BP to boost oil and gas spending by $10B, slash renewable investment in major strategy shift

Core Viewpoint - BP has made a significant strategic shift by reducing its planned investment in renewable energy and increasing its annual oil and gas spending to $10 billion, aiming to enhance earnings and shareholder returns [1][9]. Investment Strategy - BP has cut its planned annual investment in energy transition businesses by over$5 billion, now forecasting between $1.5 billion and$2 billion per year [1][9]. - The company plans to spend between $13 billion and$15 billion annually through 2027, reducing capital expenditure by $1 billion to$3 billion from 2024 levels, with 2025 capital expenditure expected around $15 billion [8]. Production Goals - BP aims to grow oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day (boepd) by 2030, having pumped 2.36 million boepd in 2024 [3]. Historical Context - Under previous leadership, BP had committed to cutting oil and gas output by 40$750 million to $1 billion, a reduction from the previous forecast of$1.75 billion [7]. Business Review and Divestments - BP is reviewing its lubricants business, Castrol, and aims for $20 billion in divestments by 2027, including plans to bring in a 50% partner for its solar business, Lightsource BP [11].