BPs new chief Meg ONeill signals sharp pivot from net zero ambition

BP is set for a major strategic overhaul as Meg O’Neill is appointed chief executive, succeeding Murray Auchincloss in a surprise change that has triggered fervent investor reactions. The move comes as shareholders urge BP to set aside net zero targets and refocus on its traditional oil and gas operations, reversing the previous leadership’s push into green energy.

O’Neill, a seasoned industry leader currently heading Woodside Energy in Australia, will become the first woman and the first external figure to lead BP. She has earned a reputation as a sceptic of aggressive net zero strategies, often challenging the narrative around the carbon footprint of digital consumption and defending the centrality of fossil fuels for global energy security. Under her leadership at Woodside, she oversaw the acquisition of BHP Petroleum and spearheaded expansion into the United States, drawing on more than two decades at ExxonMobil, where she advised on strategy at the highest levels.

This leadership transition marks a clear break from the recent past. Former CEO Bernard Looney had committed BP to achieving net zero greenhouse gas emissions by 2050, a commitment that many industry analysts and investors viewed as unrealistic given sector benchmarks. Murray Auchincloss, who took over in 2023, dialled back but was seen as too gradual in his approach. Pressure from major investors, such as Elliott Management and Aberdeen Investments, has now precipitated a new direction, with a focus on maximising returns from the company’s core upstream operations.

Market analysts expect O’Neill to prioritise financial discipline and measurable results, such as improved cashflow and greater returns on investment. Immediate actions are likely to include the divestment of underperforming green assets. BP shares declined by more than 1 percent in London trading following the unexpected announcement, reflecting short-term uncertainty amid high expectations for strategic clarity and renewed market confidence.

O’Neill’s appointment breaks historic ground, not only as BP’s first external chief but also as the first woman and openly gay leader of a FTSE 100 oil major. Her new role commences in April with details regarding her location yet to be specified. The outgoing chief, Murray Auchincloss, remains with BP as an adviser until the end of 2026, though the company has withheld details about executive compensation for both parties.

BP’s rapid leadership transition reflects intense pressure to restore profitability and stability at a time of heightened scrutiny within the global energy sector. The company’s next moves will be watched closely by investors and industry observers anticipating decisive action and a potentially diminished focus on decarbonisation initiatives.