In search of profit, BP focuses on oil and gas activities

Last year, BP called for a significant increase in investment in the oil and gas sector, arguing that such capital is essential to meet growing global energy demand and support universal access to energy.

However, the British oil company now seems to be revising its commitments to reduce hydrocarbon production by 2030. According to internal sources, BP has all but abandoned its initial target of cutting oil and gas production by 40% as part of its energy transition strategy.

This change of direction signals that BP, instead of limiting its oil and gas activities as planned, may maintain or even increase production until the end of the decade. This decision does not, however, call into question BP's ambition to be carbon neutral by 2050, but it does reflect a refocusing on short-term financial objectives, focused on maximising returns from the most profitable activities.

This strategic reorientation appears to be partly in response to pressure from certain shareholders. At the Annual General Meeting in April 2023, these shareholders expressed their wish to see the company focus on immediate profitability, rather than maintaining ambitions deemed too restrictive in terms of energy transition.

BP's recent financial results have accentuated this trend. Last May, the company announced a loss of $2.3 billion for 2023, marking a 72% fall in profits attributed to shareholders. Sales also fell by 13%, to $50 billion year-on-year, significantly impacting the profitability of its businesses, including renewable energy.

This new strategic direction is due to be officially unveiled, and would aim to step up investment to explore new commercial deposits, thereby generating profits in the short term. Among the potential beneficiaries of this revised strategy are several African countries, including Egypt, Senegal and Mauritania. These nations, faced with declining gas production, have already begun discussions with BP executives to attract new investment into their energy sectors.