BP today unveiled a massive strategy U-turn with a new emphasis on oil and gas investment and a massive downgrade of its commitment to green energy.Under pressure chief executive Murray Auchincloss said oil and gas investment will be increased to around $10 billion a year while investment in renewable and low carbon businesses will be cut by more than $5 billion a year to just $1.
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BP to Focus More on Oil and Gas in Strategy ‘Reset’
BP refocuses on oil amid pressure from activist investor, cuts buybacks
In a highly anticipated strategy update, BP chief executive Murray Auchincloss scrapped a plan to pull back from oil and gas and pledged to grow production slightly instead. He also cut investment in renewable energy and began a strategic review of lubricants business Castrol, which could be worth as much as US$10 billion if it was sold.
BP cuts investment in clean energy and boosts oil and gas in major strategy shift
BP slashed planned investment in renewable energy and said Wednesday that it would increase annual oil and gas spending to $10 billion, in a major strategy shift aimed at boosting earnings and shareholder returns.
BP Plc’s “fundamental reset” on Wednesday is the most highly anticipated strategy shift for an oil major in several years.
BP Plc is set to announce a potential sale of its lubricants business and abandon plans to cut oil and gas output as it embarks on a shift away from renewable energy amid pressure from activist investor Elliott Investment Management,
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