BP is increasing investment in fossil fuel projects, a move that has sparked criticism from environmental organizations. The company plans to boost spending on oil and gas by approximately $10 billion annually, while reducing planned funding for renewable energy initiatives by over $5 billion.
This strategic shift, which BP is calling a “reset,” focuses on “highest-returning businesses” to drive growth and improve cost efficiency, according to CEO Murray Auchincloss. The company aims to increase oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day by 2030. However, its shares dipped by one percent shortly after the announcement.
The move represents a significant change from previous commitments. Former CEO Bernard Looney had pledged in 2020 to drastically cut oil and gas output and rapidly increase renewable energy capacity by the same time. Now, the company says they will be selective the investment into electric vehicle charging, as well as the rollout of biogas and biofuels.
Environmental groups have strongly condemned BP’s decision. Global Witness campaigners have been vocal in their opposition, staging protests in London outside of BP’s headquarters and at other locations to denounce the shift. They accuse BP of “greenwashing” and abandoning its climate targets.
Alexander Kirk, a campaigner for Global Witness, criticized BP for previously launching a “massive public relations campaign” around their climate goals. He stated, “Now, while the world is reeling from fossil-fuel driven extreme weather, BP is widely expected to double down on the oil and gas creating climate breakdown.”
BP’s current plans also involve high-grading existing projects and concentrating on fewer key markets. While the company is involved in the EV charging market with BP Pulse, which ranks third in the UK for rapid or ultra-rapid charge points, the focus on fossil fuels has raised concerns about the company’s commitment to a sustainable energy transition. Environmental groups have made it clear they are not backing off from their criticisms.
