BP counsels adapting to “lower for longer” oil market

British oil giant BP’s offshore drilling operations have adapted to a lower oil price environment, where the company can turn a profit a $50 a barrel but won’t drill if prices dip any lower, said Richard Morrison, BP’s regional president for the Gulf of Mexico.

Morrison delivered the opening talk on Monday at the Offshore Technology Conference at Houston’s NRG Park. He counseled a packed room of oil and gas professionals to get used to operating with lower oil prices, particularly in the offshore world.

“The grit and determination required to weather the last 24 months will be equally important over the next 24 months,” he said.

BP has managed raised its offshore production by 15 percent and has cut its expenses by more than 30 percent, Morrison said.