Jonathan Weiss/Shutterstock Save for later Print Download Share No matter what verbiage may still adorn BP鈥檚 branding, the UK major has closed the door on transforming itself from an integrated oil company to an 鈥渋ntegrated energy company鈥� for at least this decade. For the second time this century, BP鈥檚 attempts at bold transformation that outpaced its peers have fallen flat and left the UK firm instead scrambling to catch back up. The energy transition 鈥渏ust is not being valued as much as it was five years ago,鈥� CEO Murray Auchincloss admitted at BP鈥檚 Capital Markets Day in London. What was left unsaid is that the investor shift is not so much a change in view on whether the transition will take place, but rather a show of skepticism that oil giants should lead in a meaningful way. BP鈥檚 strategy reset effectively scraps the litany of ambitious growth and spending targets the company laid out in 2020 under since-booted CEO Bernard Looney, with consequences for emissions, capital spending and BP's future energy mix. The high points of the new strategy 鈥� which aligns heavily with demands by recently emergent activist investor Elliott Investment Management 鈥� have an eerily familiar feel to them: big divestments, big structural cost reductions and lower capital expenditures. In fact, accompanying the headline targets are objectives to return to 100% reserves replacement by 2027, restock exploration and have a line of sight on potential oil and gas growth through 2035. Five years ago, BP promised to slash oil and gas output by 40% by 2030.
