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Released May 03, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy giant BP plc (NYSE:BP) is renewing its commitment to oil and gas development, as it maps out high-profile spending plans following exceptionally strong results in oil and gas trading during the first quarter. Industrial Info is tracking more than $43 billion worth of BP projects worldwide, including more than $3.3 billion worth in North America.
Click on the image at right for a graph detailing the top 10 industry sectors for BP's active global projects.
In a quarterly presentation to investors, BP highlighted its offshore developments in North America. Its most significant achievement during the first quarter was first production from the Argos platform at its Mad Dog 2 development in the Gulf of Mexico, which has a production capacity of up to 140,000 barrels per day (BBL/d) of oil. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more from a detailed project report.
To support the newly operational platform, BP is preparing to drill two to four additional water injection wells at its South West location, and another two to four at its North West location. The company believes these measures will triple oil production at Mad Dog 2 by 2025. Subscribers can learn more from detailed project reports on the South West and North West expansions.
BP expects capital expenditures to total between $16 billion and $18 billion for full-year 2023. For more details on how BP and other oil and gas majors are handling a market flush with demand, see May 3, 2023, article - Energy Market Players are Upbeat--for Now, and March 16, 2023, article - Big Oil's Enviable Problem: What to Do With All this Money?.
BP came under heavy criticism from some investors when it acknowledged in February it would have to scale back its low-carbon ambitions. The company had planned to cut its oil and gas production 40% from 2019 levels by 2030, but now has lowered that goal to 25%. Executives insist BP still is aiming for net-zero emissions by 2050.
Among its green energy projects, BP is the operator and 50% owner of the Fowler Ridge Windfarm in Fowler, Indiana, which was co-owned by American Electric Power (NASDAQ:AEP) (AEP) (Columbus, Ohio) until earlier this year. AEP agreed in February to sell its unregulated, contracted renewables portfolio to IRG Acquisition Holdings (Los Angeles, California). For its part, BP is considering a proposal to replace older turbines at Fowler Ridge with newer, more efficient models. Subscribers can learn more from Industrial Info's project report.
BP's balance sheet also benefited from fewer refinery turnarounds during the quarter. The company recently wrapped up the divestment of its 50% interest in the Toledo Refinery in Oregon, Ohio. Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) now has full ownership of the facility and is entering a multi-year product supply agreement with BP; previously, the companies split ownership of the 160,000-BBL/d facility evenly. Subscribers to Industrial Info's GMI Petroleum Refining Plant Database can learn more from a detailed plant profile.
BP's refining division in wrapping up upgrades to a distillate hydrocracker unit and a cooling tower at its Cherry Point Refinery in Blaine, Washington, and is revamping its Unit 3 steam-turbine generator at its refinery in Whiting, Indiana. All three projects are expected to wrap up in the coming weeks. Subscribers can read detailed reports on the Cherry Point hydrocracker and cooling tower projects, and the Whiting Unit 3 project.
The company also is weighing proposed upgrades to delayed coker units at Cherry Point and Whiting, which could improve their reliability. If approved, these projects could begin construction next year. Subscribers can read detailed reports on the possible Cherry Point and Whiting upgrades.
BP also completed the divestment of its upstream assets in Algeria during the first quarter.
Oil and gas majors continue to enjoy strong profits, but are coming down from the massive gains they enjoyed in 2022, when the world was struggling to adjust to an energy crunch fueled, in part, by the war in Ukraine. BP is no exception: A first-quarter underlying profit of $5 billion still paled in comparison with the same period last year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active, U.S.-based projects from BP.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 industry sectors for BP's active global projects.In a quarterly presentation to investors, BP highlighted its offshore developments in North America. Its most significant achievement during the first quarter was first production from the Argos platform at its Mad Dog 2 development in the Gulf of Mexico, which has a production capacity of up to 140,000 barrels per day (BBL/d) of oil. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more from a detailed project report.
To support the newly operational platform, BP is preparing to drill two to four additional water injection wells at its South West location, and another two to four at its North West location. The company believes these measures will triple oil production at Mad Dog 2 by 2025. Subscribers can learn more from detailed project reports on the South West and North West expansions.
BP expects capital expenditures to total between $16 billion and $18 billion for full-year 2023. For more details on how BP and other oil and gas majors are handling a market flush with demand, see May 3, 2023, article - Energy Market Players are Upbeat--for Now, and March 16, 2023, article - Big Oil's Enviable Problem: What to Do With All this Money?.
BP came under heavy criticism from some investors when it acknowledged in February it would have to scale back its low-carbon ambitions. The company had planned to cut its oil and gas production 40% from 2019 levels by 2030, but now has lowered that goal to 25%. Executives insist BP still is aiming for net-zero emissions by 2050.
Among its green energy projects, BP is the operator and 50% owner of the Fowler Ridge Windfarm in Fowler, Indiana, which was co-owned by American Electric Power (NASDAQ:AEP) (AEP) (Columbus, Ohio) until earlier this year. AEP agreed in February to sell its unregulated, contracted renewables portfolio to IRG Acquisition Holdings (Los Angeles, California). For its part, BP is considering a proposal to replace older turbines at Fowler Ridge with newer, more efficient models. Subscribers can learn more from Industrial Info's project report.
BP's balance sheet also benefited from fewer refinery turnarounds during the quarter. The company recently wrapped up the divestment of its 50% interest in the Toledo Refinery in Oregon, Ohio. Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta) now has full ownership of the facility and is entering a multi-year product supply agreement with BP; previously, the companies split ownership of the 160,000-BBL/d facility evenly. Subscribers to Industrial Info's GMI Petroleum Refining Plant Database can learn more from a detailed plant profile.
BP's refining division in wrapping up upgrades to a distillate hydrocracker unit and a cooling tower at its Cherry Point Refinery in Blaine, Washington, and is revamping its Unit 3 steam-turbine generator at its refinery in Whiting, Indiana. All three projects are expected to wrap up in the coming weeks. Subscribers can read detailed reports on the Cherry Point hydrocracker and cooling tower projects, and the Whiting Unit 3 project.
The company also is weighing proposed upgrades to delayed coker units at Cherry Point and Whiting, which could improve their reliability. If approved, these projects could begin construction next year. Subscribers can read detailed reports on the possible Cherry Point and Whiting upgrades.
BP also completed the divestment of its upstream assets in Algeria during the first quarter.
Oil and gas majors continue to enjoy strong profits, but are coming down from the massive gains they enjoyed in 2022, when the world was struggling to adjust to an energy crunch fueled, in part, by the war in Ukraine. BP is no exception: A first-quarter underlying profit of $5 billion still paled in comparison with the same period last year.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active, U.S.-based projects from BP.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
