How BP Makes Money

BP earns money at each stage of the oil and gas chain. Upstream, it finds and produces crude oil and natural gas in the Gulf of America (Gulf of Mexico), the North Sea, Brazil, Iraq, Azerbaijan, Oman, Trinidad, Egypt and US onshore basins; output averaged 2.3 million barrels of oil equivalent per day in Q1 2026 and 2.2 million in Q2 2026. Downstream, it refines crude at plants such as Whiting, Indiana, and sells fuels, lubricants, aviation fuel and convenience goods through brands including BP, Amoco, ARCO, Aral, ampm, Thorntons and TravelCenters of America. A supply, trading and shipping arm moves crude, refined products, gas, LNG and power between markets and is often the swing factor in quarterly profit, as it was in Q2 2026. From July 1, 2026 BP reports through two segments, Upstream and Downstream, replacing the three-segment structure (gas & low carbon energy; oil production & operations; customers & products) created in 2020. Low-carbon activities such as Archaea Energy's renewable natural gas, bp pulse EV charging and a 50% stake in offshore wind venture JERA Nex bp continue at a smaller scale.

BP's current strategy dates from its February 2025 reset, which raised upstream oil and gas investment to about $10 billion a year, cut planned spending on transition businesses to $1.5-2 billion a year, and set targets of $20 billion of divestments and $14-18 billion of net debt by 2027. Meg O'Neill has gone further since April 2026: two business segments instead of three from July 1, about 700 non-frontline job cuts reported in July, completion of the Gelsenkirchen refinery sale to Klesch Group in August, and continued exploration in Brazil and the Gulf of America. Low-carbon work continues where BP sees returns, mainly renewable natural gas, EV charging and its offshore wind joint venture with Japan's JERA.