bp’s U.S. onshore oil and gas division, bpx energy, has made significant strides in modernizing its operations in the Permian Basin, resulting in a substantial boost in production and a marked reduction in emissions. Since acquiring its Permian assets in 2018, bpx energy has focused on enhancing its production capabilities while addressing the environmental impact of its operations, particularly by minimizing gas flaring.
A key part of bpx energy’s strategy has been the development of centralized processing facilities, including Grand Slam, Bingo, and Checkmate, which collectively have a capacity of over 100,000 barrels of oil and associated gas per day. These facilities are designed to efficiently separate and process oil, gas, and water, reducing flaring to less than 0.5% of gas from wells, a significant drop from the 15% observed in 2019.
In addition to infrastructure improvements, bpx energy has leveraged technology to enhance its drilling efficiency. The company has implemented proprietary automation software that reduces drilling times and equipment wear by allowing rigs to adapt to real-time subsurface conditions. This technology, along with a physics-based analytics approach known as RTAN (rate transient analysis), has significantly increased production value, contributing over $1.5 billion since 2020.
A major highlight of bpx energy’s modernization efforts is its investment in electrical infrastructure. By the end of 2023, the company had electrified 95% of its Permian wells, shifting away from diesel and natural gas-powered operations to electricity. This transition has not only improved efficiency by 8% in well completions but also reduced emissions by approximately 15% and lowered methane intensity by over 3% since 2019. The electrification efforts have positioned bpx energy as one of the most efficient and environmentally responsible operators in the region.
These advancements have solidified bpx energy’s role as a key contributor to bp’s strategy for resilient hydrocarbons, with plans for continued growth in the coming decade.
