• British company Bp has announced a 70 per cent cut in investments in renewable energy.
• Bp and its investors are choosing gas and oil to secure short-term profits, taking advantage of a changed political landscape.

Bp takes a dramatic step backwards, contradicting the commitments it made towards a fair and sustainable ecological transition. The British multinational has announced an increase in investments in oil and gas, accompanied by a drastic cut in funding allocated to renewable energy. A choice driven by pressure from investors, in particular activist fund Elliott Management.

Bp cuts renewables by 70 per cent

Looking at the details, Bp has stated that it will increase spending on oil and gas extraction by 20 per cent, bringing it to approximately 10 billion dollars per year (9.5 billion euros). At the same time, investments in renewable energy will be cut by 70 per cent. CEO Murray Auchincloss confirmed the intention to develop ten new projects in the oil and gas sector by 2027, followed by a further eight to ten by the end of the decade.

The announcement marks a step back from 2020, when the company had promised to reduce oil and gas production by 40 per cent by 2030. As early as 2023 the company had scaled this target back to 25 per cent, justifying the decision by citing the energy crisis in Europe and Russia's invasion of Ukraine. At the same time, Bp had declared its intention to increase its renewable energy production capacity twentyfold, bringing it to 50 gigawatts by 2030. Now, however, it is abandoning this ambition as part of what Auchincloss has described as a "fundamental strategic reset".

Bp falls into line with Shell and ExxonMobil

Over the past two years, Bp has recorded a market performance inferior to that of competitors such as Shell and ExxonMobil, both of which are focused on greater oil and gas output. The company's profits fell from 14 billion dollars (13.3 billion euros) in 2023 to 8.9 billion dollars (8.5 billion euros) in 2024.

Investment in activities linked to the energy transition will be considerably reduced in the coming years, settling at between 1.5 and 2 billion dollars per year (1.4–1.9 billion euros), more than 5 billion dollars less than previous forecasts.

To support cash flow growth and improve returns for shareholders, Bp also aims to raise at least 20 billion dollars (19 billion euros) through asset sales by 2027. Among the assets that could be divested are Castrol, the lubricants division, and Lightsource Bp, an operator in the solar energy sector.

A political landscape that condemns humanity

Bp's U-turn on renewables is set against a changed global political backdrop, characterised by a weakening of sustainability commitments. In the United States, the return to the political stage of Donald Trump, known for his sceptical positions on climate change, has strengthened expectations of a revival in fossil fuel production, reducing pressure on companies to meet their environmental targets.

Bp's decision also reflects the growing influence of activist fund Elliott Management, which has acquired a stake close to 5 per cent in the company. Although the fund's precise intentions are not yet clear, some analysts believe it may push for a possible break-up of the company or for more rigorous financial management.

This strategic shift represents a powerful signal for the global energy sector: a return to more substantial investments in fossil fuels could slow the energy transition, with significant implications for compliance with international commitments. But above all, it risks condemning humanity to an inevitable climate, economic and social crisis.