BP to slash renewables investment and ramp up gas and oil production.
Published On Feb 25, 2025, 7:00 PM
BP is shifting its strategy to focus more on oil and gas production and is expected to announce significant cuts in its renewable energy investments. This decision comes as the company faces pressure from investors worried about lower profits and stock performance compared to rivals like Shell and Equinor. BP had previously set ambitious targets to reduce its oil and gas output but is now considering abandoning them altogether. Some investors support the move towards fossil fuels, while others are concerned about the implications for sustainability and environmental commitments. This shift might also raise questions about BP's long-term strategy and market position as it navigates shareholder expectations and regulatory pressures.
Stock Forecasts
BP
Positive
BP's shift back towards fossil fuels indicates a strategic pivot that may improve short-term profits, but could face backlash from environmentally conscious investors and market analysts. The company's past poor performance compared to peers suggests it is under pressure to adapt, yet this may impact its long-term reputation and sustainability efforts.
Related News
Russia Is Wooing Western Energy Companies, but Will They Return?
Feb 23, 2025, 12:01 AM
Industry experts say Western companies will need to weigh potential access to oil and gas riches against political risks and other hazards of doing business in Russia.
BP Vows ‘Fundamental Reset’ in Strategy as Profit Plunges
Feb 11, 2025, 9:59 AM
The energy giant was vague on details, but analysts say the changes is likely to include less spending on renewable sources and a bigger investment in oil and natural gas production.
BP profits drop as it says it will reset strategy
Feb 11, 2025, 2:31 AM
The oil giant is widely expected to say it will scale back on renewables later this month.