...| 1. Based on the history of the company, why did BP get involved in so much questionable conduct? BP's history extends back to 1901 when William D'Arcy's Anglo-Persian Oil Company first drilled for oil in Persia and after seven years of drilling and darcy's nearly spent his net worth finally oil spewed out and became rich. Unfortunately later at 1914 BP was on the verge of bankruptcy due to the very low demand of oil in global market. Accordingly ,BP's Board strategy focused for decades on selling and making profits by expanding and increasing their market shares and they have neglected BP responsibilities with respect to human and environmental resources in their Mission statements and Corporate goals . Below is part of their new mission statement and underlined parts emphasize how BP have changed their way of thinking and realized how social responsibility and environment are important to their business especially after several disasters that occurred to them last decade. Mission statement: "BP wants to be recognized as a great company – competitively successful and a force for progress. We have a fundamental belief that we can make a difference in the world. We help the world meet its growing need for heat, light and mobility. We strive to do that by producing energy that is affordable, secure and doesn’t damage the environment. BP is progressive, responsible, innovative and performance driven." "Progressive - We believe in the principle...
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...When asking someone about the top 3 oil companies in the world, it is almost always certain that BP will be named on that person’s list, accompanied by Exxon and Shell. The oil company is such a huge and necessary industry that our country depends on day in and day out. Governments and companies have all looked into different types of alternative energy but there are still none that are near as effective as oil. Oil is a highly flammable, high combustion, fuel that gives high effectiveness. The problem with oil is that it is messy, in many different ways, when burned it sends damaging emissions into our atmosphere, when leaked it kills basically anything in it’s path from animals to plants. The riskiness of oil has caused an uproar around the world recently with the recent “going green phase” and environmentally friendly movement. These largely point towards oil because oil when burned sends large amounts of CO2 into the atmosphere, which does damage to our atmosphere and lets in more Gama radiation from the sun, which heats up the Earth. This causes a large problem for oil companies and their initiative to make money. In this case we will be focusing on BP, a very well known company if not the most well known. The largest problem with BP is, most of us when hearing that name think straight to April, 2010 when a BP oil rig exploded in the Gulf of Mexico leaking out millions of gallons of petroleum. For a company and it’s stakeholders, this is one thing that you don’t want to...
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...Case Analysis 1 - BP and the Gulf of Mexico Oil Spill Case Ying – Chen Lee Hawaii Pacific University 02.12.2013 Case Analysis 1 - BP and the Gulf of Mexico Oil Spill Case Event Review Before the event, the Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster or the Macondo blowout), BP was facing a situation where the company was turbulent and needed the new locations and new technology to secure natural resources. The new CEO, Tony Hayward, proposed a variety of measures to boost productivity and profits which included safety improvement. The company tried to improve the financial deficit that was caused by the accident of oil spill and others. In this condition, BP made decisions that were risky and dangerous in the process. A few months before the accident, related workers, engineers and supervisors expressed their concern about the safety of the work environment because not enough cement was being used to stabilize the drilling platform. After that, methane leaked out in the evening on April 20th, and the drilling rig was soon engulfed in flames. Most of the workers were rescued; however, there were still 11 workers missing even though the Coast Guard searched for them for three days. After 36 hours of burning, the drilling rig sank in the morning on April 22nd. According to the investigation report by the U.S. Coast Guard and Ocean Energy Authority, the cement for reinforcing the oil well was the main...
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...BP OIL SPILL Under the Deepwater Horizon, an offshore drilling ring of British Petroleum (BP) caused an oil spill in the Gulf of Mexico. The incident occurred on April 20th 2010, where equipment failed and caused the explosion sinking the ring, and causing the death of 11 workers and more than 17 workers injured. The British based energy company also faced other problems at the site of the oil spill. More than 40 million gallons (estimated data) of oil spewed into the Gulf of Mexico. Oil spill in the Gulf of Mexico is a very serious threat for the wildlife as it causes water pollution. The oil spill effected many coastal areas in the US, like the Louisiana, Alabama, Mississippi and Florida. The oil spill disaster strongly damaged wildlife cycle in the Gulf of Mexico, and many species were thrown into extinction. Similarly, thousands of businesses were thrown into extinction. Many people has questioned the ethical decisions and core value system that BP used to cut corners with the accident; namely, the race to maximize profits at all costs. We are all aware that one of the main causes that let to the disaster were the result of bad decisions, in which a less expensive option (whether to run a test or use a particular kind casing pipe, for example) would save lives. There has been “zero dollars spent on research concerning how to handle oil spills for off-shore drilling by BP despite the company's NET profits - above and beyond all salaries, bonuses, or overhead costs- of...
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...British Petrolum 2012 BP Oil Spill Management Dr…………………………………….. Nahla…………………………… , Nuf………………………. QATAR UNIVERSITY Executive Summary This paper examines the oil spill that took place due to an explosion at one of the drilling rig of British Petroleum on 2010 in the Gulf of Mexico and the managerial response to that crisis. Introduction: History of British Petroleum (BP) According to the British Petroleum's website, the company has started in 1908 with oil found in a rugged part of Persia after a long and hard search. Since then, discoveries large and small have participated in our progress. This is the first phase of BP between 1901 and 1908, the period during which the oil discovery was uncertain. The company has started as the Anglo-Persian Oil Company, which would be called one day BP. The next phase of BP's history was from 1909 to 1924, when the Field of Naphtha was 210 rugged kilometers from the mouth of the Persian Gulf. The Anglo-Persian was building a refinery to turn the thick crude oil into a usable product. Despite its name, the British Petroleum brand was originally created by a German firm as a way of marketing its products in Britain. During the I World war, the British government seized the company’s assets, and the Public Trustee sold them to Anglo-Persian in 1917. The Third phase of BP's history was from 1925 to 1945, when cars flooded onto the streets of Europe and the United States in the 1920s and 30s. BP-labeled gasoline pumps...
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...The Unsafe Culture of BP The oil spill in the Gulf of Mexico has been called the worst environmental disaster in U.S. history. The British Petroleum Company (BP) gulf spill started in April of 2010, and was first contained in July of 2010; it took the company 2 months to actually start the process of containing the spill. The Associated Press and The New York Times, reported that a total of 94 to 184 million gallons of oil were unleashed on the shores off the Gulf. This disaster has caused controversial topics to arise as to what the BP company is doing in preventing these disasters or if they are even taking any precaution to that notion. Critics say that BP has had a very bad track record when it comes to safety. It is a risky company that has grown too fast. They have had accidents like the one of BP’s most troubled refineries, which lies, in the State of Texas, which also had its fair share of explosions. BP now faces the largest liabilities in corporate history. All of what BP seems to be doing is shutting their workers mouths with money they cannot refuse but money that has no affect on the company’s profits. BP must change their culture of deadly accidents, disastrous oil spills, and countless safety violations. The Texas BP refinery had an “accident” in 2005 where 15 people died in an explosion and fire, 170 others where injured. Afterwards there were charges that BP management valued profits more than safety. BP acquired the 12,000-acre refinery in 1999 as part of...
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...BP is a British global energy company which is the third largest energy company and the fourth largest company in the world. As a multinational oil company, BP is the UK's largest corporation, with its headquarters in St James's, City of Westminster, London. BP America's headquarters is in the One Westlake Park in the Energy Corridor area of Houston, Texas; the company is among the largest private sector energy corporations in the world, and one of the six leaders. In order to project social responsibility and improve its image British Petroleum changed its name into BP in year 2000 with a logo of green and yellow sunflower patterns. Paradoxically the same company symbol is now under derision and the object of controversial attacks from environmentalists and damaging court cases. The company’s predicament further worsened when it was listed as one of the “ten worst corporations” during the year 2001 and 2006. In fact, BP and its competitors Royal Dutch-Shell were considered by activists to be responsible with the threatening phenomenon of climate change. BP was warned before the oil pipeline leak happened in Alaska, but no action was made by the higher officials to mitigate its possible occurrence and reduce damages. In March 2005, BP's Texas City, Texas refinery, one of its largest refineries, exploded causing 15 deaths, injuring 180 people and forcing thousands of nearby residents to remain sheltered in their homes. A large column filled with hydrocarbon overflowed to form...
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...is now known as British Petroleum (BP) was founded in 1909 and is one of the world’s leading international gas and oil companies. The multinational British company’s headquarters is located in London, United Kingdom and is one of the five largest oil companies in the world. The pioneer of the Middle Eastern oil industry, BP discovered oil in Iran before World War I and eventually became involved in all aspects of the oil industry, from exploration to marketing. Offering an array of services that expand from providing fuel for transportation to providing energy for heat and light, BP has become one of the leaders in energy sourcing across the globe. (Company History Index, n.d.) BP is also known for petrochemical products for everyday items and retail services. BP is one of the leaders of the energy industry. The company has high standards and uses the most modern technology in order to deliver long-term value and to meet energy needs. As a global company all activities and interest are held or operated through subsidiaries, associates or joint ventures which are governed by the laws of many jurisdictions. Around the world there are 16,400 BP service stations. (Company History Index, n.d.) Specify the nature, structure and type of products or services of Apple, and Identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. British Petroleum (BP) is one of the world’s leading international...
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...William J. McLeod Dr. Etido Akpan BUS 508: Contemporary Business 10 February 2012 British Petroleum (BP) is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. In its global business, the company has several family brands: BP, ARAL, ARCO, Castrol, am/pm and Wild Bean Café. BP's global business is divided into three distinctive organizations to deliver energy products (Upstream, Refinance and Marketing, and BP Alternative Energy). Global Business: Created in September 2010, Upstream consists of three distinct Divisions – Exploration, Developments and Production. Within the Developments Division there are two Technical Functions the Global Wells Organization and the Global Projects Organization. Within the Production Division there are also two Technical Functions Operations and Subsurface. A Strategy and Integration organization led by a fourth Executive Vice President, (including HR, Finance, IT and Technology) and ensures integration across the Divisions and Functions. The downstream business segment converts crude oil into useful products such as fuels, lubricants and petrochemicals. It also stores and distributes these products to where they are needed, and markets them to customers in more than 70 countries. BP’s Refining and Marketing operations are carried out...
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...BP From Wikipedia, the free encyclopedia This is the latest accepted revision, accepted on 2 October 2010.Jump to: navigation, search This article is about the energy corporation. For other uses, see BP (disambiguation). For information on the oil spill from the Deepwater Horizon rig, see Deepwater Horizon oil spill. BP p.l.c. Type Public limited company (LSE: BP, NYSE: BP) Industry Oil and natural gas, alternative fuels Founded 1909 (as the Anglo-Persian Oil Company) 1954 (as the British Petroleum Company) 1998 (merger of British Petroleum and Amoco) Headquarters London, United Kingdom Area served Worldwide Key people Carl-Henric Svanberg (Chairman) Tony Hayward (CEO) Bob Dudley (Director, CEO (appointed)) Byron Grote (CFO)[1] Products BP petroleum and derived products BP service stations Air BP Aviation Fuels Castrol motor oil ARCO gas stations am/pm convenience stores Aral service stations solar panels Revenue US $246.1 billion (2009)[2] Operating income US $26.43 billion (2009)[2] Net income US $16.58 billion (2009)[2] Total assets US $236.0 billion (2009) Total equity US $101.6 billion (2009) Employees 80,300 (Dec 2009)[3] Website BP.com A 1922 BP advertisement.BP p.l.c.[4][5] (LSE: BP, NYSE: BP) is a global oil and gas company headquartered in London, United Kingdom. It is the third largest energy company and the fourth largest company in the world measured by revenues and is one of the six oil and gas "supermajors".[6][7] ...
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...BP Case and The Gulf of Mexico Jorge Salazar Hawaii Pacific University MGMT 6000 September 23, 2015 BP Case and The Gulf of Mexico Introduction The BP case concerning the Gulf of Mexico dealt with the second largest company in the world at that time (2010), it was founded in 1908 and it had more than 92,000 employees. Deepwater Horizon had two main components, owned and operated by offshore oil drilling company (Transocean) and it was leased by BP Oil Company. The BP oil spill occurred in April 20, 2010, there were three major cracks that spilled the crude oil into the ocean. The blast occurred approximately 41 miles from the Louisiana coast. The leaked continued for about three months after the explosion from the Macondo well, it was estimated that anywhere between 35,000 to 60,000 barrels per day were leaked, it is estimated that after all was said and done, approximately 4.9 million barrels were spilled. It is also important to mention that 11 workers died when this explosion happened. When the spill happened it affected a lot more than BP was expecting; it wasn’t just the Gulf of Mexico sea life (sea turtles, marine mammals, coral and fisheries), but it also affected all of the shores of Texas, Louisiana, Mississippi, Alabama, and Florida. When it hit all of these states, it affected their tourism, fishing, food, and healthcare just to name a few of the things. President Barack Obama stated, “Already, this oil spill is the worst environmental disaster America has...
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...Image creation-BP is in the mature stage of its life cycle, has been involved in multiple mishaps over the years. They have lost focus of their duty to the environment, the public, and its shareholders. 1) SWOT analysis Strengths-they have alot of money that can be reinvested in enhancing/repairing their image and focusing on the environment, their connections (with the British government and Navy), alternative energy (wind, solar, biofuels), infrastructure, carbon footprint toolkit, they were the first energy company to acknowledge global warming/environmental awareness Weaknesses-image, oil spills, poor ethics (price gouging,wire/mail fraud, etc.) Opportunities-technological opportunities (alternative energies, improved drilling capabilities, jumping onto the environmentally sustainable movement-and is also a threat to their original business model) Threats-politics (policies/regulations), economics (supply and demand fluctuation, improved commodities markets), competition, natural disasters 2) Problem Analysis (this should be clear and to the point-a few sentences is all that is necessary): Their image is tarnished, so they are concentrating on rebuilding this. They started this process by changing their name from British Petroleum to simply BP (Beyond Petroleum-suggesting that they will focus their efforts on multiple energy sources). Why is their image tarnished? What led to this occurring? What measures have they taken to address this issue? 3)...
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...Business Summary | | BP is also BO (Big Oil). It is the world's third-largest integrated oil concern, behind Exxon Mobil and Royal Dutch Shell. BP explores for oil and gas in 30 countries and has proved reserves of 18.3 billion barrels of oil equivalent. BP is the largest oil and gas producer in the US and a top refiner, with stakes in 16 refineries, processing 4 million barrels of crude oil per day. BP markets its products in more than 80 countries and operates 22,400 gas stations worldwide. The company's reputation took a major hit in 2010 when one of its deepwater rigs, working less than 50 miles south of Louisiana, exploded and killed 11 workers. Millions of gallons of crude gushed into the Gulf of Mexico for months. Following the disaster in the Gulf of Mexico, BP stock lost more than half its value, until recovering a bit in July. The company's dividend has been suspended and the CEO replaced. The company is creating a $20 billion fund over the next three-and-a-half years to cover claims from the Deepwater Horizon catastrophe,and to pay for that and other costs, BP announced it would be selling $30 billion in assets over the next 18 months. The company also took a $32 billion pretax charge against second-quarter earnings to cover potential liabilities.BP p.l.c.was founded in 1889, has headquarters in London, the United Kingdom. The company provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products, operates through two...
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...BP plc,[5][6] also referred to by its former name, British Petroleum, is one of the world's seven "supermajor" oil and gas companies.[7] It is a British multinational company, headquartered in London, England, whose performance in 2012 made it the world's sixth-largest oil and gas company, the sixth-largest energy company by market capitalization[8] and the company with the world's fifth-largest revenue (turnover).[9][10] It is a vertically integrated company operating in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy interests in biofuels and wind power. [dated info] As of December 2013, BP has operations in approximately 80 countries,[4] produces around 3.2 million barrels per day (510,000 m3/d) of oil equivalent,[1] has total proved reserves of 17.9 billion barrels (2.85×109 m3) of oil equivalent,[11] and has around 17,800 service stations.[12][13] Its largest division is BP America in the United States. In Russia BP owns a 19.75% stake in Rosneft, the world's largest publicly traded oil and gas company by hydrocarbon reserves and production. BP has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index; it had a market capitalisation of £85.2 billion as of April 2013, the fourth-largest of any company listed on the exchange.[14] It has secondary listings on the Frankfurt Stock Exchange and the New...
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...On April 20th, 2010, the BP oil rig in the Gulf of Mexico exploded. This lead to 11 crew members died and caused large-scale oil pollution. The economic loss of ecological environment in Gulf of Mexico would up to several hundred billion dollars. As the main person in charge, BP’s CEO, Tony Hayward, did not timely response to this oil spill event. And his inappropriate remarks and performance was even aroused great dissatisfaction among the people and caused a huge loss of profits of BP. “I'm sorry. We're sorry for the massive disruption it's caused their lives. There's no one who wants this over more than I do. I'd like my life back” said by Tony Hayward. And not long after the incident, he was also criticized for having a sunbathe on the beach of Isle of wight in southern England. Under the pressure of public comments, Tony Hayward decided to resign for restoring BP’s reputation. In this case, I think the most important key term is responsibility, both include company’s social responsibility and BP CEO’s responsibility for BP and all relevant people. First of all, I want to mention that this is the most serious oil pollution incident in America. This event not only results in a large area of oil pollution but also caused ecological damage. It caused more than 547 birds died and Animals who live in the Gulf of Mexico will lose their wetland homes. So in this event, Either Hayward or BP, should have considered social responsibility on a daily basis. Here social responsibility...
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