bp electrifies 95% of Permian wells, boosts production by 100,000 barrels daily
(WO) — bp's U.S. onshore oil and gas division, bpx energy, has emerged as a leading player in the onshore sector, delivering some of the most productive and high-value wells in the United States.
By modernizing its operations, bpx has positioned itself as a key contributor to bp’s strategy for resilient hydrocarbons, with plans for continued growth in the coming decade.
After acquiring its Permian assets in 2018, bpx energy focused on enhancing production while minimizing emissions and flaring. Recognizing the unsustainable levels of gas flaring, bpx quickly moved to develop a facility strategy to capture and market the gas.
The company implemented a sophisticated oil, gas, and water separation system designed to act as a "hub-and-spoke" model for future well development. This involved building automated facilities to process hydrocarbons and developing surrounding wells to supply these hubs. Each facility is connected to pipelines for efficient resource marketing.
In 2020, bpx launched its first centralized Permian processing facility, Grand Slam, followed by Bingo in 2023 and Checkmate in 2024. These facilities, with a combined capacity of over 100,000 barrels of oil and associated gas per day, significantly reduce flaring, now accounting for less than 0.5% of gas from wells—down from 15% in late 2019.
Leveraging technology for efficiency
bpx energy has integrated cutting-edge technology into its drilling operations to enhance efficiency. Using proprietary automation software, the company has reduced drilling times and minimized equipment wear, leading to significant cost savings. The software allows rigs to adapt to subsurface conditions in real-time, increasing the rate of penetration and reducing common drilling issues.
In addition, bpx developed a physics-based analytics approach known as RTAN (rate transient analysis), which optimizes hydraulic fracturing fluid and solids injection to maximize production and value. Since 2020, RTAN has contributed over $1.5 billion in value creation.
Electrification initiatives
To further reduce emissions, bpx energy has invested in electrical infrastructure across the Permian basin. By the end of 2023, the company had electrified 95% of its Permian wells, using electricity to power drilling, pumping, gas compression, and control systems—activities traditionally reliant on diesel or natural gas.
The switch to electric operations has not only reduced operational costs and emissions but also improved efficiency. Electric fleets have achieved 8% greater efficiency in well completions compared to diesel-powered equipment, while emissions have decreased by about 15%. Moreover, the electrification of well sites has lowered methane intensity by over 3% since 2019, with bpx now consistently maintaining a methane intensity below 1%, one of the lowest in the region.
Electricity, being less expensive than diesel, has also increased operational reliability and uptime.
