Post on 04-Apr-2018
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BP Background
3rd largest oil company in the world
Over 100,000 employees in 100 countries
Core business: discovery the earths naturalresources( locating, developing, marketing)
Depend on global communication, technology
innovation and intellectual human capital
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John Browne
an iconic figure in British business
Born: Feb 20, 1948 Hamburg, Germany
Education: Cambridge, Physics / StanfordBusiness School
Occupation:
Joined BP in 1966 / still in university
CEO of BP (resigned on May 1, 2007 )
Chairman of the board of Apax Partners
one of the most highly paid executives in the UK(5.7million)
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Gas-15.81%
Oil-10.55%
(AIOC)
Gas-3.33%
Oil-1.63%
North Sea
Prudhoe Bay
BPs Expansion Map Before
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Company YearPrice
(BN USD)Country Opportunity
Amoco 1998 57US/exploration in 20
countriesinternational
Arco 2000 27
US/ west coast
based/exploration to Far
East
China/ Russia
Bumrah-
Castrol 2000 4.7 UK/motor oil international
Veba Oel 2002 4Germany, Poland,
Netherland/ Gas stationEurope
TNK 2003 7Russia/Kovykta gas
condensate field
Asia/ Europe
Acquisition
2003, 240BN USD revenue( 400% growth)
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Gas-27.36%Oil-5.67% (TNK)
Gas-3.33%
Oil-1.63%
(Sohio/
Amoco/ Acro)
Gas-0.87%
Oil-1.24%
North Sea
Prudhoe BayAzerbaijan-
developing
Angola-
developing
Ger/ Pol/ Ner/
(Veba Oel)
BPs Expansion Map
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Climate
Observed Global Avg Temperature(deg. C), 1861-2000
Global Fossil Fuel Emissions andthe Rate of Increase of CO2Concentration in the Atmosphere,
1960-2000
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World Primary Energy Productionby Source, 1970-2004
Climate
Direct C02 Emissions By Business
Segment and Sources Owned by
BP, 1999-2006 (in millions of
metric tons)
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Tony Hayward
Born : May 21, 1957
Education: University of EdinburghOccupation:
Joined BP in 1982 as a Rig Geologist
President of BP Venezuela in 1995
August 1997- Director of BP Exploration
Chief Executive of Exploration and Production in Jan 2003 Group CEO on 2 Feb, 2007
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Problem Statement
must decide how global climatechange management will figure into
BP's corporate strategy
must consider what actions to take inBP's business strategy and in the
political arena to manage ongoingclimate risk
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BP and Alternate Energy-Solar
Streamlined 30 year oldsolar business in 2003
Doubled solar cellcapacity from 100MW to
300 MW by 2007 end
Solar wafers for energyproducers in Germany,
India, Spain
installed approximately1.6 gigawatts of productsin almost every corner of
the world.
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BP and Alternate Energy-Wind
BP owned land banks in windyregionsWind projects were eligible fortax creditsHeavy investment :Greenlight, Orion, Vestas,GE, Clipper
Gross Generating Capacity of 1955 MW
added over 35% of all new generating capacityover the past 4 years
Remote locationstransmission infrastructurerequired
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BP and Alternate Energy-Biofuels
World BioFuels
Production
(Million tonnes oil
equivalent)
World biofuels productiongrew by 0.7% in 2011
Biodiesel accounts for 27.5%of global biofuels output
TropicalBioEnergia S.A.,Brazil
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Global natural gasproduction grewby 3.1%.
World natural gasconsumption grewby 2.2%
BP and Alternate Energy-Natural Gas