BP sets course for new era as Meg O’Neill named CEO amid leadership upheaval

BP named Meg O’Neill as chief executive, effective in April, in a sweeping leadership overhaul that follows years of upheaval at the London-based oil major. The appointment, confirmed by BP’s board under chairman Albert Manifold, continues a decade of top-level turnover that began with Bernard Looney’s departure in 2023 and the exit of former chairman Helge Lund. O’Neill’s arrival will mark BP’s first non‑British/Canadian chief executive and the first time since the company began drilling in 1909 that leadership has shifted outside traditional circles. The move also signals a reorientation away from a long‑emphasized green agenda toward a tighter focus on fossil fuel production, cost discipline and capital efficiency, a stance that has divided investors and analysts for months.

Auchincloss will remain through 2026 but will relinquish day-to-day duties immediately; Carol Howle, head of trading, will run the group until O’Neill arrives. The appointment came with hoopla in Australia, where officials framed O’Neill as the first woman to lead BP and a sign of outside succession. O’Neill, with a background at ExxonMobil and Woodside Energy, is seen as an acquirer rather than a seller, a contrast with the pressure on BP to divest assets to reduce debt. The transition comes as BP signals a re‑centered strategy away from the Looney era’s activist climate push toward value‑driven growth, with a renewed emphasis on natural gas as a complement to power demand from data centers. Offshore exploration activity such as the Bumerangue prospect in Brazil’s Santos Basin has been highlighted as a test case for the new leadership’s capital allocation approach.

Manifold has said the board will focus on hammering costs and driving efficiency under the new leadership, while remaining mindful of the Deepwater Horizon disaster as a reminder of the risks in offshore oil. O’Neill’s tenure will be watched for how BP balances asset discipline with an uncertain energy transition. The group will also contend with activist investor Elliott, which has pressed for governance and capital allocation changes. The new leadership inherits a portfolio that includes a shift away from exploration to production and project optimization, with Woodside’s experience cited as evidence of the need to deliver shareholder value even as growth expectations persist.

Across the Atlantic, the Bank of England cut rates for the first time this year, reducing the bank rate by a quarter point to 3.75 percent. Minutes from the Monetary Policy Committee show a split among policymakers, with Governor Andrew Bailey voting for a cut alongside other members who favored keeping rates unchanged. Deputy Governor Clare Lombardelli and chief economist Huw Pill warned that inflation could stay above target due to changes in wage‑setting behavior, complicating moves toward bolder easing. The backdrop includes budget leaks and a fragile economy, factors that have tempered consumer and business confidence while leaving policymakers cautious about runaway price pressures.

Analysts say the BP reshuffle is a test of whether the group can align leadership with a more disciplined capital program while facing shareholder scrutiny and the pressure to deliver energy as demand grows. Elliott and other investors have long urged BP to accelerate value creation, even as some funds worry about the pace of capital investment and the balance between growth and balance sheet strength. The coming years will shape whether BP can reconcile its transition narrative with a more traditional, debt‑conscious energy business as global demand holds firm and the energy landscape evolves.