BP is gearing up to enhance its U.S. natural gas output in response to escalating domestic gas prices. Details of this initiative were highlighted by CEO Murray Auchincloss during the CERAWeek conference, as reported by Ron Bousso. With U.S. natural gas prices more than doubling over the last year and reaching approximately $4.4 per million British thermal units, BP sees an opportunity in the Haynesville basin in Texas. According to data from IndexBox, the rising gas prices align with BP's strategic decision to concentrate on the Haynesville basin, a region poised for growth in gas production. Last year, BP's operations in U.S. onshore shale produced 434,000 barrels of oil equivalent per day, with 264,000 boepd of that being natural gas. This adjustment comes alongside BP's broader plans to increase annual spending on oil and gas to $10 billion, a shift aimed at enhancing earnings and strengthening investor confidence. Despite previously intending to reduce oil and gas production, BP is now targeting an increase to between 2.3 million and 2.5 million boepd by 2030. The company is also bolstering its presence in the Gulf of Mexico, advancing developments in the Paleogene geological structure, which holds vast resources. Auchincloss emphasized the strategic importance of the U.S. in BP's new direction along with expansions in the Middle East.
BP Boosts U.S. Natural Gas Production amidst Rising Prices
by Skip Peel - Mineral Consultant
13 hours ago
BP Boosts U.S. Natural Gas Production amidst Rising Prices
March 11, 2025 www.indexbox.io/blog
BP is gearing up to enhance its U.S. natural gas output in response to escalating domestic gas prices. Details of this initiative were highlighted by CEO Murray Auchincloss during the CERAWeek conference, as reported by Ron Bousso. With U.S. natural gas prices more than doubling over the last year and reaching approximately $4.4 per million British thermal units, BP sees an opportunity in the Haynesville basin in Texas. According to data from IndexBox, the rising gas prices align with BP's strategic decision to concentrate on the Haynesville basin, a region poised for growth in gas production. Last year, BP's operations in U.S. onshore shale produced 434,000 barrels of oil equivalent per day, with 264,000 boepd of that being natural gas. This adjustment comes alongside BP's broader plans to increase annual spending on oil and gas to $10 billion, a shift aimed at enhancing earnings and strengthening investor confidence. Despite previously intending to reduce oil and gas production, BP is now targeting an increase to between 2.3 million and 2.5 million boepd by 2030. The company is also bolstering its presence in the Gulf of Mexico, advancing developments in the Paleogene geological structure, which holds vast resources. Auchincloss emphasized the strategic importance of the U.S. in BP's new direction along with expansions in the Middle East.