BP will this week abandon plans to radically increase green energy generation and instead ramp up oil production , according to reports.
The British energy giant will ditch its plan to increase renewable generation 20-fold by 2030, Reuters reported .
The move is expected to be announced at an investor meeting on Wednesday and comes after Murray Auchincloss, the BP chief executive, promised a “fundamental reset” of the company’s strategy.
BP is expected to refocus on its lucrative fossil fuels business as it turns away from green energy.
Scrapping the generation target will represent a further gutting of former chief Bernard Looney’s plans. In 2020, Mr Looney pledged to grow BP’s renewable energy capacity to 50 gigawatts (GW) by the end of the decade, implying massive investment in wind and solar farms. Generation capacity currently stands at 8.2 GW.
Mr Auchincloss has been slowly dismantling his predecessor’s plans under pressure from investors.
He has halted all investment in renewable energy and has already said BP will sell off 10 of its US onshore wind farms and spin off its offshore wind farms into a separate joint venture.
It had also scaled back a previous target to cut oil and gas output.
The company is expected to unveil more plans to sell off assets this week, as well as scrapping its goal of making profits of $49bn (£39bn) this year and instead set an annual percentage growth target.
It comes as BP faces pressure to forge a new strategy after activist investor Elliott Management emerged as one of its biggest shareholders. The US hedge fund, which took a 5pc stake in BP this month, is thought to be pushing bosses to slash costs and sell off assets.
A number of major energy companies including Shell and Equinor have scaled back their renewable energy targets as falling returns have agitated investors.
The re-election of Donald Trump, who has criticised the global shift to net zero, has also darkened the outlook for green energy. The Republican campaigned on a promise to “drill, baby drill” and has begun the process of withdrawing the US from the Paris Climate Agreement on limiting emissions.
Mr Auchincloss is attempting to bolster BP’s performance after the company saw its profits fall to $8.2bn last year from $13.4bn in 2023. The BP chief has promised to cut costs and announced plans to reduce staff numbers by 5pc. The company has also slashed performance-related bonuses for senior executives.
BP declined to comment.
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