https://www.chron.com/culture/article/bp-renewable-energy-targets-20186821.php
By ,Texas Brands Reporter
BP CEO Murray Auchincloss is announcing plans to ditch the company’s goal of growing renewable generation capacity 20-fold by 2030 and instead return focus to fossil fuels, Reuters reports.
The goal measured growth from 2019 figures. If BP had stuck with it, the renewable generation capacity would have been boosted to 50 gigawatts from the 8.2 GW its earnings reports show. Auchincloss is making the switch for the oil giant, which has its U.S. headquarters in Houston, after profits dropped last quarter and BP reported a loss of $2 billion.
Its annual earnings have also fallen behind competitors, including Exxon and Chevron. Earlier this year, BP indicated plans to cut 5 percent of its workforce as it aims to reduce costs by at least $2 billion by the end of 2026.
Reuters reports that BP had already quit its efforts to cut its oil and gas output by 2030 and that the company has faced pressure since Elliott Investment Management built up its stake.
The activist investors at Elliott have similarly pestered Southwest Airlines by pushing for a new strategy and leadership. Lately, the Dallas-based carrier has made changes affecting customers and employees. Last week, Southwest announced its first mass layoffs in the company’s history while fliers prepare for the airline’s switch from open to assigned seating.
Auchincloss is expected to announce BP’s pivot back to fossil fuels on Wednesday, during its capital market day. Ahead of telling investors about the change, BP signaled its shifting priorities by announcing its investment in several giant oil fields. BP announced today that it reached an agreement with Iraq to redevelop Kirkuk oil fields. BP previously carried out work on the fields in Kirkuk from 2013 to 2019.
