UK-based BP PLC (GB:BP) has reportedly scaled back its ambitious energy transition goals for 2030 as part of its strategy to restore investor confidence. According to Reuters, the company now aims to boost its oil and gas production by investing in multiple projects in the Middle East and the Gulf of Mexico. BP shares gained 1.64% as of writing.
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BP is a multinational energy company involved in the exploration, production, and distribution of oil and natural gas.
BP Takes a U-Turn on Clean Energy Strategy
BP’s strategy to shift away from oil and gas was introduced in 2020 and aimed to significantly boost renewable energy production by 2030. The company’s commitment to reduce oil and gas production by 40% by 2030 was regarded as the most ambitious target in the sector. This goal was later adjusted to a 25% reduction.
Since then, the company has faced the wrath of its investors, who doubt BP’s ability to generate profits with this strategy. BP stock has declined over 18% in the last 12 months. As a result, BP has now abandoned its 2030 production cut target under the leadership of its CEO Murray Auchincloss, who assumed his position in January.
Similarly, BP’s rival Shell (GB:SHEL) also scaled back its energy transition strategy earlier this year, discontinuing several renewable energy projects.
Nonetheless, both BP and Shell remain committed to achieving net zero emissions by 2050.
Is BP PLC a Good Buy?
According to TipRanks consensus, BP stock has received a Moderate Buy rating based on seven Buy, seven Hold, and one Sell recommendations from analysts. The BP share price forecast is 517.15p, which implies a growth rate of 22.2% at the current trading level.
