BP's Bold Investment Shift: Doubling Down on Fossil Fuels

BP is set to increase its annual investments in oil and gas to $10 billion, signaling a shift back to fossil fuels under CEO Murray Auchincloss. The company is reviewing its Castrol business and aims for $20 billion in divestments by 2027, while cutting planned investments in transition businesses.

In a strategic pivot, BP announced on Wednesday its decision to bolster annual oil and gas investment to $10 billion, marking a renewed emphasis on fossil fuels. This move, part of CEO Murray Auchincloss' strategy, aims to enhance returns and bolster the company's financial health.

The energy titan also revealed a review of its lubricants segment, Castrol, as it targets $20 billion in divestments by the year 2027. These efforts underscore BP's commitment to reshaping its business portfolio for future growth.

Notably, BP has slashed its planned annual investment in transition businesses to $1.5 billion to $2 billion, significantly less than its previous $5 billion expectation, indicating a recalibrated approach towards energy transition.

(With inputs from agencies.)