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2022: BP’s challenges and gains

Energy supply

BP demonstrated exceptional commitment to maintaining a secure energy supply, connecting electric vehicle charging points, and driving efficient bioenergy production this year.

Another year, and for BP, a leading company in the energy sector, it is an excellent occasion to take a self-assessment of everything they achieved during the 12 months of 2022.

 

Ukraine’s conflict

This year was incredibly difficult for everyone, including the energy sector. The Russian-Ukrainian war prompted the exit of the company’s 19.75% stake in Rosneft at the beginning of the year. BP was the first international company to announce such an exit. Bernard Looney, CEO of BP, commented that this exit was the right thing to do for the company.

Security and energy transition issues have increased due to Ukraine’s conflict, which has impacted globally. BP is based in the UK and is looking to bet on Britain as a supplier of home-grown energy. The company wants to invest up to £18 billion in the British energy system by the end of 2030.

 

ESG criteria

Around the world, the company is dedicated to putting its ESG plans into practice. BP has a long list of projects it carried out throughout the year that helped to accelerate the achievement of its strategic objectives.

BP began the year by extending its 16-year partnership with M&S Food. This partnership, established in 2005, has played a crucial role in radically changing the retail landscape. The association is so strong and has had such a good impact that retail is now one of the five engines of growth in transition. The other four drivers are renewable energy, electric vehicle charging, bioenergy, and hydrogen. The organization targets $9 billion to $10 billion in profits from these businesses by 2030.

The £1 billion investment in electric vehicle (EV) charging across the UK was given in March and planned with a 10-year lifespan. They also installed more than 900 charging points to triple the number of pulse charging points and deployed a world-class fast and ultra-fast charging network that will meet the country’s infrastructure needs.

One of the elements of the ESG methodology is governance. International Women’s Day is celebrated around the world in March. And BP demonstrated its covenant with the ESG methods by showing the importance of gender equity. The Tangguh team celebrated its team of women by sharing a photo of some of the 450 women working on the Tangguh LNG Train 3 project in Indonesia. Women also account for 50% of its apprenticeship program in the country.

 

First quarter

The successful installation of the mooring system for the new Argos platform in the Gulf of Mexico is one of the significant achievements of the first quarter. Also, one of the critical assets in the resilient hydrocarbon strategy is the US$9 billion Mad Dog 2 project’s 60,000-ton floating production unit. Once operational, Mad Dog Phase 2 will produce up to 140,000 gross barrels of crude oil per day.

The first phase of the Herschel expansion project, a three-well development tied to the Na Kika platform, was also completed.

 

Second quarter

In the second quarter, however, wind energy took center stage. Two significant projects contributed to the growth of its portfolio. The first was in the United Kingdom, where they initiated a major integrated offshore site study in partnership with EnBW to prepare offshore wind projects in the Irish and North Seas. The study involved more than 200 people and more than 450 working days on seven vessels. The data obtained will help BP and EnBW to build efficient offshore wind farms. The supply of clean energy will be an essential part of this study, which aims to supply around six million UK homes.

The second project was completing a major upgrade of the Cedar Creek II wind farm in Colorado, USA. S New gearboxes and advanced sensing technology were installed, as well as substantial 97-meter blades to help the turbines capture more wind. They turned the old blades into powder to make lightweight concrete. In June, they signed an agreement to run and operate the Australian Renewable Energy Centre. They signed this agreement to achieve targets in the firm’s low carbon ambitions. The center is based in Pilbara, Western Australia, and has the potential to become one of the world’s most enormous renewable energy and green hydrogen centers.

 

Third quarter

BP had two new partnerships in the second half of the year. First, they established a strategic collaboration with ThyssenKrupp Steel. This collaboration will focus on developing a long-term supply of low-carbon hydrogen and renewable energy to accelerate the energy transition in an industry that is difficult to decarbonize.

The second partnership was in August, which was with Eni, where they announced a new 50/50 independent joint venture (JV). This venture combines the Angolan businesses of both companies. Meanwhile, in August, BP and Eni announced the launch of a new independent 50/50 joint venture (JV) that combines the Angolan businesses of both companies. The JV became Angola’s largest independent oil and gas producer. Called Azule Energy with 2 billion barrels of combined net resource equivalent and significant growth plans.

 

Fourth quarter

The theme of lower-carbon transportation marked the last quarter. It saw the launch of BP in Australia, which will help achieve ambitions to install some 600 charging points across Australia and build the country’s most convenient fast-charging network.

The company concluded the year with the fifth anniversary of the solar joint venture, Lightsource BP. This venture explores two green studies on solar projects in Nittany, Pennsylvania.

BP will continue demonstrating its ability and commitment to the environment, society, and its employees. 2023 will give them new challenges, but their drive to remain a world leader will be the perfect motivation to keep innovating and giving energy supply.

 

It can be of your interest: January 2023 – The ESG’s impact around the world for the ecological transition

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