Transcript Our story - American Geosciences Institute

The BP Story
Brian Miller
AGI Leadership Forum – May 1, 2006
Who we are
BP is an oil, gas, petrochemicals and renewables company
We employ around 102,900 people
We have operations on 6 continents and in over 100 countries
…market capitalization $231 billion (as at 7 Feb 2006)
…annual revenues/turnover of $253 billion (in 2005)
…the 2nd largest oil & gas company and one of the 10 largest companies in the world
…serving 13 million customers every day
2
What we do
BUSINESS SEGMENTS
RESOURCES
Exploration & Production
CUSTOMER FACING
Gas, Power & Renewables Integrated Supply &
Trading
Refining & Marketing
(including Acetyls & Aromatics from
Petrochemicals)
3
Our global presence
Oil
Gas
Chemicals
Refining
Market
positions
An opportunity and a responsibility
4
Where our people come from
(1999)
(2000)
(2000)
(2002)
(2002)
2.
1.
(2000)
(2001)
1.
2.
Some Mobil employees became part of BP staff post dissolution of JV in Europe
BP acquired some Belgium assets
(1996)
(2001)
5
Reserves and enterprise value: 1997
EV $bn
300
250
200
Shell
Exxon
150
100
50
Fina
0
Texaco
ARCO Elf
REP
Philips
ENI Mobil
TOT
BP
Chevron
Amoco
5.0
10.0
15.0
20.0
25.0
Reserves billion boe
End of year 1997, based on published data
6
Sector
Structural Change since 1997
350
Exxon/Mobil
300
Enterprise Value $bn
250
BP
Royal Dutch Shell
200
TOTAL
150
ENI
100
Repsol
50
Chevron
Conoco/Phillips
0
0.0
5.0
10.0
15.0
20.0
25.0
Proved Reserves boe billion
7
The world’s largest companies
Market Cap ($bn)
Company
382
1
General Electric
380
2
Exxon Mobil
262
3
Microsoft
234
4
Citigroup
221
5
BP
212
6
Wal-Mart Stores
210
7
Royal Dutch/Shell
199
8
Johnson & Johnson
195
9
Pfizer
178
10
Bank of America
176
11
HSBC
171
12
Vodaphone
165
13
IBM
148
14
Total
144
15
Intel Corporation
Source: Financial Times 31 March 2005
8
Our aspiration
A great future
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Our aspiration and our purpose
To be numbered amongst the world’s great companies when
evaluated on financial returns and growth, being a great place to work and
building a positive relationship with society.
BP’s strategy, February 2004
Our fundamental purpose as an organization is to provide better goods
and services in the form of light, heat, power and mobility to increasing
numbers of people and thereby to deliver shareholder value on a long
term basis.
Sustainability Report 2005
10
Key dimensions of great companies
Admired and
respected
by peers
Top brand
As rated by other senior
executives
Highly regarded by customers &
stakeholders
Great
company
top brand
Financial
performance
Consistent out-performance of
peers
Source: McKinsey
Recommended
by brokers
Desirable
employer
Consistently rated as a buy by
top brokers
Attract and retain top talent
11
Our business strategy
Fuelled with possibilities
12
Existing profit centers
3000
Existing profit centers: managed decline
thousand boe/day
2500
Alaska
North Sea
2000
1500
1000
500
North America Gas
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
Egypt
EPCs
Disposals
Middle East
Latin America
13
New profit centers
3500
Capital efficiency: project delivery
TNK-BP
Azerbaijan
thousand boe/day
3000
2500
2000
1500
1000
500
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
Gulf of Mexico Deepwater
Trinidad
NPC+Kaz
TNK-BP
North Africa
Angola
Asia Pacific
For further information contact Michael Elliott [email protected]
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Connecting to the Future--Business and Policy Intersections
15
BP is a gas supermajor
• Gas now makes up some 40% of BP’s total production
• BP is one of the world’s largest gas marketer and traders providing gas to customers
in 26 countries
• We are the second largest supplier of gas into LNG plants
Our medium-term intent is to grow by 2% to 3% a year, in line with
global gas demand by:
• realising the full potential of existing and new profit centres
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Alternative Energy
• In 2005, we established a new business called BP Alternative Energy to generate and market cleaner,
low carbon power from solar, wind, hydrogen and natural gas sources.
• $8 billion investment over 10 years.
• Globally, the power sector is the biggest source of greenhouse gas emissions – responsible for about
twice the emissions of the transport sector.
• Some 40% of the power-generating capacity required to meet projected world electricity demand in
2020 has yet to be built.
• The business will initially employ around 2,500 people.
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Alternative Energy
Solar
•
•
Operating for over 30 years we are one of the world’s top three solar manufacturers and marketers.
We plan to increase sales of solar panels from 110MW capacity to 300MW by 2008.
Wind
•
•
We have constructed two wind farms in the Netherlands producing enough power for over 15,000 Dutch homes.
Under Alternative Energy we aim to grow our wind business from 30MW to 450MW in 2008 and become a Top Tier
player by 2015.
Hydrogen Power
•
Generating power from hydrogen using fossil fuels such as coal, oil and natural gas. In June 2005 we announced our
plans to design the world’s first commercial hydrogen power plant in Scotland and earlier this year we announced a
proposal to build a second plant in California.
•
The carbon dioxide emissions from generating power in this way are 90% lower than those that would be generated
by burning fossil fuels.
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Alternative Energy
Natural Gas to Power
• BP already owns, operates or contracts 12 gigawatts of gas-fired power capacity – enough to power
over 10 million homes.
• The majority of these plants produce electricity with combined cycle gas turbines and cogeneration
plants.
• Over the next 3 years we plan to start construction of two new gas-fired cogeneration power facilities
with an output of more than 700 megawatts.
Power Marketing & Trading
• Among the top tier power marketers in North America.
• In 2004, we provided customers with 300 million megawatt hours of electricity.
• We also provide our wholesale customers with secure, reliable electricity and innovative risk
management services to help reduce price volatility.
• In many markets we are able to offer a number of low-carbon products, including certified green
electricity, as well as integrated solar and clean grid power solutions.
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Our challenge
A sustainable existence
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Sustainability
How we work
Sustainability is fundamental to our purpose as a group. Everything we do is designed to achieve the
goal that our board sets on behalf of our shareholders, to maximize shareholder value on a long-term basis. In order
to maintain value in the long term, we not only have to develop a successful business strategy but pursue it in such
a way that we earn the trust of shareholders, customers, local communities, governments and others whose support
is critical to our long-term future. To retain that trust we have to behave responsibly and consistently.
BP’s Sustainability Report 2004 (published April 2005)
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BP’s business profile continues to change
6000
Production (mboe/d)
5000
Libya
4000
Russia
Nigeria
3000
New Profit Centres
2000
Kuwait
Iran
1000
Existing Profit Centres
0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2008
Source: 2005 – 2008 BP estimates
Changes to our asset portfolio present reputational risks that drive our increasing focus on corporate responsibility
22
Environment
Climate change context
• World’s estimated annual emissions from
hydrocarbon consumption is nearly
25 billion tonnes of CO2
• Emissions from BP’s products
account for approx 5% of global CO2 emissions
• BP’s operations contribute
less than 0.4% of annual
global emissions
• We are looking at ways to reduce emissions from our
products as well as our operations
Slide 2 23
Environment
Our position on climate change
Our position is that there is no single solution!
We will continue to focus on three main areas:
1. Provide leadership
2. Continue to reduce the carbon content or impact of our products
3. Continue to minimise our operational emissions
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BP brand story
Perceptions
• British company
• A global enterprise
• Big oil company that makes a lot of money
• An energy company
• An organisation that cares about the
environment
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Our brand aspiration
“We want to build one of the world’s
“great brands by building an
“organisation devoted to revolutionising
“the world’s relationship with energy.”
Lord Browne (2000)
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USA
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A brand…
Communicates a promise….
Evokes a set of expectations and associations
- from every experience
with a person, product, service or company
Experiences :
• How we work
• What we say
• What we do
• What we stand for
• How we deliver value
Reputation
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BP brand theme…beyond petroleum..
it does Not mean we are…
Beyond is about…
• abandoning oil and gas or getting out of
hydrocarbons
• reaching past one company to combine the
talents of many
• focusing only on alternatives (renewables)
• delivering performance without trade-offs
• the products we produce and sell, but it is also about
our relationships & how we think, behave & perform as
a company
• it’s the courage to lead, not just the ability to
compete
• referring to it as the name of the company
• using it just as an expression in advertising
• innovating, improving & making a difference
• being creatively engaged and applying the skills
we have to provide answers, not excuses
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Thank you…
Questions???
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