BP considers a wide range of factors that may affect the price and demand for our products when making investment decisions including:
Potential GHG regulation: We assess carbon policy at a regional level, and we apply a carbon price to larger projects and those for which emissions costs would be a material part of the project.
Changes in demand: We make regional and global assessments of energy supply and demand, and we undertake detailed demand modelling for the transport sector, to assess the risk of shifting demand for our products.
Fluctuating oil prices: We use a range of oil price sensitivities to manage commodity price risk and we prioritize value over volume for new upstream projects.
Evolving technology: We undertake deep dives into potential innovation in the 2030-2050 timeframe and we collaborate with external technology-focused bodies.
This approach enables us to optimize our portfolio to meet the world’s energy needs and to alter our investments to reflect changing policy, market and technology conditions.