BP to cut dividends as it prepares for fossil fuel decline

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FILE – This Tuesday, Aug. 1, 2017 file photo shows the BP logo at a petrol station in London. Energy company BP said Monday June 8, 2020, that its global workforce will be trimmed by 10,000 jobs amid the ongoing impact of the COVID-19 pandemic. (AP Photo/Caroline Spiezio, File)

LONDON (AP) — BP plc says it plans to slash dividends as the global oil company prepares for declining sales of fossil fuels by boosting investment in alternative energy projects.

London-based BP says it plans to increase spending on low-carbon technology, including renewable energy projects, 10-fold to $5 billion a year over the next decade.

The company expects oil and gas production to drop by about 40% over the same period.

BP announces the shift as it reports a second-quarter operating loss of $6.68 billion as the COVID-19 pandemic cuts oil prices and demand for energy. 

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