“BP Scraps Oil Production Reduction Goal, Climate Activists Protest in Response”

Climate activists took to the streets outside BP’s annual general meeting in Aberdeen, Scotland on May 21, 2019, to protest the energy giant’s decision to scrap its goal of reducing oil and gas production by the end of the decade. The move has sparked outrage among environmental groups who accuse BP of prioritizing profits over the planet.

According to sources familiar with the matter, BP CEO Murray Auchincloss made the decision to scale back the company’s energy transition plans in order to regain investor confidence. The company had previously unveiled an ambitious strategy in 2020 to reduce production by 40 percent and ramp up renewables by 2030. However, in February of 2023, BP revised its reduction goal to 25 percent as investors focused on short-term profits.

In 2022, BP reported record profits of $28 billion, leading to criticism from environmental organizations. Philip Evans, senior climate campaigner of Greenpeace UK, accused Auchincloss of prioritizing company profits over taking action to address the climate crisis. Agathe Masson, Reclaim Finance’s stewardship campaigner, also criticized BP for putting its output ahead of efforts to combat climate change.

Despite these criticisms, BP has made investments in renewables, hydrogen, biofuels, and EV charging. The company has also secured government backing for a $5.2 billion carbon capture project. However, in June, BP froze all new offshore wind projects in response to investor dissatisfaction with its green energy targets.

Auchincloss, who became CEO at the beginning of the year, has faced challenges in turning around the company’s falling shareholder price. While BP maintains its goal of achieving net zero emissions by 2050, sources indicate that the company has already abandoned its 2030 production goal in practice.

James Alexander, chief executive of the UK Sustainable Investment and Finance Association, criticized oil and gas majors for failing to invest enough in transition technologies. He emphasized that the transition to renewable energy will not wait for these companies and that the gap they leave is being filled by renewables companies.

BP is now looking at new investments in the Gulf of Mexico and the Middle East to increase its oil and gas output. The company’s updated plan will be presented to investors in February, but sources suggest that BP has already moved away from its 2030 production goal.

Overall, the decision by BP to prioritize profits over environmental concerns has sparked backlash from activists and environmental groups. The company’s shift in strategy highlights the ongoing tension between the fossil fuel industry and the urgent need to address climate change.