Story from Houston Public Media. The Standard speaks about where this move leaves Houston with David Hunn, energy reporter at the Houston Chronicle.
BP America has announced it is moving its onshore business from Houston to Denver.
BP’s U.S. Lower 48 is one of several of the British oil giant’s U.S. divisions. It was established as a separate entity in 2015.
Its move to Denver is a reflection of the company’s shift in focus away from Texas in terms of production, said Craig Pirrong, professor of finance at the University of Houston.
“They sold off some of their Permian properties about five years ago, I think, and have overall been reducing their footprint in Texas and focusing more on the Rockies region,” he said.
The company says about two-thirds of its onshore oil and natural gas production is in the Rocky Mountains area.
The new Denver office is slated to open in the first quarter of 2018 with at least 200 employees. Many of those will relocate from Houston, where BP currently employs about 4,500 people.
In an email to News 88.7, the company said its U.S. headquarters will remain here and its onshore business will keep a large presence in Houston to manage its assets in South and East Texas.
Other BP divisions with head offices in Houston include Gulf of Mexico, wind energy and upstream technology.
What Does The Move Mean for Texas?
David Hunn, energy reporter for the Houston Chronicle, says he talked to CEO of BP David Lawler about the company’s move from Houston to Denver.
“Lawler said ‘There’s nothing to see here,’ Lawler says. “He said ‘This is a move for us, we’re not saying anything’s wrong with Texas.’ but I still think it’s an interesting decision and I especially think it’s interesting because it focuses on natural gas.”
What you’ll hear in this interview:
– What this moves says about Texas as a future hub for the industry
– How BP has been selling off its land in Texas
– How Lawler made the decision to move
