Following the sudden departure of former BP CEO Bernard Looney, Murray Auchincloss was left to carry out the company’s strategy of growing renewables and reducing oil and gas output by 2030, known as “Reimagine BP.” This plan aimed to make the energy giant net zero by 2050 but failed to impress shareholders and environmental groups who accused Looney of backtracking on his initial pledges. Auchincloss was seen as the continuity candidate when he was eventually appointed as permanent CEO after a prolonged selection period.
In an effort to regain shareholder confidence and initiative, Auchincloss is now reevaluating and reshaping BP’s energy transition businesses, with a focus on cost-cutting measures. This shift was evident in the recent leadership shake-up at the company, which saw the departure of the heads of low carbon and natural gas as well as innovation and technology. BP also announced a reduction in the size of its executive leadership team, with the appointment of new heads for the gas and low carbon energy business as well as the technology role.
Recent reports revealed that BP had cut over 10% of its workforce in the electric vehicle charging business, BP Pulse, and had scaled back its operations in multiple charging markets. However, BP clarified that its ambitions in the EV charging space remained unchanged and emphasized the importance of BP Pulse in its overall business strategy. The company also stated that they would focus on just four key countries – China, Germany, U.K., and the U.S. – in the EV charging market.
Despite the organizational changes and strategic shifts, BP remains committed to its goal of becoming a more sustainable and diversified energy company. The company will continue to operate in three main business units – production and operations, gas and low carbon energy, and customers and products – supported by key functions such as finance, technology, and sustainability. The recent developments at BP have sparked speculation about a potential pivot back to oil and gas, similar to what its rival Shell is doing. However, it seems that Auchincloss is focused on finding a balance between traditional energy sources and green energy investments.
As BP navigates through these changes under Auchincloss’ leadership, the company’s stock performance has shown mixed results. On the stock market, BP shares ended trading in London slightly down but showed positive gains for the week and the month overall. The energy major’s future direction and success will likely depend on how effectively Auchincloss can execute his vision for BP’s energy transition and sustainability goals while also managing the demands of shareholders and the wider energy market landscape.