BP abandoned his green ambitions in favor of intensifying the production of fossil fuels, as its president claimed that optimism about the green transition was “in its place.”
In a major strategy, the energy company will increase its investments in oil and gas to $ 10 billion (7.9 billion pounds) annually, with a reduction in more than $ 5 billion in the previous green investment plan.
Radical reform means that BP will be “very selective” about investing in low carbon options with 2.4 million barrels of oil and gas per day by 2030-about 60 % of the number in its clear plan that was identified five years ago.
“We have today resett the BP strategy,” said BP. “This is the BP reset, with a constant focus on the growth of the value of the shareholders in the long run.”
The transition towards fossil fuel is a flagrant shift from the investment plan it put forward five years ago by former CEO, Bernard Loony. He promised to reduce the production of fossil fuels for the company to about 1.5 million barrels per day and made BP zero company by 2050.
Auchincloss said that BP will instead focus on strengthening the production portfolio by starting 10 oil and gas projects on a large scale by 2027 and eight to 10 other projects by the end of the contract.
He said: “Our optimism for fasting [energy] The transition was in its place, and we went very far. “
There was increasing pressure from BP investors to ignore their green pledges, which initially won the praise of the green groups but has been diluted since then with a decrease in the BP share price.
BP has lost nearly a quarter of its market value in the past two years, while the market value of its competitors has increased SHELL and Exxonmobil with a continuation of greater oil and gas production.
The company also faces an existential threat from the active hedge fund Elliott Management, which in recent months collected a stake in the oil company worth 3.8 billion pounds, or 5 % of its shares.
The New York hedge fund is widely expected to use its 120 -year -old company to demand comprehensive changes, including potential separation, to save its market value.
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The dismantling of the Green Lony Agency will come, along with a plan to reduce the BP debt stack from about $ 23 billion at the end of last year to between 14 billion dollars and 18 billion dollars by the end of 2027.
The company plans to sell $ 20 billion assets, including Castrol lubricants, and its network of service stations and the Solar power developer Lightsource BP, while reducing up to 3 billion dollars of its total investments and reducing up to $ 5 billion of costs from all over the company by the end of 2027.
“This step by the BP oil giant clearly explains why it is not possible to trusted vibrant companies and individuals, which chases the short -term profit for themselves and shareholders, while repairing the climate crisis or leading to the transition to renewable energy that we need very badly,” said Matilda Borgström, an active in the Action Commine Group 350.org group.
“Pumping funds in more oil and gas increases the risk of climate effects for all of us, and it flies in the face of the legal climate goals, and with the growth of the renewable energy sector significantly, it is a great risk to shareholders to the point that BP is very keen to satisfy it.”