BP CEO Murray Auchincloss recently made some significant changes to the company’s leadership team and strategy. Following the departure of his predecessor Bernard Looney, Auchincloss was left to carry out the company’s plan to become net zero by 2050. However, this plan did not sit well with shareholders and environmental groups, leading Auchincloss to rethink the company’s energy transition businesses while also focusing on cost-cutting.
On April 18, BP announced the departure of its head of low carbon and natural gas, Anja-Isabel Dotzenrath, along with the head of innovation and technology, Leigh-Ann Russell. The company also announced a reduction in the size of its executive leadership team. This shake-up in leadership came after reports that BP had cut over 10% of its workforce in its electric vehicle charging business, BP Pulse, and had pulled out of several charging markets. Despite these changes, BP maintained that its ambitions in the EV charging space had not changed.
Following the recent changes, BP will continue to operate with three business units: production and operations, gas and low carbon energy, and customers and products. These operations will be supported by five key functions, including finance, technology, strategy, sustainability and ventures, people and culture, and legal. Despite these adjustments, BP’s shares ended trading in London on a positive note, showing a slight increase on the week and month.
With Auchincloss at the helm, BP may not be pivoting back solely to oil and gas, as some competitors are doing. Instead, the company appears to be focused on unlocking value from traditional energy sources while investing in green energy and cleantech plays. The changes made by Auchincloss are aimed at regaining shareholder support and positioning BP as a leader in the energy transition, even amidst market volatility and changing demands for cleaner energy sources.
Overall, Auchincloss’s leadership and strategic changes at BP are indicative of the company’s ongoing commitment to transitioning to a more sustainable energy future. By reshaping the company’s energy transition businesses and focusing on cost-cutting measures, Auchincloss is working towards aligning BP’s operations with the evolving energy landscape while maintaining a balance between traditional energy sources and green initiatives. Time will tell how these changes will impact BP’s overall performance and reputation in the industry.
