U.S. Lower 48

With a footprint that stretches from the Rocky Mountains to east Texas, BP’s Lower 48 onshore business is one of America’s largest natural gas producers. And it’s only getting bigger, recently having expanded operations in New Mexico.
 
The business produces natural gas — along with oil, condensate and gas liquids — from both conventional and unconventional rock formations. 

In 2015, it produced an average of 284,000 barrels of oil equivalent each day.
 
Headquartered in Houston, its operations span five states — Colorado, New Mexico, Oklahoma, Texas and Wyoming — and seven oil and gas basins, covering an area (5.7 million net acres) roughly the size of New Jersey.
 
While wholly owned by BP, the Lower 48 business began operating as a separate entity in 2015 in order to become more competitive in a rapidly changing exploration and production environment.The move has worked.
 
“Our new business model has allowed us to combine the resources and expertise of a major international oil and gas company, with the agility of an independent producer,” says Lower 48 CEO Dave Lawler. “We can allocate capital more efficiently, generate new project opportunities, and deliver innovative well designs and development programs much faster than in the past. This mix of capability and structure unlocks significant value from our large asset base, without compromising our commitment to safety and the environment.”
 
In 2015, the business bought all of Devon Energy’s assets in the San Juan Basin of New Mexico, a region in which BP has operated for more than 30 years. The expansion added nearly 15,000 net acres to its portfolio.
 
With decades of experience in the San Juan Basin, BP has a deep understanding of its reservoirs, and the Lower 48 business has combined that knowledge with innovative technology to help boost production efficiency.
 
In 2015, for example, the company made history by completing its first-ever “multilateral” wells in the basin.
 
Multilateral wells feature multiple horizontal wells connected to a single drilling hole, or “wellbore,” allowing producers to access more of the oil and gas in a given reservoir while reducing the number of drilling sites.
 
The Lower 48 business expects that a majority of its new wells in the San Juan Basin will be multilaterals, and it is pursuing similar welldesign improvements across all its operations.

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