BP plc · LSE:BP.
BP — Investor Day (December 2005)
26 slides from BP's investor day presentation, Dec 12, 2005
Slide 1: Technology where it counts
Technology where it counts Presentation to the Investor Community 12 December 2005
Slide 2: Forward Looking Statements Cautionary Statement
Forward Looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding estimated technology investment and its growth, the increase in BP’s total recovery of viscous oil in Alaska, the estimated addi
Slide 3: Context and strategy
Context and strategy Iain Conn, Group Managing Director
Slide 4: Agenda
Agenda • Context and Strategy Iain Conn • Technology for today Tony Meggs • Technology for the future Steve Koonin • Wrap up Iain Conn • Questions and answers All 4
Slide 5: BP's strategy
BP’s strategy Resources • Build production with steadily improving cash returns • Invest in the largest, lowest cost basins • Manage decline of existing production assets Customer facing • Expand customer capture • Improve quality to grow gross margin • Grow cash flow at constant cash returns 5
Slide 6: BP's approach
BP’s approach • Focused technology leadership • Developing options for a sustainable future • Efficiency and speed • Innovation at scale • People, know-how and collaboration 6
Slide 7: Technology investment
Technology investment BP’s technology and R&D 15% p.a. average investment investment growth (2003-2006) 1000 • Technology development 750 • Investing in Technology Leadership Areas Technology $m 500 investment • Creating options for long-term • Accelerating technology adoption 250 and application R&
Slide 8: Technology for today
Technology for today Tony Meggs, Group Vice President Technology
Slide 9: Technologies across the upstream value chain
Technology for today Technologies across the upstream value chain Exploration Field Development Field Operations Facilities • Deep water • Operating efficiency • Polyester moorings • Integrity management • CO2 capture • Real time operations • Arctic facilities centres • Injection efficiency Wells •
Slide 10: Converting resources to reserves through technology
Converting resources to reserves through technology 60 57bn 50 40 Billion boe 30 24bn 20 16bn 17bn 10 0 Existing Profit New Profit TNK-BP Total Centres Centres Proved developed Proved undeveloped Non-proved Reported data end 2004 10
Slide 11: Advanced seismic acquisition & interpretation
Converting resources to reserves Advanced seismic acquisition & interpretation Sub-salt imaging in GoM and Angola The prize Conventional • Maintaining exploration leadership Narrow Azimuth BP Wide Azimuth and renewing resource base Impact • Clear image of sub-salt structures Salt Salt • Reduced expl
Slide 12: Multi-laterals – unlocking viscous oil in Alaska
Converting resources to reserves Multi-laterals – unlocking viscous oil in Alaska The prize • Waterfloodable viscous oil represents approx 2.5 bn bbls of BP Alaska’s net oil-in-place Role of technology • Multilateral Wells: Enabling economic rates and access to secondary reserves • Innovative Juncti
Slide 13: Additional resources from low salinity waterflooding
Promising results from new technologies Additional resources from low salinity waterflooding Waterflood remaining Oil Saturation The prize High salinity Low salinity • Most of BP’s oil production & reserves come from waterflooding oil reservoirs • LoSal potential to convert 1bn bbls net resources to
Slide 14: Drilling technology to unlock tight gas
Promising results from new technologies Drilling technology to unlock tight gas Wamsutter Field, Wyoming The prize • 15 TCF (2.5bn boe) BP net tight gas 10% resources in North America developed • Development challenging due to low connectivity of pore volume 40% developed Role of technology • Innova
Slide 15: Application of technology in JVs
Technology making a difference Application of technology in JVs TNK-BP production The prize 1800 TNK-BP total • Every one per cent extra recovery Liquids Production Slavneft from TNK-BP’s top five fields could (mbd, gross) Performance 1400 yield 740 million barrels of oil 2003 BP base view: 1000 Rol
Slide 16: Processing of acid crudes
Technology for today Processing of acid crudes Corrosion on Inside of The prize Pipe Caused by Acid Crudes • Acidic crudes are sold at large discounts, but cause corrosion if not handled properly • Enhancing our ability to process acid crudes will enhance refining and trading margins Role of technol
Slide 17: Differentiated fuels – BP Ultimate
Technology making a difference Differentiated fuels – BP Ultimate Inlet valves from a typical vehicle The prize after 15,000km • Grow market share and margin through differentiated fuels Role of technology • World-class capabilities to drive fuels on ordinary unleaded on BP Ultimate technology leade
Slide 18: Proprietary technology: leading global PTA industry
Proprietary Technology making a difference: Leading global PTA industry PTA research – high The prize throughput experimentation • BP and BP JV’s are the global leaders in PTA with about 30% of world’s capacity – market is growing at 8% p.a. Role of Technology • From initial technology invention to
Slide 19: Technology for tomorrow
Technology for tomorrow Dr. Steve Koonin, Chief Scientist
Slide 20: Key drivers of the energy future
Technology for tomorrow Key drivers of the energy future • GDP growth • Significant • Urbanisation Demand Supply resources • Demand Growth Challenges • Infrastructure management • Non-conventionals Technology & Policy • Import • Local pollution Environmental Security of dependence • Climate change I
Slide 21: A framework for thinking about the future
Technology for tomorrow A framework for thinking about the future Resource Business Conversion Low Carbon Extensions Technologies Options Description: Description: Description: • Significant • Conversion of any • Suite of technologies opportunities to hydrocarbon into to reduce carbon further push t
Slide 22: Access to resources
Technology for tomorrow Access to resources New Frontiers Context • Technology underpins our ability to deliver value to resource owners • In the longer term this may require: − opening new frontiers (e.g. Arctic) − finding means to commercially develop further heavy/viscous oil, tight gas and coal-
Slide 23: Conversion technologies
Technology for tomorrow Conversion technologies Syngas to Liquids (GTL) Process Natural Gas Diesel Naphtha Lubes Syngas to Chemicals Technologies Coal Syngas Methanol (CO + H2) Hydrogen Biomass Other oxygenates (e.g. DME) Extra Syngas to Power Heavy Oil Combined Cycle Power Generation 23
Slide 24: Low carbon technologies
Technology for tomorrow Low carbon technologies Role of technology • Leader in capturing business opportunities to address challenge of climate change • Developing distinctive longer term technologies for: − Decarbonised fossil fuels − Advanced solar materials − Advanced biomass conversion Impact •
Slide 25: Technology where it counts
Technology where it counts • Focused technology leadership • Developing options for a sustainable future • Efficiency and speed • Innovation at scale • People, know-how and collaboration 25
Slide 26: Q&A
Q&A Iain Conn Tony Meggs Group Managing Director Group Vice President Technology Steve Koonin Ellis Armstrong Chief Scientist Group Vice President E&P Technology Fergus MacLeod Cynthia Warner Head of Investor Relations Group Vice President R&M Technology Steve Westwell Group Vice President BP Altern