Tue, 11 Feb 2025

Tue, 11 Feb 2025 BP set to scale back green investments as profits drop sharply

The oil giant is widely expected to say it will scale back on renewables later this month.
BP's profits have plummeted, with net income falling to $8.9bn in 2024 from $13.8bn the previous year. The oil giant blames lower oil and gas prices and reduced refinery profits for the decline. In response, BP plans to scale back its renewable energy projects and focus on increasing oil and gas production. This shift in strategy is expected to be announced later this month, following similar moves by rivals Shell and Equinor. BP's commitment to 50GW of renewables capacity by 2030 will likely be abandoned, with the company already scaling back investments in offshore wind. The move has been met with criticism from activist investors, who argue that doubling down on oil and gas production is a "financial risk" that undermines efforts to combat climate change. The UK's prime minister has pledged to increase nuclear power generation, while US President Donald Trump has vowed to withdraw from the Paris climate agreement and expand fossil fuel exploration. BP's decision to prioritize oil and gas production over renewables has been described as "deeply concerning" by campaigners, who argue that it ignores the urgent need for reduced emissions. The company is also facing allegations of ignoring corruption in its clean-up schemes. The exact extent of BP's plans to cut back on renewable energy projects remains unclear, but reports suggest that the company may halve its $10bn commitment to renewables until 2030. This shift in strategy could have significant implications for the future of energy production and the fight against climate change.
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