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Released February 09, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The world continues to grapple with the economic fallout from the COVID-19 pandemic, but oil and gas majors are too busy celebrating record-breaking bottom lines, which have been bolstered by sky-high commodity prices. BP plc (NYSE:BP) (London, England) recently reported its strongest full-year net profits in nearly a decade, as oil prices hit seven-year highs. BP is counting on several high-value projects, including offshore developments, to keep the momentum going. Industrial Info is tracking nearly $28 billion worth of active projects worldwide from BP, including more than $6 billion worth in the U.S. and Canada.
Click on the image at right for a graph detailing the top 10 countries for active projects from BP.
BP is putting its expectations for 2022 capital expenditures at between $14 billion and $15 billion, and the company expects annual expenditures will range between $14 billion and $16 billion each year through 2025. BP's capital expenditures in fourth-quarter and full-year 2021 totaled $3.6 billion and $12.8 billion, respectively.
Net profits were reported to be $7.6 billion for 2021, compared with a net loss of $20.3 billion in 2020. Executives expect BP's upstream production in 2022 to be broadly flat when compared with 2021, when production totaled 2,218 million barrels of oil-equivalent per day. Oil production is expected to be slightly higher than in 2021, while gas and low-carbon production is expected to be slightly lower.
A key factor in BP's production outlook is its expected startup of the 140,000-barrel-per-day (BBL/d) Mad Dog 2 Offshore Floating Production Unit (FPU) in the Gulf of Mexico in the second half of the year, around the time it expects to commence with its related two-well drilling program in the Green Canyon field. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the FPU and well-drilling projects.
BP also expects its refining margins in first-quarter 2022 to be flat compared with fourth-quarter 2021, when the company benefited from improved refining margins, higher utilization and commercial optimization. The company is preparing for an upgrade to a distillate hydrocracker unit at its Cherry Point Refinery in Blaine, Washington, to boost efficiency. The project currently is expected to kick off and wrap up next year. Subscribers can learn more from Industrial Info's project report.
BP executives expect more than 40% of the company's capital expenditures through 2025 will be invested in its transition to lower-carbon energy, rising to about 50% by 2030. "We've made strong progress in our transformation to an integrated energy company: focusing and high-grading our hydrocarbons business, growing in convenience and mobility, and building with discipline a low-carbon energy business--now with over 5 gigawatts (GW) in offshore wind projects--and significant opportunities in hydrogen," said Bernard Looney, the chief executive officer of BP, in a quarterly earnings-related press release.
Among BP's active wind energy projects is the Fowler Ridge Windfarm in Fowler, Indiana, which the company acquired in its entirety from a subsidiary of Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) in 2020. The company is considering both large-scale and smaller-scale repowering plans that would update turbines at the facility. Subscribers can learn more from Industrial Info's reports on the large-scale and smaller-scale proposals.
BP already is involved in more than $1.2 billion worth of green hydrogen projects globally. Subscribers can click here for a list, and read more about the technology in our January 24, 2022, article - 2022 Market Outlook: Traditional, Emerging Growth Trends Support Chemical Project Spending. IIR Energy is now letting users track existing facilities, new-build projects, refinery conversions, unit additions and expansions for renewable diesel and biodiesel fuels, including both scheduled and unscheduled offline events. For more information, see December 14, 2021, article - New Tool Keeps Users Ahead in the Fast-Growing Market for Renewable Diesel, Biodiesel Fuels.
BP also notched up growth overseas with the startup of more projects offshore Angola and the proposed acquisition of the oil and gas businesses held by Lundin Energy (Stockholm, Sweden). Subscribers can click here for a list of BP projects in Angola, and click here for a list of oil and gas projects from Lundin Energy.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing the top 10 countries for active projects from BP.BP is putting its expectations for 2022 capital expenditures at between $14 billion and $15 billion, and the company expects annual expenditures will range between $14 billion and $16 billion each year through 2025. BP's capital expenditures in fourth-quarter and full-year 2021 totaled $3.6 billion and $12.8 billion, respectively.
Net profits were reported to be $7.6 billion for 2021, compared with a net loss of $20.3 billion in 2020. Executives expect BP's upstream production in 2022 to be broadly flat when compared with 2021, when production totaled 2,218 million barrels of oil-equivalent per day. Oil production is expected to be slightly higher than in 2021, while gas and low-carbon production is expected to be slightly lower.
A key factor in BP's production outlook is its expected startup of the 140,000-barrel-per-day (BBL/d) Mad Dog 2 Offshore Floating Production Unit (FPU) in the Gulf of Mexico in the second half of the year, around the time it expects to commence with its related two-well drilling program in the Green Canyon field. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the FPU and well-drilling projects.
BP also expects its refining margins in first-quarter 2022 to be flat compared with fourth-quarter 2021, when the company benefited from improved refining margins, higher utilization and commercial optimization. The company is preparing for an upgrade to a distillate hydrocracker unit at its Cherry Point Refinery in Blaine, Washington, to boost efficiency. The project currently is expected to kick off and wrap up next year. Subscribers can learn more from Industrial Info's project report.
BP executives expect more than 40% of the company's capital expenditures through 2025 will be invested in its transition to lower-carbon energy, rising to about 50% by 2030. "We've made strong progress in our transformation to an integrated energy company: focusing and high-grading our hydrocarbons business, growing in convenience and mobility, and building with discipline a low-carbon energy business--now with over 5 gigawatts (GW) in offshore wind projects--and significant opportunities in hydrogen," said Bernard Looney, the chief executive officer of BP, in a quarterly earnings-related press release.
Among BP's active wind energy projects is the Fowler Ridge Windfarm in Fowler, Indiana, which the company acquired in its entirety from a subsidiary of Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) in 2020. The company is considering both large-scale and smaller-scale repowering plans that would update turbines at the facility. Subscribers can learn more from Industrial Info's reports on the large-scale and smaller-scale proposals.
BP already is involved in more than $1.2 billion worth of green hydrogen projects globally. Subscribers can click here for a list, and read more about the technology in our January 24, 2022, article - 2022 Market Outlook: Traditional, Emerging Growth Trends Support Chemical Project Spending. IIR Energy is now letting users track existing facilities, new-build projects, refinery conversions, unit additions and expansions for renewable diesel and biodiesel fuels, including both scheduled and unscheduled offline events. For more information, see December 14, 2021, article - New Tool Keeps Users Ahead in the Fast-Growing Market for Renewable Diesel, Biodiesel Fuels.
BP also notched up growth overseas with the startup of more projects offshore Angola and the proposed acquisition of the oil and gas businesses held by Lundin Energy (Stockholm, Sweden). Subscribers can click here for a list of BP projects in Angola, and click here for a list of oil and gas projects from Lundin Energy.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
