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Our business model

Our purpose

Reimagining energy for people and our planet

Our resources and relationships

Some of the tangible and intangible assets that support how we generate and preserve value for our stakeholders, as at 31 December 2021.

Energy sector experience 

>110 years

experience in the world of energy

70 years

annual publication of the bp World
Statistical Review of Energy 

Incumbent capability

>10,000

engineers

~2,000

digital experts 

Partnerships

3

city or region partnerships
since 2020

>250

co‐investors through bp ventures 

Research & development

$266m

invested in research and
development

~5,000

granted and pending patent
applications held by bp and
its subsidiaries

Energy resources

16,954mmboe

proved hydrocarbon reserves for
the groupa

4.4GW

developed renewables to FID

Financial 

$12.8bn

capital expenditure

$23.6bn

operating cash flow

a On a combined basis of subsidiaries and equity-accounted entities. Includes 9,013mmboe – bp’s share of Rosneft and Russia joint ventures. 

Our business groups

Our three business groups are supported by four integrators to facilitate collaboration and unlock value: innovation & engineering; regions, cities & solutions; strategy, sustainability & ventures; and trading & shipping. And three teams serve as enablers of business delivery: finance; legal; and people & culture.

Production & operations

Operating our hydrocarbon business from which we produce the hydrocarbon energy and products the world needs – safely and efficiently.

 

Creating value through
 

  • Finding and developing hydrocarbon resources, with selective exploration mostly focused near our existing hubs.
  • Operating oil and gas production assets, including bpx energy.
  • Operating refineries, terminals and pipelines.
  • Deploying technical capability across hydrocarbons and low carbon businesses.

 

Customers & products

Focusing on customers as the driving force for innovating new business models and service platforms to deliver the convenience, mobility and energy products and services of the future.

 

 Creating value through
 

  • Differentiated convenience and fuel offers at our retail sites, including snacks, ready meals and coffee.
  • Our EV charging businesses.
  • Our Castrol lubricants and e-fluids brand sold through numerous channels.
  • Our aviation fuelling business.
  • Our B2B and midstream businesses.
  • Refining & trading – our oil products businesses.
  • Optimizing across integrated fuels value chain.

 

Gas & low carbon energy

Creating low carbon energy solutions. We pursue the development of decarbonization technologies and potential moves into new value chains such as hydrogen and carbon capture and storage (CCS).

 

 Creating value through

 

  • Integrated gas and LNG businesses.
  • Onshore and offshore wind.
  • Our 50% stake in Lightsource bp.
  • Biopower and biofuels through bp’s 50% stake in bp Bunge Bioenergia.
  • US biogas.
  • Hydrogen and CCS.

 

What makes us different

We believe we have the scale and expertise to navigate complex markets and manage increasingly integrated energy systems

Integration

 

Integrating energy systems

Harnessing our collective capabilities as the energy system transitions, helping more customers get the energy they want and creating value for our shareholders.

 

Working to decarbonize the aviation sector

 

We are working with airlines and airports to support the decarbonization of the aviation sector and our aim to be a net zero company by 2050 or sooner:

  • Sustainable aviation fuel (SAF) is expected to play a critical part in decarbonizing this sector and we are working at pace to promote SAF availability, accessibility and affordability.
  • We have an established position in SAF and aim to be a sector leader, with 20% marketing share by 2030.
  • As an integrated energy company, our global capabilities, expertise and experience positions us well to help our partners and our customers move at a faster pace on the energy transition journey.
  • We aim to increase our biofuels production three-fold at three of our refineries through bio co-processing, and invest in five major biofuels projects including three adjacent to existing refineries and the conversion of up to two bio-refineries by 2030.

Progress in 2021:

  • Received accreditation from the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) for the production of SAF at our Castellón refinery, the first refinery in the world to receive this status.
  • Formed a strategic partnership with Qantas to work on opportunities to decarbonize the aviation sector and agreed to supply SAF to the airline from 2022 for selected flights from London to Australia departing from London’s Heathrow Airport.
Partnering with countries, cities and industries

By leveraging relationships and building new partnerships we aim to provide integrated energy and mobility solutions to help cities and industries reduce carbon emissions while creating exciting business opportunities.

 

Developing low carbon, CCS-enabled hydrogen in the UK

 

We’re developing plans for a blue hydrogen production facility in Teesside, aiming for 1GW of blue hydrogen production by 2030 and supporting development of the region as the UK’s first hydrogen transport hub – H2Teesside.

 

H2Teesside aims to help surrounding industries decarbonize their existing operations by switching fuel from natural gas to low carbon hydrogen, enabling their manufacturing facilities to produce low carbon products as society progresses towards a net zero future.

 

The development is expected to:

  • Capture and send for storage up to 2MtCO2 per year.
  • Help lead a low carbon transformation, supporting jobs, regeneration and the revitalization of the surrounding area.

 

H2Teesside and HyGreen Teesside – a new large-scale green hydrogen production facility project planned by bp – together have the potential to deliver 30% of the UK’s 2030 target for low carbon hydrogen production.

 

bp has signed memorandum of understanding with seven potential customers – with existing or planned Teesside operations – for hydrogen produced by the project.

  • A final investment decision is due in early 2024, with potential to begin production in 2027 or earlier.
Driving digital innovation


We innovate with a strong focus on digital to drive operational efficiencies, empower our workforce and engage better with our customers. This includes building new businesses through bp ventures and Launchpad.

 

Innovation across the business

 

Growing digital expertise in India

 

Our new digital hub in Pune, India is designed to create, grow and deliver a range of digital solutions to help transform bp’s core operations, extend its customer interfaces and support new and emerging business models. Located within bp’s major global business services operations centre, the hub has an initial headcount of around 100 digital engineering, data, information security and design specialists.

  • We aim to build an accessible talent ecosystem of digital expertise with cross-discipline, agile teams that will scale up and evolve over time.
  • We will use the hub to partner and collaborate with other leading institutions, support start-ups and strategic organizations.
  • The hub will support the digitization of bp’s businesses and help deliver new energy and mobility solutions.

 

Enhancing safety with automated technology in the North Sea

 

The first onshore remote piloting of a remotely operated vehicle (ROV) in the UK was successfully conducted at the bp-operated Clair Ridge platform west of Shetland in 2021. The project was also the first cross-border implementation and the first operational implementation for bp.

  • Onshore piloting of ROVs improves the efficiency and safety of operations by removing people from the work site.
  •  The work was carried out by Oceaneering’s Onshore Remote Operations Centre in Norway, where the team observed drilling operations at our Clair Ridge platform.

 

 

Delivering value for stakeholders

We are committed to delivering long-term value for stakeholders

Customers

Including end-use consumers, B2B customers and distributors

>12m

Customer touchpoints per day

Employees

Our 65,900 people worldwide

64%

Employee engagement 'Pulse' survey score

Government and regulators

In countries where we have activities of plans to operate

$5.4bn

Corporate income tax and production tax paid

Investors and shareholders

Includes our institutional and retail investors

$4.3bn

Total dividends distributed to shareholders

Partners and suppliers

Includes relationships with academia, industry, cities and suppliers

$122.2bn

Sourcing goods and services from ~ 40,000 suppliers

Society

The people, businesses and environment in the communities where we work

~$51m

Supporting additional initiatives to benefit the communities where we operate