By Anders Lorenzen
The British oil and gas giant BP, which, until recently, has been one of the oil and gas giants with the most ambitious clean energy plans, has joined the chorus of fossil fuel giants moving away from net zero.
BP’s recent strategic shift from its ‘beyond petroleum’ ambitions has raised several critical questions. Below, we take a look at their journey:
Why did BP make the move?
The official wording from BP regarding its decision to pivot back to fossil fuels is due to changing market conditions.
The oil and gas giant has been disheartened that they have not yielded as much profit as its competitors.
Combined with pressure from its largest shareholder, it is likely to have been a significant contributor, along with the pressure of achieving short-term gains rather than long-term planning and strategies.
Shareholder pressure
This activist shareholder revolt has been driven by the key investor Elliott Management, who has acquired a near 5% stake in BP.
The influential investor was critical of the green energy-focused strategy former CEO Bernard Looney initiated in 2020 and has lobbied hard for the company to change course.
Why are fossil fuel giants abandoning net-zero?
BP is not alone; it was one of the last fossil fuel giants to depart from net zero.
Again, this is dominated by short-term rather than long-term planning, strategic energy outlooks and systems thinking.
Perfect storm
In the wake of several global events, trends and uncertainties, companies have returned to what they know rather than the unknown.
A perfect storm of post-COVID-19, geopolitical tensions such as the war in Ukraine and Gaza, and the energy crisis has caused nervousness about ambitious net-zero strategies.
Critically, shareholders’ pressure to demand immediate short-term gains has also significantly contributed.
What happened with Bernard Looney?
The departure of Looney in 2023, due to his breaking the company’s code of conduct, is also symptomatic of the company’s departure from net-zero emissions.
Many influential insiders were uncomfortable with such a drastic departure from oil and gas, not least Murray Auchincloss, who took over as CEO following Looney’s resignation.
In 2020, Looney set out an eye-opening plan to reduce oil and gas production by 40% by 2030 and ramp up renewable energy investments.
BP’s complicated journey in moving away from oil and gas
However, it is not the first time the company has changed its long-term strategy. It would be fair to say that for the last 25 years, BP’s vision has been anything but stable:
In 2000, BP launched a $200 million rebranding initiative, adopting the slogan ‘Beyond Petroleum’ to signify a commitment to renewable energy and environmental responsibility.
Fancy PR campaign
They did so via a fancy PR campaign and introduced a slick new green and yellow sunburst logo, named after Helios, the Greek sun god, to reinforce this image.
This was to be a short-lived affair as it did not take long before it was labelled as a greenwashing stunt due to BP’s minimal investments in clean energy compared to its oil and gas operations.
BP’s image was further tarnished in 2010 with the tragic and, to date, one of the worst and damaging oil spills – the Deepwater Horizon oil spill. The following lawsuits and legal liabilities threatened to bankrupt the company.
In February 2025, Auchincloss and BP announced a ‘fundamental reset’ of its strategy, increasing investments in fossil fuels by 20% and reducing commitments to renewable energy.
Will BP stay the course?
The key question of industry commentators is whether this is another short-term pivot or a fundamental company shift.
The energy sector’s volatility makes it hard to answer this with any convincing argument.
Market fluctuations, regulatory changes, and technological advancements in renewable energy will undoubtedly be key in shaping the future of the oil and gas industry and the overall energy sector.
Advancements and innovations in clean energy technologies, large investors choosing clean energy over renewables, and climate-focused investor revolts will play a key role.
The disruptive pace of change
Another more disruptive narrative is that the change of pace could advance so quickly, leaving these fossil fuel giants behind, and once they act, it may be too late, and they will be confined to history.
Industry loyalists will call this a fairytale narrative and not related to reality. But suppose you were to look at the advancement in computing, the internet economy, AI, digitalisation of our society, driverless cars, and some clean energy technologies.
In that case, there are clear examples of how fast change can happen – and this vision may not be as far-fetched as some may make you believe.
Direction of travel
We know direction is only heading in one direction, but the key question is, how quick or fast is the transition, and how much can the oil and gas giants and political instabilities slow it down?
Are BP and other fossil fuel giants right to depart from net-zero?
Anders Lorenzen is the founding Editor of A greener life, a greener world.
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