BP is expected to announce it will slash its renewable energy investments and instead focus on increasing oil and gas production.
The energy giant will outline its strategy later following pressure from some investors unhappy its profits and share price have been much lower than its rivals.
Shell and Norwegian company Equinor have already scaled back their plans to invest in green energy. Meanwhile US President Donald Trump’s “drill baby drill” comments have encouraged investment in fossil fuels and a move away from low carbon projects.
Some shareholders and environmental groups have voiced concerns over any potential ramping up on production of fossil fuels.
Five years ago, BP set some of the most ambitious targets among large oil companies to cut production of oil and gas by 40% by 2030, while significantly ramping up investment in renewables.
In 2023, the company lowered this oil and gas reduction target to 25%.
It is now expected to abandon it altogether while confirming it is cutting investments in renewable energy by more than half in what chief executive Murray Auchincloss called a “fundamental reset”.
In 2024, BP’s net income fell to $8.9bn (£7.2bn) down from $13.8bn the previous year.
Mr Auchincloss is under pressure to boost profits from some shareholders including the influential activist group Elliot Management, which took a near £4 billion stake in the £70 billion company to push for more investment in oil and gas.
Since 2020 when former chief executive Bernard Looney first unveiled his strategy, shareholders have received total returns including dividends of 36% over the last five years. In contrast, shareholders in rivals Shell and Exxon have seen returns of 82% and 160% respectively.
BP’s under performance has prompted speculation that it may be a takeover target or may consider moving its main
The post BP to slash green investment and ramp up gas and oil first appeared on EnviroLink Network.