BP plc · LSE:BP.
BP — Conference Presentation (July 2001)
29 slides from BP's conference presentation, Jul 10, 2001
Slide 1: Charles Nicholson, 10th July 2001 - Amsterdam
Charles Nicholson 10th July 2001 - Amsterdam
Slide 2: Long Run Energy Demand
Long Run Energy Demand
Slide 3: World Consumption 1999
Long Run Energy Demand World Consumption 1999 Oil Gas Coal Nuclear Hydro/Renewables Source: EIA International Energy Outlook 2001
Slide 4: World Consumption Trends
Long Run Energy Demand World Consumption Trends 250 Oil Gas Coal 200 Nuclear Hydro/Renewables Indexed to 1990 150 100 50 1990 1995 2000 2005 2010 2015 2020 Source: EIA World Energy Outlook 2001
Slide 5: World Consumption by Region History Projections
Long Run Energy Demand World Consumption by Region 300 History Projections 250 200 Industrialised Quadrillion Btu 150 Developing 100 50 EE/FSU 0 1970 1980 1990 2000 2010 2020 Source: EIA World Energy Outlook 2001
Slide 6: Long Run Energy Demand Summary
Long Run Energy Demand Summary > Demand for energy will continue to grow, linked closely to population growth and economic activity > Growth will be fastest in the developing world and weakest in Eastern Europe / FSU > Policies will influence the distribution of energy demand and the rate of uptake
Slide 7: World Carbon Emissions by Region
Long Run Energy Demand World Carbon Emissions by Region 12 Industrialised Million Metric Tons Carbon Equivalent 10 Developing EE/FSU 8 World 6 4 2 0 1990 1999 2010 2020 Source: EIA World Energy Outlook 2001
Slide 8: What the Group has committed to deliver
What the Group has committed to deliver Two commitments to the outside world 10% reduction in greenhouse gases from 1990 level by 2010 (on an equity share and direct basis) Group wide trading by January 2000 “In our terms that target will now sit alongside our financial targets. That means it is
Slide 9: GHG Reductions – Progress to date
GHG Reductions – Progress to date 100 95 90 85 CO2 Equiv (MT) 80 75 70 65 60 55 50 1990 1998 1999 2000 base Currently 7% below 1990 adjusted baseline
Slide 10: Examples of GHG reduction projects in 2000
Examples of GHG reduction projects in 2000 US Western Gas - Conversion of well control systems gas savings of over 430,000 metric tons increase in the volume of natural gas available for sale Texas City Complex - holistic approach to energy management efficiency gains equating to a 150,000 t/y savin
Slide 11: Emissions Trading - Purpose
Emissions Trading - Purpose Tool to lower cost of delivering the 10% GHG emissions reduction target Provide a suitable example for the development of regulatory emission trading initiatives (simple, transparent, equitable, effective and credible) Learn through practical engagement
Slide 12: Trading System – Summary
Trading System – Summary Jan-2000: Trading System Launched 2.7 M tn traded in 2000 Average price: $7.60/tn Range 0.5-16.5 $/tn 2001 - +1 M tn traded Range – 15-20 $/tn !!
Slide 13: ET - What we have learnt
ET - What we have learnt Putting a value on greenhouse gases has: Raised awareness of the climate change issue - Engaged a wider “audience” throughout the company Created innovative business strategies to find cost effective solutions Enabled us to quantify financially the GHG implications of i
Slide 14: Lower Carbon Energy
Lower Carbon Energy Reduce FlaringEnergy Efficiency CO2 Capture & Venting Novel Low Energy Processes Our Energy & Emission Efficiency Gas replacing Hydrogen Economy Coal DGI & Hybrids Fuel Cell Vehicles Decarbonisation of Fuels Win pv Solar d Solar Renewables thermal Past Present Future
Slide 15: Global Oil Consumption 2000
Global Oil Consumption 2000 Refinery fuels Other 4% Lubes 4% 1% Chemical feedstock 8% Ground Mobility 43% Heating 13% Aviation 6% Pow er Generation 18% Marine Fuel 3%
Slide 16: Transport Fuels: Total Oil Demand Growth by Region 1999-2020
Transport Fuels Total Oil Demand Growth by Region 1999-2020 5 Gasoline Diesel 4 Million Barrels per Day J et-Fuel Other 3 2 1 0 North Western Other EE/FSU Dev. Asia C. & S. Other America Europe Indust. America Dev. Source: EIA World Energy Outlook 2001
Slide 17: BP's Cleaner Fuels Commitment
BPs Cleaner Fuels Commitment • To lead the industry in introducing cleaner fuels wherever and whenever possible • To introduce cleaner fuels into 40 cities worldwide by end 2000, and 90 cities by end 2001 • To remove lead from BP gasoline by Jan. 2002 • 40% of all BP products will be cleaner fuels b
Slide 18: Impact of Clean Fuels: BP's 40 City Programme
Impact of “Clean Fuels” BP’s ‘40 city Programme’ 60 50 40 Number of Cities 30 20 10 0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00
Slide 19: Anticipated Technology Developments
Anticipated Technology Developments Designer Gasoline? Zero sulphur fuels: H2? Methanol? “super” ULSG / D Oxygenates? FT/GTL? Mogas? FT/GTL? Fuel enabler Oil Gas Gasoline/Diesel direct injection ICE’s Power train technology Hybrid equipped vehicles Daily oil productio n Fuel Cell vehicles 2000 2005
Slide 20: Interactions between Key Issues
Interactions between Key Issues Climate Change Desertification Floods Species migration Sea level rise Habitat destruction Footprint Desertification Forestry projects Resource use Emissions/discharges Biodiversity Deforestation Water Water Quality ….. Supplies, Operations, Products and Services.
Slide 21: Innovation stretch
Innovation stretch New build standards, sequestration, innovative Expectation Projection - existing technology or flexible technologies mechanisms are needed Equity capex In stre no tc va h tio n Equity, direct, GHG reduction (tonnes of CO2 equivalent)
Slide 22: Potential Impacts of Kyoto
Potential Impacts of Kyoto Kyoto = Annex 1 Parties constant after 2010 750 700 650 600 IS92a ppm Kyoto 550 WRE550 500 450 400 350 1990 2010 2030 2050 2070 2090 Source T.M.L Wigley Full Compliance to the Kyoto Protocol - 382 ppm Non Compliance - 385 ppm at 2010
Slide 23: Summary of Key Points
Summary of Key Points > The global demand for energy will continue to grow the foreseeable future > There is no absolute shortage of hydro carbons > Evolving attitudes to environment and climate change will alter the primary energy mix with an increasing demand for gas. > Most incremental demand wil
Slide 24: Key Summary Points contd.
Key Summary Points contd. > The highest growth rates will be in transport fuels. > The introduction of clean fuels is ahead of legislation, particularly in North West Europe. > Industry is increasingly recognising that we are likely to work in a carbon constrained future and is facing up to this cha
Slide 25: Key Summary Points contd.
Key Summary Points contd. > There is good activity around the future options for reducing emissions, but more time and effort is needed to deliver these technically and economically. > Proper motivation is a key to business success. It is important to work with the grain of the market, to mobilise s
Slide 26: Key Summary Points concluded
Key Summary Points concluded > We need the skills of the scientific community to help us develop the answers, and its understanding of climate science to help us plan. > We need an international policy framework, and a global target for atmospheric concentration would provide a focus which is curren
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