Shell and BP are oil and gas multinationals supplying essential products to society. In Britain , as with much of the western world, we have an economy which at present requires substantial quantities of hydrocarbon products. Our domestic and commercial space heating needs are provided almost exclusively by gas boilers. Our aircraft, marine vessels and most road vehicles are powered by oil. Much of our electricity is generated by gas.
The switch to non hydrocarbon fuels in some sectors, notably in power generation, has been underway for some time. But it is a long term project. In some sectors like home heating, despite premature government declarations, the switch from gas will take decades. No credible plans exist to do this and we’ve barely started.
Cars and trucks will continue to run predominantly on petrol and diesel also for the foreseeable future. The technical breakthrough which makes battery driven cars as convenient and affordable as petrol ones has not yet happened. Aircraft and ships will continue to be primarily fuelled by oil products for the rest of this Centrury and beyond. There is no sign of a truly viable alternative.
In the above described circumstances it is obvious that the oil and gas multinationals will continue to serve our energy needs for a very long time. Providing they do this responsibly and within the law they are not pariahs but essential participants in our economic welfare, growth and development. For the Bank of England or any other partner to have involvement with Shell and BP is in no way to be condemned and it is preposterous to do so.
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