CATEGORIZED | News

BP intends to 'drive deflation' in 2009, cutting downstream & alternative energy spending; E&P spend

Posted on 18 March 2009

He indicated that BP’s costs should fall by some $2 million in 2009. However, Mr Hayward said that BP would maintain this year’s capital spending in line with 2008, in the $20 billion to $21 billion range. BP would decrease spending in refining, marketing and alternative energy, while maintaining investment in exploration and production.

Further, BP announced that during 2008 it added 1.7 billion barrels of new oil and gas to its reserves base, a replacement ratio of 121%, excluding acquisitions and divestments. The company says that this marks the 15th successive year in which it has reported the replenishment of reserves by more than annual output.

The company said it expected to be able to grow production through to 2013 from existing projects. With year-end 2008 reserves of 18.2 billion barrels and a resource base of 43.4 billion barrels, this growth could be maintained until 2020 without any further discoveries.

At a total of 61.6 billion barrels of oil equivalent, BP's combined reserves and non-proved resources were sufficient for 43 years of production at the same rates as last year.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 30 January 2015

    Chevron, BP, ConocoPhillips advancing Paleogene discoveries in deepwater GOM

    Chevron and BP will collaborate with ConocoPhillips to explore and appraise 24 jointly-held offshore leases in the northwest portion of Keathley Canyon...

  • 29 January 2015

    PetroQuip deploys BigFoot toe sleeve in Anadarko Basin

    PetroQuip Energy Services successfully implemented its revolutionary toe sleeve, BigFoot, in a recent horizontal completion for an independent operator...

  • 27 January 2015

    US EIA: Lower 48 oil production outlook stable despite expected rig count reduction

    The sharp decline in oil prices over Q4 2014, which has continued in January, is already having a significant effect on drilling activity in the US, according...

  • 27 January 2015

    Hess announces 2015 capital, exploratory budget

    Hess Corp announced a 2015 capital and exploratory budget of $4.7 billion, a 16% reduction from its 2014 actual spend of $5.6 billion. Of this, $2.1 billion (45%) is budgeted for unconventional shale resources...

  • 26 January 2015

    Young professionals program at SPE/IADC Drilling Conference to target future leaders of the industry

    The oil and gas industry is constantly looking to the future. Whether this comes in the form of pushing the limits of pressure...

  • Read more news