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bp’s contribution to the UK economy report sets out to quantify the impact of our business in more detail. We hope it will be of use in understanding how a large business plays its part in creating wealth and adding value to the national economy
bp’s impact has remained consistently strong over time
bp’s overall UK economic impact in 2019 was in line with its average for the period 2014-19 and 7% higher overall since 2014.
Between 2014 and 2019, bp has supported a wide and diverse range of UK suppliers, generating an average annual contribution of:
£9.9 billion to UK GDP
122,000 jobs.
The productivity of employees through bp’s direct and indirect activity in the UK economy increased by 57% over that period.
In that time, bp has purchased from an average of 3,000 suppliers of operational goods and services. This has increased by over 70% in areas such as the North East. An average of 800 suppliers of capital goods and services has been supported by bp in the same period, with the largest increase being nearly 240% in the West Midlands.
The contribution to UK taxes has remained consistent too, with bp directly bearing or collecting an average of £2.7 billion in tax receipts to the Exchequer each year – around £1 in every £200 overall.
2019 economic impact highlights
bp supported an estimated £9.7 billion gross value added contribution to the UK’s gross domestic product (GDP) and 90,100 UK jobs in 2019.
Of this total, bp’s direct UK operations – such as oil and gas fields, petrochemical plants, fuels retailing facilities and major offices – created a £4.2 billion gross value added contribution to UK GDP and employed 15,780 people.
Equivalent to £1 for every £474 of UK GDP in 2019.
bp spent a total of £7.1 billion with UK suppliers, up from £6.4 billion in 2019:
£5.2 billion on operational goods and services from 2,520 suppliers, supporting an estimated £3.9 billion indirect contribution to GDP and 56,000jobs.
£1.9 billion spent on capital goods from 580 suppliers, supporting an estimated £1.6 billion gross value added contribution to GDP and 18,000 jobs.
bp’s direct and supply chain expenditures with UK suppliers are estimated to have supported 1 in every 364 jobs in the UK in 2019, or 0.27% of all employment in the country.
bp ventures increased their investment to a total of over £70 millionin13 businesses across the UK.
Around half of bp’s global R&D expenditure in 2019 was on work conducted in the UK.
In 2019, bp paid or collected £2.5 billion in UK taxes. That is equivalent to 0.4% of all taxes and revenues collected by HMRC in 2019.
Channels through which bp contributes to the UK economy
bp’s impact on the UK economy by sector
Ten UK industrial sectors receiving the largest amount of bp’s UK operational procurement spend in 2019
Source: Oxford Economics
bp’s impact on the UK's regional economy
Procurement impact and supplier diversification
bp’s 2,520 UK suppliers of goods and services in 2019 are distributed throughout the UK, receiving a total of over £5.2 billion.
Some 27% of them were located in London, 21% in the South East, 11% in Scotland and 10% in the East of England.
In 2019, bp spent almost £1.9 billion on capital goods from around 580 UK suppliers. Of these, 23% were in Scotland, 18% were in the London and another 19% were in the South East.
In addition, around £1.2 billion was spent by bp with UK-registered businesses operating abroad.
Source: bp, based on invoice location
Employment impact
90,100 British jobs were supported by bp in 2019, with direct UK operations – such as oil and gas fields, petrochemical plants, fuels retailing facilities and major offices – creating £4.2 billion gross value added contribution to UK GDP and employing 15,780 people. This is equivalent to £1 for every £474 of UK GDP in 2019.
The indirect impact of bp procurement of goods and services and capital expenditure supported an estimated additional 74,315 people in the wider UK economy.
Overall, London, the South East and Scotland were the biggest jobs beneficiaries from bp’s direct and indirect impacts. bp supported employment equivalent to 0.6% of all employment in Scotland, 0.5% in London and the South East.
Source: bp, Oxford Economics, ONS
bp’s operating locations
Estimated geographic distribution of bp’s 2,520 UK suppliers of goods and services in 2019
Source: Oxford Economics
Estimated geographic distribution of bp’s 580 UK suppliers of capital goods and services in 2019
Our long-standing working relationship continues to deliver agile subsea solutions. Collaboration and trust are key to the culture and performance of our respective teams.”Don SweetDirector – Subsea Production Systems, Schlumberger
bp Quad XT23 delivered by OneSubsea Aberdeen.
OneSubsea, a Schlumberger company, has worked closely with bp and its regional partners for several years, providing subsea production technology for energy projects worldwide.
The collaboration between bp and OneSubsea has evolved from equipment supply to system solutions, with development teams working together to develop and deliver safe, sustainable, and successful projects. Engagement amongst the companies begins with early concept engineering, continues through the tendering phases, and into project execution.
The OneSubsea UK teams have provided international support to bp in Egypt on the Giza, Fayoum & Raven assets as well as engineering and services to the Shah Deniz Phase 2 project in the Caspian. Additionally, the OneSubsea teams have supported BP regional partner the Pharaonic Petroleum Company (PhPC) on the Atoll & Qattameya fields. Most recently, OneSubsea worked with bp in 2019 to deliver subsea production equipment on the QUAD 204 and the Alligin projects, both located in the West of Shetland region in the UK.
bp activity supported by OneSubsea amounts to approximately 300 jobs in the UK, as well as hundreds of others through the extended supply chain.
Subsea tree for Quad 204 undergoing System Integration Test (SIT) at OneSubsea Aberdeen facility.
Engagement stand for party conference in Manchester.
Stagestruck has been creating engaging and effective world-class events, experience s and communications for blue-chip brands since 1984. And we’ve enjoyed working with bp for 20 of those years.
“In 2019, we designed, managed and delivered over 40 projects for bp, built around our full-time team of 86. These included the AGM; global leadership events; the bp Helios Awards; training events; as well as the design, build and delivery of a number of exhibitions and political conferences, communications programmes and marketing events around the world.
In total, this was around £2m of work for the team of 3D designers, producers, graphic designers, sound engineers, lighting designers, showcallers, digital designers, communications strategists, developers, project managers, logistics managers, carpenters, and more.”
Paul Finch, chief production officer
Main set for bp Helios awards, London.
Exhibition and reception area, bp Helios awards, London.
bp has been partnering with the TechX Pioneer Programme since 2017. This is a unique technology accelerator and incubator based at the Oil & Gas Technology Centre (OGTC) in Aberdeen that helps ambitious start-ups take their solutions to the energy market faster.
To date, 21 companies have graduated from the award-winning programme, developing ground-breaking technologies including a lab-on-a-chip (RAB Microfluidics), machine learning seismic imaging software (Optic Earth) and a complete oil field well surveillance technology (AI Exploration).
In just two years, £2.8 million has been co-invested into these pioneering companies with a further £1 million of additional investment being secured post-graduation from the programme. Collectively, three field trials have been completed with seven planned over the next year and another 10 on the horizon, while 13 new jobs have been created and two new facilities have been opened.
AI Exploration founders receiving the bp TechX Technology Award at TechX Demo Day.
This Aberdeen-based company aims to digitalize the oil and gas industry by delivering impactful, real-time production optimization and oil-field diagnostics powered by artificial intelligence software. Their technologies help increase process efficiency and cost savings, which will play an important part in the energy transition.
In 2019, AI Exploration received the bp TechX Technology Award of £80,000 to continue to support its technology development. Since then, bp ventures has provided pre-equity financing and has started to work with AI Exploration in the North Sea business on projects including analyzing the carbon footprint of trips offshore to allow the business to make better planning decisions that support bp’s net zero ambitions.
Launchpad was set up by bp in late 2018 to turn breakthrough technologies and business models from inside and outside of bp into high potential businesses.
Launchpad is focused on scaling new businesses through bp’s unique advantages to help deliver cleaner, more affordable and reliable energy. There are currently four growth businesses in the portfolio:
LYTT
LYTT is enabling the move to predictive analytics within upstream oil and gas using real-time subsurface data. LYTT builds world-leading analytics for data-driven decisions using fibre optic data. Find out more at lytt.com.
STRYDE
A technology company developing ground-breaking land seismic receiver systems that help reduce cost, environmental impact and safety risks without compromising data quality. STRYDE is now rapidly scaling up, offering commercial applications for use in a host of sectors, including hydrocarbons, renewables, geothermal and civil engineering. Find out more at strydefurther.com
Onyx InSight
A leader in predictive analytics for the wind sector. bp sees huge potential in building a world-class predictive analytics platform serving the growing wind market, including bp’s own wind business, the largest in the US. Find out more at onyxinsight.com
Fotech
An innovative technology company focused on developing and deploying advanced fibre optic sensing hardware targeting the smart cities, security and oil and gas sectors. Launchpad acquired the business in late 2019 but bp ventures had been an investor since 2013. Find out more at fotech.com
bp Chargemaster marked its first full year under bp ownership in 2019, and experienced impressive growth across the board, with turnover increasing by more than 25% from 2018.
It strengthened its position as the leading public charging operator in the UK, powering up to 1.5 million electric miles a week, and installing over 120 new rapid and ultra-fast chargers, as well as inaugurating the country’s largest universal rapid charging hub and the first ultra-fast charging hub in London.
The company launched its UK-made smart homecharge unit, giving electric vehicle drivers more control over their charging, and unveiled its new 150kW charger, the first two of which have been installed at its new head office in Milton Keynes.
It also signed a major deal with Mitchells & Butlers to install 200 rapid chargers at its pubs and restaurants. Its rollout of 150kW ultra-fast chargers on bp forecourts began in the autumn, with the first four sites going live within four months.
The Electric Vehicle Experience Centre, operated by bp Chargemaster for Milton Keynes council, welcomed its 100,000th visitor since it opened in the summer of 2017 as the country’s only multi-brand EV education and test-drive facility.
bp Chargemaster rapid-charging hub at Milton Keynes Coachway (8 x 50kW).
bp Chargemaster ultra-fast forecourt charging at bp Cranford (2 x 150kW).
Committed to UK arts, culture, sport and education
bp continued to demonstrate a consistent commitment to UK communities through its support for schools, arts and culture, sport, community organizations and charities.
Building on the Enterprising Science educational research programme to understand how and why young people choose to study STEM subjects, bp continued its relationship with the Science Museum Group as the founding partner of its Academy of science engagement across the UK.
2019 marked the 30th anniversary of bp’s support for the BP Portrait Award at the National Portrait Gallery – the most prestigious portrait painting competition in the world. bp also announced £1 million of funding in support of the redevelopment of Aberdeen Art Gallery.
Following pressure from activist groups, the Royal Shakespeare Company (RSC) took the decision to end its partnership with bp at the end of 2019. Since 2011, bp’s support for the £5 ticket scheme had enabled 80,000 tickets to be used by young people aged between 16 and 25 to experience the RSC’s performances.
Over the five-year period from 2015-19, around 7 million people engaged with a bp-supported cultural activity.
bp continued its support for the British Paralympic Association (BPA), helping it to prepare ParalympicsGB athletes to compete at five Paralympic Games and working to inspire a better world for disabled people through sport.
Creating value in local communities
bp’s UK employees volunteered 51,600 hours and generated over £3.4 million of contributions to community organizations during 2019.
Guests listening to British Museum curator at opening of Troy exhibition.
Girl wearing VR headset during Ultimate STEM Challenge final at the Science Museum in London.
Royal Opera House performance of Figaro as part of BP Big Screens series, London.
BP Portrait Award 2019 installation at the National Portrait Gallery in London.
bp Young Scientist Day, Sunbury-on-Thames.
Family exploring bp’s alternative energy model at New Scientist Live in London.
About the report
This is the sixth update of the original report by Oxford Economics, bp’s impact on the UK economy, September 2015.
This summary reflects the economic contribution for the calendar year 2019 and can be read alongside the previous reports for a year-on-year comparison. It highlights the consistency of bp’s contribution to the UK economy since 2014.
Much has changed in the world since the start of 2020, including the impact of the COVID-19 pandemic on UK society, and what we see as a structural change in the demand for energy and how it is produced. As a result, we expect to see bp’s UK economic impact change in the future, with this 2019 report likely to mark the end of the previous era.
We are changing profoundly as a company to meet societal expectations. You can find more information on bp’s new purpose – reimagining energy for people and our planet – and how we will deliver on our ambition to be a net zero company by 2050 or sooner, at bp.com/reimagine.
bp disclaims any obligation to update this publication. Neither BP p.l.c., nor any of its subsidiaries, accepts liability for any inaccuracies or omissions or for any direct, indirect, special, consequential or other losses or damages of whatsoever kind in connection to this publication or any information contained in it.
Acknowledgement
bp would like to thank its partners in the production of this publication.
