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BP Management Change Presentation

British Petroleum What is BP

British Petroleum (BP) is one of the world's largest oil and gas companies in terms of production capacity and revenue; BP explores for oil and natural gas in approximately 30 countries and possesses proved reserves of 18.1 billion barrels of oil equivalent (Hoovers, 2004).

BP owns 16 refineries

BP processes 4 million barrels of crude oil per day

BP markets these products in 80 countries

BP owns a network of 22,400 gas stations

BP's Global Projects (BP, N.d.)

BP's Issues

Oil and gas reserves are becoming increasingly hard to come by. Oil companies are now targeting some of the harder to access reserves. This requires a great deal of technological sophistication and drives up extraction prices. It also creates a substantial amount of risk for the organization which has recently manifested in the Gulf of Mexico.

In April 2010 an explosion occurred and a major fire on an oil rig in the Gulf of Mexico owned by BP and operated by Transocean burned until July 2010. BP temporarily capped the oil spill using a pipe "cork" (Casselman, Gold, & Gonazalez, 2010). With spill capped successfully, the BP outlined its $20 billion fund set aside for to pay for damages to companies, organizations, and individuals significantly impacted by the spill. To raise money for this fund, BP plans to sell up to $12 billion of assets to Apache (APA) in order to cover some of its liabilities. In 2010, BP reported a loss before interest and taxation of $3.7 billion, compared to a profit of $26.4 billion in 2009 (London Energy, 2010).

Mission and Vision Statement

BP does not publish a traditional mission of vision statement. Instead they publish information about what they do, what they stand for, and what they value. The three statements provide similar information as a vision or mission statement; however they are not nearly as concise.

BP -- What we do

We deliver energy to the world (BP, N.d.).

We find, develop and produce essential sources of energy. We turn these sources into products that people need everywhere. The world needs energy and this need is growing. This energy will be in many forms. It is, and will always be, vital for people and progress everywhere. We expect...

We strive to be a safety leader in our industry, a world-class operator, a good corporate citizen and a great employer. We are BP.
BP -- What we stand for We care deeply about how we deliver energy to the world.

Above everything, that starts with safety and excellence in our operations. This is fundamental to our success. Our approach is built on respect, being consistent and having the courage to do the right thing. We believe success comes from the energy of our people. We have a determination to learn and to do things better. We depend upon developing and deploying the best technology, and building long-lasting relationships. We are committed to making a real difference in providing the energy the world needs today, and in the changing world of tomorrow. We work as one team. We are BP.

What we value

Safety

Respect

Excellence

Courage

One Team

Strengths and Weaknesses

The company's strengths include the global network of oil drilling operations, refining capabilities, and comprehensive supply chain. The company has a geographically diverse business operation which can offer some protection against different risks. The company also has an extensive engineering capability that allows the company to explore areas that are unavailable to other companies due to the sophistication that these operations require.

BP has tried to brand itself as "Beyond Petroleum." However, it operates primarily in the oil industry has hasn't made a significant effort to divest from this sector. The company has been accused of "greenwashing" by many parties and most consumers do not believe it is at all environmentally responsible. Thus the negative public perception has become one of the company's primary weaknesses as well as the costs of the environmental hazards created through its operations.

BP's Progress

The company is somewhat torn between having to accept more dangerous drilling sites to return profits for their shareholders and being good environmental stewards. The fines that the company has been forced to pay only represent a fraction of the company's revenues and thus it is actually more profitable in many cases to simply pay the fines rather than focus on safety.…

Sources used in this document:
Works Cited

Abrams, L. (2013, December 5). BP's learned nothing: The oil company is pursuing its riskiest strategy yet. Retrieved from Salon: http://www.salon.com/2013/12/05/bps_learned_nothing_the_oil_company_is_pursuing_its_riskiest_strategy_yet/

BP. (N.d.). Global projects organization. Retrieved from BP: http://www.bp.com/en/global/corporate/careers/who-we-are/upstream/gpo.html

BP. (N.d.). We are BP. Retrieved from BP: http://www.bp.com/en/global/corporate/about-bp/company-information/our-values.html

Downing, L. (2014, March 19). BP Scraps Renewable Energy Goal After Investing $8.3 Billion. Retrieved from Bloomberg News: http://www.businessweek.com/news/2014-03-19/bp-scraps-renewable-energy-target-after-investing-8-dot-3-billion
Frick, W. (2014, February 5). Study: Green Advertising Helped BP Recover from the Deepwater Horizon Spill. Retrieved from Harvard Business Review: https://hbr.org/2014/02/study-green-advertising-helped-bp-recover-from-the-deepwater-horizon-spill/
Wiki Invest. (2014). Wiki Analysis. Retrieved from Wiki Invest: http://www.wikinvest.com/stock/BP_%28BP%29
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