BP (NYSE:BP) is making a hard pivot back to fossil fuels, ditching its ambitious renewable energy targets in a bid to regain investor confidence. At its investor day in London, CEO Murray Auchincloss is expected to scrap BP's plan to boost renewable capacity 20-fold by 2030, shifting focus toward oil and gas. The company is also set to abandon its $49 billion EBITDA target for 2024, opting instead for an annual growth approach. Investors have been losing patience, with BP's stock lagging behind rivals. Activist investor Elliott Management, now holding a 5% stake, is pushing for aggressive cost cuts, asset sales, and a sharper focus on profitability.

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Auchincloss, who took over in 2023, has already started dialing back BP's renewable ambitions, cutting $2 billion in costs and trimming the workforce by 5%. Now, the company is expected to take even bigger steps, potentially offloading wind and solar assets, Castrol lubricants, and its service station network. The move follows a broader industry trendShell and other oil majors are doubling down on fossil fuels as prices rebound, and investors demand better returns. BP originally set a goal to cut oil and gas output by 40% by 2030, later adjusting it to 25%, but with the latest strategy reset, that reduction could shrink even further.

With 2024 profits down to $8.9 billion from $14 billion last year, BP needs a turnaround, and fast. The re-election of Donald Trump, a strong supporter of fossil fuels, has only reinforced the shift in investor sentiment. Meanwhile, Elliott Management is applying pressure for deeper changes, including a potential breakup of BP's operations. The big question now: Will BP's bet on oil and gas pay off, or is it just another short-term fix in a rapidly evolving energy landscape? Investors are watching closely.