Specialist
Former senior executive at BP plc
Agenda
- Key projects across BP’s (LON: BP) portfolio, highlighting CCS (carbon capture and storage) and LNG (liquefied natural gas)
- Project cost inflation risks and supply chain challenges
- Development timelines and opportunities to capture higher oil and gas prices
- Capital allocation process and project return outlook
Questions
1.
The oil and gas market has obviously been very volatile in recent months. Do you think this changes the outlook we should have for BP in terms of the pricing and demand for oil, gas and refined products? How are you thinking about the near- and longer-term future?
2.
If we end up seeing a longer period of higher oil and gas pricing and increased cash flow, do you think BP will at some point decide to increase renewables? What would be the thought process or the drawback from doing so?
3.
You mentioned the resilient hydrocarbons plan that BP has laid out. Could you outline that strategy and how the company has approached divestments in its upstream portfolio as it looks to reduce oil and gas production?
4.
You mentioned reducing emissions from oil production itself. Could you highlight the investments to be made by BP or processes that can be implemented to reduce emissions in part of the upstream portfolio? How do you see that progressing in some of the company’s resilient portfolio areas?
5.
How achievable is BP’s target of reducing Scope 1 and 2 emissions by 50% by 2030? How was that measured in the company setting that target?
6.
You said many of the dynamics at play perhaps don’t change BP’s longer-term spending, but if the company hypothetically chose to capture some of the higher oil and gas prices, are there portfolio areas or ways in which it could accelerate spending and capture some of those prices?
7.
Are there differences in how the oil majors are approaching the current environment? Does BP have a similar strategy or is it in a similar position to that of its peers?
8.
We’ve obviously seen the financial implications for BP of having to divest from the Russian assets, but do you think that significantly impacts the company’s previous strategy in the upstream business, considering it has highlighted the Russian operations as low-cost, good-quality production in prior years?
9.
The North Sea is another region in BP’s portfolio getting some coverage lately. What’s your view on the company’s portfolio and activity levels there, especially after it indicated some investment plans, but also seeing the tax proposed by the UK?
10.
How do you assess BP and other oil majors’ investment plans in CCS [carbon capture and storage] projects? How might the industry move in the coming years as we see the energy transition? How does CCS play as a component of that process?
11.
LNG [liquefied natural gas] has obviously had a lot of attention in the current environment. Given this environment, do you think BP will look to accelerate or see some positive momentum behind some of the projects it has in design or does it not change much in terms of the company’s internal thought process on LNG projects? I know there’s Tortue Phase 2 and Cypre.
12.
The eastern Mediterranean as a whole has had additional attention given the gas dynamics in Europe, and you mentioned working in Egypt. How do you think BP is positioned in the eastern Med and would you highlight any opportunities there as offering growth for the company?
13.
We’ve talked a lot about pricing and positive momentum for projects, but how are you thinking about inflation? How might potentially increasing costs play out for some of the projects in BP’s global oil and gas business in 2022 and coming years?
14.
Thinking about inflation within renewables and energy transition projects, we’ve obviously seen recent profit warnings from Vestas and Siemens Energy in wind. To what extent do you think this challenges or limits BP’s ability to execute and develop renewable projects?
15.
We discussed some of the energy transition aspects to BP’s strategy. Where do you see the company capturing the highest value in the renewable energy portfolio, or where might it see the largest successes – early on or longer term – as it builds the fairly expansive portfolio it’s outlined?
16.
Is there anything else you’d like to highlight around BP or the oil and gas industry?
