BP has decided to abandon its previous target of reducing oil and gas production by 2030 as it shifts focus back to its core hydrocarbons business to improve investor returns, according to a report by Reuters.
The company plans to ramp up oil and gas production investments, particularly in the U.S. Gulf of Mexico and the Middle East. BP’s CEO, Murray Auchincloss, who succeeded Bernard Looney, will officially announce this change in strategy in February 2025.
The broader shift in strategy among Europe’s major oil firms, including BP, comes in response to challenges posed by the global energy crisis following Russia's invasion of Ukraine. This crisis has underscored the importance of energy security, affordability, and efforts to reduce carbon emissions.
As part of this plan, BP has already approved new investments in the oil sector, such as the Kaskida project in the Gulf of Mexico. This project, which includes a floating production platform, is expected to produce 80,000 barrels of crude oil per day from six wells starting in 2029.
While the company had initially committed to a 40% reduction in oil and gas production by 2030, it later adjusted this target to a 25% reduction. This recalibration highlights the balancing act that BP and other major oil firms face between meeting energy transition goals and addressing immediate market realities.
It is always beneficial for California’s independent oil producers when major, international oil companies keep their focus on exploration and production.