Energy giant BP said Wednesday it will increase its spending on oil and gas, while also sharply cutting investments in various forms of clean energy.
The move appears to be a response to a combination of investor pressure on higher returns and the perception that the energy transition to so-called energy fuels has not been rewarded as expected.
“We have fundamentally reset our strategy for BP today,” BP CEO Murray Auchincloss said in a statement.
BP said it would increase its oil and gas investment to around $10 billion a year to boost production, while also reducing its renewable energy spending from $1.5 billion to $2 billion a year.
Aucincloss took charge of the London-based energy group about a year ago, where he was responsible for Bernard Droney, who was chased over his failure to disclose personal relationships with other employees.
Five years ago, Rooney announced major changes in the company, including plans to cut oil and gas production by about 40% by 2030. These goals were praised at the time by some analysts and investors, leading the industry.
However, in the meantime, oil and natural gas prices have risen. Also, in the US, some of the green energy BP invested in, especially in the offshore, has become insufficient.
The Trump administration, which supports fossil fuels, is also changing the investment and operating environment of energy companies.
