Energy firm shifts focus back to oil and gas
February 24th, 2025
BP has announced a shift in strategy, cutting back on renewable energy investments and increasing oil and gas production. The decision follows pressure from investors seeking higher returns, as BP’s profits and share performance have lagged behind competitors.
Investment in oil and gas is set to rise by around 20% to $10 billion (£7.9 billion) annually, while funding for renewable projects such as biogas, biofuels, and electric vehicle charging will be reduced by over $5 billion (£3.9 billion). Instead, BP plans to pursue “capital-light partnerships” in green energy sectors like wind and solar.
This move aligns with broader industry trends, as other major energy firms have also scaled back green investments in response to market pressures. Increased production targets aim to boost output to between 2.3 million and 2.5 million barrels of oil per day by 2030, with significant new projects expected by 2027.
Despite this renewed focus on fossil fuels, BP insists its long-term ambition to become a net-zero business remains unchanged. However, environmental groups and some shareholders have raised concerns about the decision, warning it could undermine efforts to transition to cleaner energy sources. The shift also raises questions about BP’s long-term position in the evolving energy market, as