BP’s new strategy marks a significant shift away from green energy and towards oil and gas production. Under the plan, investments in renewable energy projects will be cut by 70%, a move that contradicts the company’s previous commitment to sustainability goals. CEO Murray Auchincloss acknowledged that BP had underestimated demand for fossil fuels and overestimated the pace of the green-energy transition.
The decision comes as investors have grown increasingly dissatisfied with BP’s stagnant share price, leading activist fund manager Elliott Management to take a 5% stake in the company. Despite this change, BP maintains its commitment to sustainability goals, raising questions about how it will balance short-term financial interests with long-term environmental objectives.
Source: https://www.economist.com/the-world-this-week/2025/02/27/business