BP to slash green investment and ramp up gas and oil

BP is set to reduce its renewable energy investments and prioritize oil and gas production, following investor pressure over its underwhelming profits and stock performance. The company had initially pledged a 40% reduction in oil and gas output by 2030, later revised to 25%, but is now expected to abandon the target altogether.

BP’s 2024 net income fell to $8.9bn, down from $13.8bn in 2023, prompting influential activist investor Elliott Management to push for increased fossil fuel investments. The decision has sparked backlash from environmental groups and some shareholders, who argue it jeopardizes BP’s energy transition efforts.

BP has already restructured its offshore wind and solar businesses, signaling a major strategic shift back to petroleum, a move welcomed by some investors but criticized by climate advocates.