BP To Invest $10B In Oil & Gas Amid Activist Pressure, Walking Back Renewables and Integrated Energy Push
British Petroleum famously predicted that peak oil, the era at which oil production would reach its apex, would come in 2020. Five years later, despite revising its prediction to 2025, the corporation is planning to spend billions on oil and gas as it bows to demands from activist investor Elliott and embraces the moment.
- BP said that it would increase oil & gas investment by 20% to $10B, which would help “modestly” grow its output by 2030.
- The decision marks a massive reversal from a 2020 policy to cut oil & gas production by 40%, instead prioritizing investment in green energy and other operations.
What’s next? BP’s abandonment of its core business was unpopular — and a core ingredient in the company’s stagnant performance since the pandemic. is just 1.4% above the price it was on Feb. 28, 2020, just before a global shutdown ravaged the oil industry. Returning to its roots, many analysts are optimistic. But activist Elliott Management is hoping BP will go a step further by axing its renewable business altogether. For now, BP plans to wind back its renewable spending by 70% to shore up the funds necessary to keep the oil flowing.
