BP plc · LSE:BP.
BP — Houston Presentations September 2000
14 slides from BP's conference presentation, September 2000
Slide 1: Tony Fountain, President, BP North American Gas and Power
Tony Fountain, President, BP North American Gas and Power
Slide 2: NA – the world's largest market - strong projected growth
NA – the world’s largest market - strong projected growth 2000 Consumption 2000-2010 Growth 30 6 25 5 20 4 TCF/yr TCF/yr 15 3 10 2 5 1 0 0 US+Canada Brazil China India US+Canada Brazil China India Source:EIA
Slide 3: Market is opportunity-rich for well positioned players
Market is opportunity-rich for well positioned players Current/Projected Size of Open Markets and Use ($ Billions p.a.) Open Competition 400 350 • Large and growing market 300 54 140 - 1999 sales - $340bn 235 Power 250 66 • Liberalizing 200 - Progressing by state 80 150 • Pressure for 100 220 green/
Slide 4: BP's strong focus on NA natural gas
BP’s strong focus on NA natural gas 1999 Gas Production Other 42% BP* NA 58% Other Major avg NA competitors avg 67% 33% Source: Annual Reports. * Includes ARCO and Vastar
Slide 5: Power generation is driving projected demand growth
Power generation is driving projected demand growth EIA Demand U.S.Forecast 30 25 Industrial Power 20 Bcf/d 15 Residential 10 Commercial • All sectors 5 growing, but power is the 0 driver 1997 2000 2003 2006 2009 2012 2015 2018 - Gas turbine orders underpin power growth
Slide 6: Total North America Resource
Total North America Resource Years of TCF Supply 2500 Advanced 50 Technology Current Technology 0 0 $1.00 $5.00 Gas Price Source:BP/Industry estimates
Slide 7: Industry responding to increase near term production
Industry responding to increase near term production Current Drilling 12 Month Averages > 800 53 800 750 Rigs 52 U.S. Production (bcf/d) Active Gas Rigs - U.S. 700 Production 650 51 600 50 550 Production 500 Gas Rigs 49 450 48 400 350 47 300 250 46 Jan-89 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Ja
Slide 8: Market projected price response to industry actions
Market projected price response to industry actions Henry Hub Natural Gas Prices 5.50 5.00 4.50 4.00 3.50 $ 3.00 2.50 2.00 1.50 1.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Prophet
Slide 9: BP is part of the supply solution
BP is part of the supply solution Alaska/ Mackenzie Onshor e LNG DW GOM
Slide 10: Dynamic changes in competitive landscape
Dynamic changes in competitive landscape Calpine Pan- SkyGen Energy Noram Mobil Panda PG&E CGCA SCE Destec UPR Vintage Com Energy Chevron Phillips JV Sithe Trident Illinova Integrated Energy Traders Coastal PG&E PGE Sonat DeepTech ? PacifiCorp Tenneco EL PASO
Slide 11: Providing the right offer at right time
Providing the right offer at right time • Advantaged supply position • Extending the model. . . - World class trading skills - Risk management expertise - C & I market leader - Green leadership • LNG capability • Leading NGLs position • Power market - Trading - Leveraging natural gas length into adv
Slide 12: Opportunities in advantaged power
Opportunities in advantaged power Cherry Point Cleveland Joliet Wood River Paulsboro Baltimore Carlson Decatur Texas City Chocolate Bayou
Slide 13: BP Gas & Power's differentiated position
BP Gas & Power’s differentiated position Integrated Energy Trader e t N s & Lake Charles e lum Cove Pt. V o Green Mountain les WGL, BGE a o fS IGI g Progas lin Decatur u b Do 00 Supply Position s s d 0 e c te n 2 Advantaged Generation Sites n o je e i NGL Leadership i v e r P com c t tin Risk Manage
Slide 14: In summary. . .
In summary. . . • Largest growth market in world • Rapidly changing competitive environment • BP creating distinctive leadership position • Right offer at the right time • Sustained diversified leadership supply position