BP is slowing down on the switch to renewable energy as oil continues to be the main profit driver.
- BP said it’s slowing down on renewable energy and focusing most of its spending on oil and gas production.
- The company reported a record profit of $28 billion for 2022 as it capitalized on soaring energy costs leaning away from renewable energy.
- “At the end of the day, we’re responding to what society wants,” says BP CEO Bernard Looney.
Why it’s news
Despite many companies switching focus to renewable energy as the need to combat climate change has been at the forefront of many business plans, BP is following the money and focusing on oil and gas production.
BP hit a record profit of $28 billion for 2022, with other companies doing similar numbers, including Shell with a $40 billion profit, Exxon with $56 billion, and Chevron with $36.5 billion.
The high need for energy and high profits has led BP to scale back on its plans to focus on renewable energy. The company was one of the first oil and gas giants to announce a plan to cut emissions to net zero by 2050 and said that emissions would be 35-40% lower by the end of this decade.
Now the company has scaled back on its ambitious plans saying it was now targeting a 20-30% cut by the end of the decade because it needs to keep investing in oil and gas to meet the current demands.
CEO Bernard Looney says the company needs to show investors it can have strong returns in renewable energy while maintaining an oil-and-gas profit.