BP is expected to announce a reduction in its renewable energy investments, shifting its focus toward increasing oil and gas production. The company will unveil its new strategy in response to pressure from investors dissatisfied with its lower profits and stock performance compared to its competitors.

Both Shell and the Norwegian company Equinor have already scaled back their green energy investment plans. Meanwhile, former US President Donald Trump’s “drill, baby, drill” remarks have fueled greater investment in fossil fuels, driving a move away from low-carbon initiatives.
However, some shareholders and environmental groups have expressed concerns about the potential environmental consequences of ramping up fossil fuel production.
Five years ago, BP set ambitious goals among major oil companies, aiming to reduce oil and gas production by 40% by 2030 while significantly increasing investments in renewable energy.
However, in 2023, the company revised this target, lowering it to a 25% reduction. Now, BP is expected to completely abandon the target, announcing a reduction of over half in its renewable energy investments, a move that CEO Murray Auchincloss has described as a “fundamental reset.”
In 2024, BP’s net income dropped to $8.9bn (£7.2bn), down from $13.8bn the previous year.
Auchincloss is facing pressure to improve profits, particularly from shareholders like the influential activist group Elliot Management, which acquired a nearly £4 billion stake in the £70 billion company, advocating for increased investment in oil and gas.
Since 2020 when former chief executive Bernard Looney first unveiled his strategy, shareholders have received total returns including dividends of 36% over the last five years. In contrast, shareholders in rivals Shell and Exxon have seen returns of 82% and 160% respectively.
BP’s under performance has prompted speculation that it may be a takeover target or may consider moving its main stock market listing to the US where oil and gas companies command higher valuations.
Not all shareholders want the company to change course so radically.
Last week, a group of 48 investors called on the company to allow them a vote on any potential plans to move away from its previous commitments to renewables.
A spokesperson for one of the signatories, Royal London Asset Management, said: “As long-term shareholders, we recognise BP’s past efforts toward energy transition but remain concerned about the company’s continued investment in fossil fuel expansion.”
The environmental group Greenpeace UK has warned BP could expect “pushback and challenge at every turn if it doubles down on fossil fuels – not just from green campaigners but from its own shareholders”.
Senior climate adviser Charlie Kronick said: “Government policies will also need to prioritise renewable power, and as extreme weather puts pressure on insurance models – policymakers will be looking to fossil fuel profits as a way to fund extreme weather recovery. BP might want to seriously put the brakes on this U-turn.”
AJ Bell analyst Russ Mould said this was one of the most significant moments for BP in the last four or five years.
“Other energy companies have been clearer about their intentions thus far than BP,” he said.
“They need to prove to people that after a difficult operational and share price performance compared to their peers, that they’re looking to do something about it, not just let things drift along, he added.
BP has already placed its offshore wind business in a joint venture with Japanese company Jera and is looking to find a partner to do the same with its solar business.
The refocus on oil and gas could also see sales of other businesses in order to get “non-core stuff off the books” as insiders describe it.
It is over 20 years since former chief executive Lord John Browne said BP could stand for “Beyond Petroleum” as he launched the company’s first tentative moves away from oil and gas.
Today’s strategy shift could be dubbed “Back to Petroleum” – to the delight of some shareholders and to the dismay of others.
Both BP and Elliott management declined to comment.