BP has announced a strategic shift to cut spending on green ventures and increase investment in oil and gas production. The company plans to reduce its annual investment in net-zero transition businesses from $5 billion to up to $2 billion. Simultaneously, BP will boost investment in oil and gas by about 20% to $10 billion. This decision, revealed before a London shareholder meeting, is intended to improve its declining share price.
"This is a reset BP, with an unwavering focus on growing long-term shareholder value," said CEO Murray Auchincloss, adding that the company will be "very selective" in renewable investments. The strategy represents a departure from former CEO Bernard Looney's plan to prioritize net-zero businesses. BP's share price dropped by 0.8% following the announcement, despite recent increases based on speculation about the strategy change.
The company's underperformance compared to Shell, ExxonMobil, and Chevron has led to speculation about becoming a takeover target. US hedge fund Elliott Management has taken a nearly 5% stake in BP, possibly influencing its pivot back to fossil fuels.
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BP has already spun off its offshore wind business and seeks to sell its onshore wind segment. It also announced over 5% workforce cuts. Environmental campaigners, including Matilda Borgström from 350.org, criticized the move. Borgström said: "This move by oil giant BP clearly demonstrates why super-rich corporations and individuals, chasing short-term profit for themselves and shareholders, cannot be trusted with fixing the climate crisis or leading the transition to renewable energy we so badly need." (This story was generated by Newser's AI chatbot. Source: the AP)
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