...Company which 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...
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...Student ID British Petroleum case study 1. Company background 2.1. Amoco Oil Amoco Oil, previously known as ''Standard Oil of Indiana'', started of small in 1889; consisting of only one faciliy near Whiting, Indiana, but with a huge name backing it up – John D. Rockefeller. By Decemeber 1997, when the talks of a merger/joint venture started Amocco had $32.4 billion in assets and operated in 30 countries with 43,400 employees. The company's business consisted of three main segments: A) Exploration and production sector B) Refining and marketing sector C) Chemicals sector Exploration and production sector had the task of exploring, developing and producing crude oil and natural gas around the globe. Focusing on Amoco's proven developed reserves which were at the time 1,766 milion barrels of oifl and 13,904 milion cubic feet of natural gas. Refining and marketing sector of the company was among the largest sellers of gasoline in the United States through its 9,300 retail outlets. From their five refineries through 15,000 miles of owned or simply operated pipelines Amoco transported crude oil, refined products, carbon dioxide and natural gas. Their chemicals sector produces industrial and commercial chemicals. These three sectors combined generated $36.2 billion in sale in 1997, 78 percent of it was generated in the United States. In it's petroleum business; which generated approximately two thirds of its revenue and less than one fifth of...
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...BACKGROUND The British Petroleum (BP) which was originally called the Anglo-Persian Oil Company is a multinational British company headquartered in London, United Kingdom. It was founded in 1909 to explore the oilfields of Persia (now Iran). British Petroleum is one of the world’s leading international oil and gas companies. Its services are mainly to provide their customers fuel for transportation, energy for heat and light, retail services and petrochemical products for everyday items. BP operates at the frontiers of the energy industry. The company uses world-class assets, technology, capability and know-how to meet energy needs and deliver long-term value. BP’s business model is to create value across the entire hydrocarbon value chain which starts with exploration and ends with the supply of energy and other products that are fundamental to everyday life. The company is focused on finding, developing and producing essential sources of energy, and turning these sources into products that people need. As a global group, the company’s interests and activities are held or operated through subsidiaries, branches, joint ventures or associates established in – and subject to the laws and regulations of – many different jurisdictions. By operating across the full hydrocarbon value chain, the company believes they can create more value for shareholders, as benefits and costs can often be shared by their two segments. They can develop shared functional excellence more efficiently...
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...Kyle Moran Dr. Proctor BP Case In the case regarding our refinery plant in Lima, Ohio, I do believe it is in the best interest of not only British Petroleum, but the people of Lima to have the plant remain open. This area remains one of the foundation grounds in which one of our mergers, Standard Oil Co., struck oil years ago. In 1992, Vice President James Schaefer spent 3 years in an attempt to improve productivity and cut cost to save $7 million. According to his reports, the Lima plant actually attained $30 million in savings and added productivity over that period. After spending the effort and investment money to turn this plant around (an improvement of 30% in productivity), it wouldn’t make sense to shut down a revenue generating plant. This refinery is responsible for 500 jobs in the Lima area, generating a payroll of $31.5 million. The plant generates $26 million in annual fees to local utilities, and $11 million to local vendors. The 160,000 barrel-per-day oil refinery supplies Ohio with roughly 25% of their daily oil consumption. The demand for oil has only continued to rise and shows no signs of slowing down. If BP decides to part ways with this plant, it only seems right that we at least auction it off. This will give us money, but also keep the town of Lima with jobs and revenue. With all of these positive scenarios, shutting down the plant completely, I believe would give BP negative attention in the media throughout the United...
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...British Petroleum is without a doubt one of the world’s most profitable companies of all time. British Petroleum or (BP) is the leading oil extraction company worldwide, therefore substantially affecting millions of people and companies. Bp gains its profits by transforming the oil it retains from around the world into the biggest commodity around; petrol, known as gasoline. In addition, Bp is also a major supplier of low carbon energy generated naturally by windmills and other means across America. Thus, satisfying the request that many American consumers have brought up in a publicized meeting regarding alternate means of energy. Bp, being one of the leading companies in the world affects an extremely wide base of, investors, retailers, dealers, and stock holders, not to mention the ninety six thousand employees currently working around the clock at their various locations. Many consumers assume that Bp with all its power and wealth couldn’t possible care what it is doing to the environment or economy; however, this couldn’t be any further from the truth. According to www.bp.com, Bp is currently partnered with over 13 major companies researching and utilizing Biofuel technologies; Advanced Biofuels Association, American Petroleum Institute, and Biotechnology Industry Organization, are just a few. With a net value of about seventy billion, Bp has many shares/stockholders and cares nothing more than making these valued customers happy with their decision to invest in...
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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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...British Petroleum Deepwater Horizon Felicia Kuse Abstract The following paper will describe recent events that occurred with a British Petroleum owned offshore oilrig known as “Deepwater Horizon”. In addition the paper will also discuss various safety issues, concerns, and repeated violations that have occurred resulting in an environmental disaster that impacts the Gulf of Mexico of which the long term effects will not be known for generations to come. British Petroleum Deepwater Horizon On April 10, 2010 the offshore drilling rig, operated by the world’s sixth largest oil producer British Petroleum, erupted in flames. The result of this disaster caused “170 million gallons of crude oil to spill into the waters of the Gulf of Mexico” ("NRDC.org", 2011, p. 4), killing 11 people, and creating what could be the largest ecological disaster of the 21st century. This disaster is considered by many to be the largest oil spill ever to occur. Clean up efforts are still ongoing after almost two years. British Petroleum (BP) has spent billions of dollars in cleanup cost, restitution and community development; however the greater effects on the environment will not be determined for many years to come. The direct cause of this disaster has been identified as mechanical failure of a blowout preventer located at the base of the well directly above the site entry on the bottom of the sea floor. When this mechanical valve failed, it cause as large plum of highly flammable gas...
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...1 Oil’s Troubled Water British Petroleum (BP) is one of the biggest oil and gas industry in the world. They owned 21,000 services stations worldwide and their brand is most trusted in the world. Then an incident occur in 2012, where BP Deepwater Horizon oil rig has exploded that causes 11 deaths and oil slick at the Gulf of Mexico. BP is being fined billion of dollar by the US government and need to compensate the others that affected by it. 1.1 Political Factors Most of the oil reserved in the worlds are owned by the nation government. Due to the incident, BP is under pressured by the huge fined and they are lacked of expertise in solving this problem which is a political for them. Not only US government are involved but other oil industries in the incident area are also affected which it’s going to be a huge threat for BP....
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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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...British Petroleum (BP) Case Study Executive Summary This case study report examined a public relation management problem that British Petroleum (BP) faced since the oil spill accident happened in April, 2010. In addition, this thesis recommended possible solutions and implementation plans for BP to deal with the public crisis. On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a result, a huge loss of money and life was caused and affected serious environmental damage to wild animals and water pollution. BP was accused of their irresponsibility that it took 87 days before the well was closed and sealed. BP’s shares plummeted to the lowest point since 1996. The communities around the Gulf of Mexico blamed BP for their carelessness and appealed for more actions to recover their low income life. BP has already established $20 billion fund to respond the situation in the Gulf of Mexico. However, according to recent research, the amount of the money is not enough to straighten out the crisis. In order to examine the case, we performed PEST and SWOT analysis methods. We focused on evaluating economic and socio-cultural factors that were the major elements had affects on BP’s public image. At the same time, we analyzed and key strengths and opportunities that essential for BP to revitalize its brand image. Our analysis revealed two crucial factors. First, BP’s own...
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...British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum October 30, 2011 Abstract The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. This reputation is even more critical when a business has is known globally with holdings and operations around the world. Such is the case with British Petroleum (BP) as it actively explores for oil in 26 countries around the world. BP is renowned as an industry leader in oil production and the refinement of oil related products such as gasoline, kerosene and motor oil products. In 1999, BP acquired American Oil Company, also known as AMOCO. Part of the acquisition included the Texas City Oil Refinery which was over 70 years old and had been noted as having a history of safety issues. Due to BP’s lack of focus on the safety issues presented in the 2004 Telos Group report coupled with the lack appropriate oversight and control, the Texas plant experienced a disastrous fire and explosion killing 15 workers and injuring 170 other personnel as stated by Halbert and Ingulli (2010) (p. 185). From this event BP faced legal issues with U.S. federal environmental laws (EPA), Occupational Safety and Health Administration (OSHA) and lawsuits from the families of victims, just to mention a few. An investigation by the Chemical Safety and Hazard Investigation Board released...
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...British Petroleum Runs the Social Media Gauntle SUBMITTED TO: ALAIN LONDES SUBMITTED BY: RUMANA PARMAR SHIVANGI SHARMA GURMEET KAUR VARINDER DHIMAN Case Study British Petroleum Runs the Social Media Gauntlet Company Background British Petroleum is Public Limited Company established in 1954. BP is one of the TOP global oil and gas corporations in the world. It provides many products like carrying fuel; buy and sell services, power for heat and luminosity and petrochemicals products for day to day use items. It is on 3rd ranking, 1st and 2nd are held by Exxon Mobil and Royal Dutch Shell. The headquarter of British petroleum is in London, United Kingdom. It works in all sections of the oil, gas and energu business, they also do manufacturing and examination, up streaming, refining, promotion and distribution and power generation alternative energy and commercial functions. BP is in a perilous business, and is devoted to supremacy via ordered and organized management of activities. The company maintain improvement for the long-lasting future and beyond has been a part of designed focus for the British petroleum directors. BP has the idea to get enhanced and proceed the distinction and prospective of its industrial portfolio. The company focus on constructing long-term or weighty relationships with its customers and deliberate partnerships in business sector. The company has ability in petrochemicals. British petroleum has more than...
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...1. We recognized a pre-tax charge of $40.9 billion in 2010 and a pre-tax credit of $3.7 billion in 2011 as a result of the Incident. The total amounts that will ultimately be paid by BP in relation to all obligations relating to the Incident are subject to significant uncertainty and the ultimate exposure and cost to BP will be dependent on many factors. Furthermore, the amount of claims that become payable by BP, the amount of fines ultimately levied on BP (including any potential determination of BP’s negligence or gross negligence), the outcome of litigation, the amount and timing of payments under any settlements, and any costs arising from any longer term environmental consequences of the oil spill, will also impact upon the ultimate cost for BP. Although the provision recognized is the current best estimate of expenditures required to settle certain present obligations at the end of the reporting period, there are future expenditures for which it is not possible to measure the obligation reliably. On page 71 there is the table for the environmental costs. 2. In addition to operating and capital expenditures, we also create provisions for future environmental remediation. Expenditure against such provisions normally occurs in subsequent periods and is not included in environmental operating expenditure reported for such periods. Provisions for environmental remediation are made when a cleanup is probable and the amount of the obligation can be reliably estimated. Generally...
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...British Petroleum Communication Problems inside BP Submitted by: Date: December 4, 2014 Memo 12/4/14 Jeff Lewis Metropolitan State University of Denver 890 Auraria Parkway Denver, CO 80204 Dear Jeff: Enclosed is my report on British Petroleum and the Deepwater Horizon oil spill in the Gulf of Mexico. This report shows how BP cut corners to expedite construction and save millions of dollars. As a result, the biggest oil spill in United States occurred. Due to the reckless conduct of BP, the corners cut by the people in charge ended up costing them billions of dollars as well as endangering the habitat and wildlife in the area. After reading this report you will realize BP’s CEO Tony Hayward, all the way down to the engineers in charge of everyday operations were to blame for the worse oil tragedy in our history. Sincerely, Executive Summary This is a report on how British Petroleum has failed in many areas of business communications. It’s going to include 3 main points that will explain in detail on how British Petroleum had bad communication and how it ended up creating history’s biggest oil spill in the United States in the Gulf of Mexico. The 3 main points include: 1. Pre-Event Planning a. Anticipate, Prepare, Practice b. “Safety” Not a Core Value c. Responsibility of Employees 2. Expressing Concern and Wrongful Focus a. Slow in Expressing Concern b. Lack of Sympathy to...
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...witnessed the largest oil spill in its history in April 2010 in the Gulf of Mexico. The explosion occurred in an oil well of British Petroleum and it is estimated that almost 4.9 billion barrels of oil was leaked to the Atlantic Ocean during the first three months since the incident. The oil spill had devastating effects of the economy and environment of America and the company had to face severe criticism from across the world community. Macro-environmental factors affecting BP Political Environment British Petroleum has held back its dividend payout to its prime stakeholders as they had been under pressure from the United States government regarding the oil spill that had occurred in the Gulf of Mexico. The company had agreed to sell of 30 billion worth of assets to pay off its clean-up bills. The company will resume its prime stakeholder dividend payout at 7 cents/share. British Petroleum is looking forward to sell two of its key refineries in the United States. nited States have threatened to replace BP from the project to seal the exploded well in the deepwater horizon. Obama acknowledged that the Gulf of Mexico contributes a major of its domestic production; he added that offshore oil drilling can be pursued only with an assurance that devastating incidents like the British Petroleum oil spill will not occur in future. Economic Environment British Petroleum oil spill has resulted in huge lose in terms of Share price fall and it is estimated to be around $25 bn. Out of this...
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