BP in America
BP is one of the world’s largest energy companies, providing its customers with fuel for transportation and energy for heat and light. BP employs approximately 97,000 people worldwide and more than 33,000 in the United States. BP’s family of brands includes Amoco, ampm, ARCO, BP and Castrol. BP is also among the world’s most progressive large enterprises. We are widely known as the first energy company to acknowledge the need for precautionary action to reduce greenhouse gas emissions. Today BP continues to lead the effort to meet the world’s growing demand for sustainable, environmentally responsible energy.
BP in the U.S.
BP is the leading producer of oil and natural gas in the United States, and the largest investor in U.S. energy development. Since 2001, BP has invested about $30 billion in the United States, including major investments to increase existing energy sources, extend energy supplies and develop new low-carbon technologies. BP employs more than 33,000 people in the U.S. and has $40 billion in fixed assets. Every year, we market more than 15 billion gallons of gasoline through BP-, ARCO- and Amoco-branded retail outlets. BP is one of the largest blenders and marketers of biofuels in the U.S. Last year, BP blended 718 million gallons of ethanol with gasoline, a 25 percent increase from the previous year. Today, BP biofuels are available in more than 20 states. BP operates the nation’s largest, fully integrated solar manufacturing plant in Frederick, Maryland, where it manufactures solar panels from start to finish.
BP has unveiled Helios House, a specially constructed retail site using environmentally friendly materials, including sustainable water, light and heating supplies. The site, located in Los Angeles, is designed to showcase green technology while providing environmental education to BP’s customers.
Published by: BP Government & Public Affairs, Houston, Texas Contact: email@example.com Website: www.bp.com/us
© 2008, BP America Inc.
hen I became Chairman and President of BP America, I knew the job would not be an easy one.
U.S. energy security
The stakes for future U.S. energy security are high. As the largest oil and gas producer in the country, I believe we have an important mandate. BP America represents 40 percent of BP’s global portfolio. As a result, what we do here is vital to the United States. We have a very strong investment program in
I took this position knowing that we faced challenges as a company here in the United States, and I knew that the scale and breadth of BP America made it a very complex operation with energy segments touching nearly all
Despite what some considered a daunting task, however, I was convinced that BP America had the right core values, the right assets, the right people and the right attitudes to become stronger and better. Our U.S. portfolio of strategic lease holdings, both on- and offshore, our significant oil and gas reserves, our ambitious plans for alternative energy resources, our strategic marketing positions and our technology put us in a unique position as an energy company and open the way to a very bright future. Everywhere I go I am encouraged to see our employees rising to meet new challenges with great attitudes and a commitment to succeed. There is huge energy to move forward and make BP America a great company that is respected for its leadership and for its commitment to the U.S.
exploration and production in the Gulf of Mexico and large hydrocarbon reserves both offshore and onshore. Since 2001, we have invested about $30 billion in the U.S. to increase existing energy sources, extend energy supplies and develop low-carbon technologies. Looking out 10 years and beyond, BP’s investments in the U.S. are expected to continue to average about $6 billion a year. A significant part of that investment is in the Gulf of Mexico deepwater projects. Atlantis, the world’s deepest offshore oil and gas platform, is currently being commissioned and is scheduled to come on stream in late 2007. Thunder Horse will begin production before the end of 2008. These two projects alone will add around 350,000 barrels of oil equivalent a day and help take our U.S. oil and gas production to over one million
While based at the company’s headquarters in Houston, BP America Chairman and President Bob Malone has logged more than 150,000 miles during the past year to meet with BP employees and review operations throughout the United States.
BP in America
BP in America 3 3 2007 Progress Report
BP America external advisory council
barrels of oil equivalent a day, reconfirming our position as the country’s biggest producer of oil and gas. This report is the story of BP in America. It highlights many of the key steps that we are taking to make us a great company. We have organized the report around six key areas that represent our top priorities as we come to the end of 2007. n Investing in U.S. energy security n Being an industry leader in process safety improvements n Developing new technology to meet U.S. energy needs n Investing in biofuels for today and the future n Developing BP Alternative Energy to provide low-carbon and renewable sources of electricity n Our people and becoming part of the fabric of the communities in which we operate. I said earlier that we are a company of deep core values and a commitment to succeed that I hope will become apparent as you read this report. We are not afraid of scrutiny and transparency because I believe we have a good story to tell. I have said repeatedly that BP America will be judged not by what we say, but by what we do. Our story will be told through our actions, which demonstrate our commitment to achieving each of the goals that we have set for ourselves and our company. Bob Christine Todd Whitman
Former Governor of New Jersey and former Administrator of the U.S. Environmental Protection Agency, Whitman is a member of many public boards.
BP America has recruited an extraordinary group of 10 individuals for the company’s independent External Advisory Council. The Council will assist and advise BP America Chairman and President Bob Malone in reviewing the operations and business of BP in America. The 10 members of the External Advisory Council are: Tom Daschle
Former U.S. Senator from South Dakota, Daschle served in the U.S. Senate for 26 years, including as Senate Majority Leader.
We are also committed to developing lowcarbon energy supplies in the U.S. Through BP Alternative Energy, we are investing $8 billion worldwide over 10 years to develop solar, wind, hydrogen power, and natural gas powered technologies to provide cleaner, low-carbon power. Projects already under way or announced include doubling the capacity of our solar manufacturing facility in Frederick, Maryland, already the nation’s largest; a $2 billion first-ofits-kind hydrogen-fueled power plant proposed for California; and five large wind power projects in the western U.S. We are also one of the country’s largest blenders and marketers of biofuels. We currently market biofuels in 20 states, and we expect to increase that market in upcoming years. And we are making significant investments in the future of biofuels through a $500 million research alliance with the University of California-Berkeley, the University of Illinois, Urbana-Champaign, and the Lawrence Berkeley National Laboratory. In addition to these important investments in meeting U.S. energy needs, BP America and our 33,000 employees are also dedicated to improving the communities in which we operate and live. We have major education and community commitments under way across the U.S. And we highly encourage employee volunteerism at the local level.
One of the longest-serving Deputy Attorneys General, Gorelick is a member of numerous boards, and lectures on corporate governance and business ethics.
An expert on crisis management, government relations and transportation safety and security, Hall has served government and private clients for over 35 years.
President of the University of Alaska and retired U.S. Army Major General.
Alden J. McDonald, Jr.
President and CEO of Liberty Bank and Trust Company.
Former Chief of Staff to the U.S. President, 1994-1997, and former U.S. Representative from California.
Former U.S. Senator from New Hampshire and recipient of the Presidential Citizens Medal for Public Service.
Former U.S. Senator from Wyoming, Simpson has served on numerous government committees and civic boards.
Admiral Frank L. “Skip” Bowman (ret.)
Admiral Bowman is president and chief executive officer of the Nuclear Energy Institute and is the former Chief of Naval Personnel and the former Director of Naval Nuclear Propulsion.
More information about BP in America and our investments and operations in the U.S. can be found at www.bp.com/us.
BP in America
BP in America
Investing in the U.S.
ontinuing its track record of significant investments in the U.S., BP America announced plans for several major
Ongoing major investments in the U.S. energy industry
In addition to the new and expanded projects described on the map on pages 8-9, BP continues to invest in a number of energy initiatives throughout the U.S., including: n $2.2 billion over the next 15 years to double natural gas production in Wyoming. n $2.4 billion over 13
investments aimed at finding, producing and distributing energy across the country. BP is already the world’s largest investor in new energy development in the U.S., totaling about $30 billion over the past five years. And, over the next decade, we expect to invest an average of $6 billion a year. The investments by BP America stretch across the entire country, from the Gulf of Mexico to the North Slope of Alaska and from the East Coast to the Midwest and the West Coast. The company’s major spending programs also touch every major segment of the energy industry, from exploration and production of oil and natural gas through refining and distribution of fuel products, as well as alternative energy and biofuels. By heavily investing in a diverse range of energy sources – from traditional oil and natural gas production to alternative and renewable energy including solar, wind and hydrogen power – BP is helping meet America’s energy needs today while ensuring a more secure energy future.
BP’s size and scale allows the company to continue to increase both its crude oil production and longterm reserve base in the U.S., while also investing in new alternative and renewable energy technologies.
years to sustain natural gas production in Colorado and continuing investments in Kansas, Louisiana, New Mexico, Oklahoma and Texas in clean-burning natural gas, the preferred fuel for power generation. n $2.5 billion in 2007 to improve the integrity and reliability of all our U.S. refineries. The
BP is investing $20 billion in the Gulf of Mexico to increase oil and gas supplies in the U.S.
upgrades will improve safety and operational performance while making way for cleaner fuel production and increasing refinery flexibility to process lower-cost crude oil supplies. n $1 billion to build four new crude oil supertankers, some of the most environmentally sound tankers ever built. n
BP in America
BP in America
Investing in the U.S.
(continued from page 6)
Investing in the U.S.
Major Investments in the U.S.:
Investing in the future
Investment: $700 million Locations: Throughout the U.S., including California, Colorado, Texas
Project Description: BP and its partners will invest about $700 million in 2007 for its wind build program.
Energy development and production requires long-term thinking and planning. That’s why BP is continuously involved in exhaustive planning throughout the U.S. on future innovative projects with the potential to make significant contributions to meeting U.S. energy needs. One area of significant potential involves liquefied natural gas (LNG). BP believes LNG can play a meaningful role in supplying energy to the U.S. and has identified potential sites for LNG terminals. In New Jersey, for example, BP is working closely with officials at all levels to develop the Crown Landing LNG plant. BP is prepared to invest more than $700 million for the proposed LNG plant, which will have a daily send-out capacity of 1.2 billion cubic feet of natural gas, and provide enough energy to supply the daily needs of approximately five million homes. n
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Investment: $97 million Location: Maryland
Project Description: Expansion of the BP Solar manufacturing facility in Frederick, Maryland, nearly doubling its silicon casting and sizing capacity. When completed in 2009 the plant will have a manufacturing capacity of 150 MW in its casting and sizing processes.
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Investment: $20 billion Location: Deepwater fields, Gulf of Mexico
Project Description: Increase exploration and production of oil and gas from deepwater reservoirs in the U.S. Gulf of Mexico.
Investment: $500 million Locations: California, Illinois
Project Description: Creation of the Energy Biosciences Institute. The institute focuses on exploring bioscience applications and applying them to the production of new and cleaner energy, principally renewable fuels for road transport (see related story, page 23).
Investment: $2.4 billion Location: San Juan Basin, Colorado
Project Description: Increase ultimate recovery of coalbed natural gas from the San Juan Basin of southwestern Colorado by an estimated 1.9 trillion cubic feet. The 13-year development program would increase current BP net production of 425 million cubic feet per day by more than 20 percent, and maintain production above present levels for more than a decade.
Investment: $3.8 billion Location: Northern Indiana, Midwest
Project Description: Upgrade and expand the Whiting refinery to increase Canadian heavy crude oil processing capability by about 260,000 barrels per day. The project also has the potential to increase motor fuels production by about 15 percent, or about 1.7 million additional gallons of gasoline and diesel per day.
Investment: $2 billion Location: California
Project Description: The proposed project would convert petroleum coke – a refinery byproduct – to hydrogen for use in a power plant to deliver electricity to the Los Angeles-area grid that would serve approximately 325,000 homes. The process will also capture carbon dioxide and store it permanently in mature oil fields, where it will also help to recover otherwise inaccessible oil.
Investment: $685 million Location: North Slope, Alaska
Project Description: BP is investing hundreds of millions of dollars in Alaska each year to commercialize and produce the billions of barrels of known oil resources in our Alaska portfolio. We have enough known oil and gas resources to sustain production for the next 50 years but this will require billions of dollars in new investments.
Investment: $2.2 billion Location: Wyoming
Over the next 15 years BP will double our natural gas production in Wyoming. Several hundred new wells are planned in the Wamsutter Field, BP’s largest onshore development drilling program.
BP in America
BP in America
BP focusing on the future in Alaska
While heavier oil accounts for 5 percent of Alaska’s oil production today, that figure is expected to double over the next several years.
a process technology associate’s degree at the University of Alaska.
Alaska Natural Gas Pipeline
Another area with significant potential to address America’s energy needs involves natural gas from the North Slope of Alaska. The development of a gas pipeline is important to Alaska and to the rest of the country. Alaska’s North Slope gas represents the largest known undeveloped gas resource in the United States. BP has been working over the past several years on ways to advance a natural gas pipeline project from Alaska’s North Slope to bring this gas to markets in North America.
Developing new technology
To maximize production in Alaska, BP also has built one of the world’s largest geocellular computer models that has provided greater insight into the complex reservoirs of Alaska and enabled BP to develop new enhanced oil recovery programs. BP also is deploying a variety of drilling technologies – including horizontal drilling, multilateral wells and extended reach drilling – to increase oil production, stem decline, reduce costs, lower environmental risk and shrink the size of an operation’s footprint. One promising area involves the development of ultra-extended reach drilling technology to tap into offshore oil fields off Alaska’s North Slope. Located five miles offshore in the Beaufort Sea, the Liberty oil field, for example, is the largest
Commitment to Alaska workforce development
BP has increased its staffing in Alaska by
is focusing its investments in Alaska on the renewal of our North Slope infrastructure, renewal of our workforce and the advancement of technology to develop known resources.
corrosion-inhibitor injection facilities, and a stateof-the-art leak detection system. Installation of the new lines is expected to be completed during the winter construction season.
Renewal of North Slope infrastructure
It has been 30 years since the North Slope began production. Originally built for a 25-year life, massive amounts of new investment will be required for the future. An important component of BP’s investment in North Slope’s infrastructure is the $260 million oil transit line replacement project. This includes the installation of 16 miles of new transit lines on the North Slope, 1,200 vertical support members to hold the pipe off the tundra, pigging modules,
Exploring for known resources
The cornerstone of BP’s efforts on the North Slope is the development of the vast resources that have already been discovered. Yet there are significant challenges to developing these resources. BP is pioneering a number of enhanced oil recovery techniques. Currently, the worldwide recovery factor for conventional oil reservoirs is around 35 percent of oil in place. In Alaska, we and our partners are raising our recovery rate to around 60 percent by applying new technologies such as horizontal drilling, miscible gas injection and gas cap water injection.
40 percent in the last two years to nearly 2,000 employees. This is the largest workforce BP has ever employed in Alaska. In addition, BP has added 2,500 to its contractor workforce in Alaska over the same period. BP also has made significant investments in addressing Alaska’s overall workforce development needs. BP, for example, helped found the Alaska Process Industries Careers Consortium and has been instrumental in the formation of
undeveloped known conventional oil reservoir on the North Slope and holds an estimated 100 million barrels of recoverable oil. BP is evaluating plans to invest $1 billion to develop Liberty with wells drilled laterally 40,000- 45,000 feet from the surface location of the drill rig. n
BP in America
BP in America
Focus on continuous improvement
BP implements operating management system with goal of becoming industry leader in process safety
America is committed to being an industry leader in process safety management and has taken a
“An OMS describes how an organization manages the way it works,” explains John Mogford, Executive Vice President, Safety and Operations. “It makes it possible to reproduce what happens consistently, safely and at high quality over and over again.” A critical part of the OMS framework being implemented by BP America is its focus on continuous improvement. The OMS sets out a process for improvement involving five simple steps that are systematically followed in sequence—prioritize, plan, perform, measure and improve. “The driving force of our OMS is to move from the mindset of continuous change to one of continuous improvement,” says John Sieg, Group Head of Operations. “The improvement process is continuous because it does not stop once you have completed the cycle of steps from prioritization to review. We will continue to run the process so that our workforce keeps on learning, embedding and sustaining processes and improvements.”
number of significant steps to improve safety and operational integrity across its U.S. operations. These initiatives include specific investments and targeted programs in response to the March 2005 explosion and fire at the Texas City refinery and actions to restore the operational integrity of our pipelines in Alaska. In addition, the company is taking a holistic approach to improving process safety by developing and implementing an operating management system (OMS) that will support the company on its journey to becoming a world-class operator. OMS is a way of working that applies to all segBP has announced plans to improve the integrity and reliability of its U.S. refining assets by increasing investments from $1.2 billion in 2005 to an average of $1.7 billion per year from 2007 to 2010.
“The driving force of our operating management system is to move from the mindset of continuous change to one of continuous improvement.”
John Sieg Group Head of Operations BP America
ments, functions and regions and is being implemented to fit each particular site or operation. It sets out a common language for keeping BP’s operations running safely and effectively, and provides a platform for future development across the whole range of the company’s operations.
BP in America
BP in America
U.S. Ombudsman focuses on safety issues
Focus on Continuous Improvement (continued)
In 2007, BP America began implementing its OMS process at the company’s five U.S. refineries as well as its two chemical plants, the Na Kika oil and gas platform in the Gulf of Mexico, the Endicott Field in Alaska, and North America Gas operations. Additional U.S. sites and business units will be added in 2008 and subsequent years. The aim is for all operating facilities around the world to have started OMS implementation by the end of 2010. “People want to be proud of their operations. The best way for BP to achieve its goal of being the best energy company is for our employees to have a consistent framework, with sustained improvement at its heart,” says Bob Malone, Chairman and President of BP America. “In addition to having a process of continuous improvement, we are also working to ensure that we have the culture, values and mindsets that will enable the workforce to embrace our drive toward safe and reliable operations,” Malone says.
BP has clarified and reinforced roles, responsibilities and expectations around startup, operating, maintenance and evacuation procedures at its U.S. refineries.
BP agrees to implement recommendations of Baker Panel
or nearly half a century, the Honorable Stanley Sporkin has championed ethical corporate governance practices. Now, as BP America’s
first ombudsman, he personifies the company’s commitment to do the right thing. “My role is to respond to concerns from employees and contractors of BP in the U.S.,” Sporkin says. “I will listen to the issues, determine the facts, and take the action that is required. And, most important, I will take every possible measure to ensure that no retaliation takes place.” The Ombudsman’s investigation staff is completely separate from BP. Its investigations are conducted independently – from the initial call to the final recommendation. Sporkin has served as director of the enforcement division of the U.S. Securities and Exchange Commission and as general counsel to the Central Intelligence Agency. In 1985 he was appointed to the U.S. District Court in Washington, D.C., where he served until his retirement in 2000. During his career, Sporkin received many awards and honors and has been recognized in the 2006 edition of The Best Lawyers in America. In addition to the ombudsman initiative, BP also maintains OpenTalk – a 24-hour global independent hotline. The two complimentary programs are designed to achieve a single objective: provide a process in which employees can raise safety or Code of Conduct concerns to management for resolution in a confidential manner. n
n January 2007, BP received the report of the BP U.S. Refineries Independent Safety Review Panel, chaired by former U.S. Secretary of State
James A. Baker, III. The panel was established on the recommendation of the U.S. Chemical Safety and Hazard Investigation Board. The panel’s recommendations fall into four categories: taking leadership and setting direction, expectations and accountabilities; implementing an integrated and comprehensive process safety management system; ensuring that the right level of process safety knowledge and expertise is present at every level in the organization; and ensuring that there is a positive, trusting, and open process safety culture in each refinery. BP has publicly committed to implement the 10 recommendations and to integrate the actions with the many activities already under way to upgrade safety and integrity systems across each of its five U.S. refineries. “In many ways, the Baker Panel report is a gift to BP in the fact that it comes from some of the top U.S. experts. There are tremendous learnings for us in the report,” says BP America Chairman and President Bob Malone. n
n Increasing staffing at refineries to address the need for more process safety specialists, maintenance and operating personnel, and technical experts in various engineering disciplines. n Eliminating hundreds of occupied portable buildings from process areas across the Group. A new BP technical practice has been established governing siting of portable buildings. n Developing metrics as leading indicators of process safety management and working with the rest of the industry to enhance them further. n
Process Safety Priorities
BP also has taken a number of steps to improve process safety throughout its U.S. operations, including: n Increasing investments to improve the integrity and reliability of its U.S. refining assets from $1.2 billion in 2005 to an average of $1.7 billion per year from 2007 to 2010. n Clarifying and reinforcing roles, responsibilities and expectations around startup, operating, maintenance and evacuation procedures at U.S. refineries.
BP in America
BP in America
Developing new technology to meet U.S. energy needs
hile the common perception may be that the energy industry is low-tech, the reality is that BP America relies
Field of the future
In many ways, BP’s Na Kika Field in the Gulf of Mexico encapsulates many of the company’s uses of innovative, cutting-edge technology. Located in 6,000 feet of water more than 100 miles from land, the $1.3 billion project uses subsea wells and tieback technology to tap into reservoirs in six separate fields. Today, Na Kika is one of the
heavily on leading-edge technology to meet the energy needs of the U.S. Technology innovation is the hallmark of many of the company’s successes in increasing production of oil and natural gas from today’s frontier fields which are often located in ultradeep waters offshore, in difficult formations onshore or in extreme weather conditions like those on the North Slope of Alaska. But BP America’s use of technology extends beyond just finding and producing oil and natural gas. It touches every segment of the company’s U.S. operations, from well to wheel. It includes the latest technology employed at refineries to improve safety and protect the environment, as well as research aimed at continuing to improve the performance of our gasoline products and lubricants.
Technology touches every segment of the company’s U.S. operations.
more prolific producers in the region and employs key aspects of BP’s vision for “the field of the future.” Because Na Kika processes oil and gas from multiple reservoirs that are geologically distinct, special systems had to be installed to migrate these hydrocarbons to the platform. Four of Na Kika’s wells also utilize “smart well” technology
which allows operators on the platform to remotely commingle or isolate different zones in the same well to maximize hydrocarbon production. In addition, gas lift risers inject gas into production risers for additional hydrocarbon production.
As part of it’s “field of the future,” BP engineers and geoscientists use “smart well” technology and an advanced collaborative environment to monitor and work with on-site personnel at BP’s Na Kika Field located hundreds of miles offshore in the Gulf of Mexico.
BP in America
BP in America
BP America is investing $100 million in an 800-mile undersea fiber optic system to significantly enhance remote monitoring of deepwater production platforms in the Gulf of Mexico.
In recognition of the technology, innovation and engineering expertise developed for Na Kika, the project received the prestigious Offshore Technology Conference Distinguished Achievement Award. Today, the “field of the future” technology is employed on all deepwater fields in the Gulf of Mexico.
BP to significantly increase operational efficiency and improve field performance at every level.
New applications for fiber optics
The fiber optics technology that facilitates high-speed Internet access and data transmission is now being applied by BP America in oil and gas fields across the country. BP America is investing $100 million in an 800-mile undersea fiber optic system to provide continuous broadband connectivity to allow remote monitoring of BP’s deepwater production platforms in the Gulf of Mexico. It’s the equivalent of giving each offshore installation the bandwidth of 5,000 satellites. The network will enable staff in Houston to monitor offshore operations and safety equipment. In the future, the network may make it possible for BP staff onshore to control offshore facilities remotely. High-capacity fiber optic transmission technology is already being deployed to monitor operations along pipeline systems such as BP’s Endicott and Prudhoe Bay oil fields in Alaska. n
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Pushing the technology envelope
Finding oil and natural gas has never been easy, but BP America’s use of technology such as its Highly Immersive Visualization Environment (HIVE) helps improve the odds of success by allowing teams to study computer-enhanced 3-D imaging of geological formations, production facilities, seismic analyses and well placement for more complex problem-solving and better decision-making.
BP America’s use of technology includes its Highly Immersive Visualization Environment (HIVE), which allows teams of geoscientists to study computerenhanced 3-D imaging of geological formations.
In addition, advanced collaborative control centers, linking BP America’s Houston office with its offshore production facilities, enable greater coordination and interaction, which has allowed
BP in America
BP and biofuels: growing fuel for today and tomorrow
y almost any measure, BP has made significant progress in expanding its commitment to biofuels throughout the
the next generation of biofuels, and a groundbreaking, $500-million energy biosciences research partnership with the University of California, Berkeley, the University of Illinois at Urbana–Champaign and the Lawrence Berkeley National Laboratory. BP is committed to the development of renewable energy, including biofuels that are derived from crops such as corn, wheat, sugar cane and beet and other feedstocks. By actively supporting the availability of existing biofuels and applying technology to identify renewable and alternative fuels of the future, BP believes it can find answers to help meet the transportation needs of consumers while at the same time protecting the environment and contributing to America’s energy security and choice of fuels.
BP is committed to developing renewable energy for transportation. In addition to biofuels derived from crops such as corn, wheat, sugar cane and beet, BP is conducting research on the potential of non-food feedstocks for biofuels.
United States. Already a major blender and retailer of biofuels, in 2006 BP blended 718 million gallons of ethanol with gasoline – a 25 percent increase from 2005. BP fuels with ethanol are now available in more than 20 states. In addition, during the past two years BP introduced E-10 in more than 20 new markets across the U.S. Recognizing the growing importance of biofuels, BP also has formally created a dedicated biofuels business – a single team to coordinate all biofuels activity. This will enable the company to bring together emerging technologies, its fuels know-how and relationships with customers and consumers. At the same time, BP also announced plans to invest significantly in new biofuels research through two strategic and historic programs: a joint venture with DuPont to create
BP has quietly been building a biofuels business for 25 years.
BP history of investment in biofuels
While biofuels have become an “overnight sensation” in many parts of the U.S. as both consumers and government leaders focused on
BP in America
BP in America
Biofuels of the future
Much of the research on biobutanol is being performed at DuPont’s U.S. research labs. By combining DuPont’s world-class biotechnology and bio-manufacturing capabilities with BP’s fuels technology expertise and market know-how, the two companies aim to be the world leaders in the development and production of advanced biofuels.
The Institute will perform ground-breaking research aimed at probing the emerging secrets of bioscience and applying them to the production of new and cleaner energy, principally fuels for road transport, by focusing on new biofuels components, devising new technologies and using modern plant science to develop fuels from non-food crops (see related story below).
n The term biofuels covers a wide range of products – some of which are commercially available today – made from biomass, any organic material with stored chemical energy such as sugar from corn, wheat, sugar cane and beet, vegetable oils, wood, straw and lipids produced by algae. n Biofuels reduce the overall volume of carbon dioxide entering the atmosphere by absorbing CO2 in feedstock plants as they grow while emitting roughly the same as conventional fuels when the resulting biofuels are burned. n The U.S. Department of Energy has forecast that biofuels could serve 20-30 percent of the U.S. transportation market by 2020.
At BP, however, we believe that the full potential of biofuels will not be fulfilled merely through “more of the same” but through developing successive new generations of increasingly powerful biocomponents. In announcing its partnership with DuPont, for example, BP’s goal is to develop, produce and market the next generation of advanced biofuels that hold the potential for improved performance and use with current engine technology. BP and DuPont researchers are initially focusing on developing biobutanol, which has the potential to overcome many of the challenges faced by current biofuels such as ethanol. Biobutanol, for example, can use existing infrastructure with little modification. It also has the potential to be used at higher blend
Investing in energy biosciences research
In addition to its research with DuPont, BP also launched a major U.S. research initiative with the creation of the Energy Biosciences Institute (EBI). BP plans to invest $500 million over the next 10 years to establish the Institute, the first facility of its kind in the world.
Find out more about BP and biofuels
For the latest information about BP’s investments in biofuels, please visit www.bp.com/biofuels. For more information about the Energy Biosciences Institute, please visit www.bp.com/ebi. n
finding alternatives to traditional fossil fuels for transportation, BP has quietly been building a biofuels business for more than 25 years. In the U.S., BP was one of the first major energy companies to introduce E-10, gasoline blended with 10 percent ethanol. Modern vehicles are designed to run on this fuel mixture, which does not require major modifications to distribution networks or retail locations. BP is also in the process of developing plans to introduce E-85, gasoline blended with 85 percent ethanol, in select markets, primarily in the Midwest. With the expanded availability of E-10 and plans for E-85, BP is making a major contribution to meeting the biofuels targets set for the U.S. over the next 10 years.
BP is working with researchers on the potential of non-food feedstocks like miscanthus – which can grow to a height of 13 feet – for use in producing future biofuels.
concentrations than ethanol without the need to modify the vehicles that will use it. Biobutanol also has a higher energy content – closer to that of gasoline – thereby providing the customer with better fuel economy.
n selecting the host research universities for the Energy Biosciences Institute (EBI), BP selected the University of California-Berkeley and its partners
The key to the future of biofuels lies in innovating to develop successive generations of biofuels – with new feedstocks, new molecules and new conversion processes. University officials are optimistic about addressing the Institute’s long-term goals and likened it to the U.S. moon-landing program in the 1960s. “This is our generation’s moon shot,” says UC Berkeley Chancellor Robert Birgeneau. The Institute will be unique in both its scale and its partnership among BP, academia and others in the private sector. Dedicated facilities on the campuses of UC Berkeley and the University of Illinois will house EBI research laboratories and staff. The Lawrence Berkeley National Laboratory will carry out supporting research. Up to 50 BP staff located on the two campuses will work in partnership with university faculty and researchers. n
BP in America progress report 23 5
in large part because of the institutions’ track records of delivering “Big Science” – large and complex developments predicated on both scientific breakthroughs and engineering applications that can be deployed in the real world. Advanced technology solutions are required for biofuels to achieve material levels of penetration in the transportation sector and to reduce greenhouse gas emissions at reasonable economics. BP’s vision is that the Institute will lead in developing new molecules, creating new technologies that enable greater proportions of crops to be used, and exploring new species of plants that increase the yield of fuel energy obtained from each acre of land.
BP in America
Going beyond petroleum to meet America’s power needs
ver the past year, its first full year as a BP business unit, BP Alternative Energy achieved several significant
Expanding and enhancing solar production
Among its major accomplishments, BP Solar developed a new way of growing silicon, called Mono2™, which increases the energy-producing capacity of solar cells. Solar cells made with these wafers, in combination with other BP Solar advances in cell process technology, will be able to produce in excess of 5-8 percent more power than solar cells made with conventional processes. BP also broke ground for the expansion of its solar manufacturing facility in Frederick, Maryland, which will nearly double its casting and sizing capacity. These processes are used to manufacture silicon wafers, the essential components of solar panels. When completed in 2009 the manufacturing capacity of its casting and sizing processes will be 150 MW. On the technology front, BP Solar also partnered with the California Institute of Technology on a research program to investigate processes for making a new generation of powerful solar cells.
milestones in the U.S. in each of its major focus areas. BP is investing $8 billion worldwide over a 10-year period in BP Alternative Energy, a new business that will use solar, wind, hydrogen power with carbon capture and storage, and natural gas-fired power to provide cleaner, low-carbon electricity. By heavily investing in a diverse range of energy sources, BP is helping meet America’s energy needs today, as well as ensuring a more secure energy future. BP Alternative Energy is a leading player in low-carbon power. In recognition of its progress in building a significant alternative energy business, BP received the “Most Enterprising New Entrant” award at the third annual Global
The Cedar Creek wind farm in Colorado is a joint development between Babcock & Brown and BP Alternative Energy.
Renewable Energy awards program sponsored by Ernst & Young in September 2006.
BP in America
BP in America
By focusing on radical new ways of producing solar cells, BP Solar hopes to make the cost of
Making inroads with solar in the U.S.
solar electricity more competitive and to increase current efficiency levels. BP is also working with Northwestern University and other photovoltaicfocused successful research institutions on additional solar technology projects.
o build consumer support and interest in solar power technology, BP conducts a variety of consumer education and marketing programs throughout the U.S.
The BP Solar Neighbors program, for example, is a high-profile California community initiative to connect people from all walks of life with solar power. For every invited celebrity who buys a BP Solar system for his or her home or business, BP donates a complete system to a low-income family. Past celebrity participants have included actors Edward Norton (in photo at left) and Brad Pitt. “BP believes that the places where we operate should benefit from our presence,” says Tom Markin, vice president of government and public affairs for the western U.S. “This program is a great example of that. It provides sustainable benefits in both improving our collective environment and the quality of life in our community.” In Chicago, the BP Solar Connection is an education program that provides five Chicago-area schools with solar electric systems and a comprehensive K–12 solar energy curriculum from the National Energy Education Department. In 2007, BP again sponsored the U.S. Department of Energy’s Solar Decathlon, an annual engineering and architectural competition in which teams of students from universities across the country compete in designing and constructing innovative solar homes on the National Mall in Washington, D.C. n
Significant progress in wind power
On the wind front, BP and its partners have two wind farms under construction and expect to start two others by the end of 2007. Located in California, Colorado and Texas, the projects are expected to deliver some 530 MW when completed, exceeding the company’s previously announced target to build 450 MW by the end of 2008. BP’s U.S. wind portfolio includes the opportunity to develop almost 100 projects with a potential total generating capacity of some 15,000 MW. These projects are the result of several agreements and acquisitions the company has made. In July 2006, for example, BP announced a strategic alliance with Clipper Windpower to supply up to 4,250 MW of wind turbines over the next five years. Later in 2006, BP acquired two U.S. wind development companies — Greenlight Energy Inc. and Orion Energy LLC. Construction is already under way on the Cedar Creek project in Weld County, Colorado, and the Silver Star I project in Texas. Cedar Creek is a 300 MW wind-power generation project comprised of 274 wind turbines. Initial operation is expected in the second half of 2007 and when fully commercial the project will generate enough carbon-free electricity to power 90,000 homes. Silver Star I is a 60 MW wind power project comprised of 24 Clipper Windpower Liberty turbines.
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A mighty wind
BP Alternative Energy announces major expansion plans for U.S. wind energy business
year ago, BP’s Power Americas business had opportunities to develop 2,000 MW of greenfield wind power projects. Today,
to some of BP’s largest U.S. oil and gas projects,” Lukefahr explains. These investments will put BP in a position to be a major player in the U.S. wind energy market. Today, wind generates less than 2 percent of the world’s electrical power, but the market is growing rapidly and the potential is enormous, according to Lukefahr. President Bush has set a goal to deliver 20 percent of U.S. power from renewable sources. The American Wind Energy Association believes wind alone could provide this by 2030. “Renewables are by far the fastest growing part of the energy sector,” Lukefahr says. n
it has a portfolio of 15,000 MW worth of development projects – one of the largest wind portfolios in the U.S. By the end of 2007, the BP Power Americas wind business expects to have completed or have under construction over 450 MW from new development projects; and that should grow to over 1,000 MW by 2008, according to Bob Lukefahr, buiness unit leader, BP Power Americas. “In 2007 and 2008, we and our partners will invest nearly $2 billion in BP-developed wind projects. That’s a capital investment comparable
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captured CO2 would be transported by pipeline to an oil field and injected into reservoir rock formations thousands of feet underground, both stimulating additional oil production and permanently trapping the CO2. In recognition of the Carson hydrogen plant’s technology development potential, BP has received a $90 million investment tax credit from the U.S. government for advanced gasification technology.
Natural gas power plants
BP Alternative Energy’s fourth major business area focuses on development of power projects using natural gas-fired power. During 2006, BP started construction on the $100 million, 250 MW steam turbine power plant at BP’s Texas City refinery. The new plant is slated to come on stream in 2008. n
The remaining projects are: California: The Edom Hills wind power generation project is the re-powering of an existing wind energy facility in San Gorgonio Pass, which
BP research effort seeks to reduce solar costs
expects to have a capacity of 20 MW. Central Texas: A 60 MW joint venture project with Clipper Windpower. West Texas: A project in excess of 150 MW. As part of this building program, BP plans to deploy 80 MW of Clipper Liberty turbines as part of the supply and joint development agreement it entered into in 2006 with Clipper Windpower. Under the long-term supply agreement, BP has secured a mix of firm and contingent orders of up to 2,250 MW of additional Clipper turbines.
n its drive to reduce the cost of solar energy and move it closer to parity with conventional sources of electricity, BP Solar is participating in the Solar America Initiative (SAI)
sponsored by the U.S. Department of Energy. As part of the three-year, $40 million research project, BP Solar is focusing on accelerated development of multicrystalline silicon technology for use in residential and commercial markets. BP Solar’s efforts are directed at reducing both the cost of solar modules and of complete solar power systems. “Our objectives are to substantially reduce module cost to 67 percent of today’s level by 2010 and to 50 percent by 2015,” says BP Solar President Lee Edwards. “We also have targeted reducing overall system costs to 60 percent of today’s cost by 2010 and to 36 percent by 2015.” In addition to achieving parity with the grid, the project also aims to increase production by eightfold. Accomplishing those goals will require involvement of the entire product chain, Edwards says. As a result, the BP Solar program addresses all aspects of the photovoltaic product chain from raw materials, including silicon, through installation of the systems at the customer site. As part of the SAI program, BP Solar is working closely with key material and equipment vendors as well as several universities, including Arizona State University, Georgia Tech, North Carolina State University and the University of Central Florida. n
Hydrogen power plant
In 2006, BP announced plans to build a $2 billion first-of-its-kind hydrogen-fueled power plant in California that would deliver enough carbon-free power to the Los Angeles-area grid to power approximately 325,000 homes. The proposed project would combine a number of existing industrial processes to provide a new option for generating electricity without significant carbon dioxide (CO2) emissions. Petroleum coke produced at California refineries would first be converted to hydrogen and CO2 gases, and around 90 percent of the CO2 would be captured and separated. The hydrogen gas stream would then be used to fuel a turbine to generate electricity. The
BP and its partners have proposed a $2 billion hydrogen-fueled power plant in southern California that, when completed, would deliver enough carbon-free power to the Los Angeles-area grid to power approximately 325,000 homes.
BP in America
BP in America
Fabric of America
Programs designed to connect to the communities in which we operate
n 2006, BP America expanded its commitment to educational and community programs throughout the U.S., and in 2007 the company
the BP Foundation has increased and expanded its matching funds program for employees who make contributions of money, gifts and time to charitable organizations. In addition, BP has launched The Fabric of America Fund program as another tangible way for U.S. employees to engage personally and make a difference in their communities. Under the program, employees in communities across the country can request that BP America make a $250 or $500 contribution to a nonprofit organization. The donation will be made on the employee’s behalf and does not require any matching contribution from the employee. The following pages highlight a few of the many programs that BP America has implemented around the country.
(continued on page 32) BP America sponsors a variety of programs to promote science, engineering and energy education throughout the U.S.
launched several new initiatives to enhance our role in becoming part of the fabric of the communities and states in which we operate. During the past three years, BP America has provided more than $91 million to national and local educational and community organizations. In 2006 alone, BP America contributed more than $29 million to support educational programs in America’s schools and universities. In addition to financial support from BP America and the BP Foundation, our employees are actively volunteering their time and talents to support community organizations and schools in their hometowns. In recognition of the important role that our employees play in their communities, in 2007
As part of the fabric of their communities, BP employees are active volunteers and participants in hundreds of community programs across the U.S.
BP in America
BP in America
Fabric of America: Education
BP America programs span the educational continuum
BP funds national roll out of award-winning pre-K program
With a goal of helping prepare children to succeed as they enter kindergarten, BP America committed more than $15 million to launch the national expansion of A Place of Our Own and Los Niños en Su Casa, a Peabody Award-winning series for parents, grandparents and caregivers of preschool-age children. BP America was one of the original funders of the series with an initial grant of $10 million. For the first two years, the series aired exclusively on California public television stations. The new BP chance at scholastic success. These programs are key to empowering our next generation.” Malone added, “I’m proud that BP’s ongoing commitment to education – from preschool through college – will make a difference in the communities where we operate.”
t BP America, we believe that our support for education programs is the area that has the greatest potential for making a significant impact on the long-term health and vitality of the communities in which we operate. As a result, over the past few years BP America has strategically expanded its support for education-related programs and organizations throughout the U.S. Today, BP America supports education programs in dozens of states. Our programs provide financial and leadership support for a robust portfolio of programs that touch virtually every level of education across the continuum – from pre-school through college, and beyond. For more information, go to www.bp.com/us/ education.
Major education programs in the U.S. include:
A Place of Our Own and Los Niños en Su Casa
For the past two years, BP America has sponsored A Place of Our Own (in English) and Los Niños en Su Casa (in Spanish) twice daily on California public television stations. Developed by public television station KCET, A Place of Our Own and Los Niños en Su Casa include a daily television series, a website and an extensive outreach program. In 2007, BP America committed to sponsoring the Peabody Award-winning programs nationally. Devoted to the unique needs of caregivers, the programs are designed to promote early learning and school readiness through children’s first teachers: the adults who care for them. By supporting these important people and providing them with the resources they need, the program enables them to help children prepare for school. For more information, visit the websites www. aplaceofourown.org and www.losninosensucasa.org.
Information and resources for caregivers
The series and their websites provide parents and caregivers of young children with information about helping their children develop social, emotional and cognitive skills. The shows are designed for anyone who frequently takes care of young children, such as parents, grandparents, friends and babysitters. Only one-third of all children below the age of four are currently in formal child-care settings. The remaining 65 percent of youngsters are attended to by parents or other caregivers who are eager for more information and training in early childhood education. The shows offer practical advice and tips on topics such as building language and literacy skills, behavior, special needs and nutrition. The programs also highlight local and state resources for child-care providers, and give details of how these services can be accessed. BP’s funding will also support an innovative national outreach program. KCET will develop special support teams to reach out and help individual stations facilitate community workshops, events and caregiver acknowledgements.
commitment will support the national distribution, production, websites and outreach for the series. Since its launch, the show has won recognition from the broadcasting industry, community leaders and child-care experts, including a George Foster Peabody Award and a Parents’ Choice Award. In announcing the company’s support, Bob Malone, BP America Chairman and President, said, “BP’s commitment is focused on the objective of providing young people the same
A+ For Energy
The A+ For Energy program awards cash grants and scholarships to teachers in grades Pre K-12 who submit innovative/creative ideas on how to teach kids about energy, energy conservation and alternative energy choices. Teachers receive grants of $5,000 or $10,000 for each selected project.
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“Our programs provide financial and leadership support for programs that touch virtually every level of education.”
Bob Malone, Chairman and President BP America
(continued from page 32)
Launched in California in 2004, A+ For Energy was expanded to include five counties in Texas in 2006; the Chicago metro area; northwest Indiana; Toledo, Ohio; Decatur, Alabama; and statewide in New Mexico. The program has awarded $6.5 million in grants and scholarships to a total of 5,471 California and Texas teachers, representing 564 winning projects and affecting over 211,000 students. For information, go to www.aplusforenergy.org.
BP Teachers of Excellence
The BP Teachers of Excellence program recognizes the outstanding efforts of public and private elementary, junior high and senior high school teachers. BP America introduced the Teachers of Excellence program in Anchorage and Fairbanks, Alaska, later extending it to the state’s Matanuska-Susitna Valley and Kenai Peninsula. Honorees receive a monetary award together with a commemorative plaque and are automatically qualified for our Teacher of the Year award. For information, go to www.bp.com/us/alaska. The three-day program was developed by a U.S. astronaut and is conducted at Space Center Houston located at NASA’s Johnson Space Center. Teachers are also offered a two-day professional development seminar to facilitate using the information as part of their classroom curriculum.
In 2006, BP contributed more than $29 million to support education programs across the U.S.
under-represented youth by encouraging parental involvement.
BP Physics Challenge
To promote and enrich interest in math and science, BP America has sponsored the BP Physics Challenge in Houston for three years and will be expanding the popular program to include the Texas City and La Marque school districts in 2008. Sponsored by BP America, the Houston Independent School District and Space Center Houston, the BP Physics Challenge gives teachers and students a way to engage in exciting, real-world learning activities. In 2006, BP invited more than 1,500 high school physics and calculus students to apply their physics knowledge while launching rockets, observing g-forces on an aerobatic plane, and determining the velocity of a falling object to calculate the mass of planets.
34 BP in America
BP Community Scholarships
The BP Community Scholarship program is a partnership between BP and its local retail marketers in the metropolitan areas of Chicago, New York and Washington, D.C. Employees, dealers and jobbers in the Chicago area launched the program in 1987 and over the years have raised more than $2 million. Since its inception, more than 1,000 Chicagoland students have received scholarships. The BP New York Community Scholarship program awarded $133,000 in scholarships to 80 worthy graduating high school students and returning scholars in 2007. Over the past 19
BP in America 35
Los Angeles Multicultural Educational Collaborative
BP America is the sole sponsor of the Los Angeles Multicultural Educational Collaborative (LAMEC), a collaboration formed by the Asian Pacific American Legal Center, Los Angeles Urban League and the Mexican American Legal Defense and Education Fund. The collaborative is designed to increase educational attainment and civic engagement by
Fabric of America: Community
years, BP has provided more than 1,400 scholarships worth more than $2.2 million in the greater New York market. The BP Washington, D.C., Community Scholarship program awarded $30,000 in scholarships in 2007. In total, over the past nine years, BP America has provided more than $375,000 in scholarships in the metro D.C. market.
Support for national education organizations
BP America is a major sponsor of several national organizations that support college scholarships and other academic programs. These include the National Action Council for Minorities in Engineering, the National Society of Black Engineers, the Society of Hispanic Professional Engineers, the Society of Women Engineers, the United Negro College Fund and the Foundation for Independent Higher Education.
BP, Houston Hispanic Forum host Career and Education Day
ith a goal of encouraging minority students to pursue higher education and rewarding careers, BP and the Hous-
BP Process Technology Scholarship program
BP America also offers education programs for students who want to pursue training and employment in the process technology sector of the oil and gas industry. The BP programs include scholarships and financial assistance to students in Alaska and Texas. In addition, BP America sponsors a program for instrumentation technician apprentices and electrician apprentices. The program is jointly sponsored with the United Steelworkers Union and the U.S. Department of Labor. BP Texas City is also working with the United Steelworkers Union in developing other apprenticeship programs for machinists, pipefitters and heavy equipment operators.
ton Hispanic Forum have teamed up with Houston area schools to host a Career and Education day. The 2007 event provided 18,000 students with information on a variety of topics, including college admissions processes and financial aid. Information was also available for parents on how to take an active role in their children’s education. During the 21st annual event, BP America also awarded $30,000 in scholarships to 10 high school seniors who are honor students and community volunteers. “At BP, we firmly believe in the power of education,” said Andy Hopwood, BP executive sponsor for the event. “We encourage youth to seek great opportunities to explore their academic passion. Education is a critical component to any successful community and ultimately the foundation of a prosperous company.” The Career and Education Day is aimed at reaching the Hispanic, African-American and Vietnamese communities. BP’s sponsorship over the years has helped the event grow larger, allowing more students and parents to benefit from the many resources being offered. n
Research collaborations with universities
BP sponsors research programs at a number of U.S. universities and research institutions, including the California Institute of Technology, Lawrence Berkeley National Laboratory, Massachusetts Institute of Technology, National Renewable Energy Laboratory, Northwestern University, Princeton University, Scripps Institution of Oceanography, Stanford University, the University of California-Berkeley and the University of Illinois at Urbana-Champaign.
BP gives $1.5 million to M. L. King Papers Project
he BP Foundation has contributed $1.5 million to the King Papers Project, an effort to help cover the costs of acquiring and housing the papers of Dr. Martin Luther King, Jr. at Morehouse College in Atlanta. The King Papers Project is a major research effort to assemble and disseminate historical information concerning Dr. Martin Luther King, Jr. and the social movements in which he participated. “Because of the tremendous and historic importance of the papers of Dr. King, having them in his home city and at a public institution is in the best interest of the millions of people in this country and throughout the world who are admirers of Dr. King for initiating the 20th Century civil rights revolution,” said BP America Chairman and President Bob Malone. In addition to a variety of other educational activities, the project offers unique opportunities for students to become involved in its research through the King Fellowship Program. n
BP in America
BP in America
Fabric of America: Community
BP America expands community development and employee volunteer programs
is committed to supporting the communities where we operate and helping to enhance the quality of life for the people who live in those communities. BP has launched several new initiatives, each designed to address the needs and interests of the communities in which we have a presence. Houston: BP America contributed $1 million to two important regional programs, the Memorial Hermann Life Flight program, which provides emergency helicopter ambulance services throughout the region; and Opportunity Houston, a $40 million multi-year effort to support economic development in a 10-county area. Separately, BP employees organized 150 volunteers in planting 20,000 trees as part of a reforestation project sponsored in part by the Houston Parks and Recreation Department. Alaska: BP America contributed $2 million to the Providence Alaska Medical Center’s Cancer Resource Center. The cancer center is part of the medical center’s comprehensive cancer facility currently under development in Anchorage. BP America also pledged a $600,000 contribution to the “Ready to Read, Ready to Learn” program in Alaska, making BP the largest contributor to the program, which promotes early childhood learning. Chicago: BP America and the BP Foundation announced plans to invest $6.25 million over three years with the Chicago Urban League to enhance enterprise development, job creation and
education programs for minorities in the Chicago area. Separately, BP America also announced a $3.4 million, three-year commitment to fund the Chicago Symphony Orchestra’s national radio broadcast series in 75 U.S. markets and support the orchestra’s next two European tours, and a $5 million commitment to fund a new energy exhibit and educational programs at the Museum of Science and Industry in Chicago.
“BP America believes in being part of the fabric of the communities where we operate and where our employees live.”
Bob Malone, Chairman and President BP America
program at Western Wyoming Community College to train workers in natural gas production technology. California: BP America’s Solar Neighbors Program™ is designed to promote the benefits of solar energy while helping low-income families at the same time. Every time an invited celebrity purchases a BP Solar system for their home, BP America donates a similar system to be installed on a low-income family’s home in south Los Angeles. BP America also has donated $25 million to the Los Angeles County Museum of Art. The donation, believed to be the largest single corporate gift to a southern California arts institution, will also include approximately 80 kilowatts of solar power and guidance by the company on ways the museum can further reduce its carbon footprint.
Each year, thousands of BP employees volunteer in support of a variety of programs that are important to the communities in which they live.
Wyoming: With BP America’s help and support, a comprehensive community program was developed for Wamsutter that includes new water, sewer and road projects, expanding the police force and building a community day care center. BP America is also making major investments in higher education with a $5 million gift to the University of Wyoming to support geosciences programs and in a workforce development
BP in America
BP in America
Fabric of America: Community
BP employees involved in communities
In addition to financial support from BP America and the BP Foundation, our employees actively volunteer their time and talents to support community organizations and schools in their hometowns. In recognition of the important role that our employees play in their communities, the BP Foundation in 2007 has increased and expanded its matching funds program for employees who make contributions of money, gifts and time to charitable organizations. We also encourage our employees to actively participate in volunteer efforts in their local communities. Examples of employee initiatives include: BP MS 150 – Houston: BP has helped make history in the fight against multiple sclerosis by serving as the corporate sponsor of the BP MS 150 Bike Tour, which raised more than $13.6 million in 2007 to help Texans affected by MS and to fund critical research. United Way: During the past three years, BP America and its employees have contributed an average of nearly $2 million per year to United Way campaigns that support social services in more than 70 communities across North America. BP Employee Matching Fund: BP America provides matching grants – up to $5,000 per employee per year – in recognition of their donations, volunteer time and participation in sponsored pledge events. HOPE (Helping Other People Everyday) Ministry: BP America is an active leader in this “assistance network” serving the rural, highly diverse Pointe Coupee Parish in Louisiana. HOPE helps meet the health, education, shelter and social needs of the parish’s elderly, disabled and families in crisis. Walking for Cures: BP America employees across the country raise money by walking or running for a variety of causes, including Chicago’s “Walk and Roll,” “Relay for Life” in Durango and “Walk-a-thon” in Farmington, all to benefit the American Cancer Society, and the “Walk to Cure Diabetes” in Texas City and Houston. Rebuilding Together Houston: BP America employees and their families lend a hand to refurbish the home exteriors of Houston’s elderly, low-income families. n
BP has been the corporate sponsor of the BP MS 150 Bike Tour since 2000. Now the largest Bike Tour in the country, BP’s employees and volunteers helped raise $13.6 million in 2007 to help Texans affected by MS and to fund critical research.
Fabric of America Fund
In 2007, employees were offered a new way to give financial support to schools and non-profit organizations through our “Fabric of America Fund.” Eligible employees can request that BP America make a $250 or $500 contribution to an organization of their choice, and no matching is required on their part. The limit is $500 per employee, and employees can make a maximum of two $250 requests.
BP Employee Matching Fund
BP provides matching grants – up to $5,000 per employee per year – in recognition of their donations, volunteer time and participation in sponsored pledge events. In the last two years, BP employees in the U.S. have contributed $7.2 million and more than 116,000 volunteer hours, and raised more than $1.3 million in sponsored pledge events. In response, the BP Foundation has provided matching grants totaling more than $6.9 million to schools and non-profit organizations.
BP in America 41
BP in America
BP in the U.S.
Key operating areas include:
1 Alabama BP operates a major chemical plant in Decatur that manufactures PTA, a chemical feedstock used primarily to make polyester products and other specialty chemical products used to produce consumer goods. A large portion of the plant’s acreage has been turned into a wildlife habitat. 2 Alaska BP owes much of its success to one of the biggest challenges it has ever undertaken. Since the 1968 discovery of Prudhoe Bay Field, Alaska has remained a prolific hydrocarbon resource and a study in how to explore for and produce oil while minimizing environmental impact. BP is investing more than $600 million annually in Alaska to apply new technologies for oil recovery and to enhance safety and operational integrity. 3 California Through our ARCO brand, BP is one of California’s leading gasoline marketers and we operate one of the state’s largest refineries. BP also has proposed building a $2 billion firstof-its-kind hydrogen-fueled power plant in California that would deliver enough carbon-free power to the Los Angeles-area grid to serve approximately 325,000 homes. California is also home to BP’s $500 million Energy Biosciences Institute on the campus of the University of California-Berkeley. 4 Colorado From our operations center in Durango on the Colorado side of the Four Corners, BP supplies customers in California and the Southwest with clean-burning natural gas. BP will invest $2.4 billion over 13 years to sustain current production of this vital energy resource for decades. BP also operates the largest wind farm in Colorado. The Cedar Creek wind farm consists of 274 wind turbines capable of generating 300 megawatts of carbon-free electricity. 42 BP in America
5 Florida Motorists in Florida can buy BP motor fuels at branded outlets across the state. We operate four fuels distribution terminals in Orlando, Jacksonville, Port Everglades and Tampa. Florida also is headquarters for BP’s lubricants businesses in the Caribbean and Central and Latin America. 6 Georgia Atlanta was the national launch site when BP became the first energy company in the U.S. to introduce cleaner, low-sulfur fuels ahead of federal environmental requirements. Today, BP is first in gasoline market share in Georgia, selling one out of four gallons purchased by motorists. Many BP-branded stations are supplied by two BP terminals in Atlanta. 7 Illinois The greater Chicago area is home to more than 3,000 employees, the second largest grouping of BP employees in the United States. We are a major marketer of gasoline and operate product terminals in the state. 8 Indiana The Whiting refinery — one of BP’s largest — supplies clean fuels throughout the Midwest. BP announced plans to invest $3.8 billion to upgrade the facility to refine more Canadian heavy crude oil for the Midwest. The project also has the potential to increase fuel production at the refinery by about 1.7 million gallons per day. 9 Kansas BP is a major operator in the giant Hugoton gas field in southwestern Kansas and the neighboring Panhandle Field in Oklahoma and Texas. The field is the largest in North America and the second largest in the world. 10 Louisiana BP is a major onshore oil and gas producer in Louisiana, and one of the largest offshore producers in the Gulf Coast region bordering the state. Onshore, BP has been the largest natural gas producer in Louisiana for the past seven years. BP’s largest U.S. lubricant processing site is located in Port Allen, and supplies finished lubricant products to customers in the U.S. and Latin America. 11 Maryland Maryland is home to BP Solar, one of the world’s leading manufacturers of solar products. After doubling
BP has about $40 billion in fixed assets in the United States.
States with Retail Operations
8 3 4 7 9 16
Refineries Chemical Plants Lubricants Processing Facilities Terminals BP Solar Manufacturing Facility
17 14 12 19 10 1 6 18
Onshore Oil and Gas Interests Gulf of Mexico Oil and Gas Interests
19 Texas BP operations in Texas range from oil and gas exploration and production to refining, pipelines and gas processing plants. The Houston area represents the largest concentration of BP people and assets in the world. It hosts about 7,500 employees and is the major U.S. center for Exploration and Production, Gas and Power and Alternative Energy businesses, as well as the Texas City refinery, BP’s largest. 20 Washington In addition to being a leading processor of crude oil from Alaska, BP’s Cherry Point refinery in Washington is a major supplier of our emission-reducing low sulfur fuel to the entire West Coast. The refinery recently completed more than $200 million in upgrades to produce lowsulfur gasoline and ultra-low-sulfur diesel in greater volumes. 21 Washington, D.C. The nation’s capital is home to BP’s government affairs team, which works to raise awareness and understanding of BP’s activities among elected officials, policy-makers and regulators. 22 Wyoming BP is making a $2.2 billion investment over 15 years to double our natural gas production in Wyoming. Several hundred new wells are planned in the Wamsutter Field, making this BP’s largest onshore development drilling program. BP in America 43
of 1.2 billion cubic feet and provide enough natural gas to supply the daily needs of approximately five million homes. capacity at our solar manufacturing facility in Frederick in 2005, BP will invest an additional $97 million from 2007-2009 to increase capactiy again. 12 Mississippi BP operates the Pascagoula gas processing plant, with a capacity of 1.5 billion cubic feet of natural gas per day. The Destin Pipeline supplies the plant with gas produced from BP’s deepwater fields in the Gulf of Mexico. 13 New Jersey With it’s regional head office in Wayne, New Jersey, BP Lubricants U.S.A. Inc. is a leading marketer of premium automotive lubricants to consumers and commercial customers under the Castrol brand name. Elsewhere in the state, BP is prepared to invest $700 million for a proposed 120-acre Crown Landing LNG terminal that will have a daily send-out capacity 14 New Mexico With a rich heritage of responsible operations in the Land of Enchantment, BP continues to produce clean-burning natural gas from its operations in the San Juan Basin in northwestern New Mexico and oil in the Permian Basin in the southeastern part of the state. 15 New York BP, the leading gasoline marketer in New York City, fuels LaGuardia Airport and delivers natural gas in the southeastern part of the state. 16 Ohio BP is a leading gasoline marketer across the Buckeye State. Our refinery in Toledo can process 160,000 barrels of crude oil a day, as well as jet fuel, asphalt, propane and other useful products.
17 Oklahoma The Sooner State is home to several significant BP assets. BP produces some 300 million cubic feet of gas/day from the Arkoma Basin in eastern Oklahoma and plans to invest over $200 million in growth-oriented projects. Through its Tulsa Control Center, BP Pipelines continuously monitors nearly 11,000 miles of liquid pipelines in 30 states, transporting more than 1 billion barrel-miles of oil, refined products, natural gas liquids, carbon dioxide and chemicals daily. 18 South Carolina South Carolina is home to the U.S.’s largest single purified terephthalic acid (PTA) plant. The BP Cooper River plant manufactures 2.8 billion pounds of PTA annually. PTA is used in the manufacture of polyester. The vast majority of the site is managed as a wildlife habitat.
There’s energy security in energy diversity.
There’s strength in numbers, and security in having a number of energy options. So we’re investing more than $28 billion over five years in U.S. energy supplies, including solar, wind, hydrogen and natural gas. In fact, BP is the largest investor in energy development in the U.S. We’re also investing $500 million over the next 10 years to develop advanced biofuels. It’s a start.
© 2007 BP Products North America Inc.