BP ditches oil and gas cutbacks for expansion: Reuters
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The news: BP has scrapped its 2030 oil and gas output reduction target and is refocusing on boosting oil and gas projects in Iraq, Kuwait and the Gulf of Mexico, Reuters reported citing unnamed sources.
The numbers: When introduced in 2020, BP's plan to cut output by 40% while rapidly growing its renewable energy portfolio by 2030 was the industry’s boldest.
Last year, BP scaled back that target to a 25% reduction, and CEO Murray Auchincloss, who took over in January, is realigning BP’s strategy, promising a simpler, more profitable approach.
The context: Auchincloss, who in May announced a USD2 billion cost-cutting drive, is slowing investment in renewables like offshore wind and biofuels, but BP is still targeting net-zero emissions by 2050 and has expanded its solar and biofuel ventures.
Auchincloss will present BP’s new strategy at an investor day in February 2025, but in practice the company has already abandoned the 2030 production target, the publication said.
BP's shift mirrors that of rival Shell, which is also scaling back its green energy ambitions. The moves come amid an increased focus on energy security after Russia’s invasion of Ukraine in 2022 and the ensuing price shocks in energy prices in Europe.
The source: Reuters
