BP Shuns Renewables in Return to Oil and Gas

upstart writes:

BP shuns renewables in return to oil and gas:

BP has announcedit will cut its renewable energy investments and instead focus on increasing oil and gas production.

The energy giant revealed the shift in strategy on Wednesday following pressure from some investors unhappy its profits and share price have been lower than its rivals.

BP said it would increase its investments in oil and gas by about 20% to $10bn (7.9bn) a year, while decreasing previously planned funding for renewables by more than $5bn (3.9bn).

The move comes as rivals Shell and Norwegian company Equinor have also scaled back plans to invest in green energy and US President Donald Trump's "drill baby drill" comments have encouraged investment in fossil fuels.

Murray Auchincloss, BP's chief executive, said the energy giant had gone "too far, too fast" in the transition away from fossil fuels, and that its faith in green energy was "misplaced".

He said BP would be "very selective" in investing in businesses working on the energy transition to renewables going forward, with funding reduced tobetween $1.5bn and $2bn per year.

He said this was part of a strategy "reset" by the company to focus on boosting returns for shareholders.

Helge Lund, chair of BP, added that the new direction of the firm had "cash flow growth" at its heart.

Shares in the company climbed before Tuesday's announcement but fell shortly after.

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