BP (BP) just made history, but the circumstances are less about celebration and more about survival. The British oil giant announced Wednesday that Meg O'Neill, who's been running Woodside Energy since 2021, will take over as CEO on April 1. She'll be the first woman to lead the company in its 116-year history, which is notable. She's also the third CEO in five years, which tells you something about how rough things have been lately.

A Veteran Taking the Helm

O'Neill isn't coming out of nowhere. The U.S. citizen spent 23 years at ExxonMobil working in technical, operational, and leadership roles around the world before jumping to Woodside Energy in 2018. Since becoming CEO there in 2021, she's grown the Australian firm into the largest energy company listed on the Australian Securities Exchange, including orchestrating the takeover of BHP Petroleum International in 2022. That's the kind of resume BP needs right now.

Until O'Neill officially starts, Carol Howle, BP's head of trading, will serve as interim chief executive. So the company won't skip a beat during the transition.

Why the Revolving Door?

Murray Auchincloss became CEO in January 2024 after Bernard Looney resigned in September 2023 over lying to the board about personal relationships with employees. Not exactly the leadership stability you'd hope for at a company this size. Auchincloss lasted less than two years, and his tenure was marked by dramatic strategic pivots.

The past three years have been brutal for BP: leadership shake-ups, a complete overhaul of a failing renewables strategy, intense pressure from activist investors, and constant takeover speculation swirling around. It's been messy.

The Big Strategic Reversal

Under Auchincloss, BP scrapped plans to reduce its oil and gas production and expand its renewables business. The company isn't alone in this retreat. Rivals like Shell also pulled back on green energy investment plans as the economics became challenging. President Donald Trump's "drill, baby, drill" rhetoric has only encouraged companies to double down on fossil fuels.

BP also launched a massive $4 billion to $5 billion cost-cutting drive through 2027 and eliminated 5% of its global workforce of nearly 90,000 this year. That's roughly 4,500 jobs gone as the company tries to streamline operations.

So O'Neill will be leading a company that's deliberately cutting renewable energy investments to focus on increasing oil and gas production. The target: 2.3 million to 2.5 million barrels of oil equivalent per day by 2030. The twist? She's doing this just as oil prices are expected to weaken amid a global supply glut. Good luck with that timing.

How Investors Are Reacting

Here's the surprising part: investors actually seem to like what's happening. Following pressure from activist investor Elliott Management, BP's strategic moves have been well-received by the market. U.S.-listed shares of the company have gained 15.2% so far this year and closed Wednesday at $34.47.

The company has deep roots in America, spending about 40% of its capital investment in the U.S. last year, with nearly one-third of its global workforce located in the country. That positioning could be an advantage as the energy landscape shifts.

The fundamentals paint a mixed picture, though. The stock scores strongly on value metrics, while momentum and quality indicators are more mixed, and growth remains weak. Price trend signals show short and medium-term weakness, though the long-term trend is still positive.

What Comes Next

O'Neill faces a fascinating challenge: running a legacy oil major that's betting big on fossil fuels just as the industry faces uncertain pricing, geopolitical complexity, and long-term demand questions. She's proven she can grow a major energy company and execute complex transactions. Whether she can navigate BP through this particularly choppy period remains to be seen.

One thing's certain: being the first woman to run BP in 116 years is historic, but the real test will be whether she can finally bring some stability and direction to a company that desperately needs both.