Why Texas’s — and America’s — new energy future can coexist with oil and gas
America needs an energy system that delivers for families and communities, one that’s safe and reliable, and within reach — and cleaner — for everyone. bp America’s chairman explains how the company is blazing a trail, in Texas.
Dave Lawler is CEO of bpx energy and chairman & president of bp America.
Texans don’t believe in limits – for themselves or others. And when it comes to investing in energy, the country—and the world—need Texans to stay true to who they are. We need them to keep the Lone Star State the center for America’s oil and gas production – and to keep that center big enough to embrace emerging and lower carbon energies.
Everything is bigger in Texas, which means there’s room for oil and gas, and for hydrogen, carbon capture and storage, wind, solar and many emerging energy technologies.
Texans never lag when they can lead. In new terrain, they don’t keep to the canyon floor when they can climb to the top. They don’t back down from challenges, technical or otherwise. And so investing in energy – today’s and tomorrow’s – isn’t something new Texans have to do.
It’s who they already are.
We can all be grateful for that, because how Texans choose to shape their energy landscape today will determine America’s tomorrow. America needs an energy system that delivers for families and communities, one that’s safe and reliable, and one that’s within reach for everyone and cleaner for everyone. Texans can blaze the trail.
Just how they can best do that is a conversation as big and dynamic as the Lone Star State.
There’s no doubt traditional energies, like oil and gas, have skeptics. So do newer, lower carbon forms of energy. I won’t list them all here, but I will say this: when you’ve worked in this business as long as I have, you learn, by and large, there are people of good will in all corners of the conversation. And if you listen as best you can, you can hear and apply the merits of every argument. You have to, because you’ve got a job to do: deliver the energy people need today, and – and, not or – work to create the energy people need tomorrow.
This is something bp is already doing in Texas. It’s something we’ll continue to do.
The company has invested about $10 billion in its onshore oil and gas business bpx, from 2015 to 2022, a sizeable portion of which is located in Texas. We’re aiming to increase production 30 to 40% by 2025, while continuing to reduce emissions. If you go out to our well sites near Orla or Pecos, they’re a lot quieter than they used to be. That’s because instead of relying on natural gas or diesel generators, we’re using electric drilling rigs, electric compressors and electric pumps. The more electrified your wells are, the lower your emissions. We expect nearly 95% of our Permian wells to be electrified by the end of this year.
Last May, we started our fifth production platform in the deepwater Gulf of Mexico. It’s called Argos, and it’s part of an $9 billion project that will help us increase production to around 400,000 barrels of oil equivalent per day by the mid-2020s. Argos also provides an additional source of crude supply at a time of heightened concerns about energy security and affordability. It plays a key role in bp’s strategy by up-grading our hydrocarbons portfolio with high-margin barrels.
And, at the same time, our lower carbon efforts are in full force in Texas. We run our US onshore wind business from Houston. Our solar joint venture, Lightsource bp, has three large-scale farms in operation in Texas and is evaluating more. We’re making good progress on our first large-scale carbon capture and storage project on the Texas Gulf Coast, with startup planned for 2026.
We’re assessing low-carbon hydrogen opportunities in Texas. The Lone Star State is one of the best places on earth to grow the business, thanks to its robust renewable resources, not to mention one of the most pro-business environments in the country.
We’re also buying Texas-based businesses – like our $4.1 billion purchase of biogas leader Archaea Energy last year. We bought TravelCenters of America this spring, which has almost 10% of its total US stores in Texas.
The bottom line: every element of bp’s strategy to meet today’s energy needs while preparing for a lower-carbon future is at work in Texas. We can do both. We are doing both. And – not or.
Which is why we’re encouraging Texans to hold true to themselves and do likewise.
All 4,000 of Texas’s bp employees – and so many more across America – will be there for the hard work ahead. We’ve been in Texas for decades, and we’re committed to Texas and America – today and for the long-term. (When more than half of your global investment was in the US – like ours was last year – it’s safe to say we’re sticking around.)
So Texans, let’s grow American energy – today’s and tomorrow’s – together.