British oil major BP is planning to increase investments in its oil and gas production assets in the Gulf of Mexico and Texas.

The move comes in response to the US government’s request to energy companies to increase oil supplies in order to reduce fuel prices, as inflation costs hit the industry, reported Reuters.

As part of the latest plan, BP intends to increase investments in onshore oil and gas business, mostly in Texas, by 41% to $2.4bn in 2023, from $1.7bn in 2022, the oil major said in its ‘US Impact Report’.

The firm also plans to increase investments in its assets in the Gulf of Mexico to an average of $2.3bn annually from 2023 to 2025. In the past five years, BP has invested $2bn per annum in the region.

BP has set a target to increase production from approximately 290,000 barrels of oil equivalent per day (boepd) in 2021 to nearly 350,000boepd by the mid-2020s in the Gulf of Mexico.

By the end of this decade, the firm aims to cut CO₂ emissions by 20% in the region.

BP America chairman and president David Lawler said: “We are proud of our 150-year history in the United States, and we’re committed to America for the long term as we transform our company in line with our ambition to reach net-zero emissions by 2050 or sooner, and help the world get there too.”

In the Gulf of Mexico, BP operates four deepwater production platforms including Atlantis, Mad Dog, Na Kika, and Thunder Horse.