BP plc · LSE:BP.
BP — Investor Presentation (December 2014)
37 slides from BP's investor presentation, Dec 5, 2014
Slide 1: SRI annual meeting
SRI annual meeting 5th December 2014
Slide 2: Carl-Henric Svanberg, Chairman
Carl-Henric Svanberg Chairman
Slide 3: Cautionary statement
Cautionary statement Forward-looking statements - cautionary statement The presentations and the associated slides and discussion contain certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events – with respect to the financial condition,
Slide 4: Agenda
Agenda 1.30pm Introduction and BP Board context - Carl-Henric Svanberg, Chairman Industry context, our strategy and our - Dev Sanyal, Executive vice president, strategy and priorities regions - Bob Fryar, Executive vice president, safety and Managing operational risk operational risk Managing risk i
Slide 5: BP Board context
Carl-Henric Svanberg Chairman BP Board context
Slide 6: Industry context, our strategy and our priorities
Dev Sanyal Executive vice president, strategy and regions Industry context, our strategy and our priorities
Slide 7: Industry Context
Industry Context GDP PRIMARY ENERGY SHARES OF PRIMARY ENERGY TRILLION BILLION % $2011 PPP TOE 140 12 45 NON-OECD NON-OECD OIL 120 40 9 100 35 80 6 30 60 COAL OECD OECD 25 40 3 GAS 20 20 0 0 15 1990 2005 2020 2035 1990 2005 2020 2035 1990 2005 2020 2035 Source: BP Energy Outlook 2035
Slide 8: Our Strategy
Our Strategy A focused oil and gas company delivering value over volume
Slide 9: The BP Proposition 2014 to 2018
2014 TO 2018 The BP Proposition Value over volume Active portfolio management Growing sustainable free cash flow Material growth in operating cash flow Capital discipline Growing distributions Progressive dividend Surplus cash biased to further distributions
Slide 10: Managing operational risk
Bob Fryar Executive vice president, safety and operational risk Managing operational risk
Slide 11: A safer, stronger BP
A safer, stronger BP BP’s agenda is a multi-year programme with activities risk-prioritized and paced to achieve enduring and sustainable change. Three enduring principles guide our efforts, they are: • Our operating management system (OMS) is the way BP operates • To promote deep capability and a s
Slide 12: OMS as the way BP operates
OMS as the way BP operates • Operating requirements • Performance improvement • Local processes
Slide 13: Promoting deep capability and a safe operating culture
Promoting deep capability and a safe operating culture • Leadership • Hazard awareness • Continuous improvement (CI)
Slide 14: Testing our conduct of operating
Testing our conduct of operating A three tier approach to safety and operational risk • Audit – Group Audit’s risk-based independent audit programme to report on risk management effectiveness • Assurance – S&OR conducts focused assurance to provide our view of how risks are being managed • Self veri
Slide 15: Safety and environmental performance
Safety and environmental performance Number of Tier 1 & Tier 2 Process Safety Events (T1 & T2 PSE) Number of Losses of Primary Containment (LOPC) Recordable Injury Frequency (RIF) Number of Oil Spills >=1bbl
Slide 16: Managing risk in the Upstream supply chain
Bernard Looney Chief operating officer, Production Managing risk in the Upstream supply chain
Slide 17: Contractors in the Upstream
Contractors in the Upstream • 16,000 contractors • ~70% of hours worked • Prioritised by risk (PHCA), value (strategic, core, transactional) • 373 contracts with PHCA elements • 29 strategic contractors • $30bn annual spend • Wells $9bn • Operations $10bn • Projects $10bn
Slide 18: Governance
Governance • Category Management Common Process (CMCP) Global Supplier Planning Category Sourcing Management Strategy • OMS 2.5 (“Working with Contractors”) • Upstream Contractor Safety Management Procedure • Contract Governance Boards • Performance Reviews Holding contractors to account for followi
Slide 19: Oversight – E-Wells
Oversight — E-Wells $05 Shift and Tour Handover 1. Was shift and/or tour handover carried out face to face? Sm Comments 2. Was the shift handover documented (written or electronic form) and signed off by out/on coming shift personnel? em & Comments 3. Did the handover discuss the well and well contr
Slide 20: Global Operations Organization - Progress
Global Operations Organization - Progress GOO Process Safety - Upstream Operated Tier 1 Events Plant Reliability 25 95% 20 90% 15 10 85% 5 0 80% 2010 2011 2012 2013 2014 YTD Data excludes L48.
Slide 21: Global Wells Organization - Progress
Global Wells Organization - Progress BOP Reliability Team BOP Reliability 19.9m Non-productive time (days) • Dedicated team of experts 700 600 • Global BOP hot-line 500 • 4 focus areas: 400 • Troubleshooting and risk assessment 300 603 • Maintenance 200 415 • Defect elimination 100 203 • Contractor
Slide 22: Our agenda – non safety risks
Our agenda – non safety risks • Human Rights • Bribery, corruption and money laundering • Local Content
Slide 23: Forward agenda
Forward agenda • Safety – remains job #1 • Attentive to non safety risks • Fewer, deeper, more collaborative relationships • Clearer ownership and accountabilities • Self verification (contractor) • Oversight (BP)
Slide 24: Questions
SRI annual meeting 5th December 2014 Questions
Slide 25: SRI annual meeting
SRI annual meeting 5th December 2014
Slide 26: The Long-Term Technology View
David Eyton Group Head of Technology The Long-Term Technology View
Slide 27: Long-Term Technology View to 2050
Long-Term Technology View to 2050 Resource base Value chains Consumption No shortage of Increasing competition Opportunities to improve hydrocarbons – but the between value chains end-use efficiency, merit order could change including transportation Cross-cutting themes Modularity, digital opportuni
Slide 28: Technology impact on energy resources
Technology impact on energy resources • Abundant technically-accessible resources • Discovered oil & gas endowment increasing • Technology adding to resources • Key oil & gas levers seismic imaging enhanced oil recovery digital techniques Centre for High Performance Computing, Houston
Slide 29: Decarbonisation
Decarbonisation • Increasing competition between value chains • Easier to decarbonise power than transportation • Greatest impact switching from coal to natural gas • Electric/fuel cell vehicles expensive • Liquid transportation fuels remaining major part of mix
Slide 30: Disruptive technologies
Disruptive technologies • Digital, bio- and nano-technologies • Horizon scanning university programmes venturing • Great potential when applied to enhanced oil recovery batteries for transport advanced solar conversion gen IV nuclear
Slide 31: Social, environmental and policy factors
Social, environmental and policy factors • Significant regional variation access to resources existing infrastructure market regulation • Complex relationships between energy and other natural resource constraints • Influence of public opinion and consumer behaviour • Fostering innovation
Slide 32: Portfolio
Dominic Emery VP, Long-term planning Portfolio
Slide 33: BP's portfolio drivers
BP’s portfolio drivers Active portfolio Safe, reliable & management efficient execution Resource renewal Capital framework Capabilities and mix
Slide 34: Current portfolio
Current portfolio • A focused oil and gas company • 44 billion boe resources • 11 billion boe reserves • 13 years reserves to production • Diversity • Geography • Resource type Upstream and Downstream Upstream only • Segment Downstream only
Slide 35: Future portfolio
Future portfolio 2014 Mid 2020s • Growing demand for gas • Premium markets Oil • High value products Gas • Growing supply opportunities • Unconventional oil and gas • Long-life cash flows • Portfolio diversity and resilience Conventional Deepwater Unconventional
Slide 36: Questions
SRI annual meeting 5th December 2014 Questions
Slide 37: SRI annual meeting
SRI annual meeting 5th December 2014