How BP’s disastrous embrace of net zero cost it yet another boss

Core Viewpoint - BP has appointed Meg O'Neill as the new CEO, marking a significant shift in leadership aimed at driving transformation and focusing on core operations in upstream oil and gas production [1][2][3]. Leadership Change - Albert Manifold, BP's chairman, emphasized the need for a change in leadership to simplify and enhance profitability within the company [3][20]. - O'Neill's appointment is seen as a clean break from the previous leadership under Murray Auchincloss and Bernard Looney, who faced criticism for their green energy strategies [7][19]. Company Performance - BP's market valuation stands at £66 billion, but the company has faced challenges, including a 16% decline in share price since Auchincloss took over [4][20]. - Under Auchincloss, BP halted several renewable energy projects and faced backlash from activist investors, leading to a perception of the company lacking control over its direction [11][12]. O'Neill's Background - Meg O'Neill, currently CEO of Woodside Energy, is recognized for her tough stance on net zero and has a reputation for being direct and results-oriented [13][18]. - She will be the first female CEO and the first outsider in BP's 116-year history, bringing a fresh perspective to the company [19][20]. Investor Sentiment - Investors, including Elliot Management, view O'Neill's appointment positively, believing it will facilitate necessary changes and cost reductions within BP [22]. - There is an expectation that O'Neill will address BP's corporate structure, potentially leading to significant redundancies [20][21].