BP Exploration (Alaska) Inc.: building on more than 50 years of success.

• Author: Orr, Vanessa
• Position: OIL & GAS

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In 1959, BP opened its first Alaska office in Anchorage and its first team of geologists and engineers arrived the following year. Over the next half-century, the company continued to thrive and now employs approximately 2,100 people in Alaska between its downtown headquarters in Anchorage and operations on the North Slope.

With operations in more than 100 countries across six continents, including significant operations in Alaska and the Lower 48, BP is one of the world's largest energy companies. Its main businesses include exploration and production of oil and gas; refining, manufacturing and marketing of oil products and petrochemicals; transportation and marketing of natural gas; and a growing business in renewable and low-carbon power and next-generation energy technologies.

In 2010, BP Exploration (Alaska) Inc. invested approximately $2.1 billion in the state. "Our capital investment was about $810 million and the operating budget was approximately $1.3 billion," said Steve Rinehart, spokesman for BP Alaska. "We spent almost $1.7 billion with Alaska companies that year."

This investment includes supporting a local work force, with BP consistently employing Alaskans as more than 80 percent of its staff over the last five years. "It makes all kinds of business sense to hire locally and employ locally rather than bring in people from Outside," said Phil Cochrane, vice president, External Affairs, BP Alaska. "If the skill sets that we need can't be found in the state, we invest in training; we invest heavily, for example, in the University of Alaska."

By providing significant training opportunities for Alaskans through scholarships, internships and direct support to the university, BP and the state's work force come out ahead. "We recruit more graduates from the University of Alaska than from any other school," Cochrane said.

DEVELOPING RESOURCES

While the company is headquartered in Anchorage, the majority of its resource base is found on the North Slope. BP operates 15 North Slope oil fields, four North Slope pipelines, and owns a significant interest in six other producing fields. In 2010, the company's gross production rate from these fields was approximately 520,000 barrels of oil equivalent (BOE) per day; net production equaled approximately 166,000 BOE a day.

"The good Lord blessed this area with abundant resources, and from BP's perspective, it is one of the most promising areas in our portfolio," said...