Environmental groups are furious over reports that BP has scrapped its oil production cut targets for the next five years, accusing the company of putting profits ahead of the health of the planet.
Campaigners including Greenpeace and Reclaim Finance condemned the move, which could see oil companies scrap plans to cut oil and gas production by 25% by 2030 under a reset strategy.
The move, reported by Reuters, comes as Murray Auchincloss plans to scale back some of the company's green goals with the aim of gaining investor confidence and boosting profits through its profitable oil and gas business. This will further support the CEO's plans.
The company is also targeting several new investments in the Middle East and the Gulf of Mexico to expand production, the news agency said.
BP and rival Shell were among the top gainers in the FTSE 100 index on Monday, as oil prices rose above $80 a barrel for the first time since August. Brent crude oil rose about 3.5% to $80.85 per barrel.
A BP spokesperson said: “As Mr Murray said in our fourth quarter results at the beginning of the year, our direction remains the same, but we intend to deliver results as a simpler, more focused and higher value company. ” he said.
Following the report, Greenpeace UK senior climate activist Philip Evans said the move was further evidence that the future of the planet cannot be left in the hands of fossil fuel companies.
“At a time when extreme flooding and wildfires are causing billions of dollars in damage and destroying homes and lives around the world, Auchincloss is desperate to put company profits and shareholder wealth above all else. “It's clear that it is,” Evans said.
Reclaim finance stewardship campaigner Agathe Masson says BP is “ignoring all pretexts to fight climate change in the pursuit of increased production” and will challenge directors at the next annual general meeting. He called on investors to cast their votes.
She said: “BP may be happy to see the planet burn in the name of profit, but investors should take a longer-term view and reject this climate-destroying strategy.” spoke.
This comes after BP pledged in 2020 under former CEO Bernard Looney to cut oil and gas production by 40% by 2030 and rapidly ramp up investment in renewable energy. The move represents a further setback from BP's more ambitious environmental targets.
This was reduced to 25% in February 2023 under Looney. This means that the company's oil and gas production will be approximately 2 million barrels of oil equivalent per day in 2030. The announcement comes as the company posted record profits of $28 billion in 2022.
Mr Rooney resigned in September last year after admitting he had failed to fully disclose to the board a series of personal relationships with colleagues.
He was replaced permanently in January by former Treasury Secretary Auchincloss, who has shifted focus away from renewable energy to oil and gas.
BP spent $2.5bn (£1.9bn) on renewable energy, hydrogen, EV charging and biofuels in 2023. It has also invested in 6GW of offshore wind power in the UK and has received government support for a £4bn carbon capture plan in 2023. Teesside.
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But the company has scaled back investments in renewable energy in recent months, including halting all new offshore wind projects in June, to placate investors unhappy with its green goals.
It also recently signed investment agreements for three new oil projects in Iraq and the development of the Kaskida and Tiber fields in the Gulf of Mexico.
Auchincloss is expected to reveal full details of the strategy, including the removal of targets, in February, but officials told Reuters this has now been written off. The company continues to aim to achieve net-zero emissions by 2050.
James Alexander, chief executive of the UK Sustainable Investment Finance Association, said: “Most oil and gas majors have consistently failed to invest enough in transition technologies, setting targets that are often abandoned or erroneous. He has made claims that have been debunked.
“Transition will not wait for them. The gap they leave behind is already being filled by renewable energy companies.”
BP rival Shell said on Monday that its refining margins fell by almost a third in the three months to the end of September, blaming it on a slowdown in global demand.
The company announced that its refining margin indicator for the third quarter fell to $5.5 per barrel from $7.7 in the previous quarter.
