BP Boosts Oil and Gas Spending as Energy Giant Pivots From Low-Carbon Focus

Core Insights - BP is shifting its strategy to increase investments in oil and gas, moving away from its low-carbon focus [1][3] - The company plans to raise its annual oil and gas investment to approximately $10 billion and reduce total annual capital expenditure to between$13 billion and $15 billion through 2027 [1][3] - BP is also planning$20 billion in divestments, which includes a strategic review of its Castrol lubricants business [1] Company Strategy - BP's CEO, Murray Auchincloss, stated that the company has fundamentally reset its strategy to focus on high-returning businesses for growth [2] - This strategic shift comes amid pressure from activist investor Elliott Investment Management, prompting BP to reconsider its renewable energy strategy [2] Market Performance - BP shares have underperformed compared to rivals like ExxonMobil, particularly as BP maintained its focus on renewable energy while competitors increased their oil and gas investments [2][3] - Over the past 12 months, BP shares declined approximately 6% prior to the recent announcement, with a further 2% drop in premarket trading [3]