First, BP is increasing its investment in oil and gas to $10bn per year through 2027. It is increasing production to 2.3–2.5mn boe/d in 2030. Ten new projects are to start up by the end of 2027.

Second, downstream, it will continue ‘selective investment’ in electric vehicle charging and biofuels, alongside $2bn of cost reductions. Total cost reductions across the entire business are hoped to amount to $4–5bn by the end of 2027.

Third, it says it will have a ‘disciplined’ investment in the transition, focusing on fewer, more profitable projects. Top-tier offshore wind and solar platforms will be grown ‘in a capital light way’. There will be ‘limited’ further projects in hydrogen and carbon capture. It will reduce costs by more than $500mn by 2027. In addition, total capital expenditure in transition businesses will drop by more than $5bn than previous guidance, to $1.5–2bn/y.

Alongside these changes, the company said that it would also do a strategic review its 125-year-old Castrol engine oil business.

This change does not mean the company is giving up completely on net zero. Its five ‘refreshed’ sustainability aims are now: net zero operations, net zero sales, people, biodiversity and water. It also said: ‘BP is now focusing its sustainability aims on those most relevant to the long-term success of its businesses and to its net zero ambition.’

As regards the first aim, the company reports having hit its 2025 target to reduce Scope 1 and 2 emissions (essentially those made during production of oil and gas, but not their use). The target was 20%, and BP’s reduction of emissions within its operational control was stated to be 38%. Its new aim is to reduce these to 45–50% by 2030, compared to its 2019 baseline.

Chief Executive Murray Auchincloss said: ‘We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns.’

BP Chair Helge Lund added: ‘Over the past 12 months, we have worked closely with Murray and his team as they have developed the new direction, ensuring it reflects the significant changes we have seen in energy markets and our purpose of delivering energy to the world today and tomorrow.’

Speaking at International Energy Week in London on 25 February, Gordon Birrell, BP Executive Vice President, said: ‘We believe that oil and gas and refined products and LNG will be around for many years.’ He added that, looking back over the decades, primary energy demand has grown by 1% irrespective of what’s happening in the world politically. While renewables have filled some of the demand, fossil fuels will do the rest, because renewables can’t meet all of demand.

In December 2004, BP announced it was combining its offshore wind business with Japanese utility-led consortium JERA, to be called ‘JERA Nex BP’.

In October, it acquired the outstanding 50.03% stake of Lightsource BP.

Earlier this month, BP announced its full-year 2024 results. Its 2024 operating cash flow was $27.3bn, adjusted profits (EBITDA) was $38bn. Total upstream production was 2,358mn boe/d, up 2% over 2023.