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Multinational BP Abandons Renewable Energy and from Now On Bets on Oil and Gas to Win Back Investors.
The British multinational BP announced a radical shift in its energy strategy by deciding to abandon its ambitious plans for expansion in renewable energy and refocus on its historical core: the production of oil and gas. The decision was revealed in February 2025 by CEO Murray Auchincloss and aims to increase profits, reduce debt, and meet the demands of its shareholders. The new approach plans to raise production to up to 2.5 million barrels per day by 2030, reversing previous promises of reduction and decarbonization.
Investors Pressure and BP Makes “Fundamental Reset” of Energy Strategy
The shift by BP came after a series of pressures from investors, concerned about the company’s financial performance compared to industry competitors. The company’s stock had been declining, especially after prioritizing clean energy projects that did not yield immediate returns.
In response, Auchincloss announced a “fundamental reset,” abandoning the previous goal of increasing its renewable generation capacity 20-fold by 2030 — which was 8.2 GW in 2019. The new strategy calls for divestments in low-carbon projects, including asset sales and cuts in sustainable initiatives to finance growth in the oil and gas sector.
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“Our optimism in 2020 for a rapid energy transition was misplaced. We went too far, too fast,” admitted Murray Auchincloss.
Change in Presidency Signals New Phase Focused on Fossil Fuels
In July, just months after the announcement of the new strategy, BP officially appointed Albert Manifold as the new president of the company. He replaces Helge Lund, a proponent of the green transition, who announced his departure in April. Manifold, who had a distinguished career at CRH, takes on the challenge of leading the company back to fossil fuels.
“It is an honor to be appointed president of one of the largest energy companies in the world,” said Manifold, who arrives with the mission of “helping the company reach its full potential.”
BP also restructured its board with the addition of experienced figures from the oil and gas sector, such as Simon Henry, former executive at Shell, and Dave Hager, an industry veteran.
Sale of Wind Farms Reinforces Abandonment of Green Goals
In a symbolic move reflecting the new strategic positioning, BP announced in July the sale of its onshore wind energy portfolio in the United States to LS Power, a New York-based company. The deal involves 10 wind farms — nine of them operated by BP itself — capable of powering more than 500,000 homes.
Although the value of the deal has not been disclosed, it is estimated that the assets are valued at around US$ 2 billion. The sale is part of the company’s plan to divest US$ 20 billion in assets by 2025, with expectations to achieve US$ 3 billion to US$ 4 billion in divestments as early as next year.
“We concluded that we are no longer the best owners to carry these assets forward,” said William Lin, head of BP’s gas and low-carbon energy division.
Renewed Focus on Oil and Gas Drives Target of US$ 10 Billion per Year in Investments
BP now plans to invest US$ 10 billion per year in oil and gas until the end of the decade. The production target has been revised to a range of 2.3 million and 2.5 million barrels of oil equivalent per day, completely reversing the previous plan to reduce production by 25% compared to 2019.
This decision follows a global trend of recovery among major oil companies, fueled by rising prices of oil and gas since the end of the pandemic. Companies that have maintained a focus on fossil fuels, unlike BP, have achieved more robust returns, intensifying shareholders’ discomfort with the company’s direction in recent years.
“Our new direction is resonating with shareholders. Most of the questions I receive are about how quickly we can deliver results,” Auchincloss wrote in an article published in The Times.
A “Simpler and More Focused” BP Promises Financial Return Instead of Sustainability
The new phase of BP makes it clear that profit has returned as the priority, even at the expense of climate goals. The company is trying to convince the market that it will be possible to maintain a significant role in the global energy sector by primarily investing in oil and gas, even as demand for clean solutions continues to grow.
Despite the sale of wind assets, BP states that it will continue to make selective investments in low-carbon energy. However, these projects will undergo rigorous evaluations to ensure immediate financial returns — a departure from the previous logic of energy transition and sustainable innovation.
Source: AEPET
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