BP 2012 Annual Report Download - page 20

Field of the Future
Applying real-time
data capabilities to
enable safe and
efficient operations.
Advanced seismic imaging
Locating and accessing
new resource through
industry-leading imaging.
Beyond sand control
Maximizing production
and managing risk from
sand-prone reservoirs.
Pushing Reservoir Limits
Growing recovery factors
to maximize resources
from existing oil fields.
Heavy oil
Developing new technologies
to recover heavy oil.
Unconventional gas
Recovering gas from
unconventional rocks using
innovative technologies.
Deepwater facilities
Delivering fully qualified
integrated production
technology solutions that
safely maximise value from
BP’s deepwater portfolio.
Well advisor
BP deliver safe, reliable
and efficient well operations
through the integration
of real-time data.
Inherently reliable facilities
Managing and reducing
integrity risk.
industry by participating in industry bodies,
engaging with our peers on important issues,
and – where appropriate – setting voluntary
standards above those required by current
regulation. And we carry out regular reviews
and audit processes with contractors and
suppliers, which help to maintain strong links
across our operations and activities.
Technology
We believe our development and application
of technology is central to our reputation and
competitive advantage. For us, technology is
the practical application of scientific knowledge
to manage risks, capture business value and
inform strategy development. This includes the
research, development, demonstration and
acquisition of new technical capabilities and
support for the deployment of BP’s know-how.
Our investments are focused on access to
resources, process efficiency, product
formulation and lower-carbon opportunities. We
monitor the potential opportunities and risks
presented by emerging science, interdisciplinary
innovation and new players; natural resource
issues and climate concerns; and evolving
policy, including the current emphasis on energy
security and efficiency.
BP’s technology advisory council, comprised
of eminent business and academic technology
leaders, provides the board and executive
management with an independent view of BP’s
capabilities judged against the highest industrial
and scientific standards.
Supply and trading
We buy and sell at each stage in the value
chain to optimize value for the group, often
selling our own production and buying from
elsewhere to satisfy demand from our refineries
and customers. We also aim to create value
through entrepreneurial trading, where our
presence across major energy trading hubs
gives us a good understanding of regional and
international markets.
Upstream
Our Upstream segment is responsible for our
activities in oil and natural gas exploration,
field development and production, and
midstream transportation, storage and
processing. We also market and trade natural
gas, including liquefied natural gas, power
and natural gas liquids. We focus on areas
that play to our strengths, particularly
exploration, deep water, gas value chains and
giant fields.
In 2012 our upstream and midstream activities
took place in 28 countries including Angola,
Azerbaijan, Canada, Egypt, Norway, Trinidad &
Tobago, the UK, the US and other locations within
Asia, Australasia, South America, North Africa
and the Middle East.
Our Upstream segment manages its exploration,
development and production activities through
global functions with specialist areas of expertise.
We actively manage our portfolio and are placing
increasing emphasis on accessing, developing
and producing from fields able to provide
high-margin barrels (those with the potential to
make the greatest contribution to our operating
cash flow). We sell assets when we believe they
may be more valuable to others. This allows us to
focus our leadership, technical resources and
organizational capability on the resources we
believe are likely to add the most value to our
portfolio.
Our upstream technologies support BP’s
business strategy by focusing on safety and
operational risks, helping to obtain new access,
increasing recovery and reserves and improving
production efficiency. Our strengths in
exploration, deep water, giant fields and gas value
chains are underpinned by dedicated flagship
technology programmes.
Upstream
For more on our upstream activities in 2012
see pages 63-71.
Technology
For more on the role of technology at BP
see pages 57-59.
Upstream technology flagships
We increased our acreage in Trinidad & Tobago,
where our production comprises oil, gas and
NGLs, by 889,000 acres in 2012. Below is the
Rowan drilling platform, offshore Trinidad.
Business review: Group overview
BP Annual Report and Form 20-F 2012
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