BP Shifts Focus Back to Oil & Gas, Cuts Renewable Investments

BP p.l.c. has announced its strategic shift by increasing oil and gas investments by 20% to USD 10 billion annually while cutting renewable energy funding by over USD 5 billion. CEO Murray Auchincloss stated the company had moved “too far, too fast” toward green energy, with future renewable investments now limited to USD 1.5–USD 2 billion per year.

With significant projects anticipated by 2027, BP intends to increase oil and gas output to 2.3–2.5 million barrels per day by 2030. After BP’s net income dropped from USD 13.8 billion in 2023 to USD 8.9 billion in 2024, investors began to demand larger returns, which prompted the move.

Environmental groups and some investors have criticised the move, calling it a setback in the clean energy transition. Meanwhile, BP maintains that it remains committed to net-zero goals but will pursue a more “efficient” transition. The company is also exploring joint ventures for wind and solar projects.