OTC: BP America optimistic about America’s energy renaissance, Mingé says

This article was corrected and modified on May 5.

The top executive of BP America Inc. remains optimistic about the continuing energy renaissance taking place in the US.

“It’s a great time to be in American energy,” said BP America Chairman and Pres. John Mingé at a breakfast session May 5, which kicked off the annual 4-day Offshore Technology Conference in Houston.

Mingé said the recent energy renaissance has been “amazing” to witness, also noting, “We didn’t have booms when I started [in the oil business]. We just had busts, busts, busts, busts, busts.”

With a background in drilling engineering, Mingé has been in his current position for a year and considers the company “a team of explorers.”

He said with demand for energy increasing, and with the US on its way to becoming an energy exporter, the search for new resources remains “hugely challenging.”

“Energy is essential, and the need is not going away,” he said, while acknowledging: “Every industry has its critics, and we have ours.”

As for misgivings about whether the world has enough oil to provide that energy, those doubts “are fading fast.”

He added, “That’s not to knock alternatives.” All forms of energy need to be a part of the mix, he said.

Post-Macondo

Mingé acknowledged that BP is a different company from when he started. And a large part of that change came after the Macondo deepwater blowout and oil spill in the Gulf of Mexico 4 years ago. It was, he said, “An event that has forced us to take a close look at who we are.”

After all, the “hallmark of an explorer,” Mingé said, is to persevere in times of setbacks.

BP has gone through a series of divestments as well, many in the US, and most recently in Alaska. It has also recently sold its solar business. The company is renewing its focus on light oil and LNG.

BP has recently handled $38 billion in divestments and intends to offload another $10 billion between now and 2015, he said.

As for investments, he said, “Offshore is a huge piece of that." BP operates 11 rigs in the Gulf of Mexico—more than they ever have before. And the company was the apparent high bidder on 24 of the 31 tracts that it bid on in the most recent gulf lease sale (OGJ Online, Mar. 19, 2014).

Q&A

After his prepared speech, Mingé fielded questions from OTC’s delegates. The first dealt with transportation safety of oil: rail vs. pipeline. He said transportation of crude by pipeline is the “preferred method” because of its proven safety and reliability, but added that rail also can be done safely. He cited that recent accidents involving rail transportation of oil have been “tragic,” and said he will soon be part of a panel to discuss improvements to this method along with the American Petroleum Institute.

When asked about the strife in Russia, Mingé noted that BP has been in business in that country for many, many years in both oil and gas, and that although at times things have been “not so smooth,” in the end projects can be successful. He added, however, that BP intends to comply with any sanctions placed on that country.

Mingé remains bullish about the deepwater gulf, saying, “The Gulf of Mexico is still one of the most prolific basins in the world,” and that large projects will continue to demand a large share of the company’s investment.

When questioned about the state of the infrastructure in the US, and whether systems are up to the job of transporting expanding production, Mingé said, “Just because pipes are old doesn’t mean they’re bad. I know pipes that are 40 years old that are like new.”

One final question about the developing opportunities in Mexico was answered with excitement: “We’re ready to go if you’re ready to have us,” Mingé said.

Contact Steven Poruban at stevenp@ogjonline.com.

Related Articles

Pessimism mounts over UK offshore industry

02/02/2015

Pessimism about the UK offshore oil and gas industry is gaining momentum.

EnLink agrees to purchase Coronado Midstream for $600 million

02/02/2015 EnLink Midstream has agreed to acquire Coronado Midstream Holdings LLC, which owns natural gas gathering and processing facilities in the Permian b...

Antero trimming, delaying Marcellus drilling

02/02/2015 Antero Resources Corp., Denver, has announced a $1.8 billion budget for 2015, which is down 41% from 2014. The independent said it plans to defer c...

Woodside gets NEB approval for British Columbia LNG exports

02/02/2015 Woodside Energy Holdings Pty. Ltd. has received approval from Canada’s National Energy Board on its application for a 25-year natural gas export li...

Syncrude sees additional $260-400 million in possible budget cuts

02/02/2015 The estimate for capital expenditures has also been reduced to $451 million net to COS, which includes $104 million of remaining expenditures on ma...

Kerry expects to receive other agencies’ Keystone XL reports soon

02/02/2015 US Sec. of State John F. Kerry said he expects to receive other federal agencies and departments’ reports soon on the proposed Keystone XL crude oi...

Union strike under way at US refineries, petchem plants

02/02/2015 The United Steelworkers Union (USW) has instituted a strike at nine US refining and petrochemical production plants following a breakdown in negoti...

MARKET WATCH: NYMEX, Brent crude oil prices rebound

02/02/2015 Crude oil prices rallied on the New York and London markets on Jan. 30. Brent crude oil prices settled at just under $53/bbl, which was its highest...

Santos acquires interest in block offshore Malaysia

02/02/2015 Santos Ltd. has acquired 20% interest in a deepwater permit offshore Sabah, Malaysia. The company will take 10% from each of Japan’s Inpex and oper...
White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected