BP is set to make a dramatic U-turn, scrapping its ambitious renewable energy goals and shifting its focus back to oil and gas.
According to sources close to the strategy shake-up, the energy giant will abandon its pledge to boost renewable capacity 20-fold by 2030.
This major pivot comes as BP faces mounting pressure from shareholders after reporting its weakest annual and quarterly profits in years.
CEO Murray Auchincloss made it clear earlier this month that the company plans to “fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns.”
The official announcement is expected at BP’s Capital Markets Update today, where Auchincloss will lay out the company’s new game plan. The move mirrors similar shifts by rivals Shell and Equinor, who have also turned their focus back to fossil fuels.
BP will also scale back investments in low-carbon energy solutions as it seeks to boost returns and cut down rising debt, according to insiders.
The pressure on BP intensified after investors Elliott Management reportedly took a nearly 5% stake in the company. The firm is said to be pushing hard for major asset sales and even potential board shake-ups to unlock shareholder value.
For BP, this pivot marks a clear departure from the green ambitions set under former CEO Bernard Looney. He had pledged in 2020 to cut production of oil and gas by 40% by 2030, in 2023 that figure was revised down to 25%.
Now, the new direction – perhaps guided by Trump’s new call to back fossil fuels – is all about reassuring investors and revving up oil and gas profits, leaving its clean energy future plans unclear.
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