BP’s second quarter flat; ANS oil price up

Kay Cashman

Petroleum News

In its second quarter and half-year earnings report released July 30, London-based BP reported its earnings were flat as increased production offset lower oil prices and that its underlying replacement cost profit remained at $2.81 billion.

There was only one mention of Alaska in the report or the earnings call that followed. Not unsurprising because the state is a comparatively small piece of the major’s international portfolio.

BP CEO Bob Dudley was quoted as saying the company was at the midpoint of its five-year plan, and “right on target.” He credited reliable performance and disciplined growth across BP’s businesses to BP’s success.

Dudley also said these factors were allowing BP to “grow businesses that can make a significant contribution in the energy transition, helping deliver the energy the world needs with lower carbon.”

Worldwide production increased 4% from a year ago to 3.8 million barrels of oil equivalent a day, which mitigated a 7.4% decline in the price of Brent crude, the international oil benchmark.

In its report, the Associated Press noted that oil companies have been preparing for an era of lower prices by cutting costs and streamlining operations since Brent crude dropped below $30 a barrel in January 2016.

BP expects its third-quarter production to fall because of seasonal maintenance and the impact of Hurricane Barry on Gulf of Mexico operations.

Alaska was mentioned under the Realizations and market prices section of the financials, which showed the average price of Alaska North Slope crude as $70.64 in the first half of 2018 and $66.37 in the first half of this year, as compared to West Texas Intermediate at $57.42 for the first half of this year and $65.52 in the same time period last year.

Second quarter to second quarter, however, ANS crude was up - $68.29 this year versus $64.39 in 2018.

- Kay Cashman