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TMI BlogBP to slash spending on net zero ventures as it focuses on oil and gas againX X X X Extracts X X X X X X X X Extracts X X X X ..... BP to slash spending on net zero ventures as it focuses on oil and gas again X X X X Extracts X X X X X X X X Extracts X X X X ..... n campaigners. In a statement titled “Reset BP,” the company said it will reduce its spending on net zero transition businesses by USD 5 billion a year to up to USD 2 billion. By contrast, it said it would increase its investments in oil and gas production by about 20 per cent to USD 10 billion. CEO Murray Auchincloss said that the company is focusing its spending on BP's “highest-returning bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sinesses to drive growth" and that will be “very selective" in its investments in renewables. “This is a reset BP, with an unwavering focus on growing long-term shareholder value," he said. The strategy represents a pullback from the company's much-vaunted plan five years ago, under then CEO Bernard Looney, to shrink oil and gas production in favour of net zero businesses. The update, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came before a major shareholder meeting in London later Wednesday, is clearly aimed at bolstering investor support in light of the company's flagging share price. So far, the heavily-trailed update doesn't appear to have appealed to investors, and the company's share price was down 0.8 per cent. However, the stock has been rallying in recent weeks on speculation that the company was about to cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge tack. The company's stock under-performance against its peers such as Shell, ExxonMobil and Chevron, has stoked market speculation that it may move its share listing to New York from London, or even make it a takeover target. The influential US hedge fund Elliott Management recently took a nearly 5 per cent stake in BP, and it is believed that it has sought to push BP back towards fossil f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uels to boost profit. Auchincloss has already spun off BP's offshore wind business in a joint venture while he's looking to offload its onshore wind arm. The group has also been slashing costs in the face of tougher trading. Recently, it announced it would cut more than 5 per cent of its workforce. BP's change of strategy is facing sharp criticism from environmental campaigners, who had previo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usly warmed to the company's insistence that the future was green. “This move by oil giant BP clearly demonstrates why super-rich corporations and individuals, chasing short-term profit for themselves and shareholders, cannot be trusted with fixing the climate crisis or leading the transition to renewable energy we so badly need," said Matilda Borgstrom, UK campaigner at climate action group, 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.org.
“Pumping money into more oil and gas increases the risk of climate impacts for us all, flies in the face of legal climate targets, and, with the renewables sector growing exponentially, is a big risk to the shareholders that BP is so keen to please,” she added. (AP) NPK NPK X X X X Extracts X X X X X X X X Extracts X X X X
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