BP has announced a major strategic reset, focusing on increasing profitability, optimizing investments, and streamlining costs. The new approach shifts capital allocation towards high-margin oil and gas projects, selective investments in transition energy, and stronger financial returns, all while maintaining long-term sustainability commitments.
🔹 Upstream Growth: Increasing investment in oil and gas projects to $10 billion per year through 2027, with production expected to grow to 2.3–2.5 million barrels of oil equivalent per day (mmboed) by 2030. Ten new major projects are set to launch by 2027, with up to 20 projects online by 2030.
🔹 Refocusing Downstream Operations: BP will reshape its portfolio, concentrating on its most competitive and integrated businesses. This includes a strategic review of Castrol, optimizing its mobility network, and selective investment in EV charging and biofuels. The company aims to increase operating cash flow by $3.5–4 billion by 2027.
🔹 Disciplined Energy Transition Investments: BP will take a more selective approach in biogas, biofuels, and EV charging, focusing on high-return projects and leveraging existing infrastructure. Investment in hydrogen and carbon capture will be limited, and total spending on transition businesses will be cut by over $5 billion per year compared to previous plans.
🔹 Financial Priorities: The company will reduce capital expenditures to $13–15 billion annually through 2027while cutting structural costs by $4–5 billion. BP also plans to divest $20 billion in assets by 2027, including potential proceeds from its Castrol strategic review and Lightsource BP partnerships.
BP has already reduced its operational emissions (Scope 1 & 2) by 38% compared to 2019 levels, surpassing its 2025 target of 20%. Moving forward, the company aims for a 45–50% reduction by 2030 and will focus its sustainability efforts on:
✅ Net-zero operations
✅ Sustainable product sales
✅ Workforce development
✅ Biodiversity protection
✅ Water conservation
BP’s CEO Murray Auchincloss emphasized the company’s renewed focus on financial performance and shareholder value:
💬 “We have fundamentally reset BP’s strategy. We are reallocating capital to our highest-returning businesses, driving cost efficiency, and growing cash flow for sustainable returns.”
BP’s Chair Helge Lund reinforced this shift, stating:
💬 “This strategic reset reflects the changes in global energy markets and ensures BP delivers long-term value for shareholders while continuing to supply energy today and in the future.”
With a sharper investment focus, cost discipline, and strengthened financial outlook, BP is positioning itself for sustained growth in both traditional and transition energy sectors.
