A new strategy emerges about the company’s possible merger with Shell. According to Reuters, BP CEO Tony Hayward denied the possibility.
BP’s new oil and gas strategy
The company aims to increase its output to 2.3 million barrels by 2030 and potentially increase capacity by 2035. According to Guardian, BP’s new 2030 oil and gas production targets rose sharply by 60% over its ambitious ambitions set in its net zero target.
On the project side, the company plans to start 10 new major fossil fuel plans by the end of 2027. Another 8-10 projects are planned to start by the end of 2030.
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BP’s movement is part of fossil fuel
The company claims its new strategy is part of an action to ensure “sustainable growth in cash flow and returns.”
The company faces pressure from shareholders to stay away from green commitments as its share price falls. BP’s net income in 2024 fell to $8.9 billion from $13.8 billion in 2023.
BP joined Shell and Equinor, reducing investment in green energy due to remarks from U.S. President Donald Trump, which led to greater investment in fossil fuels.
The company faces pressure from radical hedge fund Elliott Management, which has accumulated a 5% stake in the oil company.
BP zero target is risky
The new strategy puts the company’s net zero goal at risk. In 2019, BP unveiled its plan to reduce its carbon footprint to zero by 2050. The company has pledged to reduce its oil and gas production through carbon capture technologies and measures such as afforestation and offset approximately 360 million tons of emissions.
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The latest strategy shows that the company now prioritizes profits over returns that are concurrent with green commitments. The next few years are crucial in whether BP manages to get rid of its climate goals completely or simply delay its goals.
FAQ
1. What is the net zero goal of BP?
The company plans to reach zero emissions by 2050.
2. Will BP merge with Shell?
The company denied all rumors of the merger.
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