BP withdraws from ambitious climate goals: New strategy under Auchincloss

The news that BP is apparently not pursuing its ambitious goals of reducing oil and gas production by 2030 is noteworthy. According to reliable sources, CEO Murray Auchincloss has decided to adjust the energy giant's transition strategy to regain investor confidence. Originally, BP promised four years ago to reduce production by 40 percent while simultaneously focusing on renewable energies. This announcement was considered an unprecedented step in the industry. However, as early as last year, the goal was revised to a 25 percent reduction because investors prioritized short-term returns over a long-term energy transition. It is now being reported that the company plans new investments in the Middle East and the Gulf of Mexico to increase its oil and gas production. Auchincloss, who has been at the helm since January, is struggling with a declining share price. Compared to its competitors, BP has been rather disappointing this year in terms of its ability to generate profits with the current strategy. The current CEO is trying to differentiate himself from the strategies of his predecessor Bernard Looney and wants to invest primarily in profitable business areas. He is expected to present his revised strategy at an investor day in February. At the same time, BP continues to pursue its long-term goal of net-zero emissions by 2050. Interestingly, Shell, under the leadership of Wael Sawan since the beginning of the year, has also scaled back its energy transition strategy. Both companies are now placing greater emphasis on European energy security—a response to the price disruptions following the Russian invasion of Ukraine in early 2022.