BP looks to North Sea, US shale for near-term oil and gas boost
BP works to alleviate the energy crisis that this winter could make much worse.
The only way to fix it is to ‘get busy’ and produce energy in this country: Sen John Hoeven
Sen. John Hoeven (R-ND) discusses what the Biden admin should be doing to remedy gas prices after OPEC+ cuts oil production by 2 million barrels a day on ‘Fox Business Tonight.’
BP is targeting the North Sea and U.S. shale basins to boost oil and gas supplies in the short term in response to the global energy crisis, its head of oil and gas operations told Reuters.
BP aims to cut its oil and gas output by 40%, or 1 million barrels of oil equivalent per day (boed), between 2019 and 2030 as part of its strategy to slash greenhouse gas emissions and build up a large renewables business.
But the company has boosted its spending on oil and gas in 2022 by $500 million in response to soaring energy prices and a supply crunch following years of under investment in the sector and in the wake of disruption to Russian supplies of gas to Europe.
Construction work is being carried out on the lock island in Brunsbuettel, northern Germany, Tuesday, March 1, 2022. The port on the North Sea is under discussion as a site for a new LNG (liquefied natural gas) terminal. Europe is scrambling to reduc (Frank Molter/dpa via AP / AP Newsroom)
US EMERGENCY OIL SUPPLY SHRINKS TO 40-YEAR LOW AS BIDEN KEEPS TAPPING RESERVE
BP is focusing its short-term output growth in the North Sea, where it produces around 130,000 boed, as well as shale fields in the United States, which produced 317,000 boed in the first half of the year, BP head of Production and Operations Gordon Birrell told Reuters.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BP | BP PLC | 38.04 | +0.51 | +1.36% |
"We're pulling forward some North Sea projects," Birrell said. One such project is the Murlach field, Birrell said.
Mulach, which is planned to start production in June 2025, will be connected to the existing Eastern Trough Area Project (ETAP) platform some 7 kilometres away, according to development plans BP submitted in April.
Oil rig and support vessel on offshore area. Blue clear sky, sea (iStock / iStock)
"Every one of our big fields has investment opportunities that we are doing as much as we can to move forward in time,"
BP became a major producer in the onshore U.S. shale basins following a $10.5 billion acquisition from BHP in 2018.
The company has invested heavily in technology to reduce the carbon emissions from its shale operations, known as BPX, including by electrifying drilling rigs in the oil-rich Permian basin, Birrell said.
The Armada gas condensate platform, operated by BG Group Plc, stands in the North Sea, off the coast of Aberdeen, U.K., on Friday, Dec. 11, 2015. Photographer: Simon Dawson/Bloomberg via Getty Images (Photographer: Simon Dawson/Bloomberg via Getty Images / Getty Images)
"The development phase is ongoing and we are putting more capital into that in response to the energy crisis," he said. "Some of it is going straight into drilling and production, some of it going into reducing emissions of the facilities."
CLICK HERE TO GET THE FOX BUSINESS APP
"Production will keep growing in BPX, we want to keep growing that business," he said.