BP to ‘Fundamentally Reset’ Strategy in Shift Back to Oil and Gas
Published On Feb 26, 2025, 6:08 AM
BP has announced a shift in its investment strategy, redistributing funds away from clean energy towards oil and gas projects. The company will increase its spending on fossil fuels to $10 billion per year, a 20% rise, while cutting investments in renewables by roughly 70%, bringing them down to between $1.5 billion and $2 billion per year. This decision reflects a response to pressures from investors seeking higher returns and the slow progress in the energy transition to cleaner sources.
Stock Forecasts
BP
Positive
BP's redirection of funds to oil and gas investments, coupled with decreased growth in renewables, may strengthen its market standing in the fossil fuel sector amidst rising energy prices. This aligns with current market trends favoring traditional energy sources due to global demands for reliable energy supply, potentially leading to improved financial performance in the short to medium term.
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