BP’s upstream projects pipeline
BP’s upstream portfolio is poised for growth, with major projects expected to come online in the second half of 2017. About seven major projects are expected to start up in 2017, including mega Zohr, Khazzan in Oman, and Quad 204. In fact, projects such as the West Nile Delta that we looked at in the previous part and Trinidad Onshore Compression have already begun operations. BP expects a considerable rise in cash flows in the second half of 2017 due to new project start-ups.
BP’s proved reserves
BP expects around 800 Mboepd (thousand barrels of oil equivalent per day) of new production, net to BP, by 2020. Projects representing around 90.0% of this volume are already sanctioned or under construction.
BP also has vast proved reserves of 17.8 billion barrels of oil equivalent, which is expected to spur growth beyond 2020. With a vast reserve base and new project start-ups, BP’s upstream portfolio is likely to become more profitable in the scenario of rising oil prices. The SPDR S&P 500 ETF (SPY) has a ~6.0% exposure to energy sector stocks.