In order to understand what long-term policy and technology trends look like, BP uses its own and others’ projections of likely and possible supply and
demand outcomes for 2030 and 2050 for key sectors and geographies, which are in part determined by energy and climate policy, and lower carbon
resources and technologies. These projections inform choices about the types of resources and markets we will seek to develop and the locations we will
concentrate on.
(v) BP is more likely to gain strategic advantage if it can judge the appropriate pace at which to make strategic adjustments in response to climate change
policy, and the types of strategic adjustments to make. If this can be done effectively it will provide business growth opportunities in emerging low carbon
sectors and technologies, and provide a cost-effective response to increasingly stringent regulatory constraints on carbon emissions from higher-carbon
activities. It will also enable us to judge how the pace and type of adjustment might differ in different parts of the world.