Oil & Gas

BP is expected to announce a major shift in its energy strategy, reducing investments in renewable energy while increasing oil and gas production. This move comes in response to pressure from investors who are dissatisfied with the company's lower profits and share price compared to competitors. The energy giant will reveal its updated plans soon, signaling a departure from its previous commitments to greener energy.

This decision aligns with a broader trend in the oil and gas sector, where companies like Shell and Norway’s Equinor have also scaled back their green energy investments. Meanwhile, US policies under Donald Trump, such as his "drill baby drill" stance, have further encouraged fossil fuel investments, shifting focus away from low-carbon projects. However, this change has sparked criticism from environmental groups and certain shareholders concerned about the long-term sustainability of increased fossil fuel production.

BP initially set ambitious goals to cut its oil and gas production by 40% by 2030 while expanding its renewable energy investments. However, in 2023, the company revised this target, reducing the planned production cut to 25%, signaling a step back from its previous commitments. The company justified this shift by citing market conditions and investor demands, highlighting the ongoing challenge of balancing profitability with sustainability.

Now, BP is expected to abandon its production cut targets altogether, confirming a drastic reduction in its renewable energy investments. Chief Executive Murray Auchincloss described this shift as a "fundamental reset," indicating a major strategic realignment. This decision raises concerns about the future of corporate commitments to green energy, especially as other major oil firms may follow BP’s lead.