BP cutting oil production by 40 percent, slashes dividend

Local News

(Big 2/Fox 24) – After reporting a $16.8 billion quarterly loss and cutting its dividend in half, British Petroleum (BP) announced it will be shifting away from oil production to an “integrated energy company.”

The company aims to increase its low carbon investment 10-fold to around $5 billion a year of low carbon technologies like renewables.

In the meantime, BP announced they plan to reduce their oil production output by one million barrels of oil per day.

The New York Times reports the company is expected to cut about 10,000 jobs this year.

“Energy markets are fundamentally changing, shifting towards low carbon, driven by societal expectations, technology and changes in consumer preferences. And in these transforming markets, bp can compete and create value, based on our skills, experience and relationships. We are confident that the decisions we have taken and the strategy we are setting our today are right for bp, for our shareholders, and for wider society,” Helge Lund, BP Chairman, said in a statement.

The NYT also reported that the company took $17.4 billion in write-offs in exploration and other activities, while also cutting its forecast for oil and gas prices.

See the full release from BP here

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