Oil Major BP to Slash Renewable Spending and Double Down on Fossil Fuels in Strategy Reset

British Oil Major Bp On Wednsday Announced Plans to Increase Annual Oil and Gas Investment to $ 10 Billion Through 2027 as Part of a Fundamental Strategic Reset.

The beleguered energy giant also said it planned to lower its annual capital expert to sit with End of 2027.

“Today we have fundamentally reset bp’s strategy,” BP CEO Murray Auchincloss said in a statement.

“We are reduced and realocating Capital Expenditure to Our Highest-Returning Businesses to Drive Growth, and relatively Pursuing Persuing Persuing Persuance Improvements and Cost Efficiency of Cost Efficiency. Sustainally Growing Cash Flow and Returns, “He Added.

The oil Major said investment in transition businesses would be “significantly lower” over the coming years. More than $ 5 billion per year below the previous guidance.

BP is poised to outline further details of its new direction at its capital markets update on wedding on afternoon.

An Investor Day Presentation, which will be hosted by auchnicloss and other members of the firm’s Leadership team, is scheduled to take place from 1 PM London Time.

Analysts have described bp’s investor day as a Pivotal Moment for the Firm, Particularly after it Emerged that Active Investor Elliot Management Had Built A Stake in the Oil Major.

BP’s Auchnicloss, Who Took The Helm on a Permanent Basis in January Last year, is under significant pressure to ressure investors that company is on the right track to improve in its financial performance.

The London-LIND FIRM HAS LAGGED Its Industry Rivals in Recent Years, As Investors Have Continued to Question The Firm’s Strategic Direction.

Shares of BP Fell 1.5% on Wednsday Morning.

Lindsey Stewart, Director of Investment Stewardship and Policy at Morningstar Sustainalytics, Said Wednsday that BP’s Decision to Reduce Capital Expenditure on Renewables and Double Down on our Assets “will be shocking but not surprising to investors focused on Sustainability.”

He added that “having alredy cut back its energy transition targets in 2023, BP’s subsequent underperforformance compared compared with peers have created pressure for bp management of bp manage A Financial Rather Than Ecological Nature. “

Reuters on Monday Reported That bp is poised to abandon its target to increase renewable generation 20-fold by 2030, Citing two unnamed sources close to the matter. A spokesperson for the company declared to comment when contacted by CNBC.

Five years ago, bp trust one of the first energy giants to announs plans to cut emissions to net zero “By 2050 or Sooner.

The company scled back this emissions target to 20% to 30% in February 2023, Saying at the time that it needed to keep investment in oil and gas to meet global demand.