BP PLC's (LSE:BP.) new CEO, Murray Auchincloss, has implemented a hiring freeze and paused new offshore wind projects to focus more on oil and gas amid investor concerns over the company’s energy transition strategy, according to Reuters, citing sources close to the oil giant.
This shift contrasts with former CEO Bernard Looney's approach, which prioritised moving away from fossil fuels.
Auchincloss has redirected efforts towards projects already underway, such as offshore wind in Britain and Germany, in favour of investment in new oil and gas assets, especially in the Gulf of Mexico and US shale basins, the Reuters report claimed.
BP will also explore short-term returns from biofuels and other low-carbon businesses.
The company-wide hiring freeze excludes frontline and safety personnel, and some job cuts in renewables are expected. Auchincloss has also initiated a $2 billion cost-saving drive by 2026 and reduced the executive leadership team from 11 to 10 members.