BP TO SHIFT FOCUS FROM RENEWABLES TO OIL AND GAS EXPANSION – The decision comes amid pressure from investors dissatisfied with its lower profits and share price compared to competitors
BP is expected to announce a major shift in its strategy, cutting back on renewable energy investments and prioritizing oil and gas production.
The energy giant’s revised approach comes amid pressure from investors dissatisfied with its lower profits and share price compared to competitors. Other industry leaders, including Shell and Norwegian firm Equinor, have already scaled down their green energy commitments, while U.S. President Donald Trump’s pro-fossil fuel stance has further encouraged investment in traditional energy sources.
However, the move has sparked concerns among shareholders and environmental groups wary of increased fossil fuel production. BP initially set ambitious goals in 2020 to cut oil and gas output by 40% by 2030 while significantly increasing renewable energy investments. Last year, it reduced that target to 25%, and now, reports suggest it will abandon the goal entirely.
The company is also expected to slash renewable energy investments by more than half, with CEO Murray Auchincloss calling the decision a “fundamental reset.” This shift comes as BP faces pressure to improve profitability, particularly from activist investor Elliott Management, which has taken a £4bn stake in the company to advocate for increased oil and gas investments.
In 2024, BP reported a net income of $8.9bn (£7.2bn), a significant drop from $13.8bn in the previous year. Since former CEO Bernard Looney introduced the company’s green strategy in 2020, BP shareholders have seen a 36% return on investments, compared to 82% for Shell and 160% for ExxonMobil.
The company’s underperformance has fueled speculation about a potential takeover or a shift of its primary stock market listing to the U.S., where oil and gas firms typically achieve higher valuations.
