Former BP chief takes aim at oil supermajors



Tony Hayward last visited Abu Dhabi three years ago as the head of BP, the accident-hit oil giant most recently renowned for the 2010 Deepwater Horizon disaster in the Gulf of Mexico.

He returned to the capital yesterday in a very different guise - that of detractor of the oil giants, including his former paymaster.

As the chief executive of the smaller and independent Genel Energy, Mr Hayward shared with an attentive crowd everything that he believes the world's biggest oil companies are doing wrong.

"The world needs the supermajors for their technological capacity and investment capacity, and yet as an investment class they elicit an enormous yawn," he said, addressing a hall packed with oil ministers and oilmen. "Growth has been elusive ... They spent too much of the last decade locked in risk mitigation."

He criticised the supermajors for being too slow to enter frontier regions such as Kurdistan and factor in a high oil price that has made more exploration possible.

"In my world, US$100 [a barrel] is the new norm, with the risk very much to the upside," he said.

Ambitious national oil companies, with the exception of Statoil and Chinese firms, would also sacrifice profits in favour of agendas "neither commercial nor global".

"Much has been made of the rise of the national oil companies and their transformation into truly international oil companies," said Mr Hayward. "The truth is it's more talk than action ... They won't be given the freedom or the arm's length by their governments."

Ruddy cheeked and relaxed, his opinion sought from all sides, he was a different man to the one reviled by many Americans while his company's crude gushed into the waters of the Gulf of Mexico.

"Thank you very much for allowing me to finish my sentences, in contrast to some of my appearances a few years ago," he joked to the audience, in his only remark alluding to the disaster.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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