As we have covered, the oil industry can be volatile and risky, but it can also be extremely lucrative if the company is successful. We decided to focus on BP. British Petroleum (BP) is the UK’s largest corporation and is one of the largest private-sector energy corporations in the world. It is the third largest energy company and the fourth largest company in the world. It is one of the seven gas super majors. It operates in over 80 countries, and in 2010 their production was approximately 3.4 million barrels of oil each day. The company is headquartered in London. BP is active in the fields of exploration, production, refining, distribution, marketing, petrochemical, power generation and trading. BP also owns a 19.7% stake in the …show more content…
In 1914, the British government became the company’s principle stockholder. While the company was originally registered as the Anglo-Persian Oil Company, Ltd; in response to the Persian government voting to change its name to Iran in 1935, the company was renamed the Anglo-Iranian Oil Company, Ltd. Unfortunately, over the next couple Decades, sentiment in Iran began to turn against the company. The Iranian government began to believe that they were being taken advantage of, and that the British company was reaping profits at the expense of the Iranian people. In 1951, due in part to these beliefs, the country elected Mohammed Mossedegh as Prime Minister, who pushed to nationalize the holdings of the Anglo-Iranian Oil Company. Later that year, Iran voted on a bill nationalizing the oil company so that oil profits would then benefit Iran. The result was an international boycott of Iran. Nationalization was not accepted by the British government and their strategy consisted of “no mediation, no compromise, no acceptance of nationalization of any form.” (CBS, 2010) The British withdrew their technicians, blocked the port, cut off exports to Iran, and froze Iran’s hard-currency accounts in Britain. Finally, the British turned to the U.S. government for assistance. Their assistance came in the form of a CIA operation to depose the
Currently headquartered in London, BP is one of the largest producers of both oil and natural gas. BP provides its customers with fuel for transportation and energy for heat and light. BP’s core business is gas exploration and production division and their main sources of production include Angola, Argentina, Australia, Azerbaijan, Egypt, Trinidad, the United Arab Emirates, the United Kingdom and the United States (BP PLC (BP) Company Profile | Reuters.com. (n.d.). Retrieved October 27, 2015.). In 2013, BP produced 628,000 barrels of oil each day in the US and was the sixth largest producer of natural gas. Each day, BP sells 50 million gallons of fuel in the US consisting of 7,500 BP branded locations located in 13 states. BP is always seeking new opportunities for advancement in technology so that their operation is safer and more efficient. The company is leading the way in in the energy industry with the world’s largest supercomputer used for commercial research, located in Houston and also the first to use drones in the United States. To further place themselves ahead in the industry, BP has invested over $160 million in 2 dozen companies for advancements in technology. BP currently has 17,000 employees and on average, donates approximately $30 million each year to community
Iranian hostility of United States can be traced back to the 1950s. The United States supported any regime that was not communist, even though they would be considered very unpopular with the people of their country. Because of this, Iran became an anti-communist country and the Shah became an ally of the United States. In 1950 the Shah left Iran when Mohammed Mossadegh was elected Prime Minister. After Mossadegh election, he used his authority and nationalized the oil industry in the country. This incident generated fear in the United States. The state department felt that communists could abuse this anarchy and Iran could turn against the United States. The Shah, who had been removed from power, contacted the United States and the Central
World leaders in Great Brittan didn’t want Mossadegh to have any sort of power because he had long desired to nationalize the Anglo-Iranian Oil Company. Mossadegh and British diplomats argued over the rights of Iranian oil for years. Mossadegh argued that the oil was a natural resource, the most abundant in Iran, therefore it was rightfully property of the people of Iran. He also saw the deal as an opportunity to create wealth and prosperity in his country. The British argued that Iran had contractually agreed to allow them to run the company decades prior and the contract had yet to cease. Additionally, Britain had been getting the oil dirt cheap and was selling it at 30 times the price they paid. According to Mossadegh, the British were exploiting Iran for their oil and land. The British claimed they were only trying to help Iran, yet they refused to help Iranians learn to run the factory and ensured that no British citizen would help them.
BP may be ranked 3rd largest energy company and is positioned as a multinational oil company. And their headquartered station in London, operates petrochemical network of its subsidiaries and retail brands ( ARCO; Amoco; Castrol) But this company has come through much tribulations since there accident in 2007 and they are still strong.
“…had a poor grasp of economic realities; he vastly overestimated the importance of Iranian oil production to the world at a time when the market was actually glutted. As a result, he did not realize how easily Britain could block its sale…He also did not take into account that nationalization would deprive Iran of its legitimate claim to investments made by the AIOC…” (The History of Iran—Elton L. Daniel, page 155).
Whilst the discontent that the Iranian citizens felt for their government and their economic situation was a contributing factor in the outbreak of the 1979 Iranian Revolution, it was the growing Western influence in Islamic culture that was the main cause for the revolution. The Iranian/Islamic Revolution refers to the events involving the deposing of Mohammad Reza Shah Pahlavi and pro-American government, and the replacement with an anti-Western authoritarian theocracy under the leader of the revolution, the Grand Ayatollah Ruhollah Khomeini. The revolution was mainly supported by various leftist Islamic organizations and Iranian student movements to firstly, protest against the increasing Westernization of Iran and secondly, it was in
BP tends to make bets that others don’t which is most likely why the disastrous deep water horizon oil spill occurred in the Gulf of Mexico five years ago. The fire burned for 36 hours while hydrocarbons leaked into the gulf before the well was sealed, unfortunately eleven individuals died. It has been difficult for BP to be the best company right now since this falling and they have been in reparation mode since this catastrophe. However, BP is now incorporating high safety and showed everyone that they are very reliable on the recovery of this hardship of BP trying to mix oil with water. BP came together to control the situation, cleanup, and diminish as much contamination as possible into the gulf. In addition, they are devoted long term to improve the Gulf of Mexico’s bionetwork and promise to be more careful so this will not happen again.
After the vote to nationalize Iran’s oil industry. Britain initiated a worldwide boycott of Iranian oil to pressure Iran economically. In the beginning, Britain mobilized its military to seize control of the
It all started in 1950, when the Iranian people elected Mohammad Mosaddegh as prime minister. He nationalized Iranian oil industry, which was under British control since 1913. This way the Iranian population was in charge again over the Iranian oil. But in 1953 Masaddegh was removed from power through cooperation between the American CIA and the British MI6. Mahammed Reza Pahlavi
There are very few aspects of how a company behaves as a corporate citizen that do not apply to a company of the size and nature of BP. The most significant of these are the sheer environmental impact - not simply of the extraction of oil and the energy use of BP's own operation, but more significantly of the impact on climate change of the actual use of all the oil by BP's customers. The state of current scientific evidence raises serious question marks over whether or not human society can actually afford to burn all the hydrocarbons whose existence we have already identified - never mind potential future discoveries. Twenty years ago, people worried that one day the oil would run out. Now, it is the case that the real issue has been identified as one of emissions.
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
Since BP is the world top three of gasoline industry with its great brand loyalty for oil, the company has its internal strengths. On the one hand, BP dominated a strong market position. Datamonitor (2010) pointed out that BP is one of the world’s largest manufacturer of oil and hydrocarbons in the UK and the second largest producer of gas. Meanwhile, in North America, BP is also the largest creator of oil and gas. Moreover, BP also occupies a large market share. BP Air, a supplier of aviation fuels, has become a world largest brand of the global aviation business .On the other hand, the company has a wide geographic presence. It is reported that BP has a presence in almost 80 countries through the whole world such as Middle China, Europe and the United States (datamonitor, 2010). Therefore, the company has a wide range of customers that can make the profits stay stable.
British petroleum (BP) is one of the seven super major oil company in the world. BP are the fourth largest gas and oil company in the world. BP has a hand in every aspect of the oil business from exploring for new oil to marketing and distribution. BP originally started as the Anglo-Persian Oil Company in 1908, established as a subsidiary of Burmah Oil Company. The Burmah Oil Company. Would capitalize on discoveries they made in Iran and the middle east. The company would take its current name as British a petroleum in 1954. The company slowly started to expand from their roots in the middle east. BP chose to expand to Alaska in 1965. BP would continue their expansion in America when the gain the majority control of Standard Oil of Ohio in 1978. Also during the time BP would continue their ongoing exploration for new sources of oil. They became the first company to strike oil in the North Sea. The British government gradually privatized Standard Oil of Ohio for 1978-1987. In the last half of the 20th and the beginning of the 21st century BP took two major steps to expand their company. BP first major expansion occurred when they partnered with Amoco during this time they also acquired and absorbed Burmah Castrol in 2000. Also for 2003 to 2013 BP had a joint partnership with the oil company TNK of Russia. BP tireless effort towards expansion have made them highly successful and one of the top four oil and gas companies in the world. BP turned a profit of 6.48 billon U.S.
BP p.l.c. is an energy company with an upstream business of extracting crude oil and downstream business of providing processed energy to companies. It is listed in both the New York Stock Exchange (NYSE) based in the United States of America and the London Stock Exchange (LSE). BP is based in London and they carry out oil prospecting extraction and retail its product in more than 70 countries. Out of the companies operating in the oil industry, the biggest two competitor of BP is ExxonMobil and Chevron. ExxonMobil and Chevron are chosen due to their similarities to BP and they are ranked
Beyond Petroleum (BP) is one of the world’s largest energy industries, involved in all activities which are associated with the oil and gas industry. This includes “exploring, producing, refining, distributing and marketing of these products” to a global market (1). BP operates in around 80 countries with over 83,000 employees, producing 3.2 million barrels of oil daily and an economic value of $403.3