Here’s a bombshell: one of the world’s largest energy companies is stepping back from its green commitments and doubling down on fossil fuels—and it’s costing them billions. BP has announced a staggering write-down of up to $5 billion (£3.7 billion) on its green energy ventures, as it shifts focus under its new leadership, including Chair Albert Manifold. But here’s where it gets controversial: is this a strategic retreat or a missed opportunity for a sustainable future? Let’s dive in.
The oil giant revealed that the bulk of these write-downs are tied to its gas and low-carbon energy divisions, part of what it calls its ‘transition businesses.’ While BP insists this won’t dent its underlying profits when it reports full-year results in February, the move raises eyebrows. Is this a sign of the challenges ahead for companies straddling the line between fossil fuels and renewables?
BP’s pivot isn’t just about numbers—it’s about actions. The company has been trying to offload a stake in its solar venture, Lightsource, and has scrapped hydrogen projects in the UK, Oman, and Australia. Meanwhile, its shares took a hit, dropping 1.4% on Wednesday morning, though they later recovered slightly. This comes on the heels of weaker oil trading performance in the final quarter of the year, mirroring warnings from rival Shell about a slump in trading amid falling oil prices.
Speaking of oil prices, they’ve been on a rollercoaster. Brent crude averaged $63.73 a barrel in the fourth quarter of last year, down from $69.13 in the previous quarter. And this is the part most people miss: oil prices saw their sharpest annual decline since the Covid pandemic, plummeting nearly 20% in 2025. With producers pumping more crude than the global economy needs, further drops are expected. But it’s not all doom and gloom—prices rebounded on Wednesday due to fears of Iranian supply disruptions amid geopolitical tensions.
Adding fuel to the fire, recent events like Donald Trump’s capture of Venezuela’s former leader, Nicolás Maduro, and his claims that U.S. oil companies are poised to rebuild Venezuela’s oil industry, have stoked fears of an oversupply. Yet, BP remains focused on trimming its debt, reducing net debt to between $22 billion and $23 billion by the end of the quarter.
This shift comes just weeks after BP’s surprise appointment of Meg O’Neill as its third CEO in five years. As the first woman to lead a major oil company, O’Neill steps into a challenging role, replacing Murray Auchincloss, who steered BP away from the green ambitions of his predecessor, Bernard Looney. Is this a step backward for sustainability, or a pragmatic move to stabilize the company?
Dan Coatsworth, head of markets at AJ Bell, summed it up: ‘The final quarterly results before O’Neill takes over in April are likely to be downbeat. It gives her a low base to build from, but it highlights the massive challenge ahead.’
Meanwhile, BP’s update coincided with Shell and Exxon Mobil scrapping a planned sale of North Sea natural gas assets to Viaro Energy, citing changed market conditions. Shell will retain control of the assets, including 11 gas fields and an onshore terminal.
So, what do you think? Is BP’s shift back to fossil fuels a necessary survival tactic, or a missed opportunity for a greener future? Let’s spark a conversation—share your thoughts in the comments below!
