The transition to low-carbon energy is not easy, and European energy giants are preparing to return to their &#34;old business.&#34;
Recently, BP (British Petroleum) has shown signs of preparing to return to traditional oil and gas operations, planning to sell its wind and solar businesses and halt 18 hydrogen projects to narrow the gap with competitors, boost stock prices, and alleviate investor concerns about its profitability. Shell and Norway's Equinor have also begun to scale back the energy transition plans set at the beginning of this century.
Analysts believe that the shift of these companies is influenced by the ongoing energy shocks caused by the Russia-Ukraine conflict, as well as rising costs, supply chain issues, and technological challenges leading to declining profitability of many renewable energy projects (especially offshore wind power).
Five years ago, BP boldly announced its transformation into a low-carbon energy company, but now it has announced plans to sell its wind and solar businesses and suspend 18 hydrogen projects. Meanwhile, according to internal sources cited by Reuters, BP has reduced its hydrogen team in London from over 100 people to 40.
Its competitor Shell also seems to be struggling, having revised its low-carbon energy plans, including reducing floating offshore wind and hydrogen projects, exiting markets like Europe, selling refineries, and lowering its carbon reduction targets for 2030.
Additionally, sources say that Shell is seeking to sell its Australian carbon offset project operator Select Carbon, which it acquired in 2020.
Currently, Shell and BP are actively taking measures to turn the situation around. Shell CEO Wael Sawan vowed:
<blockquote>
&#34;We will take 'decisive actions' to improve performance and returns, and narrow the significant valuation gap with American competitors ExxonMobil and Chevron.&#34;
</blockquote>
BP CEO Auchincloss stated plans to invest billions of dollars to develop new oil and gas to improve company performance and increase return rates.
However, these companies do not seem to have completely abandoned low-carbon energy investments. They indicated that they would focus on areas that can generate profits quickly, such as biofuels. Shell, BP, and Equinor will continue to develop some ongoing offshore wind projects and hydrogen projects primarily aimed at reducing the carbon footprint of refining operations.
Meanwhile, some companies have been &#34;holding the line,&#34; with France's TotalEnergies continuing to invest in low-carbon energy and significantly leading Shell and BP in renewable energy capacity.
However, some analysts warn that the world will be unable to meet the United Nations-supported goal of &#34;limiting global warming to 1.5 degrees Celsius,&#34; which means companies may be unable to achieve or may have to lower their emission reduction targets

SHEL

BP announced plans to sell its wind and solar businesses and suspend 18 hydrogen projects, while Shell revised its low-carbon energy plan, including reducing floating offshore wind and hydrogen projects and lowering its carbon reduction targets for 2030. They stated that they will focus on areas that can generate profits quickly

- European energy giants, including BP, Shell, and Equinor, are shifting focus back to traditional oil and gas operations due to challenges in the low-carbon energy transition.  
- BP plans to sell its wind and solar businesses and halt hydrogen projects, while Shell is revising its low-carbon strategy and reducing its carbon reduction targets.  
- Despite these changes, companies like TotalEnergies continue to invest in low-carbon energy, although analysts warn that global warming targets may remain unachievable.

BP layoffs, Shell revises plans, European energy giants abandon the low-carbon path?