BP's view to 2021: five things to know
With its full-year results for 2017, BP turns investors' attention to the future, with a reminder of its priorities in the years ahead. The strategy remains the same: pursuing advantaged oil and gas - be it low cost or higher margin, market-led growth in the downstream, and venturing and low carbon opportunities, all underpinned by safe and reliable operations. Here are five things to know about BP's plans out to 2021
Sure on safety
Whether in 2018 or 2021, safe, reliable and efficient operations remain at the core of BP’s business. The focus on systematic, disciplined and process-driven operations will be constant. Results from 2017 revealed a continued reduction in the overall number of process safety incidents, while personal safety data showed that the frequency of recordable injuries remained below BP’s five-year average.
Better barrels from better projects
BP expects to add 900,000 bpd from new major projects by 2021, with 35% higher margins on average than its 2015 portfolio. This growth will come from its list of quality upstream projects in advantaged oil basins and gas regions, with developments selected for their lower costs or higher margins.
More manufacturing and markets
BP’s downstream businesses – including its refineries, petrochemicals operations and fuels marketing and lubricants brands – expect to deliver more than a $3 billion increase in earnings between 2016 and 2021. More than two-thirds of this growth should come from BP’s marketing businesses, with the remainder from manufacturing.
Committed to the carbon challenge
BP is also preparing for a lower carbon future. Activities across the business reflect the commitment to help advance the energy transition, through a strategy and investment choices that are flexible to many different scenarios.
Reward in returns
The business will keep its focus on returns for shareholders. With disciplined cost and capital spending and a simpler, more efficient organization, BP is already delivering what it outlined in the five-year plan announced in 2017.
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