Oil major BP has pulled back from its promise to cut oil and gas output by 40% while rapidly growing renewables by 2030 as a way to regain the confidence of investors, although it continues to target net-zero emissions by 2050.
Murray Auchincloss, who was appointed CEO at the start of the year, is now scaling back the company’s energy transition strategy, according to multiple media sources, citing people familiar with situation.
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The plan to move away from oil and gas was unveiled in 2020 and included moves to rapidly increase renewable energy production by 2030.
The sources said bp is now looking at new investments in the Middle East and North America as a way to increase oil production.
In June, Offshore Technology reported that BP was pondering a move away from renewables, with Auchincloss changing course in the hope of better longer-term financial returns.
The company had reportedly initiated a hiring freeze and suspended offshore wind projects, according to sources at the company at the time.
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By GlobalDataBP’s share price has underperformed this year compared with its rivals, with investors concerned that the focus on renewables will make it hard to generate profits.
BP was also accused in July of scaling back its development of renewables to secure $2.8bn (£2.14bn) in profits, above market expectations.
Media reports indicate that Auchincloss will reveal bp’s official new strategy in February, including the removal of the 2030 production target.
