Essay On British Petroleum

British Petroleum, BP, began as the Anglo-Persian Oil Company in the beginning of the 1900’s. The founder, William D’Arcy, risked his entire fortune at the hopes that oil would be discovered in Persia. He was success on May 28, 1908. The business struggled in the early years, but ultimately found success. BP has become a global leader in the energy business. Beginning in 2000 and in the years to follow BP has focused not only on oil, but also on oil alternatives such as; solar, wind, natural gas, and biofuels (British Petroleum, 2015).

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

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. Today we will put our focus on one of UK’s largest multinational oils company’s. In the case with British Petroleum (BP) as it actively explores oil in 26 countries around the world, due to BP’s lack of focus on the safety issues presented in the 2004 Telos Group report coupled with the oversight and control to correct safety hazards, the Texas plant experienced a disastrous fire and explosion killing 15 workers and injuring 180 other personnel as stated by Halbert and Ingulli (2012, pg. 185) An investigation by the Chemical Safety and Hazard Investigation Board released a report in 2007 that revealed process safety leadership issues starting with senior management as well as disregarding safety concerns throughout BP. This paper will attempt to look at various details of the Critical Success Factor of British Petroleum (BP). We will then determine how these factors impact the success of the firm through project benefits, risk culture and organizational readiness. In this paper we will also provide project risk recommendations that will allow companies to plan accordingly when dealing with risk management task this way they will focus more on responsibilities, safety activities and budget. Lastly, we will create and identify checklist based on the categories of risk.

Tarbell, born in 1857, was a journalist who was famously known for exposing John D. Rockefeller's Standard Oil Company. Tarbell, as a child, wanted to be a scientist, but because of the small amount of women in the field, she decided to go down the route of teaching. She started working at Chauauquan for six years writing about inequality and injustice. After her work there, she fell in love with writing. She made it her mission to expose the Standard Oil Company. She wrote about how the company was unfair to other companies, workers, and consumers. Her book, The History of the Standard Oil Company, greatly impacted the Supreme Court case against the company that had violated the Sherman Anti-trust Act. After this great success, she continued

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010).

The company was on the right track, far as it trying to change the reputation of the company. The first step BP took to repair the image of the company was to repair the image. And by doing that, they their name from British Petroleum to simply BP. The next step was for BP to launch its Alternative Energy business in 2005. BP also seen fit for the company to continue “going green” efforts. This is in efforts for it to become more profitable. Their next step in restoring their reputation was to establish a code of conduct. The company code entitled “Our Commitment to Integrity”. BP seeks to unite its diverse employees. This code of conduct was the largest mass communications exercise ever attempted at BP.

Valuation is the estimation of an asset’s value, whether real or financial, based on variables perceived to be related to future investment returns, on comparison with similar assets, or, when relevant, on estimates of immediate liquidation proceeds (Pinto, Henry, Robinson, Stowe; 2010). Correct valuation of real assets can present challenges to financial analysts. Different models can be used to arrive at the closest estimate of value and yet certain issues will always arise. This case attempts to tackle two approaches in real asset valuation: Discounted Cash Flow (DCF) analysis and the issues surrounding such, as well as the Black-Scholes Model for Real Options. Questions to be addressed in the study are:

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.

BP also known as British Petroleum is one of Britain’s largest multinational oil and gas company. This company was founded in the early 1900s and now serves a worldwide service as the sixth-largest energy company in the world in 2012, measured by revenue. Therefore, it is no secret that BP has integrated many aspects of the energy sector into it company such as; trading, refining, production, distribution and marketing etc. In this report, I will analysis BP’s environmental report of 2013 and write an investment assessment report. The main body will discuss BP as a company and advise shareholders on the aspects where investment could be beneficial or unprofitable.

The agenda, beginning with day one will include introduction of all members to include the facilitator of our meeting. We will use a facilitator who is not a stakeholder so all participants are on a level playing ground with each other. Next we will confirm the objective of the project which is to draft an action plan to restore the reputation of BP Oil Company as a responsible world leader in the exploration and production of oil and oil products. We will then confirm the scope of the risk process of this work shop to include discussion of the risk management plan to include managing internal and external risk factors. At this point, the project manager will also provide the vision statement to the group to include expectations and anticipated results from the group.

     Nigeria has been a country in political turmoil for a long time. The country was created in 1914 under British colonial rule and at that time it was considered a protectorate. It was not until 1960 that Nigeria received independence from the United Kingdom. One of Nigeria's problems politically is that it has over three hundred different ethnic groups. The three largest of these are the Hausa-Fulani, Igbo, and Yoruba. At the time of the independence of Nigeria it was split up into three states with each state being under the control of one of the major ethnic groups. The natural resources of the other 297 ethnic groups were exploited for the major three groups,

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.

The BP operations are spread across the world. It carries out its oil prospecting and extraction operations in 29 countries and retails its products in more than 70 countries. It currently employs a total of 79,700 employees over the globe and its international headquarter is located in London (BP p.l.c. 2012b). Detailed company particulars and operating information are attached at the Appendix A. For this report, we will be focusing on the current issues that BP faces, analysis of its financial performance and lastly, valuating its shares with the use of various valuation models.

A unique set of principles, vision, and discipline drives corporate behavior and culture. Robbins and Judge (2014) describe culture as, “shared meaning held by the members” (p.465). The culture guides the employee motivation and their behavior towards customers and the external world. One of the management skills is supporting individual and team by understanding and communicating with them. Ability to analyze and diagnose complex scenario is also a management skill. Various levels of diversity bring rich skills to organization such as creativity, interpersonal views. BP leaders constantly demonstrated poor leadership qualities by acting the way they wanted. Displaying of one’s emotions in the workplace has greater impact on collaboration and productivity. Let us examine how BP culture contributed to the oil disaster.