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BP: Same Strategy, Better Oil Prices

May 03, 2022 5:22 PM ETBP p.l.c. (BP)6 Comments
Gary Gambino profile picture
Gary Gambino


  • BP's long-term strategy is not affected by the loss of Rosneft. It remains heavily dependent on hydrocarbons at least through 2030.
  • The company remains disciplined and is not over-committing to renewable investments.
  • The stock can produce a 13% annual total return through 2030 at an average Brent price of $71.65.

BP Retail Gas Station. BP and British Petroleum is a global British oil and gas company headquartered in London.

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Rosneft Doesn't Change BP's Strategy

BP p.l.c. (NYSE:NYSE:BP) released 1Q 2022 results with the write-down of its Russian investments overshadowing strong underlying performance. The decision to leave the board and look to sell

This article was written by

Gary Gambino profile picture
I am a Chemical Engineer by training and have an MBA with concentrations in Finance and Operations Management. I retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income yield. I plan to focus my writing on positions I already hold or am considering changing, however my bias is toward long-term holding unless there is a very compelling reason to sell.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

BP walks a tightrope with a majority of British investors. The North Sea investment will guarantee energy security for Britain, now a leading supporter of Ukraine, as existential risk grows from war, PRC/PLA, climateers and decolonisers. As a UK icon , BP is a major employer and intends to invest up to £18 billion in the UK energy system. It continues its firm commitment to the UK, and helps the country to deliver on its bold ambitions to boost energy security and reach net zero. Among the largest oil and gas producers in the UK, bp will continue investing in North Sea oil and gas, while cutting operational emissions. Lower carbon energy investments in the UK, will create jobs and develop new skills and capabilities.
CEO Bernard Looney, said: “We’re backing Britain. It’s been our home for over 110 years, and we’ve been investing in North Sea oil and gas for more than 50 years. We’re fully committed to the UK’s energy transition – providing reliable home-grown energy and, at the same time, focusing on the drive to net zero. And we have ambitious plans to do more and to go faster. Our plans go beyond just infrastructure - they see us supporting the economy, skills development and job opportunities in the communities where we operate. We are all in.”

Projected investment figures are in addition to significant operating spend in the UK. In 2019, prior to the pandemic, bp activities supported an estimated 0.5% of UK GDP. bp also anticipates paying up to £1 billion in taxes for its 2022 North Sea profits, on top of around £0.25 billion that it has paid annually in other taxes in the UK in recent years. BP also supports education, research and other community projects.
North Sea investment includes-Developing lower emission oil and gas projects to support near term security of supply, at the Murlach, Kate and Mungo fields around the bp-operated ETAP hub in the central North Sea and the Clair and Schiehallion fields West of Shetland.
Investing in exploration around its existing North Sea hubs.
Progressing asset electrification projects in the Central North Sea and West of Shetland to further reduce operational emissions and supporting the North Sea Transition Deal.
Covered Calls with the dividend in an IRA get me 9 to 10% tax free annually on this basically "loser stock."
BP Q1 earnings were almost the same as CVX. While CVX has a market cap of more than three times BP. BP should fire Looney, move their HQ to Houston, and change the name to Amoco. The stock would immediately double. This performing while transforming is mostly BS. Even in 2030, only a small portion of their income will come from renewable energy.
All these share buybacks are not doing crap for the share price.
They should over time but only if shares are canceled.
Matteo980 profile picture
@coinman507 that's better, they will buy more shares
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