Resilient & focused hydrocarbons

As we transition to an integrated energy company, US oil and gas production and refining will remain key parts of our net zero strategy.

Explore Resilient & focused hydrocarbons
bpx energyGulf of MexicoRefineriesTerminals & pipelines

Underpinning our net zero transition

Our core hydrocarbons business is a key pillar in bp’s transformation into an integrated energy company. Not only will emissions reductions in that business be essential to helping us achieve our net zero ambition; the cash flows from our oil and gas production and refining activities will also allow us to invest in the energy transition. Maintaining an absolute focus on safety and operational reliability will be essential to both.

The phrase ‘resilient and focused hydrocarbons’ isn’t ordinary in the energy industry – and neither is what we’re planning to do with the cash flows they generate. In a word: change.

Dave Lawler
president and chairman of bp America
Explore Resilient & focused hydrocarbons
bpx energyGulf of MexicoRefineriesTerminals & pipelines

bpx energy

With operations in Texas and Louisiana, our US onshore business – known as bpx energy – has become both a premier oil and gas producer and a leader in reducing methane emissions, reflecting bp’s global resilient and focused hydrocarbon strategy.

High-margin barrels produced responsibly

bpx energy operates in the Permian-Delaware and Eagle Ford basins in Texas and the Haynesville basin in Texas and Louisiana, focusing on safely producing higher-margin barrels while driving down emissions.

In 2018, we acquired world-class shale assets from BHP in Texas and Louisiana. At the time bpx assumed operations of those assets, flaring intensity was around 16%. Today it is less than 2% and dropping.

In total, the sustainable emissions reductions bpx delivered in 2020 are an amount comparable to the annual electricity-related emissions of over 100,000 typical homes. The projects driving those reductions include construction and electrification of centralized facilities and electrification of certain existing facilities.

The numbers tell the story

bpx produced an average of

373,000 boe/d

in 2020

bpx delivered sustainable emissions reductions totaling

247,000 MTCO₂e

in 2020

bpx employs approximately

690 people

through its operations

Aiming for zero routine flaring

In April 2021, we announced our aim to achieve zero routine flaring in our US onshore operations by 2025. We plan to accomplish this primarily through significant investments in new and upgraded infrastructure. bpx’s new, state-of-the-art Grand Slam facility near Orla, Texas, in the Permian Basin is the most significant investment to date.

Grand Slam is an electrified central oil, gas and water handling facility that reduces operational emissions, in part by replacing gas-driven equipment, compressors and generators. It is also highly automated, enabling near real-time status of operating conditions, resulting in fewer operational upsets.

Through its sophisticated separation and compression system, Grand Slam allows for the recovery of gas that would normally be flared at traditional well sites, which means bp can commercialize the gas instead of flaring it. And in 2020, our assets in the Permian region delivered sustainable emissions reductions totaling 91,000 metric tons of carbon dioxide equivalent.

What we are doing with our Permian assets is a clear example of our strategy in action. Electrification of the field has been a gamechanger. We are cutting emissions while significantly increasing the reliability of our field operations enabling a 20% increase in production. It’s exciting to see our emissions decrease and our operating cash flow increase.

Kim Krieger
vice president of operations at bpx energy

Grand Slam represents the largest infrastructure project to date for bpx energy. We anticipate that more than 75% of our Permian operated wells will be electrified by the end of 2021, and that more than 95% will be electrified by 2023.

Reducing emissions and improving efficiency

We will continue to invest in technology to reduce methane emissions and improve our ability to measure it. We’re actively improving our methane measurement programs, which include detection and quantification. Along with drone and aerial methane detection surveillance — including high-resolution and infrared camera coverage — we are testing continuous methane detection technologies in the Permian. We aim to install methane measurement at all our existing major oil and gas sites by 2023. We are also using drones and other technologies to reduce safety risks at our facilities.

Our journey is just beginning. We still have work to do, but we are constantly evaluating and piloting new technologies to help further reduce emissions, including flaring, and help advance bp’s ambition to be a net zero company by 2050 or sooner.

Dr. Faye Gerard
vice president of low carbon and sustainability at bpx energy

Not only are we driving down emissions, but we are also driving efficiency and reliability to increase value. For example, by using electricity to power our drilling operations, we save more than 50,000 gallons of diesel per well every 20 days.

Preventing methane from escaping into the atmosphere is good for our planet; it’s also good for our business, because the more gas we keep in a pipeline, the more gas we can sell. That’s why we at bp are working to delivering on our aims to reduce emissions – including methane – from our operations.

Dave Lawler
CEO of bpx energy & president and chairman of bp America
Grand Slam

26,000 barrel per day oil handling facility at Grand Slam.

Grand Slam

Grand Slam is a highly automated plant with remote operating capability: cable trays are shown between gas compressor coolers and gas treating equipment.

Grand Slam

100 million standard cubic feet per day gas compression facility at Grand Slam. The gas compressors have electric drives.

Grand Slam

120,000 barrel per day water handling facility with 5 salt water injection wells.

Grand Slam’s substation provides power to all electric motors at the facility.

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Gulf of Mexico

Our Gulf of Mexico business is a crucial source of US energy security, an important provider of jobs and investment for the Gulf Coast region and an essential driver of our transformation as a company.

bp in the Gulf of Mexico

Thunder Horse

bp in the Gulf of Mexico

Atlantis

bp in the Gulf of Mexico

Na Kika

Mad Dog

An aerial view of bp's Argos platform in Gulf of Mexico with a boat next to it in dark blue water

Argos

Powering bp’s transformation

Our resilient and focused hydrocarbons business is a key pillar in bp’s transformation into an integrated energy company. Not only will emissions reductions in that business be essential to helping us achieve our net zero ambition; the cash flows from our oil and gas production and refining activities will also allow us to invest in the energy transition.

“Resilient and focused” means hydrocarbons that can withstand lower prices and are connected to nearby, preexisting infrastructure.

Our Gulf of Mexico business exemplifies this approach, producing some of bp’s highest-value barrels anywhere in the world. We currently operate four Gulf of Mexico production platforms – Atlantis, Mad Dog, Na Kika and Thunder Horse – and plan to start up a fifth platform called Argos in 2022.

The numbers tell the story

bp’s net production was around 300,000 boe/d in the Gulf of Mexico for the first half of 2021

bp expects to produce 400,000 boe/d in the Gulf of Mexico by the mid-2020s

bp directly employs nearly 1,100 people through its Gulf of Mexico business

Focused growth

Over the past few years, we have brought several major Gulf projects online while using advanced technology to improve the safety, efficiency and sustainability of our operations. We applied technological breakthroughs in seismic imaging — made possible by our Center for High-Performance Computing in Houston — to discover 400 million barrels of oil equivalent of additional resources in place at our Atlantis field and 1 billion barrels of oil equivalent of additional resources in place at our Thunder Horse field.

In 2020, we completed startup work on our Atlantis Phase 3 project, a key component of our transformation into an integrated energy company. Phase 3 includes the construction of a new subsea production system for eight new wells tied into Atlantis. We expect it will increase gross platform production by more than 35,000 barrels of oil equivalent per day at its peak.

With this project, we were able to develop additional resources close to the current Atlantis platform, which allowed us to use existing infrastructure to access and deliver these barrels at low cost and in rapid time. This is a great example of how oil and gas projects support bp’s strategy by focusing our efforts in the basins we know best and close to existing infrastructure.

Starlee Sykes
SVP, Gulf of Mexico and Canada

High-value growth

Our Gulf of Mexico team reached a number of milestones in 2021. One was the safe start-up of our Manuel project, which includes a new subsea production system for two new wells tied into the Na Kika platform. bp expects these wells to boost gross platform production by 20,100 barrels of oil equivalent per day.

In April 2021, we hit another milestone when bp’s Argos platform — the centerpiece of our $9 billion Mad Dog 2 project — arrived in Ingleside, Texas, after a 16,000-mile journey from South Korea.

A semi-submersible, floating production platform, Argos will be our fifth operated platform in the Gulf of Mexico — and our first new platform since Thunder Horse began production in 2008.

And in September 2021, we safely and successfully started-up our Thunder Horse South Expansion Phase 2 project. The Phase 2 project is expected to increase output at one of the largest fields in the Gulf of Mexico, with peak annual average gross production of 25,000 barrels of oil equivalent a day from the initial two well tieback. Eventually a total of eight wells are expected to be drilled as part of the project’s overall development. The Phase 2 start-up is part of bp’s plans to grow our Gulf of Mexico oil and gas production to around 400,000 barrels of oil equivalent a day net by the mid-2020s.

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Refineries

bp’s three US refineries each play a key role in powering regional transportation networks and make significant economic contributions to their local communities.

The numbers tell the story

bp has the capacity to refine 771,000 barrels of crude oil each day in the US

bp’s US refineries represent about 40 percent of bp’s global refining capacity

bp supports 127,000 jobs across IN, IL, OH and WA

Whiting Refinery

Located in northwest Indiana, our Whiting refinery is the largest in the Midwest and bp’s largest anywhere in the world. Able to process around 440,000 barrels of crude oil every day, Whiting produces a wide range of liquid fuels, along with 7% of all asphalt in the United States.

Whiting refinery reached an important milestone by safely bringing its new naphtha hydrotreater processing unit online in August of 2020. bp invested over $300 million over the three-year construction period of the unit. The naphtha hydrotreater removes sulfur from gasoline and improves the facility’s ability to produce cleaner-burning fuels.

The naphtha hydrotreater allows the refinery to produce the full slate of US EPA Tier 3 fuels, which require gasoline to have an average sulfur content of no more than 10 parts per million. According to the EPA, “these lower sulfur fuels will help lower individual vehicle emissions and make automobile emission control systems more effective."

Cherry Point Refinery

In 2018, our Cherry Point refinery became the first refinery in the Pacific Northwest to manufacture renewable diesel fuel by co-processing biomass-based feedstocks alongside traditional feedstocks. This project has helped bp reduce the CO₂ emissions from our Cherry Point diesel.

Cherry Point can process roughly 250,000 barrels of crude oil per day, and it is the biggest supplier of jet fuel to the Seattle, Portland, and Vancouver International airports. In 2019, bp completed a 22-month modernization project at Cherry Point to help reduce source emissions and improve efficiency.

In October 2021, we announced plans for a $269 million investment in three projects at Cherry Point, aimed at improving the refinery’s efficiency, reducing its carbon dioxide (CO₂) emissions and increasing its renewable diesel production capability. Expected to create more than 300 local jobs over the next three years, this investment is aligned with our aims to be net zero across our operations by 2050 or sooner and to reduce the carbon intensity of the products we sell by 50% by 2050 or sooner.

bp-Husky Toledo Refinery

The bp-Husky Toledo refinery in Oregon, Ohio, can process up to 160,000 barrels of crude oil per day. Established in 1919 by Standard Oil of Ohio, the Toledo refinery is now operated by bp as part of a joint venture with Cenovus Energy. Between 2019 and 2020, we improved the reliability of our mercaptan oxidation (Merox) unit, which converts kerosene into jet fuel. Operational improvements boosted the run rates of our Merox unit by more than 30% and reduced the amount of clay filter waste material generated during the Merox process. As a result, our Toledo refinery can produce more jet fuel, more efficiently.

Safe operations

We believe that technology can play an increasingly effective role in reducing safety risks and throughout 2020 we continued to extend its use in this context across our refining operations. Key actions included the continuing use of drones and robotic technologies for inspections, removing the need for people to face the risks involved in carrying out inspections.

Our three refineries continue to provide the US with the energy that it needs safely, reliably and efficiently.

  • [1]

    This figure is based on GREET 3.0 for California Air Resources Board provisional pathway using tallow feedstock.

  • [2]

    Applies where generators over 25 megawatts are required to possess credits.

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Terminals & pipelines

Our US Terminals & Pipelines organization functions as the transportation and delivery hub for bp businesses and third parties across America, moving and storing the energy resources that power economic growth.

A white pipeline attached to a metal structure with a blue sky above

The numbers tell the story

bp owns or manages approximately

4,200 miles

of US pipelines

bp’s pipelines carry an average of

1.1 million barrels

of crude oil, natural gas liquids and refined products on a daily basis

bp maintains

74 storage tanks

that are above-ground across the Midwest and Pacific Northwest

Our operations

While our Terminals & Pipelines business is headquartered in Chicago, we manage all pipeline operations from control centers in Oklahoma and Washington state using satellite communications. Our Terminals & Pipelines business utilizes innovative technologies, including an advanced leak detection system and a robust damage prevention program, to help our operations run safely and efficiently.

The Terminals & Pipelines business includes pipelines that transport onshore crude oil production to our Whiting refinery and offshore crude oil and natural gas production to key refining markets and trading and distribution hubs nationwide. In addition, bp also has an ownership interest in more than a dozen terminals in California, Georgia, Illinois, Indiana, Maryland, Minnesota, New Jersey, New York, Ohio, Oregon, and Washington state.

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