BP plc · LSE:BP.
BP — Investor Presentation (July 2000)
21 slides from BP's investor presentation, July 2000
Slide 1: Cost synergies are well advanced…
Cost synergies are well advanced… $bn Combined What we did What we aim targets July ‘99 by end ‘99 to do in 2000 Cost target 5.8 2.7 2.0 Estimate Actual Portfolio rationalisation Organisational efficiency Focused exploration Business process Operational rationalisation
Slide 2: Global demand for gas is growing
Global demand for gas is growing mtoe 800 North America 600 400 Europe 200 Asia Pacific 0 1975 1980 1985 1990 1995
Slide 3: We have continued to discover giant fields
We have continued to discover giant fields
Slide 4: Future delivery
Future delivery • Sustainable, double-digit earnings growth • At mid cycle assumptions • By demonstrating our capability: • developing the portfolio • improving productivity • managing a global company • Within a disciplined, dynamic financial framework
Slide 5: We have grown
We have grown % 25 Increase since 1996 BP Amoco ARCO Supermajors 20 World 15 10 5 0 -5 Oil Gas Petrochemicals
Slide 6: Continuity and change
Continuity and change What hasn’t changed What has changed • Determination to • Stronger finances deliver • Wider opportunity set • Leadership • Wider skill base • Organisation model • People diversity • Commitment to • Unit cost performance • Commitment to cost • Focus on total control productivity
Slide 7: Investing for growth - Upstream
Investing for growth - Upstream 20 % of Group capex 2001- 03 15 10 5 0 Deepwater Core oil Core gas Emerging oil gas
Slide 8: Growth secured by identified projects
Growth secured by identified projects 2000 - 2003 2004 - 2007 Deepwater oil Gulf of Mexico Marlin Mad Dog Crosby Holstein King Atlantis King’s Peak Crazy Horse Nakika Angola Girassol Dalia Plutonio Kizomba
Slide 9: Growth secured by identified projects
Growth secured by identified projects 2000 - 2003 2004 - 2007 Core oil Shearwater (UK) Chirag-Azeri Northstar (Alaska) Core gas Shearwater (UK) Egypt Alaska Emerging gas Trinidad Trinidad Algeria Indonesia Indonesia
Slide 10: Growth from many sources
Growth from many sources mboed 6000 5000 Emerging Gas 4000 3000 Core Gas 2000 Deepwater Oil 1000 Core Oil 1998 1999 2000 2001 2002 2003 2007
Slide 11: Production volumes
Production volumes Mbbl/d actual/targeted 3500 Oil 3000 99 Target 2500 2000 1500 1000 500 1995 2000 2003 2007
Slide 12: Production volumes
Production volumes Bcf/d actual/targeted 21 Gas 18 99 Target 15 12 9 6 3 1995 2000 2003 2007
Slide 13: Learning reduces capital costs
Learning reduces capital costs $ / tpa LNG Plant costs 700 600 500 400 300 200 100 0 65-70 70-75 75-80 80-85 85-90 90-95 95-99 ‘00 TrinidadTrinidad Train 1 Trains 2 and 3
Slide 14: Investing for growth - Downstream
Investing for growth - Downstream 15 % of Group capex 2001- 03 10 5 0 OECD retail Refining Lubricants/ new markets
Slide 15: Investing for growth - Petrochemicals
Investing for growth - Petrochemicals 10 % of Group capex 2001- 03 5 0 Olefins Aromatics Related
Slide 16: The oil price remains unpredictable
The oil price remains unpredictable $ / bbl 30 28 26 24 22 Gulf War 20 18 Mid - cycle 16 14 Bottom - 12 cycle 10 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 17: The US gas price is trending higher
The US gas price is trending higher $ per mscf 5 4 3 Mid - cycle 2 Bottom - cycle 1 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 18: Refining margins remain volatile
Refining margins remain volatile $ / bbl 10 8 6 4 Mid - cycle 2 Bottom - cycle 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 19: Supply-led chemicals cycle drives margins
Supply-led chemicals cycle drives margins $ / te 400 350 300 250 200 Mid - cycle 150 100 Bottom - cycle 50 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Slide 20: New top-line growth aspiration…
New top-line growth aspiration… Growth % pa 2000 to 2003 Oil production 4-5 Gas production 8 - 10 Gas sales volumes 9 - 11 Retail Petroleum sales 3-4 Petrochemicals 8 - 10 Convenience market sales 13 - 15
Slide 21: …driven by selective investment
…driven by selective investment Gross Capex 2001 - 2003 $ bn Average pa Exploration & Production 8.0 Gas & Power 0.4 Refining & Marketing 2.8 Petrochemicals 2.0 Renewables & other 0.3 TOTAL: 13.5 Net investment 12.0 Growth in capital employed 4 - 6% pa