BP (NYSE:BP) just made a bold pivotdoubling down on oil and gas while scaling back its clean energy push. In a long-awaited strategy update, CEO Murray Auchincloss laid out plans to ramp up fossil fuel investments to $10 billion a year, boosting production to 2.5 million barrels per day by 2030. That's a sharp reversal from previous pledges to cut output. The move comes as BP battles investor pressure, particularly from activist hedge fund Elliott Management, and struggles with a 97% profit drop last year. To free up cash, BP is eyeing $20 billion in asset sales by 2027, with Castrol and parts of its renewables business potentially on the chopping block.

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This shift isn't just about BPit's part of a bigger trend across Big Oil. Rivals like Shell and TotalEnergies have also pulled back on their clean energy bets, recalibrating strategies as high-cost renewables struggle to match fossil fuel profits. Auchincloss insists BP isn't abandoning the energy transition, just playing it "smarter"focusing on biofuels, biogas, and EV charging instead of capital-heavy wind and solar projects. Meanwhile, BP is securing more low-cost barrels in key regions like the U.S., Iraq, and the UAE, doubling down on traditional energy as the world debates its path to net zero.

The market's reaction? Mixed. BP's stock dipped 2% at 9.30am today, signaling skepticism over whether this strategy reset will pay off. With its shares lagging behind Exxon Mobil and Chevron, BP is betting that a return to oil-driven profits will win back investors. But with Elliott Management in the picture, this could be just the beginning of bigger shake-ups. The real question: is this a smart financial play, or proof that oil majors were never serious about the green transition in the first place?