BP has announced a “fundamental reset” in its strategy following a sharp profit drop. Net income fell from $13.8B in 2023 to $8.9B in 2024. The decline, driven by lower oil and gas prices and reduced refining profits, has prompted BP to scale back renewable investments and prioritize oil and gas production, following similar moves by Shell and Equinor.
Once committed to 50GW of renewables by 2030, BP is expected to abandon this target in its upcoming strategy update on February 26. Signs of this shift are already visible: freezing new wind projects (June 2023) and moving offshore wind assets into a joint venture with Japan’s Jera (December 2024). BP’s $10B renewable investment plan may now face a 50% cut.
Under pressure from activist Elliott Management, BP will likely increase fossil fuel investments and undergo board changes. As another significant energy company pulls back from renewables, the question remains—is this a market correction or a setback for global decarbonization? Read More
News Credit: BBC
Picture Credit: Getty Images