BP withdraws from original climate goal and invests more in fossil fuels

BP has abandoned its ambitious plans to reduce oil and gas production by 2030, after the company announced in 2020 that it would cut production by 40% while simultaneously advancing the expansion of renewable energies. This target was revised last year to a reduction of 25%. The new CEO, Murray Auchincloss, is now pursuing a strategy focused more on immediate returns to regain lost investor confidence. The company is currently concentrating more on investments in the Middle East and the Gulf of Mexico to increase production. Auchincloss, previously BP's CFO, has sought to differentiate himself from his predecessor Bernard Looney's strategy and is focusing on profitable projects, particularly in the oil and gas sector, to stabilize the share price. The strategy change comes against the backdrop of a growing focus on energy security in Europe, which has been heightened by the price shocks following Russia's invasion of Ukraine. Despite challenges in the supply chain and rising costs, the target of net zero emissions by 2050 remains. BP plans to invest in Iraq, including the Majnoon field, and recently signed an agreement with the Iraqi government for the Kirkuk field. Further considerations involve investments in Kuwait and the development of new projects like Kaskida in the Gulf of Mexico. The exploration of the Tiber field and expansion of U.S. onshore activities in the Permian Basin are also on the agenda. Despite the focus on fossil fuels, BP has expanded its investments in the solar energy sector and further developed a partnership in the bioenergy sector in Brazil.