BP's dividend cut puts firm on road to deliver green energy pledge

Lockdown has hammered oil prices but it also offers a chance to refocus on clean energy

BP has set itself the target of shrinking its carbon footprint to net zero by 2050. To do that will require big investment in a whole range of green energy alternatives. It will be happening at a time when the economic disruption caused by Covid-19 has sent the oil price tumbling and threatens to leave the company with more stranded assets on its hands.

Something has to give in those circumstances, and that something is BP's dividend, which was cut for the first time since the Deepwater Horizon oil spill a decade ago. In truth, the decision was a no-brainer, with perhaps the only surprise being that the payout to shareholders was reduced by half rather than by the two-thirds announced by Shell in April.