BP is increasing its spending on oil and gas by $500 million in response to soaring energy prices and tightening supplies, Chief Executive Officer Bernard Looney told Reuters on Tuesday.

The extra spending will go primarily to BP’s onshore natural gas production in the Hayensville basin and offshore production in the Gulf of Mexico, both in the United States, he said.

“We will direct more investment towards hydrocarbons to help with energy security in the near term,” he told Reuters after the company reported its highest quarterly profit in 14 years.

“We’ll probably direct about a half a billion dollars for hydrocarbons.”
Source: Reuters (Reporting by Ron Bousso; Editing by Kirsten Donovan)