Why It Matters

BP faces a fundamental challenge: defending its core oil and gas business while securing favorable implementation of clean energy tax credits. The company’s February 2025 strategic pivot toward increased fossil fuel spending—including the $5 billion Tiber-Guadalupe Gulf of Mexico project approved in September—has intensified these stakes.

Recent setbacks like BOEM’s August 2025 rejection of BP’s Kaskida project on safety grounds, combined with bipartisan coastal opposition to expanded drilling, mean BP must aggressively lobby for regulatory relief. Simultaneously, threats to clean energy tax credits—particularly bipartisan efforts to restrict the 45Z clean fuel credit to domestic feedstocks—require BP to influence implementation details across both offshore operations and tax policy.

By the Numbers

BP America Inc. spent $910,000 on federal lobbying in Q3 2025 through its in-house government affairs team. The company is a veteran player, having spent over $143 million total on federal advocacy since 2003—$124.1 million through in-house efforts alone.

BP deployed six registered lobbyists, including three with significant congressional experience. Robert M. Guido spent over seven years in the House, including work for House Ways and Means Committee Chairman Dave Camp—critical for BP’s tax credit advocacy. Andrew L. Vlasaty brings 8.5 years of Senate experience on the Agriculture Committee, relevant to renewable fuel standard work. Grant K. Cummings worked on Senate Energy and Natural Resources Committee, providing offshore leasing expertise.

The Agenda

BP America Inc. is lobbying on issues tied to its energy transition strategy and core oil and gas operations. The company seeks favorable implementation of clean energy tax credits, including 45Q carbon capture, 45V clean hydrogen, and 45Z clean fuel production credits. Simultaneously, BP is pushing back against regulatory burdens on Gulf of Mexico offshore operations, particularly regarding environmental impact assessments and Coast Guard manning provisions.

Additional priorities include:

  • Offshore leasing and regulatory certainty for Gulf operations, including the Tiber-Guadalupe deepwater project
  • Energy taxation provisions like Base Erosion Anti-Abuse Tax affecting international operations
  • Renewable Fuel Standard volume obligations for 2026-2027 and biofuels policy
  • Foreign relations and sanctions, particularly the Sanctioning Russia Act of 2025
  • Environmental permitting reform under NEPA to expedite project approvals
  • Tariff policy on imported crude oil, steel, and aluminum affecting infrastructure costs

Broader Context

BP’s third quarter lobbying reflects a company navigating conflicting policy pressures following its strategic repositioning. In February 2025, BP announced a major shift, cutting renewable investments and boosting oil and gas spending to $10 billion annually. BP approved the $5 billion Tiber-Guadalupe deepwater project in September, expected to begin production in 2030.

However, regulatory obstacles persist. BOEM rejected BP’s Kaskida drilling proposal in August, citing inadequate safety demonstrations. While the Trump administration plans 30 offshore Gulf sales through 2040, coastal members from both parties resist expansive drilling, creating uncertainty despite the favorable political environment.

On tax credits, a bipartisan group including Representatives Mann and Kaptur plus Senators Marshall and Klobuchar pushed the Farmer First Fuel Incentives Act restricting the 45Z credit to domestic feedstocks, directly impacting BP’s bioenergy sourcing strategy.

Between The Lines

Congress is actively debating energy policy central to BP’s agenda. The Senate Energy Committee held hearings on declining Gulf production, with witnesses attributing declines to regulatory uncertainty. Pro-leasing legislation like S.460—Supporting Made in America Energy Act mandates minimum offshore lease sales.

On taxation, bipartisan pressure threatens clean fuel incentives. Representatives Mann and Kaptur with Senators Marshall and Klobuchar push to restrict the 45Z credit to domestic feedstocks, while H.R.4714—End Polluter Welfare Act seeks to eliminate fossil fuel subsidies entirely.

The Bottom Line

BP’s spending almost $1 million on lobbying in the third quarter reflects competing priorities as the company pursues increased fossil fuel investment while maintaining clean energy tax benefits. The strategic shift toward the $5 billion Tiber-Guadalupe project drove advocacy on offshore regulations, tax credit implementation, and international policy affecting operations.

Key focus areas included defending against the Biological Opinion litigation, securing favorable 45Q/45V/45Z tax credit rules amid domestic content restrictions, and engaging on Russia sanctions and infrastructure tariffs. BP’s experienced congressional staffers position the company to influence both legislative debates and regulatory details across energy, tax, and environmental policy.

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