BP p.l.c. (ADR) (NYSE:BP)

People are often resistant to change, and this psychological phenomenon often works its way into how people in management run businesses. The oil and gas industry has remained largely unchanged for more than a century, and the idea that our energy infrastructure may eventually evolve into something new is a big idea to grasp. However, change can often bring opportunity for those bold enough to embrace it. One company trying to do just that is integrated energy company BP p.l.c. (BP).

With the worst of the oil spill behind BP and the volatility that we have seen in oil prices over time, BP has decided to aggressively pivot to the future. The company is in the beginning stages of a multi-year process to evolve away from oil & gas as a primary focus, and to embrace green energy infrastructure and applications. The company unveiled this agenda in mid-2020:

BP set a goal of divesting approximately $25 billion worth of assets between 2020 and 2025. The company's purpose for this is two-fold. First, it wants to deleverage its balance sheet to a net debt position of $35 billion. Second, it wants to "high-grade" its oil and gas portfolio to ensure that what oil & gas assets BP continues to manage, that it remains accretive to the company's financial benchmarks moving forward. In other words, "quality over quantity".

The worst of the Deepwater Horizon spill is behind BP. Furthermore, the company has deleveraged its balance sheet ahead of schedule, oil prices are recovering, and BP is slated to heavily tilt its infrastructure to renewables (a move that many companies will need to make eventually). I would argue that the future of BP is promising and because of these developments, the long-term potential of BP is one of potential and not simply a "yield play" for investors.

This is a socially responsible investment and I believe will attract big investors that will help it achieve its long term goals

They have badly trailed, so I'm ending/rebuying effectively increases my stake.

Oil is down but not out. It goes in huge decadal cycles, and I'm betting it will come back. Oil use will drop, but not disappear. BP is largely and industry focused bet.