From the Daily Caller
Irving Klinsky
Contributor
European energy company BP has abandoned its pledge to cut oil and gas production by 2030, Reuters reported on Monday, as it aimed to boost investor confidence amid falling share prices.
According to Reuters, BP unveiled plans in August 2020 to reduce oil and gas production by 40% by 2030, before lowering the target to 25% in February 2023. Now, in a bid to regain the trust of investors, Chief Executive Murray Auchincloss is backing away from that goal entirely, sources told Reuters as part of a broader shift in corporate strategy to focus on profitability. and returns rather than green initiatives. (Related: Despite billions in Biden-Harris subsidies, automakers face backlash on aspirational EV goals)
“The direction is the same, but we will become a simpler, more focused, higher-value company,” a BP spokesman told the Daily Caller News Foundation.
Although the company has effectively abandoned this goal, the strategic shift is not expected to be officially announced until an investor meeting in February, according to Reuters.
Previously, BP announced plans to sell its U.S. onshore wind portfolio worth about $2 billion in September, while the company's shares are trading at nearly two-year lows. It also coincides with a shift in strategy by rival energy company Shell, which in June 2023 refused to cut oil production further, shortly after its chief executive Wael Sawan described lowering oil production as ” Dangerous and irresponsible.”
According to Reuters, BP has also begun investment talks in the field of oil exploration to invest in three new projects in Iraq after significantly reducing its oil and gas exploration team since 2020.
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