BP plc · LSE:BP.
BP — Houston Presentations September 2000
18 slides from BP's conference presentation, September 2000
Slide 1: North America Gas
North America Gas Tim Holt President BP Canada Energy
Slide 2: US Market – Supply & Demand
North America Gas US Market – Supply & Demand Tcf 35 Demand 30 LNG U.S. 25 Actual/Projected Imports Supply 20 Gulf of Mexico 15 10 Lower 48 5 0 1995 1997 1999 2001 2003 2005 2007 2009 Data Source NPC 1999; Data does not net out exports to Mexico (0.05 through 1999 and 0.44 projected to 2010)
Slide 3: The leading position in the world's largest gas market
North America Gas The leading position in the world’s largest gas market Net Supply bcf/d Net Reserves tcf 5 18 Vastar Vastar 16 North America North America 4 14 12 3 10 8 2 6 1 4 2 0 BP Competitors 0 BP Competitors Source: 1999 Annual Reports, SEC Source: 1999 Annual report filings
Slide 4: Upstream Strategy
North America Gas Upstream Strategy row th G r ganic ology ves nce O chn ese r rese •Te ting r ket P s r •Exi ble Ma BP position Strategic direction •Ena •The Leading NA Producer •Grow Market Share Position for Frontier Growth •Attractive financial returns •Maintain Cost Leadership •Trinidad LNG •To
Slide 5: BP Supply Position
North America Gas BP Supply Position bcf/d 0 Regional Supply 5 10 15 20 Canada 23 % 4% Alaska Mackenzie Delta GOM 22% 7% Mid Continent 17% 5% Gulf Coast 15% 2% Wyoming 8% 6% Canada San Juan 5% 18% Permian 6% 3% Industries % of Supply BP%of Basin Supply Wyoming Other 3% 17% Mid-Continent San Juan Per
Slide 6: Canada Supply Position
Canada Supply Position British Alberta Sask. Columbia Chinchaga N. Hotchkiss Fort St. John Marten Hills Leismer Wapiti Mackenzie Delta Grande Plaine Kirby Kaybob Edmonton o West Pembina Sundre Calgary British Sask. Alberta Columbia
Slide 7: US Onshore Supply Position
US Onshore Supply Position Significant BP Presence Wyoming Significant Vastar Presence Both San Juan Hugoton Anadarko Arkoma Ardmore Tuscaloosa East Texas South LA South Texas
Slide 8: Gulf Of Mexico Supply Position
Gulf Of Mexico Supply Position Louisiana New Orleans Texas West Cameron South Pass Ram Powell Grand Isle Pompano Nile Marlin High Is. King Eugene Is. King’s Peak Amberjack Mica Ursa Nakika Mars Crazy Horse Matagorda Is. Europa Crosby Troika Neptune Diana Holstein Hoover Mad Dog Atlantis ~1500’ Water
Slide 9: Alaska Supply Position
Alaska Supply Position Location Map Milne Point Northstar Endicott Alpine Kuparuk Liberty Pt. Thomson NPRA Prudhoe Bay TA PS Badami Developments r ve Ri Major Discoveries e ill lv 0 Co LJL (April, 1997)
Slide 10: Alaska Commercialization Options
Alaska Commercialization Options Alaska Supply Mackenzie GTL plant Delta Supply LNG Plant to Asia Alberta Hub Eastern Canada PNW Market Market North Chicago ar tic Hub American t California M l an ke Market Market At 68 Bcf/d 2000 Henry 82 Bcf/d 2010 Hub Source: PIRA, October, 1999 Gulf Coast Supply
Slide 11: Trinidad Supply Position
Trinidad Supply Position Produce Develop Appraise News BP Trinidad Atlantic Offshore Trinidad LNG 5B 27 BP SCALE: Total Length is 50 Miles
Slide 12: BP's NA Supply Position
BP’s NA Supply Position BP Supply mmscf/d 7000 Alaska 6000 5000 Trinidad Canada pa De ma nd Growth Rate 4000 3% Vastar 3000 GoM 2000 1000 Lower 48 0 2000 2003 2005 2007
Slide 13: Translating Resources to Reserves
North America Gas Translating Resources to Reserves • Cost Management • Technology Application • Innovation
Slide 14: Continued Cost Reduction Potential
ontinued Cost Reduction Potential Cost of Supply ($/boe) 10 Majors 9 bp … 8 Potential Actual/ 7 6 2.5% p.a. 5 4 1995 1996 1997 1998 1999 2005 Source: Company Data
Slide 15: Technology & Innovation
North America Gas Technology & Innovation • Technology - Drilling with Casing - Hollow Whipstock Drilling - Coiled Tubing Sidetracks - New Bit Technology - Automation - Well Venting • E-Business - Online Bidding - Virtual Warehouse - Complex Services (designing, ordering, execution, payment)
Slide 16: Improving Capital Productivity
North America Gas Improving Capital Productivity $1.0mm 99 days Wamsutter $0.7mm Tuscaloosa 80 mmcfd $0.6mm $14.2mm 60 mmcfd 58 days $10.8mm $10.2mm 28 days 32 days 16 days 11 days 15 mmcfd 1993 1998 1999 Total Cost per well Spud to first sales Drilling Time 1994-98 1999 2000 Average Well Cost Avera
Slide 17: Summary
North America Gas Summary • Continued demand growth • Strong supply competition • Confidence to Deliver - Diverse Supply - Cost Leadership - Innovation / Technology Applications
Slide 18: Gas
Gas • #1 in North America - production now - resource for the future - in all new supply areas • Distinctively positioned to benefit from: - gas, power, LNG developments - market evolution - top-line growth • And productivity improvements continue - technology - e-business