BP boosts annual oil, gas investment to $10 billion

BP has announced a significant shift in its strategy, committing to increase its annual oil and gas investments to $10 billion through 2027 while reducing its renewable energy investments to just $1 to $2 billion. This decision comes as the company faces pressure from shareholders, particularly Elliott Management, which has acquired a substantial stake and is pushing for changes to enhance shareholder value. CEO Murray Auchincloss emphasized that the focus will be on high-return fossil fuel businesses, abandoning previous plans to cut oil and gas production and achieve net zero by 2050. The company’s renewed commitment to fossil fuels marks a stark departure from its earlier climate goals, which included substantial reductions in production and investments in renewable energy. BP's share price has suffered in recent years compared to competitors, prompting the need for a strategic overhaul to boost performance and returns. Critics highlight that this strategy contradicts global climate goals, especially as the International Energy Agency warns against new fossil fuel projects.