BP to cut renewable energy investments by more than half

BP is to cut its renewable energy investments by more than half and focus instead on increasing oil and gas production.

The company said in a report issued today, according to the BBC, that BP will announce its strategy later, after being pressured by some investors unhappy with its lower profits and share price compared to its competitors.

The report quoted Murray Auchincloss, the company’s chief executive, as saying that the company will cut its investments in renewable energy by more than half, in what the chief executive described as a “fundamental reset.”

The company is facing pressure to increase profits from some shareholders, including the influential activist group Elliott Management, which acquired a stake of nearly £4 billion in the £70 billion company, to push it towards more investment in oil and gas.

This comes as some shareholders and environmental groups have expressed concerns about any potential increase in fossil fuel production.

Five years ago, BP set some of the most ambitious targets among major oil companies to cut oil and gas production by 40% by 2030, while significantly increasing investment in renewable energy. In 2023, the company lowered that target to 25%.