BP Oil Company
Bp Oil Company is a multinational corporation that supplies energy goods as well as services across the world. The company’s is divided into two streams where the upstream segment is responsibility is to explore natural gas as well as oil, field improvement and production. However the downstream segment is involved with the refining of this extracted natural gas and oil and marketing of these fuels, lubricants and also the petrochemicals (Azaria 2014). This paper therefore will discuss on the historical background of the BP Company, the industry in which it operates, the market that they are traded on and the public initial offering that the company offers.
The company was established in 1909 where it was formerly known as the Anglo Persian oil company but later in 1935 it was changed into being called the Burmah oil company as it exploited oil in Iran. However, in 1954, the company was named the British Petroleum with the discovery of oil in Persia following a search that had taken so long. Its headquarters are located in London, England. Following the market capitalization, the company is believed to be in the sixth position in the energy industry worldwide. The company has made large profit margins over the years following the Western society’s adoption to the use of petroleum burning vehicles and this enlightened by the petroleum power industry (Azaria 2014). The company currently operates in about eighty nations and is the largest oil and gas producers globally. In history the company has faced challenges with major environmental occurrences and especially the one that occurred in Texas that posed a serious negative public image to the company (Mejri et al 2013). However to curb this problem the company has tried to adopt many new and core branding techniques. The company has also taken the appropriate steps to address the opportunity of improving the consumer perception about their brands through improving on their employment practices all through their supply chain.
The current world wide economy is depressed and thus is facing a great recession. However, the Bp Company has better placed itself in the market and this has seen the company grow to even greater heights in the market. There was a drop in the oil prices following the rampant supply as well as weak worldwide demand along with the concerns of the slow economic growth globally and especially in China. The company’s activities touch on the UK’s economy while the operations impacts positively on many thousand smaller firms that do play a significant role in the UK’s economy and wealth creation. Economic stability of most of the developed nations creates a favorable opportunity for the company to and its operations. The BP’s company economy contribution has remained constant over the years despite the fact that the company and other businesses have been affected by the decline in the fuel prices. The company thus offers job opportunity, contributes to the national output, and supports investments as well as communities. However the current crises facing this industry are the fact that oil is an exhaustible resource that will eventually be depleted. Thus with this kind of its nature, the oil price is expected to continue increasing over time (Dale 2015).
The marketing and sales team in the company is integrated with the rest of the company so as to maximize on their values and energy outputs. The company has maintained its success in trading as they are flexible in their operations and usually ensures that their products are reliable across the world. The company also offers heir consumers with access to renewable energy goods such as biogas production and supply. The company thus has adopted the system of hedging of their products and risk management services thus promote a log duration economic growth.
It is thus very important to note that Bp Company is one of the publicly traded companies and an international company that have contributed so much into the economy worldwide. Its leading position worldwide has been attributed by its ability to maximally utilize all the external factors within its competing world and hence its success. The oil and gas industry landscape is changing and is essentially being reshaped through the emergence trend such as climate chnge as well as a powerful campaign against the co2 emission. However, with the current events and threats in the world, the company should strategies on the effective way to address all these threats that have been realized in the legal dimension its environment. With this the company will be constant in their leadership position.
References
Dale, S. (2015, October). New economics of oil. In Society of Business Economists Annual Conference. London (Vol. 19).
Mejri, M., & De Wolf, D. (2013). Crisis management: lessons learnt from the BP Deepwater Horizon spill oil. Business Management and Strategy, 4(2), 67.
Azaria, A. (2014). The Relationship between Environmental Performance and Socially Responsible Investing in the Oil and Gas Industry : Does environmental performance have an effect on investors' investment decisions?.
