BP Scraps Global Hydrogen Projects in Pivot Back to Oil

BP is scrapping major hydrogen projects around the globe as part of a decisive pivot back to oil. The company announced the cancellation of initiatives in the UK, Oman, and Australia, contributing to a total writedown of up to $5 billion on its transition businesses.
This strategic retreat from hydrogen is part of a broader re-evaluation of the company’s green energy portfolio. The firm is also seeking to sell a stake in its solar business, Lightsource. Under the guidance of Chair Albert Manifold, the company is redirecting capital toward its core fossil fuel operations.
The decision comes as the oil market faces significant headwinds. Crude prices dropped nearly 20% in 2025, and the company’s trading division struggled in the final quarter. The fear of a supply glut, driven by US policies regarding Venezuela, has kept prices depressed.
However, the company’s balance sheet remains robust. The successful reduction of net debt to the $22-$23 billion range provides a financial cushion. This debt reduction is a key part of the company’s defensive strategy in a volatile market.
As Meg O’Neill prepares to take over as CEO in April, the cancellation of these green projects signals a new direction. The company is no longer trying to be all things to all people; instead, it is doubling down on what it has always done best: extracting hydrocarbons.