Energy giant backpedals on green goals, plans to shell out billions on oil and gas

European energy company BP announced Wednesday that it is cutting back on green energy goals and is instead refocusing on investing in oil and gas.

The energy giant is planning to increase its investments in oil and gas by $10 billion a year, and also plans to increase oil production to between 2.3 million to 2.5 million barrels per day by 2030, according to a press release. BP’s decision to refocus on oil and gas production follows recent reports of the company facing growing pressure from investors unhappy with its profits.

“Today we have fundamentally reset bp’s strategy,” BP CEO Murray Auchincloss wrote in the press release. “We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns.”

The British company also said that it plans to decrease its spending on renewable energy by more than $5 billion a year, according to the press release. In 2020, BP pledged to slash oil and gas output by 40% and increase renewables by 2023, and later lowered its reduction goal to 25% in 2023, according to Reuters.

The major energy company’s announcement comes after several of its competitors, such as Shell and Equinor, have recently begun scaling back on green energy investments. President Donald Trump has pledged to increase oil production in the U.S. as part of his “unleashing American energy” agenda. While on the campaign trail, Trump vowed to “drill, baby, drill.”

BP referred the Daily Caller News Foundation to the press release when reached for comment.

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