During the BP Q1 2024 Results Call, Murray Auchincloss and Kate Thomson provided several updates and insights regarding BPX operations in the Permian Basin:
Oil & Gas Data Download
BPX Wells Drilled Since 2023
BPX Permian Basin Plan
- Operational Progress:
- BPX has brought online their third central gathering process, increasing their black oil capacity to around 100,000 barrels per day.
- Plans to bring the fourth and final central processing facility online by mid-next year.
- Production and Drilling Focus:
- BPX is focusing more on the liquid-rich areas of the Permian and the Eagle Ford due to low natural gas prices.
- They have reduced the rig count for natural gas and are prioritizing liquids drilling.
- Productivity and Efficiency:
- BPX has achieved top-tier productivity in terms of net present value (NPV) for drilling expenditures.
- The company continues to improve capital efficiency and fracturing techniques to maximize production.
- Market Conditions:
- Conditions in the Permian have become looser, with more rigs available due to low natural gas prices, benefiting BPX’s operational flexibility.
- Future Growth:
- Strong liquids growth is expected as the new processing facilities come online and more wells are completed.
- BPX’s liquids profile is projected to build up to around 100,000 to 120,000 barrels per day by 2025, depending on reservoir responsiveness.
- Strategic Outlook:
- BPX’s operations are designed to be value-driven, focusing on high returns rather than volume. The company will continue to adjust its drilling and production strategies based on market conditions and pricing.
Murray Auchincloss expressed confidence in BPX’s growth and productivity, highlighting the strong performance and future potential of their operations in the Permian Basin.
