BP Continues Push Into Low-Carbon Businesses Even As It Keeps Hydrocarbon Production Steady
BP remains committed to investing and growing its nonhydrocarbon businesses as it seeks to transition to an integrated energy company from an integrated oil company. However, it has revised its previous plans to reduce production by 25% by 2025 and 40% by 2030, and will now increase production slightly through 2025 and reduce it by about 25% from 2019 levels by 2030, largely through divestments. During that time, it should also improve upstream profitability as higher-margin volumes from major projects come online and costs are reduced. Shareholders should welcome this change in our view given the improved outlook for oil and gas prices.