BP p.l.c. (BP) is one of the largest vertically integrated oil and gas companies in the world. Its operations include the exploration and production of natural gas and crude oil; refining of crude oil; manufacturing of petroleum products; marketing of refined products; construction and mining; and transportation of crude oil. It is also involved in the marketing and trading of gas and power, marketing of liquefied natural gas (LNG), natural gas liquids (NGLs) and low-carbon power generation. BP has its operations spread over six continents spanning more than 100 countries. The company is headquartered in London, the UK|
Strengths BP is ranked at the world’s 3rd largest energy company and is positioned as a multinational oil company headquartered in London that: * Operates petrochemical businesses worldwide through the network of its subsidiaries and retail brands(Amoco; ARCO; BP Express, BP Connect; BP Travel Centre; ampm; Burmah Castrol etc) * Participates in London Stock Exchange, IPO in New York Stock Exchange. and is listed in the FTSE 100 Index; * BP Amoco strong brand loyalty for oil;
* Strong brand management driven by the ‘Beyond Petroleum’ slogan. * BO Q3 net profit increase by 83% due to record oil and gas prices. The indicator amounts to $53.43 per share compared to $21.27 during the same period in 2007. Weaknesses
* Launch of controversial business with the Baku-Tbilisi-Ceyhan pipeline; * Increase in petrol prices in the UK; * Explosion of BP refinery in Texas that caused 100 injuries and 15 deaths in 2005; * Criminal charges due to the spread of 270.000 gallons of crude oil in the Alaskan tundra in 2006; * Toxic spill of 2,000 gallons of methanol in the oil field (Prudhoe Bay) managed by BP. * Closing of Alaskan oil wells.
Opportunities * 8 b. USD investment in the research of alternative fuel methods, including hydrogen, natural gas, wind and solar over the forthcoming decade; * Expansion of frontier areas suitable for BP’s future reserves (post-Soviet Union territories); * Extension of strategic oil and gas acquisitions in North Sea area; * Launch of more flexible price policy to compete main rivals; Threats
* Environmentally unsound policies due to oil and toxic spills; * Occasional refinery explosions; * Corrosion in pipelines; * Competition from Shell and Chevron * Ceasing operations in a number of potential locations with their further re-branding (Conoco); * Sale of corporate-owned stations; * More than 5.000 shortages within coming months; * $66,71 per barrel creates considerable tensions for running oil business; * Further lawsuits considering the company’s ecological activities;