June 18, 2024
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Activist Investor Urges BP to Abandon Renewables and Maintain Fossil Fuel Operations

Activist investor group Bluebell Capital Partners is reportedly pressuring BP to abandon its renewable energy commitments and maintain its focus on fossil fuel operations for the benefit of shareholders.

According to OilPrice.com, Bluebell wrote a letter to BP chair Helge Lund in October, expressing dissatisfaction with BP’s commitment to reduce oil and gas production by 25% by 2030 compared to 2019 levels. The investor group deemed this strategy as “irrational” and argued that it had depressed BP’s share price.

The target to reduce oil and gas production by 25% by 2030 was a commitment from former chairman Bernard Looney. However, Bluebell criticized this strategy, urging BP to cut $28 billion of funding to bioenergy, hydrogen, and renewable projects, which constitutes 60% of the allocated budget. The hedge fund asserted that BP has “no right to win” in the renewable energy market.

BP has faced criticism for its share price performance compared to its direct competitors like Shell, Exxon, and Chevron. The activist investor’s letter comes amid ongoing debates about the energy transition and the role of traditional oil and gas companies in adopting cleaner energy sources.

It’s noteworthy that BP’s former chairman, Bernard Looney, resigned last year over inappropriate relationships with colleagues, and his successor, Murray Auchincloss, has expressed intentions to maintain the strategy of reducing oil and gas production by 25% by 2030. BP has yet to respond to the reports.

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