Global oil companies cut green investment plans.

247 - Energy giants are drastically reducing their investments in renewable sources and returning to prioritizing oil and gas production. informs The BBC reports that BP will reduce its renewable energy investments by more than $5 billion, while increasing its fossil fuel investments by 20%, reaching $10 billion per year. This change comes amid pressure from investors unhappy with the decline in profits and the company's share value.

BP now intends to be "very selective" in its investments in the energy transition, reducing its investments in clean energy to a range between US$1,5 billion and US$2 billion annually. According to the company's CEO, Murray Auchincloss, BP had gone "too far, too fast" in the energy transition and its bet on renewables had been "misguided." The chairman of the board, Helge Lund, stated that the new strategy's main objective is to increase cash flow.

BP's move follows an industry trend. The Norwegian company Equinor also announced it will halve its renewable energy investments over the next two years, from US$10 billion to US$5 billion, while planning to expand oil and gas production by 10% during the same period. The company's CEO, Anders Opedal, justified the decision by pointing to the high cost of renewable sources and the lack of long-term contracts with clients.

Furthermore, Shell has already shown signs of backtracking on its energy transition strategy, and recent rhetoric from US President Donald Trump encouraging the exploration of fossil fuels could accelerate this shift in the sector.