British Petroleum

Oil is the product that each and every one of us use. It can be used for fuel, heating and even cooking. The most often known for unstable price is crude oil or gasoline. According to the The Economist, The main reason for price shifts of oil is oversupply. The oil production in Saudi rose 10.3 million barrels per day. This increase is the effect of a new method that I being applied to oil extraction. This method is called fracking, fracking is where they drill into tight-rock formations then gradually turning horizontal for several thousand feet more. This results to accommodations to multiple oil wells. This new approved method of oil harvesting has raised the productivity gains and reduced the cost of harvesting oil.

Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.

This article “Why the Price of Filling Up Has Been Going Down” written by Alan Neuhauser stated that back in 2012. The article analyse fighters with the Islamic State group have seized oil fields, huge swathes of territory and major cities in Iraq and Syria, threatening oil supplies. On normal situation, this is going to threaten markets as it is threaten the supply of oil. Despite of the global unrest the prices at the pump in US are currently at their lowest levels in the year of 2012. According to the article there are several reason which make the price of oil fall, but the main reason which is causing this is the less use of oil crude after the Labor Day.

Additionally, the war in the middle east created a suspension in the export of oil to the U.S, and it quadrupled the price of oil. I think that our leaders

Middle East is strategically important region where mostly world half of oil reserves are located. Three countries: Saudi Arabia, Iran and United Arab Emirates accounted for 57% of total Middle East liquids fuels production. (Liquid fuels production in Middle Eastern and North African countries n.d.) Although due to increased domestic production of petroleum and natural gas, the United States is reducing its dependence on foreign oil with imported liquid fuels, but still oil means a lot to the US as oil prices is determined internationally by what is available for all global consumers. Therefore, to safeguard the security of Oil supply in the Middle East and ensure stable access to affordable oil is in the vital interest of the America. (Mexican crude oil shipments to Europe and Asia are rising as U.S. imports fall

Let 's say a gas line blows up in a foreign country America is depending on for oil, as soon as that explosion occurs our price for crude oil goes up. January of 2017 saw a rise of 43 cents per barrel because OPEC cut the output of oil that resulted in a draining of oil stockpiles (“US crude settles”, 2017). OPEC plans to meet later in May and analysts feel that their will be an increase in oil prices as a result of the meeting (Landsman, 2017). This means we will be paying more.

Despite the various resources like petroleum, natural gas, phosphate, and sulfur located in Iraq, their economy is established mainly on oil. This is a result of Iraq being home to the world’s fifth largest oil reserves. All the oil in Iraq comes from the following cities: Basra, Baghdad, Ramadi, and lastly Ba’aj. The country contains about 160 billion barrels of oil within its land’s reserves. Not only do other countries depend on Iraq for their oil exports, most of the country’s energy comes from oil as well. It is said that about 94% of the energy that

Opportunity: • Increased consolidation. • Increase in consumption of oil globally. • High probability of discovering oil. Threats: • Political influence. • Low possibility of price increase.

Brent oil was up 1.6% at $52.49 per barrel, while U.S. oil rose 1.4% to $49.34. Oil prices are rising after Saudi Arabia and Russia pledge to extend their production cuts into the second half this

October of 1973 was the start of an epidemic that would lead into the 21st century. This was the start of the oil crisis, and this would not be the last. An oil embargo was claimed by the members of the Organization of Arab Petroleum Exporting Countries. This trend continued into March of 1974 when the price of oil barrels had risen by an astonishing $9. This caused a worldwide oil shock. In 1975 gas prices were on the rise and topped off at about $2.00 nationally, but this was not the last increase, just five short years later the prices were on the rise again and this time they hit an all time record in 1980 at nearly $3.00 a gallon. Gas prices continued to fluctuate yearly, and have not yet remained constant.

Because of the difficulty in trying to drill for oil in this undeveloped land, by 1914 BP was almost bankrupt again. The company had oil, but no one to sell to. Because of the insistence of Winston Churchill, the oil would be used by the British Navy, which stared the debate over the repercussions of involving politics in the oil industry. This debate has continued through present day wars (Thorne, p. 587 2014).

It is true that the problema could be avoided by a better performance of BP, but on the other hand there are regulators that allow that company’s behavior.

According to Domm (2013), the author of the first article, apart from the unrest in Egypt, several other factors such as a plunge in the inventories of domestic crude oil could drive up demand and in the end trigger an increase in the price of gas. In the opinion of the author, although the problems facing Egypt (and Libya) have affected supply

British Petroleum put a monopoly on the oil production in America and consequently neglected to place the environment and the well being of their own workers to their top priorities, therefore people need to know that BP is more focused on profit than safety. Also people need to be aware that there are more safer alternatives for energy than oil. There has been three separate occasions where BP has purposely overlooked there infrastructure, as well as their inspections and the maintenance of their employee’s well being. Even though taking crude oil businesses such as BP out of the picture when it comes to sources of energy would take out certain jobs and effect the economic recovery, there are alternatives to oil that will provide better jobs, a cleaner environment, and a standard of business that would positively stimulate the economy.

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