bp’s Blueprint for Driving Efficiency, Innovation and Value in the Permian Basin
Some bp West Texas wells have boosted gas production by 20%.
bp's US onshore oil and gas business, bpx energy, has safely and responsibly delivered some of the most productive and highest value oil and gas wells in the US onshore sector.
The business has modernized its operations to run more efficiently, and is now a top oil and gas exploration and production company. It has also become core to bp’s delivery of resilient hydrocarbons, and is expected to be a key source of growth through this decade, and beyond.
What does it look like when you embed a company that can move, learn and function like an independent – but inside the balance sheet of a global energy company, at scale? You get a top tier exploration and production company.
Nowhere is the success of this model more apparent than in the Permian Basin, America’s largest oil-producing field.
1. It started with a commitment to infrastructure
After bp acquired its Permian assets in 2018, bpx began looking for ways to enhance production while lowering emissions and flaring.
“We recognized early on when we acquired the assets that flaring so much of our gross gas stream was just not going to be acceptable,” says Kyle Koontz, bpx’s CEO. “So, we quickly started thinking about how to capture and sell that gas. We needed a facility strategy that could process all the resource.”
bpx soon developed a highly sophisticated oil, gas and water separation system to act as a “hub-and-spoke" for future well delivery, which involves building highly automated facilities to gather and process hydrocarbons, and then developing wells around those hubs to fill them. Each of those centralized facilities is also connected to pipelines to market the company’s resources.
bpx launched Grand Slam, its first centralized Permian processing facility, in 2020 and brought a similar one named Bingo online in 2023, followed by Checkmate in 2024. Those three facilities combined have a throughput capacity of more than 100,000 barrels gross of oil and associated gas per day, and the business is expected to open a fourth in 2025.
The centralized processing facilities can help recover an additional 5 to 10 percent of gas from product streams.
Leveraging this infrastructure, bpx has dramatically reduced flaring from its operations. The business now flares less than 0.5 percent of the gas from its wells, down from 15 percent during the fourth quarter of 2019.
Article from bp website and originally published in the Texas Tribune, part of a series explaining how bp is investing in America.
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