BP to ‘Fundamentally Reset’ Strategy in Shift Back to Oil and Gas

BP, the energy giant, on Wednesday said it would increase spending on oil and gas while sharply paring back investments on various forms of clean energy.

The move appears to be a response to a combination of investor pressure for higher returns and a realization that the so-called energy transition to cleaner fuels is not paying off as once expected.

“Today, we have fundamentally reset BP’s strategy,” Murray Auchincloss, BP’s chief executive, said in a statement.

BP said it would increase oil and gas investment to around $10 billion per year in order to bolster output, while cutting spending on renewables to between $1.5 billion and $2 billion per year, a $5 billion-per-year drop from previous plans.

Mr. Auchincloss was put in charge of the London-based energy group about a year ago, succeeding Bernard Looney, who was ousted over a failure to disclose personal relationships with other employees.

Five years ago, Mr. Looney announced major changes at the company that included a plan to cut oil and gas production by about 40 percent by 2030. Those targets were applauded at the time as industry-leading by some analysts and investors.

In the meantime, though, oil and natural gas prices have risen. And some areas of green energy in which BP invested, notably offshore wind, have fared poorly, especially in the United States.

The Trump administration, which favors fossil fuels, has also altered the investment and operating environment for energy companies.