In the future, 2020 will likely be known as the year of the coronavirus pandemic. But there was another unsettling event that took place that only energy traders will likely remember: Oil prices fell, briefly, below zero. The oil market got so bad so quickly that several industry giants laid out plans for a greener future, including BP (NYSE: BP). Here are some things to consider before you decide to buy into BP’s big makeover.
International energy giant BP announced in Aug. 2020 that it would be going “from [an] international oil company to [an] integrated energy company.” As it transitions along this path, management intends to increase its investment in clean energy 10 times over. That shift will be front-loaded, as well, with at least an eightfold increase in such spending by 2025. It’s also looking for a 20-fold increase from 2019 levels in its renewable power generation.