BP (BP.L) has announced a major shift in its energy strategy, significantly cutting planned investments in renewable energy while increasing spending on oil and gas. The company revealed on Wednesday that it will raise its annual oil and gas investment to $10 billion, aiming to enhance earnings and shareholder returns.
As part of this change, BP has slashed its planned yearly investment in energy transition businesses by over $5 billion, now allocating between $1.5 billion and $2 billion per year—well below previous forecasts.
This move follows a trend among major energy companies adjusting their strategies in response to the global push to reduce carbon emissions. Despite climate concerns, BP is now focusing on growing its oil and gas production, targeting output between 2.3 million and 2.5 million barrels of oil equivalent per day (boepd) by 2030.