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Texas, the dynamic hub of America’s energy future

bp America’s chairman explains how his company—and Texas—is building the energy system of today, and tomorrow.

Nearly 200 miles south of New Orleans, the Argos platform operates at a water depth of 4,500 feet, and can produce up to 140,000 barrels of oil equivalent a day. (Credit: bp)
Argos 2 Credit: Nearly 200 miles south of New Orleans, the Argos platform operates at a water depth of 4,500 feet, and can produce up to 140,000 barrels of oil equivalent a day. (Credit: bp)

By Orlando Alvarez, BP

Orlando Alvarez is chairman of bp America.

With its abundant natural resources and pioneering spirit, Texas has long been a powerhouse of energy production and innovation. Starting with the first Texas oil boom in the early 20th century, the state has always been a dynamic force driving and shaping the American energy industry.

bp is proud to be part of that legacy. Houston is home to our US headquarters, and we have nearly 6,000 employees in the Lone Star State—making Texas one of our largest employee bases in the world.

If there’s anything I know about Texans, it’s that we don’t back down from a challenge. Ever. The fundamental challenge the energy industry faces today is to produce more of the energy world needs right now—while building the energy system of tomorrow.

bp is here to play its part. Our strategy is to grow value for our company in three core strategic areas: Resilient Hydrocarbons, Convenience and Mobility, and Low-carbon Energy. Nowhere is that strategy more evident than in America—and, in particular, Texas, where we’re investing in ways that will help advance the energy transition while addressing energy security and affordability.

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Let me give you some tangible examples, starting with our Houston-based Gulf of Mexico business. In July, we announced plans to install our sixth US offshore production platform, which will be known as Kaskida. With an estimated startup date of 2029, the project is expected to produce 80,000 barrels of crude oil per day. Advancements in drilling technology and updated seismic imaging have helped bp safely develop Kaskida and progress plans for tapping into additional fields in the region.

bpx’s state-of-the-art Grand Slam facility in the Permian Basin is an electrified central oil, gas and water handling facility that reduces operational emissions by replacing gas-driven equipment, compressors and generators. (Credit: bp)
Credit: bpx’s state-of-the-art Grand Slam facility in the Permian Basin is an electrified central oil, gas and water handling facility that reduces operational emissions by replacing gas-driven equipment, compressors and generators. (Credit: bp)

Meanwhile, look at the Permian Basin, where our US onshore oil and gas business—bpx energy—has launched three new processing facilities since 2021. It expects to open another facility next year, part of its efforts to drive a 30-40% increase in bpx production by 2025, compared to where it was in 2022.

bpx has also become an industry leader in tackling methane emissions, deploying innovative leak-detection technologies such as fixed-wing aerial surveys, drones, satellites and on-site monitors to make sure natural gas stays in the pipes. The business has electrified equipment that would traditionally run on natural gas or diesel, further helping reduce its greenhouse gas emissions.

We’re in the early stages of building low-carbon energy businesses. One example is Archaea Energy, which is based in Houston and makes renewable natural gas from decomposing waste at landfills and dairy farms in 32 states.

It’s worth pointing out that our Gas & Power trading for the Americas business—which I run – is based in Houston.

Across the state, we’ve invested millions in community projects, including training Harris County and Houston city government workers on how to safely use EV chargers. And earlier this year, we opened our first US EV charging gigahub for the public to use, right on our Houston campus.

bp pulse 14401 Katy Fwy, Houston, TX
In 2024, the first US bp pulse EV charging Gigahub opened at bp's Houston headquarters. bp pulse is the company's EV charging business. (Credit: bp) Credit: In 2024, the first US bp pulse EV charging Gigahub opened at bp's Houston headquarters. bp pulse is the company's EV charging business. (Credit: bp)

bp’s destination remains unchanged. We’re still transforming from an international oil company to an integrated energy company. At the same time, we’re working to become a simpler, more focused, and higher-value company. We’re harnessing technology and digitization across all our businesses to improve production and operate more efficiently.

bp’s strategy aims to ensure we can produce the energy the world needs while generating value, regardless of changes in policy and market dynamics. Likewise, Texas and bp play a leading role in helping transform the US and global energy systems to be just as resilient.

We’ve already made great progress, but more work remains to be done. My fellow Texans, I’m confident we can get there together, and I invite you to join us in this shared purpose.

To learn more about how bp is investing in America, click here. And to learn more about bp’s businesses in Texas, click here.