BP to Pay Shareholders $7bn, Expands Oil Operations Amidst Criticism

BP, the oil and gas giant, has announced a $7 billion payout to shareholders this year through increased dividends and share buybacks. This comes after the company reported better-than-expected quarterly profits of $2.8 billion, driven by its oil and gas operations.

The company plans to develop a new oil hub in the Gulf of Mexico with potential oil resources of 10 billion barrels. This has drawn criticism from environmental groups, who accuse the company of prioritising profits over climate concerns.

BP's underlying replacement cost profit, a key metric for analysts, reached $2.8 billion for the second quarter. However, the company's reported result showed a £129 million loss due to a refinery write-down.

The company has faced criticism for scaling back its green investments while pushing forward with high-value fossil fuel projects. However, BP claims it remains committed to transitioning to an integrated energy company and plans to build several green hydrogen projects.

Alice Harrison, head of fossil fuel campaigns at Global Witness, criticised BP for "raking in billions of profits, paying out massive dividends, and doubling down on dirty new oil and gas projects" while the world faces high temperatures and high bills.

BP CEO Murray Auchincloss defended the company's actions, stating that BP is committed to transforming from an oil company to an "integrated energy company" and has plans to build between five and 10 green hydrogen projects this decade. He emphasized that BP is "getting things done" and leading in biofuels, biogas, and electric vehicle charging infrastructure.

Environmental groups continue to criticise BP for prioritising profits and fossil fuel projects over climate concerns. Alice Harrison of Global Witness called on governments to hold polluters accountable and steer towards a cleaner future instead of propping up the fossil fuel industry.