BP cuts offshore wind spending as the company turns focus to fossil fuels

BP IS MOVING AWAY FROM OFFSHORE WIND-

SHIFTING FOCUS TOWARDS OIL AND GAS VENTURES.

THE BRITISH ENERGY GIANT AGREED TO A DEAL THAT WILL TRANSFER ALL ITS OFFSHORE WIND PROJECTS INTO A JOINT VENTURE WITH JAPAN’S LARGEST POWER PRODUCER.

SHARING COSTS WITH ANOTHER COMPANY WILL ALLOW BP TO REDUCE ITS FINANCIAL COMMITMENTS ASSOCIATED WITH THESE RENEWABLE ENERGY DEVELOPMENTS.

NOW PLANNING TO SPEND OVER 4 BILLION DOLLARS LESS THROUGH 2030 THAN WHAT HAD PREVIOUSLY BEEN ANTICIPATED.

THE JOINT VENTURE IS EXPECTED TO BE OFFICIALLY FORMED BY THE END OF NEXT YEAR’S THIRD QUARTER-

WITH BP SAYING THIS UNION WILL CREATE ONE OF THE WORLD’S LARGEST GLOBAL OFFSHORE WIND BUSINESSES.

THIS DEVELOPMENT FOLLOWS PREVIOUS EFFORTS BY BP TO REDUCE COSTS RELATED TO ITS OFFSHORE WIND EFFORTS-

SPURRED BY INVESTOR DISAPPOINTMENT OVER RETURNS FROM ITS RENEWABLE ENERGY INITIATIVES.

THIS YEAR, BP PUT A PAUSE ON ALL NEW OFFSHORE WIND DEVELOPMENTS-

AND INSTITUTED A HIRING FREEZE FOR POSITIONS WITHIN ITS OFFSHORE WIND DIVISION.

THE COMPANY HAS ALSO INDICATED PLANS TO SELL ITS U.S. ONSHORE WIND BUSINESS-

SAYING THOSE ASSETS WERE NOT ALIGNED WITH ITS GROWTH PLANS.

AS BP PULLS OUT OF RENEWABLES, IT IS PUTTING A RENEWED EMPHASIS ON ITS MORE PROFITABLE OIL AND GAS OPERATIONS.

AFTER PREVIOUSLY UNVEILING THE SECTOR’S MOST AMBITIOUS PLEDGE TO CUT OIL OUTPUT BACK IN 2020-

THE COMPANY RECENTLY DECIDED TO ABANDON THAT GOAL ALTOGETHER.

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