The energy system is changing. Our customers no longer just want a product, they want a solution. As an integrated energy company, we aim to provide energy to customers in whatever form they need it.
Be it fuels and electrons at our retail sites, gas to power industry, biofuels for lower lifecycle emissions from aviation – and more – we’ve got it covered.
In all of this, we are focused on driving long-term shareholder value.
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Read more about how our integrated energy strategy is generating value for bp shareholders and customers today and into the future.
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Customer demand is rising for powerful fuels made from lower-lifecycle-emission feedstocks. bp is rising to the challenge by growing our fuel co-processing capabilities. In fact, we work right along the value chain, from feedstock to fuel, to create value to help meet this customer demand.
Co-processed fuels are refined blends, using both petroleum feedstocks and renewable biomass (like food waste and tallow), that work just like traditional diesel or jet fuel.
bp’s Cherry Point is the largest refinery in the pacific northwest and can process approximately 250,000 barrels of crude oil per day on average.* We began co-processing lower carbon biofuels at Cherry Point in 2018 and continued investment has seen us expand biofuels production at the site.
Co-processing a bio feedstock with a petroleum feedstock to make a biofuel like renewable diesel is one of the most efficient ways to reduce a fuel’s lifecycle emissions, and it creates a higher-value product that can help our customers to move towards their own emissions targets and comply with stricter fuel standards.
On the West Coast, states like California and Oregon have introduced low carbon fuels standards to help reduce the carbon intensity of transportation fuels by up to 20% by 2030.
At bp, we plan to more than double our biofuels co-processing volumes to around 20,000boed by 2025.
*Source: US Economic Impact Report
Go inside
From feedstock purchase to end product – discover how our trading and refinery teams come together to make, distribute and sell co-processed renewable diesel fuel.
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Drive to 2025
Biofuels production (mb/d)
23
(2019)
27
(2022)
32
(2023)
~50
(2025 target)
Capex and EBITDA
Bionergy ($bn)
0.7
(FY23 Capex)
0.5
(FY23 EBITDA)
~2
(2025 EBITDA target)
When bp acquired Archaea, it became the largest renewable natural gas (RNG) producer in the US. With 50 live sites and an 80-project pipeline, bp has plans to scale Archaea across upstream, midstream and downstream positions to optimize routes to market and to maximize value. RNG is a lower carbon drop-in fuel in high demand.
We’re planning to build 15-20 new plants a year through 2025. Traditionally, RNG plants have been custom built, but the Archaea Modular Design allows plants to be built with interchangeable components for faster builds.
Archaea’s model is to go where the gas is: we process raw biogas onsite (primarily at landfills, which have a predictable, long-term production profile) and turn it into pipeline-quality RNG. The resulting RNG can be piped through existing infrastructure, reducing emissions, improving local air quality and providing fuel for homes, businesses and transportation.
Archaea forms part of our bioenergy growth engine, where we are targeting >15% returns. In 2023, bp’s global biofuels production increased by 18%, while its global biogas supply volumes increased 80% – thanks, in large part, to our Archaea business.*
*Source: US Economic Impact Report
Go inside
how bp turns waste into RNG – and aims to deliver strong returns from bioenergy.
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Drive to 2025
Biogas supply volumes (mboed)
10
(2019)
12
(2022)
excl Archaea
22
(2023)
incl. Archaea
~40
(2025 target)
Capex and EBITDA
Bionergy ($bn)
0.7
(FY23 Capex)
0.5
(FY23 EBITDA)
~2
(2025 EBITDA target)
Using technology to keep energy flowing
North Sea oil and gas is as important to bp’s strategy as ever. Integration will help us to efficiently grow production to the end of 2025 and then hold it stable.
Our North Sea platforms have kept European forecourts supplied for decades – in an early example of energy integration. In today’s energy landscape, North Sea oil and gas is as important to bp’s strategy as ever, as we work to safely supply our customers with secure, affordable energy they want and need.
With centralized digital and engineering teams, we are developing safer and smarter tech solutions in one place and deploying them across our oil and gas portfolio. We use digital twin technology across bp, including in the North Sea, that provides a detailed virtual model of our systems, integrating vast amounts of data to focus maintenance work and keep our equipment availability high. Digital twins in 2022 also enabled bp to capture an additional 50mboed net through production optimization and surveillance.
And we are using 4D seismic surveys in the North Sea, which is helping us to efficiently prioritize production from our existing fields to deliver high-value oil and gas. That’s why the North Sea forms part of our plans to grow oil and gas production to 2025 and hold stable beyond that.
The strength of bp’s proposition – combining a high-quality and distinctive resource base, centralized projects and operations, leading digitization and technology, and a world-class team – saw us grow bp’s underlying oil and gas production by 2.6% in 2023.
Drive to 2025
Oil & gas production (mmboed)
2.6
(2019)
~3.8 incl. Russia production
2.3
(2022)
2.3
(2023)
~2.3
(2025 target)
Capex and EBITDA
Oil & gas ($bn)
~8.5
(2025 Capex target)
30-32
(2025 EBITDA target)
Using our evolving offers to meet customer needs
We aim to double bp’s convenience gross margin to $3 billion between 2022 and 2030 – by offering customers on the move quality fuel, food and EV charging.
At bp, we want to give our customers what they want, when and where they want it, and in so doing, grow value for bp.
We have a resilient convenience and mobility business today that has been delivering value for decades – providing customers day in, day out with premium fuels and convenience offers.
With EV car sales growing in many markets1, we are evolving our offer to meet customer needs. We’re plugging in high-speed charging points in the right locations to boost consumer confidence in driving electric.
Whatever vehicle our customers drive – whether they’re filling up or charging up – we know that they want quality food and coffee at convenient locations on the side of the road. In fact, more than 50% of our transactions in the UK, and 25% in Germany, are ‘shop only’2. So, we are investing to transform forecourt convenience, too.
By the numbers:
- Globally, we’re aiming to increase convenience customer touchpoints from >12 million a day in 2023 to >15 million by 20253. This will help us to fulfil our aim of doubling our convenience gross margin by 2030 from a 2022 base of $1.5 billion, with a compound annual growth rate of around 10%4.
- bp pulse is building high-speed charging infrastructure around the world, with a particular focus on large hubs in Germany, the UK, China and the US. We plan to grow our EV charging network by plugging in >100,000 EV charge points globally by 20305 – some at existing bp retail sites, some at new locations, and others at partner sites, to leverage our existing traditional fuels customer base.
Together, this amounts to good business for bp – and for our customers on the move, too!
1Trends in electric cars – Global EV Outlook 2024 – Analysis, IEA
2Customers come first – Reimagining energy article, bp.com
3&4Kerbside convenience – Reimagining energy article, bp.com
5EV charging – What we do, bp.com
Go inside
Hear more from our retail experts on how having access to hundreds of millions of convenience customers can help to support the transition to different fuels.
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Drive to 2025
Customer touchpoints per day (million)
>10
(2019)
~12
(2022)
>12
(2023)
>15
(2025 target)
Strategic convenience sites (’000)
1.6
(2019)
2.4
(2022)
2.85
(2023)
~3.5
(2025 target)
EV charge points (’000)
>7.5
(2019)
~22
(2022)
>29
(2023)
>40
(2025 target)
EBITDA
Convenience and EV charging ($bn)
>1.5
(2025 target)
Using trading & shipping to grow our gas value chain
We built an integrated trading & shipping team to quickly move energy where it’s needed. The result? We’re on track to create a 25mtpa LNG business by next year.
Natural gas has a key role to play in helping the world get to net zero – now and for decades to come. As an integrated energy company, bp is well positioned at multiple points along the gas value chain. That means we can supply gas to our customers when and where they need it most.
Where does that value start? It starts at the top of the value chain, with a diverse gas and LNG portfolio that helps us to meet growing global demand. We have projects that underpin our 2025 target to create a 25-million-tonne-per-annum LNG portfolio; we hit 23mtpa in 2023. Our merchant offtake from the Coral Sul floating LNG facility in offshore deepwater Mozambique is a good example, adding up to 3.4 million tonnes of LNG per year to bp’s portfolio.
And how do we add value through integration? With our modern, efficient and flexible shipping fleet, integrated with our trading team. This team optimizes our international LNG portfolio and adds a further 10 million tonnes or so per annum from trading.
The team moves products quickly to where they are needed most, and provides flexible solutions for supply, sales and re-gas volumes that respond to the needs of our customers in a highly dynamic market. In this manner, we optimize around 80% of our LNG portfolio to generate value and meet customer demand – we believe this is unparalleled within the sector.
At bp, we are also growing value by integrating our equity and LNG positions with downstream markets, building on the strength of our existing relationships. For example, since 2021, bp has been directly supplying customers in China with gas from liquefied natural gas (LNG) that it has imported into the country, creating a fully integrated gas value chain into China.
Go inside
A major step forward for our planned global LNG hub in Mauritania and Senegal, set to produce 2.3 million tonnes of LNG per year.
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Drive to 2025
LNG portfolio (mtpa)
15
(2019)
19
(2022)
23
(2023)
25
(2025 target)
Capex and EBITDA
Oil & gas ($bn)
~8.5
(2025 Capex target)
30-32
(2025 EBITDA target)
Integration in oil
We know how to do this. More than 100 years ago, bp started its first value chain – oilfields, attached to refineries, with products sold at retail sites and airports. We’re now introducing biofuels – sustainable aviation fuel and biodiesel to our customers, too.
Integration in gas
More than 60 years ago, we started to create our second value chain – natural gas fields, linked to pipeline systems and eventually liquefaction plants to make gas easier to store and transport. We’re now looking at ways to introduce biogas, carbon capture & storage, and lower carbon electricity to the customer.
Integration in lower carbon power and hydrogen
Over the past four years, we’ve been accelerating our efforts to create a third value chain – lower carbon power and hydrogen. The electrons we hope to produce here can, for example, service growing electricity demand in our EV charging business and, in the future, may be used to supply renewable energy to create lower carbon hydrogen.
Why invest in bp
We believe bp has a compelling investor proposition – one that will drive growing long-term shareholder value – and to do this, we are focused on transforming from an international oil company (IOC) to an integrated energy company (IEC). And we believe we can generate attractive returns in doing so.
About bp
bp’s wider transformation is under way. While we’re mostly in oil & gas today, we’ve increased global investment into our lower carbon businesses, convenience stores and power trading from around 3% in 2019 to around 23% in 2023.
