Dominic Emery & David Eyton

The energy transition:BP’s approach

The energy transition

• We believe action on climate is needed

• Access to affordable and secure energy is fundamental to human prosperity

• There are multiple actors and actions

• All fossil fuels are not equal

• There is a variety of resource holders and users

• BP will continue to play its part, as described today

CoalOilGas

GHG emissions from fossil fuel reserves

Emissions management

Only about 15% of primary energy is converted into useful heat, light and motion

The scope for efficiency improvements is significant

Our approach:

• OMS and Solomon EII

• Reducing fugitives, flaring and venting

• Product efficiency

• Carbon price – engineering design

Portfolio resilience

Our approach:

• Development of lower carbon options, in particular growing gas in our portfolio

• Carbon price – portfolio and project resilience

• Forecasting energy supply and demand, through the 2035 Outlook

• Testing investments against a range of oil and gas prices

• Reviewing the impact of evolving technology

OilGas2014

Mid 2020s

Low carbon energy R&D

Our approach:

• Reported R&D spend of $663m in 2014

• Leading technologies in:– Upstream – seismic imaging and

enhanced oil recovery– Downstream – petrochemicals and

formulated products

• Horizon scanning through:– University relationships and partnerships– Venturing

Com

peti

tor

ran

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BP

Reported R&D/capital employed

Strategic KPIs and incentives

Our approach:

• Clear strategy

• Linkage of strategy to incentives

Public policy

Our approach:

• We seek to inform policy makers by publishing Outlook 2035 and Long-term technology view

• We recognise that there are multiple actors and we all need to play our part

• We advocate a global economy-wide price on carbon and market-based mechanisms

• We expect the immediate impact would be a switch from coal to gas

Dominic Emery & David Eyton

The energy transition:BP’s approach