...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 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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...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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...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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...TNK-BP (RUSSIA) 2008 – (A07-09-0006) 1. Why did BP create TNK-BP? Are the partners equally committed and motivated to create a successful venture? 2. How has the JV performed? Has it met expectations? 3. Why has the JV experienced so many problems? 4. Does the Russian government have a specific agenda for the JV? 5. What options does BP have? What would you recommend? 1. In comparison with its competitors, the production growth of BP was constrained by its mature oil fields. As a result of the constrained production growth, BP’s financial performance was lagging behind compared to the financial performances of their competitors (e.g. ExxonMobil, Shell). Therefore, BP was aggressively looking for new oil reserves (p. 2). Russia was the world’s largest natural gas producer; the proven reserves were ranked 7th worldwide and there were huge opportunities for further exploitation. It seems like the Russian part of the joint venture is less motivated. They have done this deal to improve profits and to increase their benefits and potential growth. 2. For BP, the joint venture worked out quite well. As stated in the text: “TNK-BP accounted for nearly one-quarter of BP’s oil production.” If the joint venture comes to an end, this would have serious (financial) implications for BP. Also, in the period 2002-2006 the net profit grew from 1.5 million dollars to 6.4 million dollars. 3. One of the issues was that the partners were not in agreement as to the level of...
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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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...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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...3.1. British Petroleum (BP) British Petroleum is a company, which focuses mainly on petroleum, but has some interest in alternative energy. It is one of the world’s largest oil and gas companies, which serves over 13 million consumers in more than 100 countries. The market of alternative energy is not as well developed, nor as profitable as oil, but it is a good future investment with the recently raising environmental concerns. BP recognized this on time and entered the solar market in the year of 1973.( History of BP Solar ) 3.2. Background Formed in 1908, The British Petroleum Company was originally called The Anglo-Persian Oil Company. The current name was given in 1954. BP adopted a re-positioning strategy in 1997 and the group chief executive, Lord John Browne, addressed the threat of global warming. Even though the oil industry does not have a good reputation in taking responsibility, BP was put first on the list of Fortune Magazine’s Global 100 Companies on Corporate Strategy. (“Changing the Game.” Stanford Social Innovation Review ) 4. British Petroleum SWOT analysis 4.1. What is SWOT analysis? SWOT analysis is a useful tool for decision making and understanding a certain business. SWOT is an acronym for Strengths, Weaknesses (internal for a corporation), Opportunities and Treats (external for an organisation). SWOT analysis is functional for strategic planning, business planning, marketing, business and product development, as well as research...
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... Vilma Vallilee British Petroleum is a multinational oil and gas company headquartered in London, England. BP is the sixth largest energy company by market capitalization the fifth largest company in the world in regards to revenues. BP is the sixth largest oil and gasoline companies, measured by production and considered one of the “supermajors”. BP is vertically integrated and operates and operates in all areas of the oil and gas industry, including exploration and production, refinery, distribution, marketing, petroleum-chemicals, power generation. BP also has renewable energy activities in biological fuels and wind power developments. BP operations in approximately 80 countries, produced around 3.2 million barrels per day of oil equivalent and has around 17,800 service stations. The largest division of BP is located in America, which is the second largest producer of oil and gas in the United States. BP owns stock in 19.75% of the Russian oil market that is publicly traded oil and gas companies by hydrocarbon reserves and production. BP's origin date back to the founding of the Anglo-Persian oil Company in 1909, establish as a subsidiary of Burmah Oil Company to take advantage from oil found in Iran. In 1935, it became the Iranian Company and in 1954 became BP. n a competitive market, prices do not show the full costs or benefits or producing or consuming a product or service. Producers may not bear all the costs of...
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...British Petroleum Corporation – or BP as it is better known throughout the United States after acquiring Amoco and rebranding its gas stations – was incorporated on April 14, 1909, as the Anglo-Persian Oil Company, Ltd. The current name was adopted in 1982. BP Shipping, which is a subsidiary of BP Holdings, the same parent of BP, was founded in 1915. It is the oldest continuously operating entity in the BP group, tracing its roots back to the creation of the British Tanker Company Limited in 1915, formed to ship Anglo-Persian Oil Company oil from the Persian Gulf to the United Kingdom. In 1981 the unit was renamed BP Shipping Limited to reflect the subsidiary’s “growing involvement in wider shipping and maritime affairs.” The subsidiary currently operates semi-autonomously from its parent company. It is charged with carrying 50 percent of BP’s oil using its fleet and for brokering transportation for the other 50 percent. It is responsible for brokering any excess capacity vessels may have on return trips, as well as any other capacity not needed by BP. The red lion ‘rampant’ on the company house flag dates back to 1954 but was re-introduced in its present form in 1984. The company began life carrying oil products from Persia. The first BP-owned oil tanker was the British Emperor, acquired in 1916. Company ships operated throughout the Second World War when more than 22 BP ships and 650 BP seafarers were lost at sea. Nine BP Shipping vessels received battle honours in the Falklands...
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...Mergers and acquisitions – Amoco Highlights Transaction summary Merger of Amoco into a newly formed BP first-tier US subsidiary Amoco shareholders receive BP plc ordinary shares as ADRs Unified global management team US and UK GAAP results presented using merger accounting or on a "pooling of interest" basis US$-denominated group financials and dividends Transaction recommended by both Boards Effective: December 31, 1998 Transaction overview Transaction description UK Holding Company Structure Amoco shareholders exchanged their shares in Amoco for ADRs representing shares in BP Accounting/reporting Accounted for as a merger under UK GAAP (or "pooling" under US GAAP) BP to report in US dollars, under UK GAAP with supplementary US GAAP information provided Dividends Dividends to be declared in dollars, with a sterling alternative to be offered to all UK shareholders of BP who require Sterling Listing/index BP Amoco remains in the FTSE 100 index FTSE weighting increased The following material contains statements, particularly those regarding capital employed, capital expenditure, cashflows, costs, savings, debt, demand, disposals, dividends, earnings, efficiency, gearing, growth, margins, performance, prices, production, productivity, profits, reserves, returns, sales, strategy, synergies, tax rates, trends, value, volumes, and the effects of BP merger and acquisition activity, which are or may be forward looking statements that involve risk and uncertainty...
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...Horizon oil rig leased by British Petroleum (BP). This tragedy claimed the lives of 11 BP employees and injured 17 employees. The incident occurred due to BP’s failure to take safety precautions and its focus on keeping costs low. In order to restore its image, BP created a response website titled “Gulf of Mexico Restoration”. This website uses the following three verbal and visual strategies to repair its reputation: a video titled “Committed to the Gulf” to express its commitment to the Gulf and America, a green header titled “Community Development in the Gulf States” to show how BP is restoring the economy, and a slide show of BP’s employees operating in more efficient ways to reveal its dedication to sustainability. BP uses a video of the Gulf, employees, and tourists to express its commitment to the Gulf and America. The video shows BP’s Operations Manager Fred Lemond stating that “BP has paid over 23 billion dollars to help people who were affected by the crisis and also cleanup costs” (BP, 2013). The video also shows “The reopening of the Gulf to tourism and people enjoying the water, which appears to be clean” (BP, 2013). Lemond, also illustrates that “BP is committed to America by creating 250,000 jobs in America and investing more in America than any other country” (BP, 2013). According to Cain Burdeau from The Huffington Post, “BP’s video presents a perspective that is too rosy and some of the areas in the Gulf that BP is claiming are open are actually closed due...
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...differences between BP and the North London Hospice. These are two extremely different businesses that have completely different aims and ambitions. The first major and obvious contrasts between these two companies are that BP is a limited company whereas the North London Hospice is a charity. BP The brief history of BP BP's businesses are organized to deliver the energy products and services people around the world need right now. BP’s history is full of discoveries, starting in 1908 with oil found in a rugged part of Persia after a long and difficult search. Since then, discoveries large and small have fuelled their progress. Through BP’s two main operating segments, Upstream and Downstream, BP find, develop and produce essential sources of energy, turning them into products that people need. The scale BP work on BP is one of the largest companies worldwide and has total domination in oil and gas industry. BP operate in almost 80 countries, have a staggering 84,600 employees, their economic value is up there with most valuable companies in the world with a worth of $359.8 billion, BP are also operating an outstanding cash flow of £32.8 billion. The endless amounts of statistics that are ‘out of this world’ continue as BP can boast about producing 3.2 million barrels of oil per day and have approximately 17,200 retail sites running worldwide, BP easily have the right to call themselves a world class company that has a huge impact on the economy. Business sector BP are a company...
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...Petroleum is a public limited company. They suffered a huge downfall from their 2010 Mexican Gulf oil spill, although have rebounded very positively since then with major improvements in the company, both ethically and environmentally. This company markets its products in over 100 countries and, as of December 2011, employs over 83,000 employees. British Petroleum has worked hard to honour their commitments to the people and communities of the Gulf Coast. This company produces the natural resources that the world depends on daily, and produces them in some of the most operative, proficient, and resourceful ways which are possible today. (BP, n.d.). This company proves to be constantly evolving in the world. They are always innovating and coming up with new ways to operate their business as to cause the most minimal effect or damage on the environment. BP has become one of the most environmentally aware companies of the modern age, especially from what they have gone through in the Gulf of Mexico, and the revolutionary technologies they have integrated in their business operations. The vertically integrated company uses three main types of leadership, as well as an operational controlling method to ensure that the organization functions accordingly and remains socially responsible, ethical, and practices corporate social responsibility. By focussing on developing the company’s organizational structure on upstream and downstream tasks, British Petroleum can aim towards innovating and...
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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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