BP sets sights back on fossil fuels
BP is to increase its annual investment in oil and gas to $10 billion a year. This will change the oil core’s course and return its focus to fossil fuels. In doing so, the company aims to improve its financial performance.
Instead, under previous top executive Bernard Looney, oil and gas production was still cut by 40 per cent by 2020 and firm renewable energy ambitions were expressed. Current top executive Murray Auchincloss now reveals that BP will be very cautious with investments in that area, on the contrary. “This is a reset for BP, with an unwavering focus on creating long-term value for shareholders.”
Phasing out investments
And that includes other ambitions. Oil production is to start increasing from 2.3 million barrels a day now to 2.5 million barrels a day by 2030. Investment in renewable energy will be simultaneously phased out to $1.5 billion to $2 billion annually. That is some $5 billion less on an annual basis than BP previously announced.
The ANP reports that environmental organisations are not happy with BP’s choice. The more fossil-based course is seen as contrary to climate goals and remarkable because it is precisely the renewable energy market that is growing strongly. Activist shareholder Follow This accuses BP of greenwashing and argues that its green words have never really been translated into green deeds. BP wanted to remain an oil giant, but not look like one. Mixed signals from management have confused shareholders and employees alike.”
Petrol stations on sale
The oil group caused quite a stir in the Netherlands late last year with another change of course. Namely, it was then announced that BP wanted to sell all its 310 petrol stations and 25 loading hubs. The company sees too few growth opportunities to remain active in the Dutch market.
