Following the sudden departure of BP’s former CEO Bernard Looney, Murray Auchincloss was left to carry out the company’s strategy known as “Reimagine BP.” The plan aimed to make the energy giant net zero by 2050 by growing renewables and reducing oil and gas output by 2030. However, this strategy failed to impress shareholders and environmental groups, leading to Auchincloss facing pressure to take a different approach and regain investor confidence.
Despite being billed as the continuity candidate when he was appointed as the permanent CEO of BP, Auchincloss has begun to rethink the company’s energy transition businesses and incorporate cost-cutting measures. Recently, BP announced the departure of Anja-Isabel Dotzenrath, head of low carbon and natural gas, along with the head of innovation and technology, Leigh-Ann Russell. There will also be a reduction in the size of the executive leadership team, with changes being made in various key positions within the company.
A shake-up in BP’s leadership was accompanied by reports of layoffs in the electric vehicle charging business, BP Pulse, and the company’s decision to pull back from certain markets after the expected growth in commercial EV fleets did not materialize as planned. Despite these challenges, BP maintains its commitment to the EV charging space and emphasizes the importance of the business. The energy major will continue to operate within three business units, supported by key functions such as finance, technology, and sustainability, among others.
While BP’s shares dipped slightly following the recent developments, they saw an overall increase over the week and month. As Auchincloss navigates through the changes and challenges facing the company, the question arises whether this signifies a pivot back to oil and gas, similar to BP’s rival Shell. However, it seems that the new CEO is focusing on finding a balance between traditional energy sources and investments in green energy and cleantech plays to unlock value for the company and its stakeholders. The future of BP under Auchincloss’s leadership will likely involve a strategic mix of approaches to meet the evolving demands of the energy market.
