About BP
BP is one of the most successful companies over the world. BP is a British multinational oil and gas company, and its base in London, England. BP means British Petroleum, and has been based in the United Kingdom for over 100 years.(1)
According to BP website, “BP’s history is full of discoveries, starting in 1908 with oil found in a rugged part of Persia after a long and difficult search. Since then, discoveries large and small have fuelled our progress”(2) the Anglo-Persian Oil Company was the name of BP Company in 1908 before its become as PB Company. In 1954 BP changed its name from the Anglo-Persian Oil Company to The British Petroleum Company. In 2000 BP got a big step that made the company to be the third largest company in the world by merging tree oil companies into one company. Those companies are Amoco and ARCO and Castrol, and after that BP created its logo, which is a green, yellow and white sunburst, and the BP Company mentioned in its official website that it has chosen those colors because it is symbolizing energy in all its dynamic forms. There are many things that BP Company does such as:
Finding oil and gas.
Extracting oil and gas.
Moving oil and gas.
Making fuels and products.
Selling fuels and products.
Generating low carbon energy.
Supporting communities, preserving the environment.
Any successful company has a clear goal about its organization and future. BP has a clear goal and it focused on three criteria, which are Clear priorities, Quality portfolio, and Distinctive capabilities. According to BP, “Our goal is to be a focused oil and gas company that delivers value over volume We are pursuing our strategy by setting clear priorities, actively managing a quality portfolio and employing our distinctive capabilities. Our financial objective is to create shareholder value by generating sustainable free cash flow (operating cash flow less net investment). This disciplined approach enables us to invest for the future while aiming to increase distributions to our investors.”(4)
By the end of Jun, 2014, Bp annual revenue was 381.99 billion dollars. Figure 1 shows the total revenue for the last decade. There is a steady increase in revenue from 1994 to 1999, and revenue almost doubled by the year 2000. Also, figure 1 shows that there was a big decline in revenue in 2009 due to economic rescission that year. Then the revenue increased and became almost steady from the year 2011 to 2013.(5)
Figure 1: Total Revenue of Bp for last 10 years
Bp its investments around the globe and become the second largest oil and gas company. Figure 2 shows total revenue of the major oil and gas companies for 2013. The net income of Bp in 2013 was around 23 billion dollars with around 89000 employees around the globe.
(5)
Figure.2 Comparison with competitors in terms of total revenue
Bp shares and shares owned through mergers like ARCO, forms the original Bp stock. The major trade of Bp shares occurs on London stock exchange
