BP 2011 Annual Report Download - page 91

BP Annual Report and Form 20-F 2011 89
Business review: BP in more depth
Business review
Oil and gas disclosures
The following tables provide additional data and disclosures in relation to our oil and gas operations.
Average sales price per unit of production
$ per unit of productiona
Europe North
America
South
America
Africa Asia Australasia Total
group
average
UK
Rest of
Europe US
Rest of
North
AmericabRussia
Rest of
Asia
Average sales pricec
Subsidiaries
2011
Liquidsd107.83 106.89 96.34 –86.60 104.37 –111.10 101.22 101.29
Gas 7.91 13.15 3.34 –3.60 5.24 –4.73 9.13 4.69
2010
Liquidsd76.33 81.09 70.79 48.26 71.01 74.87 –78.80 75.81 73.41
Gas 5.44 7.16 3.88 4.20 2.80 4.11 –4.05 7.01 3.97
2009
Liquidsd62.19 60.73 53.68 30.77 52.48 57.40 –61.27 57.22 56.26
Gas 4.68 7.62 3.07 3.53 2.50 3.61 –3.30 5.25 3.25
Equity-accounted entitiese
2011
Liquidsd––––73.51 –84.39 8.11 –71.35
Gas ––––2.31 –2.23 12.21 –2.40
2010
Liquidsd––––61.60 –60.39 6.72 –52.81
Gas ––––1.97 –1.91 7.83 –2.04
2009
Liquidsd––––51.01 –47.27 5.59 –41.93
Gas ––––1.90 –1.51 5.25 –1.68
a Units of production are barrels for liquids and thousands of cubic feet for gas.
b Producing assets now largely divested.
c Realizations include transfers between businesses.
d Crude oil and natural gas liquids.
e It is common for equity-accounted entities’ agreements to include pricing clauses that require selling a significant portion of the entitled production to local governments or markets at discounted prices.
Average production cost per unit of production
$ per unit of productiona
Europe North
America
South
America
Africa Asia Australasia Total
group
average
UK
Rest of
Europe US
Rest of
North
AmericabRussia
Rest of
Asia
The average production
cost per unit of productiona
Subsidiaries
2011 21.59 18.23 12.09 –3.20 10.82 –8.65 3.05 10.08
2010 12.79 9.76 8.10 15.78 2.48 7.52 –4.59 2.03 6.77
2009 12.38 10.72 7.26 14.45 2.20 6.05 –4.35 1.60 6.39
Equity-accounted entities
2011 ––––9.04 –5.68 2.70 –5.58
2010 ––––6.32 –5.04 2.61c–4.83c
2009 ––––6.12 –4.63 2.52c–4.50c
a Units of production are barrels for liquids and thousands of cubic feet for gas. Amounts do not include ad valorem and severance taxes.
b Producing assets now largely divested.
c A minor amendment has been made to comparative periods.
access advantageous pricing differences between locations, time periods
and arbitrage between markets. Natural gas futures and options are traded
through exchanges, while over-the-counter (OTC) options and swaps are
used for both gas and power transactions through bilateral and/or centrally-
cleared arrangements. Futures and options are primarily used to trade
the key index prices, such as Henry Hub, while swaps can be tailored to
price with reference to specific delivery locations where gas and power
can be bought and sold. OTC forward contracts have evolved in both
the US and UK markets, enabling gas and power to be sold forward in a
variety of locations and future periods. These contracts are used both to
sell production into the wholesale markets and as trading instruments to
buy and sell gas and power in future periods. Storage and transportation
contracts allow the group to store and transport gas, and transmit power
between these locations. The group has developed a risk governance
framework to manage and oversee the financial risks associated with this
trading activity, which is described in Note 26 to the Financial statements
on pages 217-222. The group’s trading activities in natural gas are managed
by the integrated supply and trading function.
The range of contracts that the group enters into is described in
Certain definitions – commodity trading contracts, on page 111.