At the beginning of 2026, BP is once again under the spotlight of its institutional shareholders, under questioning that points directly to the way the company is allocating capital to its oil and gas projects, a factor that investors allow to explain its weak long-term stock market performance.
Oil and gas stock performance
A group of large European and British pension funds, along with the ACCR organization, introduced a shareholder resolution calling for greater transparency on spending upstream. The initiative comes after repeated failed attempts at dialogue with the company and seeks to force concrete explanations on how new investments will create real value.
According to analysis cited by investors, BP’ s total shareholder return has lagged both the market and its main competitors over periods of three, five, ten and fifteen years. Despite this, the oil company announced a 17% increase in upstream investment as part of a recent strategic realignment.
The funds also believe that this turnaround does not address the core problem. According to ACCR research, the $22 billion invested by BP in conventional oil and gas projects over the past six years would have generated limited value for shareholders under future price scenarios.
The proposal requests that BP demonstrate in detail how it applies rigorous capital discipline to each new project. Among the most relevant points, the investors are demanding information on cost competitiveness with other comparable developments, the treatment of cost overruns and delays, and the economic justification for continued exploration spending.
The co-presenting group, which together manages about £191 billion, argues that clearer disclosure would allow it to assess whether the expansion in exploration and production is in line with a sustainable strategy or repeats previous mistakes.
The resolution puts the spotlight on BP’s new phase of corporate governance. For investors, the change in the chairmanship and executive management opens a window to review investment decisions more objectively and redefine long-term value creation priorities.
Increased spending on new oil and gas development raises concerns against a backdrop of energy transition and uncertainty about future demand. Without sound financial justification, they warn, the risk of further erosion of shareholder returns remains.
Source and photo: ACCR