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Experts reveal top 6 predictions for oil and gas industry in 2025

guest column

Texas energy experts look ahead to what's in store for oil and gas in 2025. Photo via Getty Images

If you tune in to the popular national narrative, 2025 will be the year the oil and gas industry receives a big, shiny gift in the form of the U.S. presidential election.

President Donald Trump’s vocal support for the industry throughout his campaign has casual observers betting on a blissful new era for oil and gas. Already there are plans to lift the pause on LNG export permits and remove tons of regulatory red tape; the nomination of Chris Wright, chief executive of Liberty Energy, to lead the Department of Energy; and the new administration’s reported wide-ranging energy plan to boost gas exports and drilling — the list goes on.

While the outlook is positive in many of these areas, the perception of a “drill, baby, drill” bonanza masks a much more complicated reality. Oil and gas operators are facing a growing number of challenges, including intense pressure to reduce costs and boost productivity, and uncertainty caused by geopolitical factors such as the ongoing conflicts in the Middle East and Russia-Ukraine.

From our vantage point working with many of the country’s biggest operators and suppliers, we’re seeing activity that will have major implications for the industry — including the many companies based in and operating around Texas — in the coming year. Let’s dig in.

1. The industry’s cost crunch will continue — and intensify.
In 2024, oil and gas company leaders reported that rising costs and pressure to cut costs were two of the top three challenges they faced, according to a national Workrise-Newton X study that surveyed decision makers from operators and suppliers of all sizes. Respondents reported being asked to find an astonishing 40% to 60% reduction in supply chain-related costs across categories, on average.

Given the seemingly endless stream of geopolitical uncertainty (an expanded war in the Middle East, continued conflict after Russia’s invasion of Ukraine, and China’s flailing economy, for starters), energy companies are between a rock and a hard place when it comes to achieving cost savings from suppliers.

With lower average oil prices expected in 2025, expect the cost crunch to continue. That’s because today’s operators have only two levers they can rely on to drive an increase in shareholder returns: reducing costs and increasing well productivity. Historically, the industry could rely on a third lever: an increase in oil demand, which, combined with limited ability to meet that demand with supply, led to steadily increasing oil prices over time. But that is no longer the case.

2. The consolidation trend in oil and gas will continue, but its shape will change.
In the wake of the great oil and gas M&A wave of 2024, the number of deals will decrease — but the number of dollars spent will not. Fewer, larger transactions will be the face of consolidation in the coming year. Expect newly merged entities to spin off non-core assets, which will create opportunities for private equity to return to the space.

This will be the year the oil and gas industry becomes investable again, with potential for multiple expansions across the entire value chain — both the E&P and the service side. From what we’re hearing in the industry, expect 2 times more startups in 2025 than there were this year.

With roughly the same amount of deals next year, but less volume and fewer total transactions, there will be more scale — more pressure from the top to push down service costs. This will lead to better service providers. But there will also be losers, and those are the service providers that cannot scale with their large clients.

3. Refilling SPR will become a national priority.
The outgoing administration pulled about 300 million barrels out of the country’s Strategic Petroleum Reserve (SPR) during the early stages of the Russia-Ukraine conflict. In the coming year, replenishing those stores will be crucial.

There will be a steady buyer — the U.S. government — and it will reload the SPR to 600-plus million barrels. The government will be opportunistic, targeting the lowest price while taking care not to create too much imbalance in the supply-demand curve. A priority of the new administration will be to ensure they don’t create demand shocks, driving up prices for consumers while absorbing temporary oversupply that may occur due to seasonality (i.e. reduced demand in spring and fall).

The nation’s SPR was created following the 1973 oil embargo so that the U.S. has a cushion when there’s a supply disruption. With the current conflict in the Middle East continuing to intensify, the lessons learned in 1973 will be top of mind.

If OPEC + moves from defending prices to defending market share, we can expect their temporary production cuts to come back on market over time, causing oversupply and a resulting dramatic drop in oil prices. The U.S. government could absorb the balance, defending U.S. exploration and production companies while defending our country's interest in energy security. Refilling the SPR could create a hedge, protecting the American worker from this oversupply scenario.

4. The environment and emissions will remain a priority, and the economic viability of carbon capture will take center stage.
Despite speculation to the contrary, there will be a continuation of conservation efforts and emissions reduction among the biggest operators. The industry is not going to say, “Things have changed in Washington, so we no longer care about the environment.”

But there will be a shift in focus from energy alternatives that have a high degree of difficulty and cost keeping pace with increasing energy demand (think solar and wind) to technologies that are adjacent to the oil and gas industry’s core competencies. This means the industry will go all in on carbon capture and storage (CCS) technologies, driven by both environmental concerns and operational benefits. This is already in motion with major players (EQT, Exxon, Chevron, Conoco and more) investing heavily in CCS capabilities.

As the world races to reach net-zero emissions by 2050, there will be a push for carbon capture to be economical and scalable — in part because of the need for CO2 for operations in the business. In the not-so-distant future, we believe some operators will be able to capture as much carbon as they're extracting from the earth.

5. The sharp rise in electricity demand to power AI data centers will rely heavily on natural gas.
Growth in technologies like generative AI and edge computing is expected to propel U.S. electricity demand to hit record highs in 2025 after staying flat for about two decades. This is a big national priority — President Trump has said we’ll need to more than double our electricity supply to lead the globe in artificial intelligence capabilities — and the urgent need for power will bring more investment in new natural gas infrastructure.

Natural gas is seen as a crucial “bridge fuel” in the energy transition. The U.S. became the world's top exporter of LNG in 2023 — and in the year ahead, brace for a huge push for pipeline infrastructure development in the range of 10-15 Bcf of new pipeline capacity in the next two to three years. (Translation: development on a massive scale, akin to railway construction during the Industrial Revolution.)

Big operators have already been working on deals to use natural gas and carbon capture to power the tech industry; given the significant increase in the electricity transmission capabilities needed to support fast-growing technologies, there will continue to be big opportunities behind the meter.

6. Regulatory processes will become more efficient, not less stringent.
This year will bring a focus on streamlining and aligning regulations, rather than on wholesale rollbacks. It’s not carte blanche for the industry to do whatever it wants, but rather a very aggressive challenge to the things that are holding operators back.

Historically, authorities have stacked regulation upon regulation and, as new problems arise, added even more regulations on top.There will be a very deliberate effort this year to challenge the regulations currently in place, to make sure they are aligned and not just stacked.

The new administration is signaling that it will be deliberate about regulation matching intent. They’ll examine whether or not particular policies are valuable to retain, or reconfigure, or realign with the industry to enable growth and also still protect the environment.

Easing the regulatory environment will enable growth in savings, lower project costs and speed to bring projects online. Another benefit of regulatory certainty: it will make large capital project financing more readily available. We’ve seen major gridlock in large project financing due to a lack of trust in the regulatory environment and potential for rules to change mid-project (see: Keystone XL). If they are certain the new administration will be supportive of projects that are viable and meet regulatory requirements, companies will once again be able to obtain the financing needed to accelerate development and commissioning of those projects.

But we shouldn’t mistake a new era of regulatory certainty for a regulatory free-for-all. Take LNG permits. They should be accelerated — but don’t expect a reduction in the actual level of environmental protection as a result. It currently takes 18 months to get a single permit to drill a well on federal land. It should take three weeks. Before 2020, it took about a month to obtain a federal permit.

2025 will be the year we begin to return to regulatory efficiency without sacrificing the protections the rules and policies set out to accomplish in the first place.

---

Adam Hirschfeld and Jacob Gritte are executives at Austin-based Workrise, the leading labor provider and source-to-pay solution for energy companies throughout Texas and beyond.

The controversy that dogged the climate summit shows the extent to which misinformation, politics, and outdated beliefs reign supreme — and hinder progress toward net zero, says this Texas expert. Photo by COP28 / Anthony Fleyhan

Texas expert: Evaluating COP28's progress amid the energy transition

Guest column

Before it even started, COP28 drew sharp condemnation from activists and left-leaning politicians who took issue with the climate conference location: the United Arab Emirates, a leading oil and gas-producing nation.

“Time to say ‘the F-words’?” CNBC asked in one headline, referring of course to “fossil fuel.” A group of US and EU lawmakers called for the removal of COP28 President Sultan al-Jaber, head of the UAE’s national oil company Adnoc. And former Vice President Al Gore slammed the host nation and the summit itself, saying it was “abusing the public’s trust” because al-Jaber couldn’t be an honest broker of a climate deal.

I get it. The optics were certain to raise eyebrows and provide low-hanging fruit for critics. But the extent to which the conference became a global flash point was surprising even to the most cynical of onlookers. Finger-pointing took center stage, relegating rational discussion to the shadows. Misinformation and distrust flourished as a tired old energy transition narrative took hold — one that pits villain oil and gas against hero Renewables in an epic fight to save the planet.

At Workrise we follow data, not ideology, you’ll know that success in the energy transition is an all-of-the-above proposition. And in this regard, COP28 made progress. Reading the text of the agreement it’s clear that the delegation has adopted the view that the dominant suppliers of energy to the world — oil and gas companies — must be a part of the solution going forward, and accepted the reality that fuel sources like nuclear and natural gas must be leveraged if we are to reach our 2050 targets.

This pragmatic approach makes sense all the time, but it has particular resonance now as the industry undergoes a sea change in the form of consolidation. Nowhere is this M&A wave more keenly felt than in Texas, where the value of 2023 mergers and acquisitions in the Permian basin reached more than $100 billion after massive deals including ExxonMobil's proposed $60 billion purchase of Pioneer Natural Resources and Chevron's $53 billion acquisition of Hess. These kinds of deals will bring a seismic shift in the way the industry operates — including by enabling companies like Exxon and Chevron to find new production efficiencies, and further bake emissions reduction into their operating models.

But what becomes clear when reading the COP28 agreement is that in nearly all cases, the room was too divided to put measurable targets on the board that are enforceable. Nearly every “commitment” comes with words that provide loopholes and outs.

So what we have is a “deal” that stops short of the kind of black-and-white commitments that create accountability — a deal with language folks can live with, but that won’t meaningfully change realities on the ground. Which begs the question: Why is that, and why can’t we do more?

Two words: dogma and hostility. They are the root cause of the polarization that gripped the conference and steers the wider conversation about the energy transition worldwide. With those powerful forces holding sway, we will never get to agreements that have the teeth required to move the needle on this global challenge.

At the end of the day, it was impressive to see Al Jaber emerge from the summit with a deal of any kind, despite the fire storm that he fueled with his comments earlier in the conference.

What the world needs is leaders who are willing to put aside ideology, rely on proven facts, and grab every opportunity they have to move the chains. Just as important, those leaders need to understand the sensitivity of this topic — and how easily it becomes cannon fodder for those who seek to weaponize it. Without the right leadership, how can we hope for the general public to engage meaningfully in this debate, and to understand what their vote — whether they cast it with their wallet or at the ballot box — truly means?

So long as both sides of this debate dig in and throw stones at each other, the journey to net zero will continue to get longer and more arduous.

———

Joshua Trott is chief revenue officer at Austin-based Workrise, which is a labor provider and supply chain solution for energy companies — including some in Houston.

From coal and consolidation to LNG and policy reform, here are eight predictions for the energy industry. Photo via Getty Images

8 energy industry predictions for 2024 from oil and gas experts

guest column

We hate to start with the bad news, but let’s get it out of the way. As we look to the year ahead, we see numerous challenges for the industry, from labor and geopolitics to OPEC and continued polarization in Washington. Times are complicated, and nothing looks to be getting simpler.

But there’s good news, too. Natural gas use is booming, and the production, transmission, and processing companies that move decisively here will see substantial upside. Additionally, those who diversify their businesses can get in early on new ventures and accelerate their progress — see Devon with Fervo in geothermal. Local nuclear, hydrogen, and carbon capture all represent similar opportunities.

From our vantage point working with many of the biggest operators and suppliers, we’re seeing activity that will have major ramifications for the industry in the coming year.

Here are eight predictions about what’s around the corner — the good, the bad, and the hopeful. Let’s dig in.

Prediction 1: Historic growth in natural gas demand will drive more favorable policy, which will enable more rapid development of natural gas infrastructure and pipelines.

What we’ll see: Early signals show over a 10 percent demand increase for natural gas through the end of 2025, driven largely by international factors. Supply disruptions in Europe due to Ukraine, shutdowns internationally on key nuclear projects, and efforts to move from coal to natural gas both in Europe and the developing world are all contributing factors.

Why it matters: As global demand increases, more LNG export facilities will either be upgraded or built in the United States to increase our capacity to export natural gas to markets around the world. New capital will flow to infrastructure like LNG export facilities, and then the opposite infrastructure will need to be built to take it back to liquid. We are already seeing movement on additional new projects in the US, and expect it to ramp significantly in 2024 and beyond. This demand-side pressure, coupled with the fact that natural gas has made meaningful strides on emissions, will drive a much more favorable policy posture. We believe this will enable the development of natural gas infrastructure and pipelines, and accelerated investment in combined cycle natural gas plants.

Prediction 2: Next year will be the year oil and gas starts to walk the walk when it comes to the energy transition.

What we’ll see: The year ahead will bring a more realistic approach to the energy transition from the big oil and gas companies. We expect to inch closer to consensus in the industry on the need for both improved emissions reduction and increased diversification in order to meet the expectations of investors and secure new pathways to long-term growth.

While you may hear less about what companies are doing to drive the transition, they will actually be doing more via internal investment, consolidation in the form of M&A, and public/private partnerships.

Companies will also invest meaningfully in new technologies to lower their carbon footprints, and for operations of this size and scale, even incremental investments will have significant impact. Expect to see both organic and inorganic development as companies build new solutions internally and either invest in or acquire smaller companies that open up new pathways to emissions reduction, diversification, and ultimately growth.

This will result in even more mega deals as the majors and supermajors compete for a fixed number of assets (see: Chevron’s growing carbon capture interest and acquisition of Hess, Exxon’s acquisition of Pioneer, Oxy’s moves to cement its position as the industry leader in the carbon capture arena).

Why it matters: Make no mistake — we are still operating in a world where a large portion of investments in diversification and emissions reduction occupy the realm of R&D. Testing. Probing what's possible. Companies won't be broadcasting it because they don't know for sure what is going to work. But what we'll see is more of those investments coming to fruition. And while they may be a drop in the bucket for a supermajor, even a small increase in spend for the Chevrons and Exxons of the world will represent meaningful progress on the ground.

Prediction 3: The oil and gas M&A wave will drive massive consolidation on the services side of the industry.

What we’ll see: As larger oil and gas companies acquire companies to secure new assets and build pathways to future growth, consolidation of the leadership teams that manage their operations will have ripple effects. This will significantly impact decisions on which vendors continue to service the operations of the company post-integration. Because of this, the vendors they choose to work with will massively grow as they are folded into the larger company’s operations, while the others will get cut out and see demand shrink considerably.

Why it matters: The services companies who win out will buy up the smaller companies to keep up with growth. Consolidation will shift the balance of power among companies, leaving those that lose out to either drastically shrink or go out of business entirely. As companies consolidate services under their go-to strategic vendors, these same vendors will gain significant pricing leverage over their clients. And more consolidation will mean less competition on the supply side of the equation, which will further drive up costs that are already rising, according to a recent NewtonX benchmark study on the oil and gas supply chain.

Prediction 4: The oil and gas industry will continue to struggle with a broken skills transfer pipeline.

What we’ll see: The industry is experiencing a massive age-out of seasoned employees, coupled with a lack of new talent choosing a career in oil and gas, leading to skills gaps and labor shortages. This is exacerbated by the sector’s longtime reliance on an apprenticeship model. At the same time, the industry is making strides with technology, empowering individual employees to do more than ever before. But these advancements require new and different skills which won't, at least in the next 12 months, help address the root problem here. Until then, these gaps have the potential to drive increasingly unsafe labor environments.

Why it matters: More than ever, oil and gas companies will need access to trusted vendors with experienced talent and advanced technology that can handle complex projects while maintaining the highest safety standards. The industry must stay more vigilant than ever to avoid increased rates of accidents and fatalities in the field due to the continued decline in available, qualified talent. And, of course, it must develop its current employees. Just under half of the respondents in our supply chain benchmark study reported that they were “investing in employee training and development” to meet their most pressing challenges.

Prediction 5: We’ll see the dawning of a nuclear renaissance.

What we’ll see: Nuclear energy will shake off the vestiges of its battered reputation as the public and private sectors begin to see it for what it is: a safe and reliable long-term solution for sustainable power generation. Expect small nuclear modular reactors (SMNRs) at home and abroad to drive nuclear investment and innovation, alongside continued reinvestment in existing large-scale infrastructure.

Why it matters: As nuclear returns to favor, localized nuclear power will evolve in the US. The federal government is already taking more of a pro-nuclear approach, actively investing in and retooling existing plants to increase the facilities’ lifespans. And there is Congressional support on both sides of the aisle. According to a new PEW study, half of Democrats and Democratic-leaning independents and two-thirds of Republicans now say they favor expanding nuclear power. Companies at the cutting edge of this sea change will begin to harness it to make hydrogen.

Prediction 6: We haven’t hit peak coal yet.

What we’ll see: Coal utilization and consumption, driven by the demand from the developing world — Africa, parts of Asia, and South America — have risen over the past 18 months. Expect this to continue. Despite the immense damage caused to the planet by the burning of coal, putting it at odds with the global goal of a sustainable future, countries lacking in sufficient power still see coal as a faster, less expensive way to provide the energy they need to grow their economies.

Why it matters: The rise of coal usage will continue to put us farther and farther behind as a planet until we can offer reliable, cost-effective, and cleaner alternatives. One alternative is natural gas power generation (which creates 50 to 60 percent fewer carbon emissions than coal power generation) in the regions where it is needed most. But given how polarized the climate debate has become, only time will tell whether LNG will be accepted as a viable bridge fuel in the court of public opinion

Prediction 7: As our progress falls behind schedule relative to 2050 goals, political tensions will continue to rise.

What we’ll see: We can expect the election year in the U.S. to accelerate the ideological polarization we have endured in the oil and gas vs. Renewables debate. At the same time, the planet will slide on the emissions scoreboard due to coal usage in the developing world, lack of movement on industrial commodities like steel, and the slow march of progress on getting renewable energy sources to be viable from an investment standpoint without the aid of government subsidies.

Why it matters: This will only stoke the anger from the left, and cause the right to dig in even further as oil and gas continues to carry the global energy supply and power the global economy. And paradoxically, if you accept that coal is the single worst enemy of climate progress, the polarization we see will only limit our ability to eradicate coal from our global energy mix. Why? Because there is no cleaner, more readily available alternative to natural gas. And we need comprehensive infrastructure and energy policy reform to unleash U.S. national gas on this global crisis. That’s why we’ve made the case that comprehensive policy reform should be Washington's top domestic priority over the next 12 months. It's crucial for both the economy and our national security.

Prediction 8: The influence of OPEC will be put to the test.

What we’ll see: Production elsewhere in the world, including Canada and the US, will continue to rise, which will challenge OPEC influence. Countries will re-evaluate trade routes and trading relationships due to increased buying options, which present the opportunity to lower costs for domestic consumers, kickstart consumer spending, and increase energy security.

Why it matters: Expect more extreme business and production tactics as OPEC members strain to maintain control of global energy markets. Take note of new alliances and trade partnerships begin to form and watch rising powers make their first moves on the global energy chessboard as we start to see a new world order take shape.

__

Joshua Trott and Adam Hirschfeld are executives at Austin-based Workrise, which is a labor provider and supply chain solution for energy companies — including some in Houston.

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Greentown names 5 climatech startups to manufacturing accelerator

Catalyst Cohort

Greentown Labs has named five climatech startups to its Go Make 2026 cohort, including one from Houston.

Greentown Go Make 2026 is in partnership with Shell Catalysts & Technologies and Technip Energies. Startups will be able to collaborate with leadership from Shell and Technip and have opportunities to work directly with their process engineering teams and develop potential partnerships, pilots and demonstrations, according to Greentown.

This year's manufacturing cohort focuses specifically on process technology and catalytic innovations, which, according to Greentown, have the potential to be a "critical enabler of the global energy transition." Greentown shares that 90 percent of chemical processes depend on catalysis, but traditional methods rely on fossil fuels and consume significant amounts of energy.

“Catalysis underpins the majority of industrial chemical processes, which together account for a significant share of global emissions, making it a critical lever for reducing carbon intensity while improving performance,” Georgina Campbell Flatter, CEO of Greentown, said in a news release. “Greentown Go Make 2026 is designed to close the gap between breakthrough innovation and industrial deployment. By connecting startups with Shell and Technip Energies’ technical expertise and global scale, we’re helping accelerate solutions that improve efficiency and drive industrial decarbonization.”

The five Greentown Go Make 2026 companies include:

  • Houston-based Biosimo, which makes scalable biochemicals from ethanol
  • Missouri-based Catalyxx, which transforms bioethanol into drop-in, cost-competitive, carbon-negative chemicals
  • Sydney, Australia-based HydGene Renewables, which produces low-carbon hydrogen and industrial chemicals from waste biomass
  • Switzerland-based TreaTech, which turns waste into renewable gas, water and minerals through catalytic hydrothermal gasification
  • California-based Unifuel, which has developed a chemical technology platform to make sustainable aviation fuel, renewable gasoline and other renewable chemicals

The cohort will be celebrated at a kickoff event in Houston at The Ion on June 9.

In addition to Greentown Go Make, Greentown also runs its Go Move (transportation), Go Energize (energy and electricity), Go Build (buildings), and Go Grow (food and agriculture) cohort-based programs. The climatech incubator announced its Go Build 2026 cohort in March. Read more here.

Houston developer launches AI-powered water platform to boost efficiency

eyes on AI

Houston real estate company McCord Development has launched an artificial-Intelligence-run water management platform, MizuWatch.

MizuWatch aims to help operators, districts, and municipalities detect leaks faster, reduce water loss and improve efficiency, according to the company. MizuWatch pulls data from supply sources, smart meters, historical usage and maintenance records, and combines them into a single platform. The AI system also uses visual mapping and digital twin technology to deliver near-real-time system insights.

“MizuWatch brings the right data together daily, so teams can see what’s happening now, intervene earlier and focus their resources where they have the greatest impact,” Jerzy Wielgus, chief product officer for MizuWatch, said in a news release.

MizuWatch was built to “scale across geographies and system sizes to help assist with water scarcity, aging infrastructure, and operational complexity,” according to the company. It was developed at Houston’s Generation Park, McCord’s 4,300-acre master planned commercial district. McCord was able to pilot the platform onsite to help manage its complex, real-world water systems at scale.

“Resilient infrastructure is a key factor for the companies choosing Generation Park,” Ryan McCord, CEO of McCord Development and Founder & CEO of MizuWatch, added in the release. “We made the decision to deploy smart meters, but no one knew how to use the data they generate. This is an opportunity across all infrastructure where sensors are deployed. What started as an internal solution has become a platform we believe can help stakeholders everywhere be more efficient in their operations, investment, and compliance.”

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Bristol Myers Squibb Co., another pharmaceutical giant, also announced it is considering Generation Park for a new manufacturing hub earlier this month.

Oil giant BP ousts new chairman over serious conduct concerns

Sudden Exit

BP has ousted its chairman over what it called serious concerns related to “important governance standards, oversight and conduct.”

The departure was abrupt and unexpected, with Albert Manifold having been appointed to the position late last year.

“Albert has helped bring a welcome focus and pace to BP’s transformation," Amanda Blanc, senior independent director, said in a statement Tuesday, May 26. "However, the board has been surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.”

BP's board named Ian Tyler as interim chair, effective immediately.

BP, based in London and with North American headquarters in Houston, is a “supermajor,” one of the five largest oil production and exploration companies in the world when measured by revenue and profit.

Manifold, who had been the top executive at Dublin-based global building materials company CRH for 10 years, became the chair at BP in October. BP was looking for someone to revamp the oil giant and went with an industry outsider in Manifold, who had made major strategic changes at CRH.

After a new focus on renewable energy at BP in 2020, by 2025 the company was seeking a return to its roots. BP's hard reset was criticized by environmentalists, as well as some shareholders.

CEO Murray Auchincloss said last year that optimism over opportunities in renewable energy was misplaced, with the company moving “too far and too fast.”

Changes in leadership at BP in recent years has been tumultuous.

CEO Bernard Looney resigned in late 2023 after BP determined that he had misled the company over his past relationships with colleagues.

Auchincloss stepped down in December, and the company named Meg O'Neill as his successor.

Manifold’s was challenged almost immediately when shareholders defeated company resolutions this spring that would have allowed BP to reduce climate reporting requirements and move its annual meetings fully online. Some 18% of shareholders voted against Manifold’s election as chairman, a high level of opposition for an appointment that is generally rubber stamped by investors.

Legal & General, one of Britain’s largest insurers and investment companies, said at the time that Manifold was responsible for resolutions that would have had “a negative impact on shareholders’ insight into how the company is addressing financially material long-term risks, and seizing long-term value creation opportunities, associated with the energy transition,” the Times of London reported on April 23.

Glass Lewis, an influential shareholder advisor, urged investors to vote against Manifold’s election. It held that BP took “unprecedented action” by refusing to consider a resolution from a group of climate activists and pension funds hoping to force the board to create an alternative strategy should demand for fossil fuels decline, the Times reported.

Like other big oil companies, BP has struggled with falling demand in recent years.

BP’s 2025 earnings fell 16% from a year earlier to $7.49 billion as the price of Brent crude, a benchmark for international oil prices, dropped 16.9%. The company’s preferred measure of earnings is underlying replacement cost profit, which adjusts for one-time items and fluctuations in the market value of inventories. Net income plunged 86% to $55 million.

Last year there were media reports that British oil giant Shell was in talks to buy rival BP. Shell denied the reports at the time.

The search for a new chair is underway, BP said Tuesday. Shares of BP Plc slid nearly 5% in midday trading on the NYSE.

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