BP has been criticised after reports that it has abandoned a target to cut oil and gas output by 2030 as it scales back its energy transition strategy to boost profits and regain investor confidence, writes David Connett.
When unveiled in 2020, BP’s strategy was the sector’s most ambitious, with a pledge to cut oil and gas output by 40 per cent while rapidly growing renewables by 2030.
BP scaled back the target in February 2023 to a 25 per cent reduction, which would leave it producing 2 million barrels per day at the end of the decade, as investors focused on near-term returns.
It is now targeting several new deals in Iraq and the Gulf of Mexico to boost oil and gas output.
Murray Auchincloss took over as CEO in January but has struggled to stem the drop in BP’s share price, which has underperformed its rivals so far this year as investors question the …