BP in crisis — The oil industry’s biggest loser on renewable energy

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By Jo Nova

The iconic 120 year old company shares fall as rumors of a takeover spread

BP has lost a quarter of its share value in the last two weeks. The fall started when company profits turned out to be just $9 billion, down from $14b a year ago and $28b in 2022. As The Telegraph reports, “BP’s shareholders had realized that the green spending they supported in 2020 had halved their dividends.” But Shell, Chevron, and Exxon — the other oil giants — they were all doing much better.

Twenty years ago BP changed its branding to “Beyond Petroleum”*. By 2020 the company was hellbent on getting there. Suicidally, the oil company pledged to reduce their own oil production by 40% by 2030, (which did nothing except help all their competitors) and promised to pivot into renewable power. BP set itself a target to increase renewables generation by a factor of twenty this decade. The media gushed — “BP Shuns Fossil Fuels“, said Politico. BP supposedly shone a light on “stranded oil and gas”!

Thus and verily, in mid 2020, with exquisite timing, BP management leapt headlong in the magical energy pit. They were […]

February 25th, 2025 | Tags: , , | Category: Global Warming, Renewable, Renewables, UK | Print This Post Print This Post | |

BP lost $1b in wind power and just flipped from cutting oil by 40% to increasing it

By Jo Nova

There’s no hiding that this is a major backflip

History books will be written about corporate mistakes.

Twenty years ago BP called itself “Beyond Petroleum” and by 2020 the company was hellbent on getting there. They pledged to reduce their own oil production by 40% by 2030, and promised to pivot into renewable power. The media was thrilled — “BP Shuns Fossil Fuels“, said Politico, and shines a light on “stranded oil and gas”. Only two years ago BP talked of “accelerating” it’s green investments. Then the price of oil and gas exploded and problems with unreliable energy started breeding.

Now BP is writing off a billion dollars in offshore wind investment, and the new CEO is calling for “pragmatism”. The company has flipped from cutting oil production 40% by 2030 to increasing it instead.

The new chief, Murray Achincloss said they still want to be “an integrated energy company” (presumably so it looks less like a full-reverse and more like a “tweak”), but he betrayed himself when he said: “we see growing demand for energy right now across the globe”. “It is not slowing down.” When he says energy, he means oil and gas.

BP to […]

February 9th, 2024 | Tags: , | Category: Global Warming | Print This Post Print This Post | |

Backflip: BP “disappointed” in renewables — flags a shift back to oil and gas and “making profits”

By Jo Nova The environmental fashion parade suddenly has a smell…

This is a notable shift: Twenty years ago BP called itself “Beyond Petroleum”, and only one year ago the CEO said BP was “accelerating” its green investments. But now the CEO is reassuring investors that BP is not going to be distracted by environmental goals, and are focused on maximizing profits. Furthermore those profits would be found where it has a competitive advantage, including it’s “legacy oil and gas operations”.

Just like that: it’s OK to talk about profits and energy security. Key words here are “dialing back”, “disappointed”, “narrower” and “less emphasis” and they are all used in relation to environmental investments.

After years of sunshine and unicorns on the forced transition to unreliable energy, the mood appears to be changing.

h/t Paul Homewood at Notalotofpeopleknowthat

BP’s CEO Plays Down Renewables Push as Returns Lag

Bernard Looney seeks to sharpen strategic focus, with less emphasis on environmental goals

Jenny Strasberg, Wall Street Journal

Chief Executive Bernard Looney plans to dial back elements of the oil giant’s high-profile push into renewable energy, according to people familiar with recent discussions.

February 3rd, 2023 | Tags: , , | Category: Global Warming | Print This Post Print This Post | |