Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

BP Halts Offshore Wind Projects to Refocus on Fossil Fuels

by June 27, 2024
June 27, 2024
BP Halts Offshore Wind Projects to Refocus on Fossil Fuels

BP has announced a pause on all new offshore wind projects as the company’s newly appointed CEO, Murray Auchincloss, pivots focus back to fossil fuels. This strategic shift, first reported by Reuters, also includes a hiring freeze within the offshore wind division.

Auchincloss, who took over at the beginning of the year, aims to decelerate investments in large-scale, low-carbon projects like offshore wind that do not promise immediate returns. This move contrasts with the policies of his predecessor, Bernard Looney, who had begun transitioning the company away from fossil fuels before resigning last autumn due to personal scandals.

This shift back to fossil fuels has been influenced by investor concerns over the profitability of BP’s renewable energy ventures, especially as oil and gas profits surged with the global economic recovery post-pandemic and the geopolitical instability following Russia’s invasion of Ukraine.

Sources within BP have indicated that Auchincloss and CFO Kate Thomson are prioritizing investments in existing oil and gas operations, particularly in the Gulf of Mexico and US onshore shale basins. These areas are expected to generate more immediate returns compared to the long-term investments required for offshore wind projects.

BP remains open to investing in biofuels and other low-carbon ventures that can offer quicker returns. Recently, BP agreed to purchase a 50% stake in a Brazilian sugar and ethanol joint venture from grain trader Bunge for $1.4 billion (£1.1 billion).

Despite these changes, BP is expected to implement some job cuts within its renewables sector, though specific targets have not been disclosed. A company-wide hiring freeze is also in effect, with exceptions for essential frontline and safety personnel.

Since taking the helm, Auchincloss has emphasized a pragmatic approach, including a $2 billion cost-saving drive by the end of 2026 and a streamlined executive leadership team. BP’s statement to Reuters outlined six priorities introduced by Auchincloss aimed at making BP a “simpler, more focused and higher value company.” These priorities include enhancing efficiencies and advancing BP’s growth projects.

The company’s shares have underperformed in recent months, leading to speculation about potential takeover bids and increasing pressure on Auchincloss to balance the need for decarbonisation with the immediate demand for fossil fuels.

In 2023, BP allocated $2.5 billion to renewables, hydrogen, electric car charging, and biofuels out of a total investment budget of $16 billion. Despite these investments, BP remains the only major oil company with explicit targets to reduce its oil and gas production. Shell, by contrast, has recently adjusted its strategy to focus on high-return businesses, scaling back investments in many renewable and low-carbon energy sectors.

The decision to halt offshore wind projects is likely to provoke backlash from climate activists who have long campaigned for BP’s transition to clean energy. As the company navigates these complex dynamics, the actions of Auchincloss will be closely watched by both investors and environmental advocates.

Read more:
BP Halts Offshore Wind Projects to Refocus on Fossil Fuels

0
FacebookTwitterGoogle +Pinterest
previous post
It’s Either Chaos or This Plan: Paul Ryan on My BRAC-Like Fiscal Commission Idea
next post
Entrepreneurs and the Importance of Digital Marketing

You may also like

The Benefits of Implementing Proposal Management Software in...

September 10, 2024

Storing retail inventory: How self-storage can support your...

September 2, 2024

Households struggling with mortgages ‘might reach 2008 peak...

October 12, 2022

Food inflation hits another record high as pressure...

May 2, 2023

New car market accelerates by nearly a quarter...

September 6, 2023

Tory swing voters switch to Labour after Sunak’s...

October 2, 2023

6m disabled people in UK to get £150...

August 23, 2022

Made in Britain applications surge following Trump tariffs...

May 2, 2025

How is each train operator affected by the...

January 31, 2023

HMRC bring less prosecutions for tax-dodging than pre-pandemic...

May 3, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved