1. Home
  2. What we do
  3. Our strategy
  4. The value of integration

The value of integration

We believe operating as an integrated energy company opens up unique opportunities for bp to grow value for our shareholders while delivering energy solutions our customers want and need
Here’s how 👇

Integration in oil

Over 100 years ago, bp started its first value chain – oil fields, attached to refineries, with products sold in service stations and airports. We’re now introducing biofuels – sustainable aviation fuel and biodiesel to our customers, too. At the same time, we’re lowering the carbon footprint of our operations by using lower carbon hydrogen and lower carbon electricity for power.

Integration in gas

Over 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 introducing 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 produce here can, for example, supply renewable energy to create lower carbon hydrogen, or service growing electricity demand in our EV charging business.

Integration through trading

All three of these chains are optimised by our trading organisation. The more we integrate by interlinking them, the more we can drive higher returns. From 2020-2023 trading contributed on average around a 4% uplift to group return on average capital employed. Across all these value chains we always have a choice about how much energy we produce ourselves and how much we buy from other producers. That provides flexibility to drive absolute discipline in investing our capital – so we can hit our expected returns across these value chains.

We then use the power of integration to optimise returns and trading options – growing the value of bp. That’s what makes an integrated energy company – investing in today’s energy system and building out tomorrow’s – aiming to deliver higher margins with lower emissions.