Energy giant puts goal of cutting oil and gas production on ice

European energy company BP has abandoned its pledge to cut oil and gas production by 2030 as the firm aims to shore up investor confidence amid a slide in its share price, Reuters reported Monday.

BP unveiled plans in August 2020 to reduce its oil and gas output 40% by 2030, before dialing back the target to 25% in February 2023, according to Reuters. Now, in an attempt to regain the trust of investors, CEO Murray Auchincloss has dropped the target altogether in what sources told Reuters is part of a broader corporate strategy shift to focus on profitability and returns rather than green initiatives.

“The direction is the same – but we are going to deliver as a simpler, more focused, and higher value company,” a BP spokeswoman told the Daily Caller News Foundation.

While the company has already dropped the goal in practice, the strategy shift is not expected to be formally announced until an investor meeting in February, Reuters reported.

The news follows BP announcing plans to sell its roughly $2 billion U.S. onshore wind portfolio in September and comes as the company’s share price sits at a near two-year low. It also coincides with a strategy shift at rival energy company Shell, which rejected further cuts to oil production in June 2023 shortly before its CEO Wael Sawan described lowering oil output as “dangerous and irresponsible” in a July 2023 interview with the BBC.

BP has also shifted gears on oil exploration, engaging in negotiations to invest in three new projects in Iraq after sharply reducing its oil and gas exploration team since 2020, according to Reuters.

This story originally was published by the Daily Caller News Foundation.

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