Hello Community,
As I read this article from FT, I remembered this post from Will Goodhart back in 2023 about unreliable friends.
"BP is shutting its low-carbon mobility team in the energy major's latest retreat from its five-year-old attempt to diversify away from oil and gas. The unit was responsible for developing electric, hydrogen and other low-emission solutions for vehicles, particularly trucks. It is the most recent casualty of chief executive Murray Auchincloss's plan to refocus BP on its legacy oil and gas business.
In an effort to increase returns and boost BP's share price, Auchincloss in February announced he was scrapping a five-year-old plan to become a major renewable energy player and cutting spending on green energy by 70 per cent. The strategy shift followed news that US activist hedge fund Elliott Management had taken a near-5 per cent stake in BP and was pushing for radical changes."
This kind of news is upsetting. Will the company make radical changes again in 4 years if the political situation changes? Over the long run, will the changes they make today (away from renewables and net zero, towards traditional oil and gas) help their company? They don't sound like they will help the Planet for sure.
Would love to hear other thoughts or analysis that somehow would show that I simply dont have enough information or dont understand the full picture?
------------------------------
Aya Pariy
------------------------------