BP 2010 Annual Report Download - page 22
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The right people, skills, capability and incentivization
Itisvitalthatwedevelopanddeploypeoplewiththeskills,capabilityand
determinationrequiredtomeetourobjectives.Thereremains,inour
industry,acontinuingshortageofprofessionalssuchaspetroleum
engineersandscientists,drivenbychangingdemographics.Nonetheless,
wehavethusfarbeensuccessfulinbuildingthiscapacityandweare
committedtobuildinganddeployingcapabilitywithastrongsafetyandrisk
managementculture,includingrevisedrewardmechanismstofoster
professionalprideinengineering,health,safety,security,theenvironment
andoperations.
ThecreationofamorepowerfulS&ORfunctionrepresentsa
signicantchangethatwillstrengthenourprocessesandcapabilitiesin
safetyandriskmanagement.InExplorationandProduction,wehave
reorganizedthesegmentintothreefunctionaldivisions–Exploration,
DevelopmentsandProduction–eachofwhichreportsdirectlytothegroup
chiefexecutive.Theintentisclear,tofocusexpertiseandcapabilityona
moreconcentratedassetbasetoreduceoperationalriskanddeliver
long-runsustainableimprovement.Ineachdivision–andacrosstherestof
thegroup–wewillcontinuetodevelopgroupleadershipandsenior
managementteams,andfocusrecruitmentonindividualswithstrong
operationalandtechnicalexpertise.
Focus on exploration and high-quality earnings
Throughourstrategyweaimtodelivervaluegrowthforshareholdersby
investinginourExplorationandProductionbusinessandsaferoperations
everywhere,whileatthesametimeenhancingefciencyandgrowing
high-qualityearningsandreturnsthroughoutallouroperations.
InExplorationandProduction,ourpriorityistoensuresafe,reliable
andcompliantoperationsworldwide.Ourstrategyistoinvesttogrow
long-termvaluebycontinuingtobuildaportfolioofenduringpositionsin
theworld’skeyhydrocarbonbasinswithafocusondeepwater,gas
(includingunconventionalgas)andgiantelds.Ourstrategyisenabledby
continuouslyreducingoperatingrisk,strongrelationshipsbuiltonmutual
advantage,deepknowledgeofthebasinsinwhichweoperate,and
technology,togetherwithbuildingcapabilityalongthevaluechainin
Exploration,DevelopmentsandProduction.
WeareincreasinginvestmentinExploration,akeysourceofvalue
creationatthefrontendofthevaluechain,andweareevolvingthenature
ofourrelationships,particularlywithnationaloilcompanies.Wewillalso
continuetoactivelymanageourportfolio,withafocusonvaluegrowth.
InReningandMarketing,ourstrategyistoholdaportfolioof
quality,efcientandintegratedmanufacturingandmarketingpositions
underpinnedbysafeoperations,leadingtechnologiesandstrongbrands.
Wewillcontinuetoaccessmarketgrowthopportunitiesintheemerging
marketsandintendtogrowourinternationalbusinesses.Overtimewe
expecttoshiftcapitalemployedfrommaturetohigh-growthregions.
InAlternativeEnergy,ourstrategyistobuildmateriallow-carbon
energybusinessesthatarealignedwithBP’scorecapabilities.Inbiofuels
wearebuildingadvantagedpositionsinlow-costsustainablefeedstocks
suchasBraziliansugarcane,thelignocellulosicconversionofenergy
grassesintheUSandthedevelopmentofadvantagedfuelmoleculessuch
asbiobutanol.Inthelow-carbonpowerbusinesswearebuildingoutourUS
windportfolioandcontinuetogrowoursolarbusiness.Wecontinueto
developourcapabilityincarboncaptureandstorage.
Leveraging technology as we look further ahead
AsdiscussedunderOurmarketonpages16-18ofthisreport,weexpect
thattheworldwillrequireamorediverseenergymixasthebasisfora
securesupplyofenergyovertime.Weintendtoplayacentralrolein
meetingtheworld’scontinuedneedforhydrocarbons,withourExploration
andProductionandReningandMarketingactivitiesremainingatthecore
ofourstrategy.Wearealsocreatinglong-termoptionsforthefutureinnew
energytechnologyandlow-carbonenergybusinesses.Webelievethatthis
focusedportfoliohasthepotentialtobeamaterialsourceofvaluecreation
forBP(see pages 61-62).Wearealsoenhancingourcapabilitiesinnatural
gas,whichmayprovetobeavitalsourceofrelativelycleanenergyduring
thetransitiontoalower-carboneconomyandbeyond.Weintendtolead,
supportandshapethistransitionwhileworkingtoachievesector-leading
levelsofreturnforshareholders.
20BPAnnualReportandForm20-F2010