"Complete Reset" of Company Strategy, BP PLC-Spons Returns to Oil and Gas Business, Significantly Reduces Clean Energy Investment

BP announced on Wednesday that it will increase investments in its oil and gas business while significantly cutting back on clean energy investment plans.

BP CEO Murray Auchincloss stated in a press release:

"Today, we have completely reset BP's strategy."

According to The New York Times, BP plans to increase its investment in oil and gas production to $10 billion per year over the next few years to boost output, while reducing renewable energy investments to between $1.5 billion and $2 billion per year, a decrease of about $5 billion from previous plans.

The strategic adjustment is driven by investors' desire and pressure for higher returns. Since former BP CEO Bernard Looney proposed a significant reduction in oil and gas production five years ago, oil and gas prices have continued to rise, and the market environment has changed significantly.

Although Looney's plan was seen as a leading transformative move in the industry at the time, the reality is that BP's investments in some green energy sectors have underperformed, particularly in offshore wind projects in the United States, which failed to contribute expected returns.

Analysts believe that the energy policies of the Trump administration further influenced BP's strategic choices, as the government encouraged investments in fossil fuels, providing energy companies with more opportunities in environmental policies.

Industry analysts generally believe that BP's strategic transformation will prompt other energy companies to reconsider their investment portfolios. This may trigger a reassessment of renewable energy investments, especially in the context of energy transition, where the balance between traditional energy companies and clean energy investments will become increasingly complex