BP postpones energy transition and returns to oil and gas
8 October 09:34
British oil and gas company BP (British Petroleum) has abandoned its goal of reducing oil and gas production by 2030. The decision is part of a review of the company’s energy transition strategy under the leadership of new CEO Murray Akincloss. This was reported by Reuters, Komersant ukrainskyi informs.
In 2020, BP presented one of the most ambitious strategies in the industry, planning to cut oil production by 40% and at the same time rapidly increase renewable energy production by 2030. However, in February 2023, the company had already reduced this goal to a 25% cut, which would mean production of 2 million barrels per day by the end of the decade.
Now, according to three Reuters sources with knowledge of the situation, BP is abandoning this goal entirely. Instead, the company is planning new investments in the Middle East and the Gulf of Mexico to increase oil and gas production.
Okinkloss, who took over as CEO in January 2024, is trying to restore investor confidence and boost BP’s share price, which is lagging behind its competitors. He has distanced himself from the approach of his predecessor Bernard Looney, focusing on profitability and investment in the most profitable areas of the business, primarily oil and gas.
Follow us on Telegram: the main news in a nutshell
The company remains committed to its goal of achieving zero emissions by 2050, but is changing its approach to short-term goals. Oinkloss is expected to present an updated strategy, including the abandonment of the 2030 production target, at a meeting with investors in February.
BP is negotiating investments in three new projects in Iraq, including the Majnun field. The company is also considering investing in the development of fields in Kuwait. In the Gulf of Mexico, BP plans to develop the complex Cascida field and is considering developing the Tiber field.
In addition, the company may consider acquiring assets in the Permian shale basin to expand its business in the US.
In recent months, BP has suspended investments in new offshore wind and biofuels projects and reduced the number of low-carbon hydrogen projects from 30 to 10. Nevertheless, BP acquired the remaining 50% stake in its Lightsource BP solar joint venture, as well as a 50% stake in the Brazilian biofuels business Bunge.
