading Australia UNIT structure has many advantages. - Identifying emissions reduction opportunities Other /2 UNITS are part of the business planning cycle for our more than 90 business units around the world. - Overall costs should be lowered as reductions Some practical aspects of trading. can be made where costs are lowest. - Each of the 12 business units have received a basic allocation of emission - The challenge of reducing emissions stimulates innovation and challenges rights through 2003. the creative flair of all our people. - Allocations are consistent with overall Group target. Initially twelve business units will - Trades denominated in carbon participate in the pilot trading program dioxide equivalent units. and two units from developing countries - Trades registered and conducted are acting as observers. through the broker. - Twelve units comprise about 25% - Performance externally audited of BP's global emissions and over with results reported annually. time additional units can be added. - A 3% emissions reduction will be Experience will be gained and lessons made by 2003, against a 1995 baseline. learned to be shared widely, including: - Experience gained in the pilot trading program - Protocol utilized to report will be utilized in meeting BP's Group target emissions and reduction levels. which applies to BP's total global emissions. - The use of procedures to verify reductions resulting from trading. "What we propose to do is substantial, real and measurable." - Making emissions trades within countries and across national boundaries. -John Browne BP Group Chief Executive For more information contact BP at 212.421.5010 or visit our home page at http://www.bp.com BP Where we.s Emissions Targets We Will Develop A Set Setting realistic targets requires BP to define Of Firm, Realistic Targets its baseline emissions, achieve growth without emissions increases and define a path forward to meet our target reductions by 2010. In May of 1997, BP announces BP GROUP CARBON DIOXIDE EMISSIONS precautionary action to reduce carbon dioxide emissions and other greenhouse gas (GHG) emissions is needed. 60 estimated total targeted the development of a set of firm, realistic targets for greenhouse gas reductions and a pilot emissions trading system. CO. CO.omissions (million tons) growth reductions 22 MILLION TONS In September of 1997, BP commits to 40 20 In September of 1998, BP reports progress on those commitments: 1990 2010 2019 Estimated from emissions data base" without with target collected from - BP will reduce its global GHG emissions target reductions 1995. 1995. 1997. by 10% below 1990 baseline levels by 2010. This is twice the target agreed for developed countries in Kyoto. Our global baseline begins with an estimate of 40 million tons of carbon dioxide in 1990. - In meeting these goals, BP will achieve Growth in emissions above this 1990 unadjusted business growth without growth in base could be about 18 million tons by 2010, emissions, and will make further net in the absence of new reduction targets. reductions to meet our global target. With BP's targets for 2010, we will offset - BP will grow its solar business by ten fold by 2010. this kind of growth and make an additional 10% reduction (4 million tons) to meet - BP's pilot emissions trading system, a key our GHG reduction commitment. element of our emissions reduction strategy, is inaugurated among 12 of our business units representing 25% of global GHG emissions. Actions required to offset GHG emissions growth and to meet BP's reduction target include broad-based efficiency gains, development and application of new technology, and reduction of flaring. Most importantly, BP is relying upon "We, ourselves can make a constructive market-based incentives and the creative contribution to the solution." talents of our employees to seek innovative -John Browne and cost-effective solutions. BP Group Chief Executive For more information contact BP at 212.421.5010 or visit our home page at http://www.bp.com BP Where we A BP Perspective On Climate Change International agreements Targets and timetables for greenhouse gases should be realistic and achievable for all The solution to Climate Change nations. Kyoto has addressed targets for the developed countries, however involvement requires a global long term framework of the whole world is necessary for success that encompasses industrialized nations and draws in developing nations. in the longer term. BP believes precautionary action is The agreement reached in Kyoto is a needed and has set its own internal useful framework to begin the journey. Kyoto is a first step in the journey. target and time frame for making GHG emissions reductions. BP's target exceeds the Kyoto average. Binding commitments Nations should recognize that finding solutions is a lengthy journey, with success We all have a responsibility to take defined by numerous decisions taken constructive, precautionary action. over a series of international conferences. The flexible mechanisms outlined in the Kyoto agreement are welcome, Monitoring and reporting as they provide the framework to enable efficient implementation. An international measurement protocol is required. Targets and timetables Greenhouse gas emissions levels should be openly reported. Targets and timetables are useful tools to help business deliver long-term results and should provide time to allow for effective turnover of capital stock. "The people who work in BP are people with beliefs and convictions." -John Browne BP Group Chief Executive For more information contact BP at 212.421.5010 or visit our home page at http://www.bp.com A BP Perspective On Climate Change Flexible mechanisms Technology development and deployment Flexibility is necessary to allow for innovation and creative solutions; Moving the world toward less carbon to maintain competitiveness; to handle intensive emissions requires technology new and changing information; and to that should become available for allow approaches to remain relevant over broad application. time. Kyoto endorsed the need for flexibility but definition is yet to be developed. A comprehensive international strategy is needed to effectively develop and deploy Better and more efficient solutions, technology that can transform the world employing both technology and to a low-carbon emission structure. Present sequestration, flow from responsible solutions involve substantial cost premium. behavior and the marketplace. A concerted effort is required to find and Emissions trading, joint implementation, apply cost effective technology. and the Clean Development Mechanism are three such flexible international A strategy developed through international mechanisms that should be advanced collaboration and public/private partnership in the post-Kyoto period. can lead to better resource allocation for finding climate change solutions. BP is Voluntary actions can be integrated involved in partnerships directed toward into business plans and substantially the identification of strategies needed for reduce emissions. Rewards and incentives development of low carbon energy sources. can enhance delivery. Ultimately, they may not be enough, with some mandatory steps required. Inclusive decision-making Any mandatory national approaches should be performance-based with All parts of society should have the opportunity to have their needs and governments setting broad objectives and businesses delivering creative, cost priorities taken into account. effective results that continually improve, while ensuring accountability. BP will continue to be available to contribute to the debate. Early action and credit Although managing emissions levels is a long term process, near term reductions will have a positive contribution and should be encouraged. Governments should give incentives for near term reductions and provide credit against future obligations that may arise. For more information contact BP at 212.421.5010 or visit our home page at http://www.bp.com 001 Energy The Daily Est. 1973 25 Years of Excellence in Reporting 627 National Press Building Washington, D.C. 20045 (202) 638-4260 Fax: (202) 662-9744 Monday, September 21, 1998 ED Volume 26, Number 180 Browne Commits DOE Site Re-Use Program BP To 10 Percent Putting New Tenants CO2 Cut By 2010 At Risk, Review Finds Sir John Browne, group chief execu- live of BP, committed the oil giant Friday BY GEORGE LOBSENZ to a 10 percent reduction in its green- house gas emissions from 1990 levels by Top Energy Department officials have failed to set clear safety 2010. fulfilling a pledge he made a year policies for commercial leasing of surplus DOE facilities, potentially ago and ensuring that his company will endangering employees of private businesses operating at still con- remain at the leading edge of the intense taminated sites, according to an internal DOE safety assessment global warming debate. obtained by The Energy Daily. Browne. in a speech delivered at Yale The lack of direction from DOE headquarters has resulted in leasing University, pledged that the company's policies at the Mound site in Ohio that appear contrary to DOE safety reductions would be transparent. enabling regulations as well as preliminary recommendations made by DOE's outsiders to measure and verify the Office of Environment, Safety and Health (ES&H), the study concludes. company's results. "While DOE-Mound has an effective process for eliminating hazards The company's target. Browne pointed within facilities before the facilities are turned over for commercial use, out, "exceeds the reduction agreed [10] by leases were granted without a full analysis of potential radiation doses the world's industrialized nations in K yoto and risks to lessee workers from DOE activities said the report by last year." DOE's Office of ES&H Oversight. which said commercialization is just Browne also said this is not a one-shot one of a host of safety issues at Mound, a former nuclear weapons deal, stressing that "as our business grows production site. we will incorporate new activities into Officials at DOE's Ohio Field Office "authorized leasing of Mound the baseline of the calculation and into (Continued on page 2) the target. "In our terms." he continued, "that [emissions reduction] target will now sit Oil And Gas Industry Ready alongside our financial targets. That means it is a promise and, as with our For 2000, Survey Concludes financial targets. a promise is a personal commitment. BY JENNIFER BARSKY "Of course it is not enough just to set a target. We need to put some substance The oil and gas industries are well on their way to Year 2000 behind the target. We need to deliver on readiness, according to an industry survey released Friday at the the promises Federal Energy Regulatory Commission. But there still is much work There is no easy, universal solution for to be done before the industries can rest casy. BP. said Browne. explaining that the com- The American Petroleum Institute and the Natural Gas Council pany will look for ways to cut emissions at surveyed more than 800 companies and found only 14 percent are still all of its business units and, within those, planning their response while more than a third are fixing their at every producing oil field. every refin- software. Nineteen percent have reached the final stage of the process, ery and every chemical plant. dubbed validation by the software experts. in which systems are first As examples of the incremental nature individually tested. then tested as a unit. Three-quarters of the of BP's response, Browne cited corporate respondents expect 10 be ready by June 1999 and all say they will meet efforts to reduce the amount of drag on oil the December 1999 deadline. shipments through the Trans Alaska pipe- Similar results have been cited throughout the energy sector. For line, which has allowed the company to example. the North American Reliability Council released a similar cut out a number of pumping stations. Year 2000 report earlier last week. concluding that most organiza- The result? An annual reduction of tions are on track to meet their target dates while only a small number 236,000 tons in carbon dioxide emis- are lagging behind. sions. (Continued on page 4) (Continued on page 3) ATTENTION: COPYRIGHTED MATERIAL. It is unlawful to reproduce this page without written permission from the publisher. 2 Monday, September 21. 1998 THE ENERGY DAILY DOE Program Putting New Tenants At Risk (From one) facilities prior to clearly identifying hazards and con- report noted the classification decision also meant "less trols, fully assessing the potential impact of accidental restrictive (i.e., higher) radiation exposure limits" for releases of radioactivity on these lessees, or developing commercial workers, compared to DOE limits estab- an effective emergency management program involving lished for members of the public. lessees "Although at the time of this decision, [DOE-Mound] "Commercialization of facilities is proceeding with- intended to provide general employee radiological training out either DOE headquarters guidance or full under- to tenants and require this training as a condition of leases, standing of the risks to tenants created by DOE-spon- some tenants have not received the training and this condi- sored activities or of the potential impact of tenant tion has not been included in leases," the report added. activities on DOE facilities." "The decision to classify tenants as employees appears Potentially at risk are more than 260 employees work- to he contrary to the intent of applicable regulations and ing for 29 private businesses that had leased space in 18 inconsistent with a preliminary analysis distributed by Mound buildings as of May 1998. Those businesses are [the ES&H office) for review and comment in February operating close to extensive DOE soil and groundwater 1998. However, regulations are not clear on this point, cleanup activities, building decontamination and decom- and no definitive policy or guidance has been provided by missioning projects and ongoing production of pluto- DOE headquarters." At the same time, the report said nium-238 electric generators for NASA deep space mis- Mound officials were unable to provide ES&H investiga- sions. tors with a "documented rationale" for classifying com- DOE-Wide Significance mercial workers as co-located employees. The concerns raised by the report have DOE-wide Broader Safety Concerns At Mound significance in that Congress and the department are The concerns about commercialization take on added urging all nuclear weapons sites to consider seriousness in light of broader findings in the ES&H "reindustrialization" of surplus facilities to provide jobs report about major deficiencies in safety practices for and economic activity for nearby communities hard hit cleanup workers at Mound. which is operated for DOE by by post-Cold War cutbacks at DOE Babcock & Wilcox (B&W). Among other problems. the But while there is broad support for commercial re- report said: use, DOE worker unions and others have raised red flags DOE's Ohio Field Office gave B&W conditional that private sector businesses are being brought into approval for interim operation of sensitive nuclear facili- buildings or weapons production areas that still contain ties on the basis of draft safety documents that were not substantial contamination. Additionally, there are ques- technically sound. tions about whether private sector workers are aware of "Despite numerous secretary of Energy directives radiation risks or whether they have received proper and lessons learned associated with the emergency re- safety training. sponse to the chemical explosion [at DOE's Hanford Those issues were raised forcefully last year in an site] over one year ago, DOE and Babcock & Wilcox have ES&II study of remdustrialization at DOE's Oak Ridge not corrected longstanding and significant weaknesses site in Tennessee, where businesses were found to be in emergency management and response." The ES&H operating in buildings with residual contamination risks. auditors said they were the ones 10 identify the emergency To address those concerns. DOE and the Environmen- management problems, not site officials. tal Protection Agency in June issued a joint policy state- While lower-level B&W managers have taken steps ment calling for DOE to notify and consult with EPA to improve safety management. senior management still prior to leasing properties. However. that policy does not does not appear to have accepted "ownership" of the SCI specific safety requirements for private sector cm- problem. ployees working at DOE sites. DOE Mound officials are not providing effective Policy Vacuum, Relaxed Standards safety oversight because senior DOE managers at the site As a result of that policy vacuum, the ES&H report have "emphasized teamwork with the contractor to the said. the Mound site went ahead and SCI possibly inappro- extent that some DOE-Mound staff believe that critical priate leasing policies regarding commercial worker evaluation of contractor performance is not expected. As protection. a result, significant deficiencies in B&W's safety perfor- or particular concern, the report said, is a 1996 mance have gone undetected Mound decision to classify commercial workers as "co- Many DOE workers have lost confidence in site located workers." as opposed to members of the public. management because of longstanding problems with That decision. made in conjunction with headquarters Mound's bioassay program-such as slow testing of officials in DOE's Office of Environmental Management urine samples-to determine if workers have received and Office of Community and Worker Transition. was excessive radiation doses. All radiological operations at done to meet security requirements for allowing commer- the site were shut down for months earlier this year due cial workers access 10 Mound, which has plutonium and to long delays in processing urine samples-a problem other sensitive nuclear materials on suc. However. the that has occurred repeatedly at the site. THE ENERGY DAILY COPYRIGHT 1998 BY KING PUBLISHING GROUP Llewellyn King, Publisher. PUBLISHED MONDAY THROUGH FRIDAY. (ISSN: 0364-5274). ATTENTION: COPYRIGHTED MATERIAL II is unlawful to reproduce this page without written permission from the publisher.

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BP [British Petroleum]

ID: 158698236
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sourceUrl	https://catalog.archives.gov/id/158698236
contentType	document
collections	Records of the White House Task Force on Climate Change General Files
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naId	158698236
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otherTitles	42-t-146925349-20171094F-003-006-2019
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