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BP Boosts Oil and Gas Spending as Energy Giant Pivots From Low-Carbon Focus
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Key Points
- BP said it will invest more in oil and gas as it stays away from its low-carbon strategy.
- BP said it would increase its annual oil and gas investment to about $10 billion and cut annual capital expenditure to $13 billion to $15 billion in 2027.
- BP’s stock underperformed and its competitors did not perform well because it adhered to a strategy targeting renewable energy.
bp(bp) said it will invest more in oil and gas as it stays away from its low-carbon strategy.
The British energy giant said it will increase its annual oil and gas investment to about $10 billion and cut annually Capital Expenditure between $13 billion and $15 billion by 2027. It also said it plans to conduct a $20 billion divestment, including a strategic review of its Castro lubricant business.
“Today we have reset the BP strategy,” said BP CEO Murray Auchincloss. “We are reducing and redistributing capital expenditures to our highest businesses to drive growth.”
In a report last month, BP was under pressure from activist investor Elliott Investment Management, Auchincloss promised he would announce a strategy that would “Reset fundamentally” Its direction. As BP adheres to a strategy focusing on renewable energy, its share performance is poor, with stakes in competitors such as Exxonmobil (XOM) Increased oil and gas investment.
Over the past 12 months, BP stock has fallen about 6% on Wednesday’s meeting and 2% in previous trading.
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