Date post: | 07-Apr-2018 |
Category: |
Documents |
Upload: | janakrishna85 |
View: | 217 times |
Download: | 0 times |
of 17
8/6/2019 BP Strategy
1/17
BP StrategyBP Strategy
RecommendationsRecommendations
ShortShort--run and longrun and long--runrun
approaches to a carbonapproaches to a carbon--constrained future.constrained future.
8/6/2019 BP Strategy
2/17
The Present EnvironmentThe Present Environment
High and increasing demand for oil.High and increasing demand for oil.
Dwindling rates of oil production.Dwindling rates of oil production.
Instability in Middle EastInstability in Middle East IraqIraq
Demand for Energy IndependencyDemand for Energy Independency
Threat ofTerrorismThreat ofTerrorism
Increasing profile of anthropocentricIncreasing profile of anthropocentric
climate change.climate change.
8/6/2019 BP Strategy
3/17
Recent New York Times Headlines:Recent New York Times Headlines:
Global warming to bring heavier rains, snow,Global warming to bring heavier rains, snow,October 14October 14thth, 2005., 2005.
As Polar Ice Turns to Water, Dreams ofAs Polar Ice Turns to Water, Dreams ofTreasure Abound, October 10Treasure Abound, October 10thth, 2005., 2005.
In a Melting Trend, Less Arctic Ice to GoIn a Melting Trend, Less Arctic Ice to Go
Around, September 29Around, September 29thth, 2005., 2005.
Time to Connect the Dots, September 28Time to Connect the Dots, September 28thth,,2005.2005.
8/6/2019 BP Strategy
4/17
8/6/2019 BP Strategy
5/17
The Future EnvironmentThe Future Environment
Sharpened salience of global warmingSharpened salience of global warming
issue and demand for carbon abatement.issue and demand for carbon abatement.
Emissions restrictions on COEmissions restrictions on CO22 and capand cap--
andand--trade mechanisms will create valuetrade mechanisms will create valuefor COfor CO2.2.
8/6/2019 BP Strategy
6/17
StrategyStrategy Increase capacity for producing innovation inIncrease capacity for producing innovation in
energy technologies.energy technologies.
Position to take full advantage of this capacity byPosition to take full advantage of this capacity byactively entering the enhanced oil recoveryactively entering the enhanced oil recovery
(EOR) and carbon capture markets as interim(EOR) and carbon capture markets as interimstrategiesstrategies
Influencing the agenda by manipulating theInfluencing the agenda by manipulating thepace, shape, and direction in which carbonpace, shape, and direction in which carbon
abatement will be pursued in the U.S.abatement will be pursued in the U.S. Focus is on taking profitable actions in the shortFocus is on taking profitable actions in the short--
run which will facilitate a longrun which will facilitate a long--run agenda settingrun agenda settingstrategy.strategy.
8/6/2019 BP Strategy
7/17
Increase CapacityIncrease Capacity
Heavy investment in R&D.Heavy investment in R&D. TechnologyTechnology
InfrastructureInfrastructure
ProcessesProcesses
Develop and invest in relationships withDevelop and invest in relationships with
key decision makers and players.key decision makers and players.
8/6/2019 BP Strategy
8/17
StrategyStrategy Increase capacity for producing innovation in
energy technologies.
Position to take full advantage of this capacity byPosition to take full advantage of this capacity byactively entering the enhanced oil recoveryactively entering the enhanced oil recovery
(EOR) and carbon capture markets as interim(EOR) and carbon capture markets as interimstrategiesstrategies
Influencing the agenda by manipulating thepace, shape, and direction in which carbon
abatement will be pursued in the U.S. Focus is on taking profitable actions in the short-
run which will facilitate a long-run agenda settingstrategy.
8/6/2019 BP Strategy
9/17
PositioningPositioning
Target and acquire mature oil fields in proximityTarget and acquire mature oil fields in proximity
to BP owned point sources of COto BP owned point sources of CO22 in Gulf Coastin Gulf Coast
region ofTexas.region ofTexas.
Pursue federal and state funding for BP ownedPursue federal and state funding for BP owned
COCO22 pipeline and monitoring infrastructure.pipeline and monitoring infrastructure.
Capture COCapture CO22 from point sources and use forfrom point sources and use for
EOR.EOR.
8/6/2019 BP Strategy
10/17
8/6/2019 BP Strategy
11/17
StrategyStrategy Increase capacity for producing innovation in
energy technologies.
Position to take full advantage of this capacity byactively entering the enhanced oil recovery
(EOR) and carbon capture markets as interimstrategies
Influencing the agenda by manipulating theInfluencing the agenda by manipulating thepace, shape, and direction in which carbonpace, shape, and direction in which carbon
abatement will be pursued in the U.S.abatement will be pursued in the U.S. Focus is on taking profitable actions in the short-
run which will facilitate a long-run agenda settingstrategy.
8/6/2019 BP Strategy
12/17
COCO22
CapCap--andand--TradeTrade
What is it and how does it work?What is it and how does it work?
8/6/2019 BP Strategy
13/17
Influencing the AgendaInfluencing the Agenda
Target publicTarget public raise profile of globalraise profile of global
warming.warming.
Provide info to relevant CongressionalProvide info to relevant Congressionalplayers.players.
Invest in relationships with key leaders.Invest in relationships with key leaders.
Establish a PAC to support candidatesEstablish a PAC to support candidates Build alliances with industry partners andBuild alliances with industry partners and
NGOs.NGOs.
8/6/2019 BP Strategy
14/17
StrategyStrategy Increase capacity for producing innovation in
energy technologies.
Position to take full advantage of this capacity byactively entering the enhanced oil recovery
(EOR) and carbon capture markets as interimstrategies
Influencing the agenda by manipulating thepace, shape, and direction in which carbon
abatement will be pursued in the U.S. Focus is on taking profitable actions in the shortFocus is on taking profitable actions in the short--
run which will facilitate a longrun which will facilitate a long--run agenda settingrun agenda settingstrategy.strategy.
8/6/2019 BP Strategy
15/17
PlayersPlayers
AlliesAllies Short runShort runMid sized oil companies, chemical plants, refineries.Mid sized oil companies, chemical plants, refineries.
Industry groups like Gulf Coast Carbon CenterIndustry groups like Gulf Coast Carbon Center
NGO alliesNGO allies
Texas public, governor, and many congressional leaders.Texas public, governor, and many congressional leaders.
AlliesAllies Long runLong run
Utilities can be convinced to invest in IGCC, whichUtilities can be convinced to invest in IGCC, whichreduces cost of carbon capture.reduces cost of carbon capture.
Public and increasing number of representatives.Public and increasing number of representatives.
Foreign industrialized countriesForeign industrialized countries
8/6/2019 BP Strategy
16/17
PlayersPlayers
OpponentsOpponents Short runShort runOlder coalOlder coal--burning utitiesburning utities
Taxpayers in other statesTaxpayers in other states
Pork Barrel alarmists.Pork Barrel alarmists.
OpponentsOpponents Long runLong runOil companies without CO2 transportation capacityOil companies without CO2 transportation capacity
8/6/2019 BP Strategy
17/17
A final wordA final word
Short term and long term strategies to be keptShort term and long term strategies to be keptseparate:separate:
Public outreach and work with NGOsPublic outreach and work with NGOs High profileHigh profile
EOR and pipeline subsidies, as well as push forEOR and pipeline subsidies, as well as push forcarbon capcarbon cap--andand--tradetrade Low profileLow profile