BP has announced a strategic shift, cutting investment in renewable energy while increasing spending on oil and gas production by 20% to $10bn (£7.9bn) annually. The decision follows pressure from investors concerned about the company’s underperformance compared to rivals.
CEO Murray Auchincloss admitted BP had moved “too far, too fast” in transitioning from fossil fuels, reducing funding for renewables by over $5bn (£3.9bn) and limiting future green energy investments to $1.5bn–$2bn per year. Chairman Helge Lund emphasised that shareholder returns and cash flow growth remain the firm’s priority.
The move mirrors similar shifts by Shell and Equinor, amid a renewed push for fossil fuel investment, including encouragement from former US President Donald Trump. BP now aims to boost daily oil production to 2.3–2.5 million barrels by 2030, with new projects expected by 2027.
The decision has sparked criticism from environmental groups and some investors, with Greenpeace UK stating that BP’s retreat from renewables proves “fossil fuel companies can’t or won’t be part of climate crisis solutions.” A coalition of 48 investors has called for a shareholder vote on the company’s revised strategy.
Despite the backlash, BP insists its net-zero ambitions remain unchanged, citing plans for wind farms and carbon capture projects in the UK. However, with BP’s total shareholder returns lagging behind Shell and Exxon, speculation is growing over a potential takeover or a shift in its stock market listing to the US.
