“Today we have fundamentally reset BP’s strategy. We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency.” BP chief executive Murray Auchincloss.

BP is in ‘reset’ mode, turning away from renewables and seeking to find returns. The company’s share price has been stagnant and there have been rumours of takeovers, so BP had to respond, but the scale of the change may dismay the greener investors.

Renewable energy investments will be reduced amid a shift to oil and gas production, with the latter gaining a 20 per cent uplift to $10bn per annum.

The renewable element is not being ignored, as it will still receive funding of about $2bn each year, but this is $5bn less than before.

BP is not alone in these changes, both Shell and Equinor have also reduced renewable investment in favour of fossil fuel production of late, but BP waws always seen as a leader in going green, and the moves perhaps underline the wider shifts in policy and attitudes after the election of President Trump.

Some areas of transition will still remain in focus, such as biogas, biofuels, EV charging, offshore wind and solar platforms, and some hydrogen and carbon capture projects.

The company also notes that it has reduced scope 1 and scope 2 emissions within its operational control by 38 per cent against its 2019 baseline and embedded sustainability into several key areas and management processes. It now aims to reduce of these operational emissions in a range of 45–50 per cent against the 2019 baseline by 2030.

However, these measures are unlikely to assuage many who will see the strategy as a retreat back into oil.

Auchincloss added: “We will grow upstream investment and production to allow us to produce high margin energy for years to come. We will focus our downstream on markets where we have leading integrated positions. And we will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset bp, with an unwavering focus on growing long-term shareholder value.”

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