Oil giant BP is reportedly giving up its target to reduce its oil production in the next five years as part of a change of strategy, more of which will be revealed early next year.
Previously, the company had said it was working towards slashing oil and gas production by 25% by the end of the decade. That figure was already a cut back from a former target set in 2020 aiming for a 40% cut back in oil and gas production by 2030.
Under the 25% reduction target, BP would have been producing around 2m barrels of oil a day by 2030. However, it has been facing increasing pressure from investors and stakeholders calling for the company to cut down its green ambitions, and stay within more profitable and familiar oil and gas territory.
This has been exacerbated following the Russia-Ukraine war, which has led to bumper profits for a number of oil and gas companies worldwide. As such, the latest move is expected to go a long way in boosting profits and regaining investor confidence, especially for smaller investors such as Bluebell Capital Partners.
This has not gone down well with environmental groups, which have accused BP of putting its own profits before global green goals. Philip Evans, senior climate campaigner at Greenpeace UK, was reported as saying: "It's clear that [CEO Murray] Auchincloss is hell-bent on prioritising company profits and shareholder wealth above all else as extreme floods and wildfires rack up billions of dollars in damages, destroying homes and lives all over the world."
Full story BP bows to investor pressure as it abandons plans to cut oil output (yahoo.com).
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