BP

“Proceeding with the Mona offshore wind farm underscores JERA Nex bp's plans to support the UK's energy security and net zero goals. We look forward to continuing our partnership with The Crown Estate, stakeholders and others to bring this nationally significant project to fruition.”

“The US is a market with significant long-term potential for offshore wind, which we still believe can play a key role in the country's energy transition. For now, we will continue to maintain the Beacon lease and wait for a more favourable moment to resume project development.”

“Our optimism for a fast transition was misplaced, and we went too far, too fast. We just chased too much. We should have narrowed that. That's obviously what I've done now.”

“If you think about what we really are, we're an oil and gas company. The parts of transition that have a hard time competing, you move to off balance sheet basically. It's a very capital-light model... Over time, it'll give us a dividend stream again, and flow of electrons.”

“Today we have fundamentally reset bp's strategy. We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns.”

“We will grow upstream investment and production to allow us to produce high margin energy for years to come. We will focus our downstream on markets where we have leading integrated positions. And we will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset bp, with an unwavering focus on growing long-term shareholder value.”

“We found ourselves in a different place now, where nations are prioritizing affordability, assurance of flow, security of supply. The transition just is not being valued as much as it was five years ago.”

BP withdrew the application for the transmission system that would connect its Beacon Wind offshore wind project to the grid in New York. The withdrawal came after bp had requested a year-long delay in the application process from the New York Public Service Commission, amid uncertainty in the US offshore wind market following the Trump administration's halt on federal offshore wind permitting.

“We are very pleased to have reached agreement with JERA to form a top five wind developer globally. This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders. We very much look forward to combining our strengths in Europe and Asia-Pacific to create another innovative platform.”

BP continues to invest with discipline and a returns-focused approach in our transition growth engines and in our oil, gas and refining businesses. Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business.

Equinor and bp entered a swap transaction under which Equinor will take full ownership of the Empire Wind lease and projects, and bp will take full ownership of the Beacon Wind lease and projects. The restructuring reflected each partner's strategic priorities and portfolio management approach.

Following Looney's resignation on 12 September 2023, Auchincloss stated that bp remains firmly committed to the outlook laid out earlier in the year. The strategy is not an embodiment of a single individual, it is the embodiment of a management team and a board.

“We see our role in life as helping to solve the energy trilemma — how do we provide the world with secure energy, affordable energy and cleaner energy? Reducing supply without also reducing demand inevitably leads to price spikes, price spikes lead to economic volatility.”

“The world wants and needs energy that is secure and affordable as well as lower carbon -- all three together, what's known as the energy trilemma. We are putting up to $8 billion more into today's energy system AND -- not or -- up to $8 billion more investment into our transition growth engines. The destination remains unchanged -- from IOC to IEC.”

BP reaffirmed its target of developing 50 GW of renewable power to FID by 2030, of which around 10 GW would be net installed capacity, largely operated. BP remained confident of achieving 8-10% levered returns for these investments. Transition growth engine investment was increased to a cumulative $55-65 billion over 2023-2030, accounting for approximately half of total capex.

BP and EnBW were awarded a ScotWind lease option for the Morven project, a 2.9 GW fixed-bottom offshore wind farm off the east coast of Scotland. Looney stated that bp now has a fantastic partner in EnBW and an even more competitive portfolio of nearly 6 GW of combined offshore wind to develop together, representing up to GBP 10 billion of investment in support of offshore wind and Scotland's energy transition.

Equinor and bp were awarded offtake contracts for Empire Wind 2 (1,260 MW) and Beacon Wind 1 (1,230 MW) in New York's second offshore wind solicitation. Together with Empire Wind 1, the three projects will provide New York with 3.3 GW of offshore wind capacity — enough to power nearly two million homes.

“Success in this round marks bp's entry into one of the world's best offshore wind markets. This is both important progress towards bp's transformation into an integrated energy company as well as a significant next step in our long history in the UK. These projects -- in which we are teaming up with an experienced partner EnBW -- are absolutely in line with our determination to invest with discipline into only the very best opportunities. We are fully confident that these highly advantaged resources will deliver -- at a minimum -- the 8-10% returns we demand of our renewables investments.”

“This is an important early step in the delivery of our new strategy and our pivot to truly becoming an integrated energy company. Offshore wind is a huge area and the fastest growing source of renewable electricity in the world. It will play a vital role in allowing us to deliver our aim of rapidly scaling up our renewable energy capacity.”

“bp is pivoting from being an international oil company focused on producing resources, to an integrated energy company focused on delivering solutions for customers. By 2030, bp aims to have developed around 50 GW of net renewable generating capacity -- a 20-fold increase from 2019. Within 10 years, bp aims to have increased its annual low carbon investment 10-fold to around $5 billion a year.”

“Our ambition is to be a net zero company by 2050 or sooner, and to help the world get to net zero. We are setting a new purpose for bp -- reimagining energy for people and our planet -- and taking on a fundamental reorganisation of the company, possibly the most wide-ranging in over a century.”