The sign of a BP gas station is seen in Arlington, Virginia on September 8, 2010. File Photo by Alexis C. Glenn/UPI | License Photo
BP said on Wednesday that it plans to boost its annual oil and gas spending to $10 billion through 2027 as part of the company’s reset after recent lackluster economic performance.
BP’s announcement to invest in its core businesses while moving away from renewals is expected to satisfy a growing number of investors who had become dismayed by a drop in the company’s profits and shares price in the stock market. Advertisement
The company said its investment in “transition businesses” will be “significantly lower” in the coming years.
“Today we have fundamentally reset BP’s strategy,” Murray Auchincloss, the company’s CEO said in a statement.
“We are reducing and reallocating capital expenditures to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainability, growing cash flow and return.”
The announcement comes on the heels of the United States moving away from renewables under the administration of Donald Trump while leaning in on fossil fuel production. BP’s rivals Shell and the Norwegian-based Equinor have already announced their plans to curb renewable investments.
BP plans to boost its oil production to 2.3 million to 2.5 million barrels per day by 2030. The company said it plans to announce “major” oil and gas projects that will start by late 2027. Advertisement
Auchincloss had promised changes after BP profits dropped in 2024 to $8.9 billion from $14 billion the year before, leaving some stockholders angry and calling for a change in leadership.
