BP, one of the world’s largest energy companies, has announced a significant shift in its strategy as part of a “fundamental strategic reset.” The company plans to increase annual oil and gas investment to $10 billion through 2027, up from previous estimates. This move comes after BP lowered its capital expenditure range to $13-15 billion over the same period, while targeting $20 billion in divestments by the end of 2027.
The company will also significantly reduce investment in transition businesses, with spending expected to be around $1.5 billion to $2 billion per year. This decision marks a reversal of BP’s previous commitment to reducing emissions and increasing renewable energy investments.
BP CEO Murray Auchincloss stated that the strategy reset aims to “drive growth” and increase cash flow and returns. The company will outline further details of its new direction at an upcoming investor day presentation, which is seen as a pivotal moment for the firm.
The move has been described by analysts as “shocking but not surprising,” given BP’s underperformance in recent years compared to industry peers. The decision is likely to be met with concern from investors who have been pushing the company to focus on sustainability and renewable energy investments.
Source: https://www.cnbc.com/2025/02/26/bp-to-ramp-up-fossil-fuel-spending-to-10-billion-in-strategy-reset.html