Premium Essay

Bp Oil and Gas

In: Business and Management

Submitted By nisha0711
Words 558
Pages 3
The oil, gas and petrochemicals industries are highly competitive. Within the oil and gas the competition is very strong. There are other countries that supply the fuel if there is a need for commerce, industry and the home. With the competitive industry so much pressure on the prices, affects oil products marketing and requires continuous management focus on reducing unit costs and improvements that are needed(Wikinvest, 2012). The implementation of group strategy requires continued technological advances and innovation including advances in exploration, production, refining, petrochemicals manufacturing technology and advances in technology related to energy usage (Wikinvest, 2012). At BP, the way that the company works could be the competitor’s worse enemy if they knew what technology BP uses. Oil, gas and product prices are a worldwide supply and demand. Just before oil price increases have resulted in increased cost inflation. Because of that, increased oil prices may not improve margin performance. In addition to the effect on revenues, margins and profitability from any fall in oil and natural gas prices, a long period of low prices. . If demand is elastic, it simply means that consumers will buy more oil when the price comes down. They will buy less when the price goes up. There are other reasons why consumers increase or decrease consumption, but price is the main driver of demand. Rapid material and change in oil, gas and product prices can impact strategic decisions based on results. When the marginal product of labor curve rises, the firm experiences increasing marginal returns that are the marginal product of an additional worker exceeds the marginal product of the previous worker (Wikinvest, 2012). This time the rate of oil increase in total product is accelerating. When the marginal product of labor curve falls, the firm experience marginal...

Similar Documents

Premium Essay

Bp & Deepwater Horizon

...BP & Deepwater Horizon C. Nelson BP & Deepwater Horizon Every business, in some way, is affected by public and private criticism. One industry that is never too far away from criticism is the oil and gas industry. Over the course of this essay, we will explore BP, its stakeholders, some of their criticisms, and BP’s response to those criticisms. BP, formerly British Petroleum, is the fourth largest oil and gas companies in the world in terms of revenue and sixth based on production. (Statista, 2015) (Forbes, 2015) Although BP doesn’t have an official mission statement, the company does have a few statements entitled “Our Values”, “Clear Priorities”, and “Our strategy and sustainability”. BP (2015) states, “We have five values that express our shared understanding of what we believe, how we aim to behave and what we aspire to be as an organization.” Those five values include safety, respect, excellence, courage, and one team. “Clear Priorities” (2015) details three main topics that top the company’s interests including: safe, reliable and compliant operations; disciplined financial choices; and competitive project execution. Thirdly, BP has a commitment to sustainability and states (2015), “We believe that the best way for BP to achieve sustainable success is by acting in the long-term interests of our shareholders, our partners and society.” The three pillars augment the lack of a mission statement and express BP’s commitments and responsibilities....

Words: 1293 - Pages: 6

Premium Essay

British Petroleum

...Anglo-Persian Oil 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)......

Words: 1639 - Pages: 7

Premium Essay

An Assessment of Bp's Objectives, Risks and Controls

...Controls General Introduction BP (formerly known as British Petroleum) is a British multinational oil and gas company headquartered in London, UK and operating in more than 80 countries. Vertically involved in almost all areas of the oil and gas industry (exploration, production, refining, petrochemical products, power generation etc.), it provides its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products for everyday items. As one of the world’s leading energy enterprises, it earned total revenues of $308,928 million in 2011, ranking fourth of all companies in the world. Strategies and Objectives BP’s businesses cover three main segments: upstream, downstream and alternative energy, each of which has its own strategies and objectives that play to their strengths. The upstream segment includes such activities as oil and gas exploration, field development and production, midstream transportation, storage and processing, and the marketing and trading of natural gas. Of all these activities, BP is strategically increasing its investment in exploration, especially in deepwater and giant fields, expecting to maximize its technical resources and leadership in the energy industry. The downstream segment consists of three main businesses: fuels, lubricants and petrochemicals, which all together are responsible for refining, manufacturing, marketing, transporting and supplying crude oil, petrochemical products and......

Words: 1527 - Pages: 7

Premium Essay

Swot Analysis Of British Petroleum

...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....

Words: 796 - Pages: 4

Premium Essay

Natural Gas Exploration

...Natural gas should be the product that BP should invest in. It is no longer a new source of energy as its publicity has been increasing as a possible best alternative to oil which still is by far a dominating resource. Now, there is no doubt that the amount of oil available is decreasing and in fact using oil as heavily as it has been used is not welcomed, especially by individuals or groups who advocate countless number of anti-CO2 emission campaign. Natural gas also emits CO2 just like oil because they are just the same in that both are fossil fuels, although the emission of CO2 by natural gas is said to be almost a half. Plus, if this is to be used for generating electricity, it is capable of generating the same or even higher amount of electricity. It is said to be cheaper to access to. According to the article, it is around 75% cheaper than oil at the moment. (probably a citation as evidence is more persuasive) and it’d be best to include the exact price of the current oil supply. Many alternatives have been invented and tried out, but none of them still has proven enough to meet the demand for energy. Taking the balance between the ability to generate electricity and the emission of greenhouse effect gas, natural gas is ahead of the others. I personally think that the points you’ve written above should be included in my part in section A – product/ services. That’s because I’ll be explaining why we would wanna replace nuclear power by natural gas.......

Words: 701 - Pages: 3

Premium Essay

Bp Hire

...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......

Words: 691 - Pages: 3

Premium Essay


... 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......

Words: 1149 - Pages: 5

Premium Essay

Ethics Paper - Bp Oils Spill

...dilemma facing BP is how to balance profit maximization and at the same time be responsible for the environment and society. Several events have affected BP in recent years but none has challenged the balance between profit and environment responsibility like the Gulf oil spill. This event, recognized as the worst oil spill in the History of the United States, occurred on April 20th of 2010 in the Gulf of Mexico and was characterized by an explosion following an integrity failure of a well and a consequent 87 day spill of oil into the sea (BP, 2010). Eleven people were killed in the explosion and it is estimated that almost 5 million barrels of crude oil dispersed into the Gulf Sea (The Ocean Portal Team, 2010). Tony Hayward, the CEO of BP at the time of the oil spill incident, downplayed the effects of the oil leak in the environment and society, stating, “The Gulf of Mexico is a very big ocean“ (Webb, 2010). Previous events had caused concerns among authorities on the possibility of BP not doing the appropriate maintenance of its old system of wells. In fact, in 2004 the company was fined for $1.2 million by state regulators (Barringer, 2006) and in 2006 for $2.4 million by the labor department also because of unsafe practices (Pulham, Hilaire, & Fenn, 2010). In addition, reports from a longtime employee stated that the company had received repeated warnings on the possible effects of cutbacks in maintenance and inspection routines (Barringer, 2006). It seems like BP had......

Words: 572 - Pages: 3

Premium Essay

Bp Green

...Pull into a BP station this holiday weekend and you may notice a green and yellow starburst over the pump, an image intended to remind you, as you�re emptying your wallet of $20 bills, that at least you�re supporting a green company. BP, after all, was the first oil giant to publicly acknowledge the risks of global warming, back in 1997. The firm has cut its own carbon emissions 10% below 1990 levels and last year established an alternative energies division. It�s investing big money — $8 billion over the next decade — on renewable fuels, such as wind and solar power. Just last week, BP announced a partnership with DuPont to develop and commercialize advanced biofuels (superior to ethanol), starting next year. Even if you�re being gouged at the pump, as you might suspect, BP at least seems to be putting its profits to good use. But just how socially responsible is BP? The question has come into stark relief following a series of environmental and safety lapses — and, as of this week, Federal charges of price-fixing — which have muddied up the company's carefully cultivated image. In March, BP�s Exploration Alaska subsidiary spilled more than 200,000 gallons of crude oil near Prudhoe Bay, the largest North Slope spill ever. A Federal grand jury is investigating the spill, caused by a rupture in a corroded pipeline, and may bring criminal charges. BP has denied that it acted negligently regarding the spill. BP�s safety record is also under fire. U.S. regulators are......

Words: 960 - Pages: 4

Premium Essay

The Key Differences Between the Natural Gas Markets in Asia, Europe and North America

...the natural gas markets in Asia, Europe and North America November 2012 Table of Contents Summary 3 Overview 4 Conclusions 8 References 9 Summary The major difference of the natural gas market, which sets it apart from the truly global oil market, is that the former has historically been developed with respect to the regional supply bases. This was primarily defined by existing technology for natural gas transportation and availability of other energy resource: primary oil and coal. Sharp increase of oil prices and global concern with availability of oil reserves; growing awareness of the fossil powered industry influence on the environment, introduction of LNG and GTL technologies had significant impact on the natural gas market share, demonstrating recently double digit grows in consumption for all regions except Western Europe. This script will address the key differences between the natural gas markets in Asia, Europe and North America. Overview 25% average share of natural gas in the global energy balance is distributed unevenly throughout the regions: 35% of energy consumed by Europe, 27% by North America and only 11% by Asia-Pacific come from natural gas (BP,......

Words: 1687 - Pages: 7

Premium Essay

Bp Oil Spill

...British Petroleum’s Deep Water Horizon rig explosion infested the Gulf of Mexico, its surrounding coastline, and its inhabitants. The U.S. officials have labeled this incident as an accident. However, preceding events suggest otherwise. A causal argument attempts to demonstrate the believed relationship between actions and certain results. Due to neglect and financial greed, the livelihood of thousands was threatened. Transocean Ltd is the world's largest offshore drilling contractor. It rents floating mobile drill rigs, equipment, and personnel to oil and gas companies. The Deep Water Horizon oilrig was owned by Transocean and leased to BP when the explosion occurred. For three months oil gushed into the Gulf of Mexico. Remote causes are events in the past that link to the future. An example of this in the case of the BP oil spill was the diminished work level of the organization that looks over the proper management of oilrigs. Due to the continual persuasion by profit-driven US corporate and financial elite, US government made it acceptable for the required work level of Mineral Management Service (MMS) to dwindle between 2005 and 2009. As a result, the safety regulations for workers and the environment were left up to drilling organizations. The lack of a constraining factor to stabilize safety resulted in negligence as the drilling companies found it cheaper and more convenient to assume that all operations were going well. As a result, the effectiveness of the rig......

Words: 1452 - Pages: 6

Premium Essay

Bp's Sustainability

...BP is one of the world's leading international oil and gas companies. They provide customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving, and the petrochemicals products used to make everyday items. On the surface level, it seems as if BP is doing everything right. They strive to be a world-class operator, a responsible corporate citizen and a good employer. From managing air quality to controlling greenhouse gas emissions, they are working to avoid, minimize and mitigate environmental impacts. So far, they have invested in a specialist water treatment company to help manage our operations in water scarce areas. BP is also a forward-looking company and plans to increase the proportion of natural gas in their production portfolio over the next decade. They are also a firm believer of supporting developments in societies where they work. They run programmes to help build the skills of businesses and to develop the local supply chain in a number of locations. For example, in Indonesia, they provide one-on-one business consultancy and technical assistance to local businesses to assist their participation in tender processes. They promote the use of local suppliers where appropriate. In Azerbaijan they have supported the efforts of companies to achieve international standards, to improve their competitiveness, and to increase the amount of work they get from BP contractors. Even when BP suffered societal and political backlash......

Words: 796 - Pages: 4

Premium Essay

British Petroleum (Bp)

...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...

Words: 1489 - Pages: 6

Premium Essay

Management Planning

...British Petroleum (BP) is a worldwide oil as well as gas establishment whose roots can be traced in British. The company’s headquarters are based in London, United Kingdom. The company has been ranked as the third biggest energy establishment as well as fourth biggest establishment in the world measured by 2011 profits. The company functions in all sectors of the oil as well as gas business ranging from examination in addition to manufacture, purifying, supply in addition to advertising, petrochemicals, power generation as well as exchange. The corporation has as well diversified its core operations to integrate renewable energy actions that bio fuels in addition to wind power. Operating over 80 nation states it’s biggest union remains BP US in where it remains the 2nd biggest manufacturer oil as well as gas in the US. The company be situated both registered with London’s Stock Trade primarily with minor list with New York Stock Exchange. In British Petroleum planning is critical and it helps the company to forecast the future as well as chalk out actions to be taken. Planning can be viewed as a preparatory step that determines when, how as well as who is going to perform a specific job Internal and external factors in management of British Petroleum Company The British Company has several internal factors that can be corrected within these categories that can drive the company to its success; on the other hand they also come with external factors that are further than the......

Words: 988 - Pages: 4

Premium Essay

Quality Issue Proposal

...Quality Issues in the Gas and Oil Industry: BP PLC Project Outline I. Overview of BP PLC a. Full Name- British Petroleum b. Amount of Individuals Employed- 83,400 people c. Worldwide Industry- Gas and Oil Production d. Products and services- Aromatics and acetyls, Asphalt, Aviation and marine fuels, Petrochemical products, Bitumen, Fuel cards, Liquefied petroleum gas (LPG), Marine fuel, Oils and lubricants, Photovoltaic solar electric products and systems, Polymers, Purified terephthalic acid (PTA), Paraxylene (PX), Acetic acid, Ethylene, Propylene, Solvents and industrial chemicals, Downstream derivative products, Generation of power, Operation of fuel stations, Oil and gas exploration and production, and Oil and natural gas transportation, distribution, and marketing e. Quality Management Processes i. Finding Gas and Oil 1. Use refined technology and new scientific techniques through the use of typographical maps, sound waves, aerial photography, 3D projections, and more 2. Form educated guesses regarding size, shape, and oil/gas consistency ii. Extraction of Gas and Oil 1. Building of Production Facilities a. Analyze environmental data to ensure ways facility will make minimal impacts on environment b. Recycling of facility 2. Environmental Impact a. Environmental experts assess the impact b. Review possible problems in order to properly address them iii. Gas and Oil Transportation 1. Pipeline Usage 2. Shipping 3. Global Energy Trading iv. Making of......

Words: 640 - Pages: 3