BP Ditches Renewables, Invests Billions More in Oil & Gas

BP is shifting its focus back to fossil fuels, increasing oil and gas investments by 20% to $10 billion annually while cutting renewable energy funding by over $5 billion. CEO Murray Auchincloss stated that BP moved “too far, too fast” in transitioning away from fossil fuels. Global fossil fuel consumption continues to rise, despite the International Energy Agency urging a halt to new projects. Other major oil companies, including Shell and ExxonMobil, are also expanding fossil fuel production.

The Trump administration has prioritized domestic drilling, withdrawing from climate agreements and rolling back regulations. Wall Street is also retreating from climate commitments, with major U.S. and Canadian banks leaving key sustainability alliances. BlackRock, facing political pressure, exited the Net-Zero Asset Managers initiative. The NZAM alliance has since suspended tracking member compliance, citing shifting investor priorities and regulatory challenges.

BP Ditches Renewables, Invests Billions More in Oil & Gas

BP is shifting its priorities away from renewable energy investments, choosing instead to increase spending on oil and gas production. Announcing the strategic change on Wednesday, the company cited the need to enhance financial performance and reduce net debt. Under this new plan, BP will raise its oil and gas investments by roughly 20% to $10 billion annually, with production expected to reach between 2.3 million and 2.5 million barrels of oil equivalent per day by 2030. Meanwhile, funding for energy transition initiatives—including renewables, hydrogen, biogas, biofuels, electric vehicle charging, and carbon capture and storage—will be significantly reduced by over $5 billion, leaving an annual budget of just $1.5-2 billion.

Originally, BP’s carbon reduction goals, set in 2020, were regarded as among the industry’s most ambitious, but CEO Murray Auchincloss now argues that the company moved “too far, too fast” in its transition away from fossil fuels, calling its confidence in green energy “misplaced,” as reported by the BBC. The continued reliance on fossil fuels such as coal, natural gas, and oil remains the primary contributor to greenhouse gas emissions, which trap heat in the atmosphere and drive climate change. Over the last 50 years, global fossil fuel consumption has more than doubled as nations seek economic growth and improved living standards.

In 2023, levels of carbon dioxide (CO2), methane, and nitrous oxide—the three most potent greenhouse gases—all reached record highs. The International Energy Agency (IEA) has urged nations to halt new oil and gas projects to keep the goal of limiting global temperature rise to 1.5°C within reach. BP is not alone in cutting back on clean energy investments, as TotalEnergies and Equinor have also reduced low-carbon spending, while major oil firms like Shell, ExxonMobil, and Chevron are instead expanding fossil fuel production.

This shift aligns with policy changes in the U.S., where the Trump administration has prioritized domestic oil and gas production. Within his first month in office, President Trump withdrew the U.S. from the Paris Agreement and other climate commitments, declaring a “national energy emergency” that allows him to roll back Biden-era environmental regulations and expand drilling operations.

As a result, the U.S. is currently producing more oil than any country has at any point in history. The retreat from climate commitments extends beyond the energy sector, with the six largest banks in both the U.S. and Canada—including Goldman Sachs, Wells Fargo, Citi Bank, Bank of America, Morgan Stanley, and JPMorgan—recently withdrawing from the industry’s largest climate alliance. While these banks insist their sustainability goals remain unchanged, analysts suggest the move signals a decreasing emphasis on climate action within the financial sector.

Similarly, BlackRock, the world’s largest asset management firm, exited the Net-Zero Asset Managers (NZAM) initiative in December 2024, citing mounting political pressure and Republican-led investigations. The firm, which manages $11.5 trillion in assets, has faced scrutiny from conservative lawmakers who oppose environmental, social, and governance (ESG) initiatives, dismissing them as “woke” policies. A report from the Republican-led House Judiciary Committee in late 2024 accused major financial institutions of working with “left-wing activists” to impose ESG goals on American businesses.

Following BlackRock’s withdrawal, the NZAM alliance expressed disappointment but acknowledged the evolving regulatory and market landscape. Shortly afterward, the initiative announced it would suspend efforts to track member compliance and reporting as it conducted an internal review, citing shifting investor expectations and recent developments in the U.S.