BP Set to Scrap Oil and Gas Production Cuts

BP Set to Scrap Oil and Gas Production Cuts | OilPrice.com

`;
document.write(write_html);
}

Breaking News:

ByIrina Slav– Feb 25, 2025, 3:31 AM CST

BP is set to announce it would stop pursuing reductions in its crude oil and natural gas production in a bid to please its new major shareholder Elliott Management. The company had previously aimed to slash oil and gas production by 40% by 2030.

The Financial Times reported, citing unnamed sources, that the U-turn in plans will be announced on Wednesday when BP is holding an investor day.

‘;
document.write(write_html);
}

Reuters reported a day earlier, also citing unnamed sources, that BP was also going to announce it would abandon its energy transition targets, featuring plans to increase electricity generation from wind and solar 20-fold by 2030.

Elliott Management disclosed a major stake in BP earlier this month, sending the company’s stock soaring in anticipation of a turnaround that other investors seem to have been pressing for as well.

The hedge fund, notorious for its aggressive approach to value creation, had amassed a stake of almost 5% in the supermajor and signaled it would be pushing for some dramatic changes.

The company had already indicated it was moving away from its previous strategy that focused heavily on the energy transition and a reduction in its core oil and gas business operations. At the release of BP’s fourth-quarter 2024 results, newly appointed chief executive Murray Auchincloss said: “Building on the actions taken in the past 12 months, we now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns.”

The shift would be welcome not only to investors but to board members, too. According to the T report, some on BP’s board seem to believe Auchincloss had been too slow in pivoting away from BP’s previous strategy under Bernard Looney. It appears, however, that with Elliott Management breathing down the company’s executive neck, changes could gather pace.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com

Join the discussion | Back to homepage

`;
document.write(write_html);
}

FACEBOOK
Twitter
GOOGLE+
LINKEDIN
REDDIT
PRINT

`;
document.write(write_html);
}