BP 2015 Annual Report Download - page 16

We aim to create value for our investors and benefits for
the communities and societies where we operate.
Our business model and strategy
Our business model
We believe the best way to achieve
sustainable success as a group is to act in the
long-term interests of our shareholders, our
partners and society. By supplying energy, we
support economic development and help to
improve quality of life for millions of people.
Our activities also generate jobs, investment,
infrastructure and revenues for governments
and local communities.
Our business model spans everything from
exploration to marketing. We have a diverse
integrated portfolio that is balanced across
resource types, geographies and businesses,
and adaptable to prevailing conditions. Our
geographic diversity gives us access to
growing markets and new resources and
provides robustness to geopolitical events.
The new semi-submersible Deepsea Aberdeen
drilling vessel carries out ultra-deepwater drilling
in the UK North Sea.
An officer working in the under-deck pipe
passageway on board BP’s LNG tanker
British Trader.
By having upstream and downstream
businesses and well established trading
capabilities, we have a cushion to oil price
volatility as downward pressures in one part of
the group can create opportunities in another.
Integration also allows us to share functional
excellence more efficiently across areas such
as safety and operational risk, environmental
and social practices, procurement, technology
and treasury management.
Every stage of the hydrocarbon value chain
offers opportunities for us to create value,
through both the successful execution of
activities that are core to our industry, and the
application of our own distinctive strengths
and capabilities in performing those activities.
Our partnerships in Russia
What we do differently Global energy trading
BP has been collaborating with leading
Russian oil and gas companies for 25 years,
creating a successful presence in a country
with some of the largest oil and gas reserves
and greatest potential worldwide. Through our
partnership with Rosneft, the world’s largest
listed oil company in terms of production
volume, we are able to build on the experience
and success we have achieved over the past
quarter century and continue to grow BP’s
business in Russia.
Using our knowledge and insights to help keep
the world’s energy moving, our energy trading
function is BP’s face to global energy markets
and an integral part of our upstream and
downstream operations. We offer a combination
of expertise in physical supply and trading,
innovative financial structures and advanced
analytics to deliver long-term value, from
wellhead to end customer. We trade a variety
of physical products such as crude oil, refined
products, natural gas, LNG and power, and aim
to maximize value from our assets by managing
the flow of these commodities.
We apply our capabilities of advanced
technology, strong relationships and
proven expertise across our operations
to help us deliver against our strategic
priorities in ways that we believe set us
apart from our peers. These examples
reflect our distinctive ways of working
across the business.
See page 16 for details of
our distinctive capabilities.
Illustrated business model
For an at a glance overview of our
business model see page 2.
Our businesses
For more information on our
upstream and downstream business
models, see pages 28 and 34
respectively.
BP Annual Report and Form 20-F 201512