BP, one of the world’s largest energy companies, has officially abandoned its plan to reduce oil and gas output by 25% by 2030. The decision is part of a strategic shift led by CEO Murray Auchincloss, who aims to prioritize investor returns by scaling back some of the company’s more ambitious green energy targets. The move signals BP’s intent to focus on its core, more profitable fossil fuel operations, while continuing to work toward its broader goal of achieving net-zero emissions by 2050.
Initially, BP's 2020 strategy under former CEO Bernard Looney had set out the most aggressive targets in the industry, aiming for a 40% cut in oil and gas production. However, facing increasing pressure from investors focused on near-term profitability, that target was revised down to 25% in 2023. Now, even that reduced target has been shelved, according to sources familiar with the matter.
BP is looking at several new oil and gas investments, particularly in the Middle East and the Gulf of Mexico, to boost its output. The company has signed deals in Iraq and is exploring additional projects in Kuwait, while also pushing forward developments in the Gulf of Mexico, such as the Kaskida and Tiber oilfields. Additionally, BP is considering expanding its U.S. shale operations in the Permian Basin.
Auchincloss, who succeeded Looney after his departure in 2023, is expected to officially present the revised strategy, including the removal of the 2030 production cut goal, during an investor day in February 2025. While Auchincloss has paused several renewable energy initiatives, such as new offshore wind and biofuel projects, BP has continued investing in key areas of low-carbon energy. This includes acquiring the remaining 50% of its solar power joint venture Lightsource BP and strengthening its stake in its Brazilian biofuel business, Bunge.
Despite these renewables investments, Auchincloss’s shift toward fossil fuel production reflects broader industry trends, with rivals like Shell also slowing down their green energy transitions. The focus on oil and gas comes amid renewed concerns about European energy security following Russia’s invasion of Ukraine, which has disrupted global energy markets and raised prices.
BP’s renewed emphasis on fossil fuels has drawn criticism from environmental groups, but the company remains committed to its long-term goal of achieving net-zero emissions by 2050. The updated strategy aims to balance BP’s focus on profitability with the gradual transition to greener energy sources, although some analysts question whether the company’s actions align with its climate goals.
This recalibration comes after BP invested billions in renewable energy and cut back its exploration team following the 2020 strategy launch. Supply chain disruptions and rising costs have made many renewable projects less profitable, adding to the pressures prompting BP’s strategic reset.
