BP says it is having to increased its cost reduction targets for this year to 2.1 billion euros.
That announcement came after its second quarter profits halved due to lower oil prices and as it made less money from refining crude. Europe’s second largest oil company is, like the rest of the industry, slashing exploration, production and refining costs in response to oil prices now at 70 dollars a barrel from being above 147 dollars a barrel a year ago. BP’s Chief Executive Tony Hayward was downbeat and said: “We see little evidence of any growth in demand and expect the recovery to be long and drawn out. “