BP Abandoning Oil, Gas Output Cut Target, Report Says

KEY TAKEAWAYS

• BP reportedly has given up on its goal to cut oil and gas output by 2030, as the British energy giant's chief executive seeks to build back investor confidence in the company.
• According to Reuters, BP CEO Murray Auchincloss is resetting BP's energy transition strategy, instead looking to boost its oil and gas output through new investments in the Middle East and the Gulf of Mexico.
• BP in February said it planned a 25% cut in oil and gas output by 2030, stepping back from a previous goal of a 40% reduction.
• A BP spokesperson said the company is "going to deliver as a simpler, more focused, and higher-value company."

BP (BP) reportedly has given up on its goal to cut oil and gas output by 2030, as the British energy giant's chief executive seeks to build back investor confidence in the company.

According to Reuters, BP Chief Executive Officer (CEO) Murray Auchincloss is resetting BP's energy transition strategy, instead looking to boost its oil and gas output through new investments in the Middle East and the Gulf of Mexico.

BP announced a plan in 2020 to cut oil and gas output by 40% by 2030 and increase renewable energy. Last year, the London-listed firm eased that target to a 25% cut by 2030.

It is sticking with its goal to achieve net zero emissions by 2050, the report said.

BP Says Direction of Focus Remains Unchanged

“As Murray said at the start of year in our fourth-quarter results, the direction is the same—but we are going to deliver as a simpler, more focused, and higher-value company,” a BP spokesperson said in a statement to Investopedia.

Auchincloss is expected to present an updated strategy, including the removal of the 2030 output goal, at a February investor day, Reuters said.

BP (BP) American depositary receipts (ADRs) rose slightly soon after the opening bell Monday. They are down around 7% this year.

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