BP Plc is planning to eliminate routine flaring of natural gas in the Permian Basin by 2025 through over $1 billion worth of new pipelines, according to a recent report by the Wall Street Journal.
The plan, believed to be announced within days, includes spending about $1.3 billion to build a network of pipelines and other infrastructures.
“We will be producing oil and gas for decades, but it will be a certain kind of oil and gas,” Dave Lawler, the chairman of BP America Inc., said in the WSJ report on April 18. “It’s a highly profitable barrel and it’s a responsibly produced barrel.”
BP took over unconventional oil and gas assets in the Permian Delaware Basin in early 2019 following its acquisition of BHP’s American shale assets.
The investment in the Permian Basin would follow an ambitious plan launched by BP to reduce its greenhouse gas emissions by rapidly growing its renewables energy business and cutting oil output. Despite the changes, oil and gas is set to remain BP’s main source of revenue until at least 2030.
Last month, BP reported its greenhouse gas emissions from its oil fields to its clients’ car exhausts had dropped 10% to around 374 million tonnes of CO₂ equivalent in 2020,
Recommended Reading
Vitesse Energy to Buy Bakken Pureplay Lucero in $220MM Deal
2024-12-16 - Vitesse Energy will acquire Lucero Energy’s Bakken/Three Forks assets, including 25 net remaining locations, 1.9 net DUCs and 20 wells that are candidates for recompletions.
Exclusive Occidental, CrownRock Merge Into Team of Overachievers
2024-12-10 - Thaimar Ramirez, president and general manager for Occidental Petroleum’s Midland Basin Business Unit, said 100 days after closing the CrownRock acquisition production guidance keeps going higher.
After Big, Oily M&A Year, Upstream E&Ps, Majors May Chase Gas Deals
2025-01-29 - Upstream M&A hit a high of $105 billion in 2024 even as deal values declined in the fourth quarter with just $9.6 billion in announced transactions.
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.
Scout Taps Trades, Farm-Outs, M&A for Uinta Basin Growth
2024-11-29 - With M&A activity all around its Utah asset, private producer Scout Energy Partners aims to grow larger in the emerging Uinta horizontal play.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.