LONDON—BP yesterday said it aims to invest $5 billion a year over the next decade into low-carbon energy, while cutting its gas and oil production by about 40% during the same period. The strategy shift also includes a move to recast what it calls the “experience of convenience retail,” BP announced.
Earlier this year, the energy giant outlined a goal of achieving net zero carbon emissions from its operations by 2050. Yesterday, BP said it is reimagining its business as an integrated energy company, pivoting from its long-standing role as a major international oil company.
BP will focus on “building out an integrated portfolio of low carbon technologies, including renewables, bioenergy and early positions in hydrogen and CCUS. By 2030, BP aims to have developed around 50GW of net renewable generating capacity—a 20-fold increase from 2019— and to have doubled its consumer interactions to 20 million a day,” the London-based company said in a news release.
Another goal is to increase the number of electric-vehicle charging points it offers from 7,500 to more than 70,000 by 2039.
“Energy markets are fundamentally changing, shifting towards low carbon, driven by societal expectations, technology and changes in consumer preferences,” said Helge Lund, BP chairman. “And in these transforming markets, BP can compete and create value, based on our skills, experience and relationships. We are confident that the decisions we have taken and the strategy we are setting out today are right for BP, for our shareholders, and for wider society.”
Part of the shift also emphasizes what BP calls convenience and mobility: “putting customers at the heart of what BP does, helping accelerate the global revolution in mobility, redefining the experience of convenience retail, and scaling BP’s presence and fuel sales in growth markets,” the company said.
The company plans to share more details on its strategy, business plans and investor proposition in its capital markets day presentations September 14-16.
In June, BP announced it was selling its petrochemicals business to British chemicals company Ineos Ltd. in a $5 billion deal to help reshape its business for the global transition to lower-carbon energy.
BP also has been focusing on developing more efficient plastics recycling technology. Last fall, the company said it would build a $25 billion pilot plan in the U.S. to test a new process to convert PET plastic to new plastic feedstock, allowing for repeated recycling.