BP Appoints Meg O'Neill as CEO in Strategic Pivot to Oil and Gas
Woodside Energy chief becomes the first woman to lead an oil supermajor, signaling a renewed focus on fossil fuel profitability amid investor pressure.
BP has named Meg O'Neill, the chief executive of Australian energy producer Woodside Energy, as its next chief executive, a landmark appointment that makes her the first woman to lead one of the world's five largest oil and gas companies. The move is being widely interpreted by investors and analysts as a strategic pivot to refocus on its core, highly profitable fossil fuel business, potentially tempering the aggressive push into renewable energy championed by her predecessors.
The appointment comes after a period of leadership uncertainty for the London-based energy giant. According to regulatory filings, O'Neill will succeed Murray Auchincloss, who held the role on an interim basis following the abrupt departure of Bernard Looney. Looney's tenure was defined by an ambitious strategy to transition BP into an integrated energy company, with plans to significantly cut hydrocarbon output by 2030. However, this green-focused agenda has faced scrutiny from investors who have watched rivals like ExxonMobil and Chevron post record profits by doubling down on their traditional oil and gas operations.
Shares of BP traded slightly higher on the initial news, reflecting investor optimism for a strategy centered more on shareholder returns. The company's American depositary receipts (BP) have a market capitalization of approximately $86 billion. While the stock has seen volatility, analysts at Piper Sandler noted they expect a positive impact on the share price from what they perceive as a more assertive, returns-focused strategy under O'Neill. In contrast, shares in Woodside Energy tumbled nearly 4% on the news of her surprise departure.
O'Neill, an American, is a well-regarded figure in the energy sector with a reputation for operational excellence and a focus on natural gas. During her tenure at Woodside, she oversaw the company's $41 billion merger with BHP's petroleum arm, creating a global top 10 independent oil and gas producer, and delivered significant shareholder returns. Her track record suggests a leader adept at managing large-scale oil and gas projects, particularly in liquefied natural gas (LNG), a sector where BP is also a major player.
Analysts suggest O'Neill's appointment is a clear signal that BP's board is responding to mounting pressure to prioritize its legacy assets. While BP has not abandoned its 2050 net-zero ambition, the operational focus is expected to shift. The company had already scaled back some of its climate goals earlier this year, and O'Neill's leadership is expected to reinforce this recalibration, ensuring that investments in oil and gas continue to generate the cash flow needed to fund both shareholder distributions and a more measured energy transition.
The challenge for O'Neill will be to strike a delicate balance. She must navigate the demands of investors seeking robust dividends, which stand at a healthy yield of nearly 6%, while steering the 116-year-old company through the complexities of the global shift towards lower-carbon energy. Her first strategic presentation will be closely watched by the market for clear signals on capital allocation, production targets, and the future pace of BP's evolution.