Swot Analysis of British Petroleum Essay

1135 Words Apr 19th, 2013 5 Pages
Background

Company overview

British Petroleum (BP) is the world largest retailer of gasoline in the United States. It ranks at the top of three global oil and gas industry. From the corporate watch website (2009), it pointed out that almost 70% of the profits are gained from the US and Europe. In addition, BP is also devoted for aviation fuels and shipping aspects. It is reported that about 900 ports and more than 1400 airports have been supplied by the BP’s lubricants and fuels. Meanwhile, BP has operated on other countries such as Asia and South America in order to expand its market and explorations.

Company history

BP was a company established by William Knox D’ Arcy, an Englishman who venture to Persia to explore oil.
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The result is that BP’s brand image has drastically damaged because of the environmental pollution and the profits were influence that the cost of response was totally $3.5 billion. In addition, the explosion is also a potential harm for the oil company. Datamonitor (2010) stated that about fifteen worker died in the explosion in the Texas refinery. Due to this incident, Texas refinery paid for almost $87.4 million civil penalty and BP’s products were contested whether it was safe enough or not. Furthermore, the low safety budget still influences the company’s safety index. David (2010) proved that even after the explosion of the Deepwater Horizon, the company only spent $124 million to the safety budget which determined that was not enough.

Opportunity

Recently, BP has expanded its fuel business into Brazil due to the increasing demand of oil. It is reported that through the transaction, BP will be given various and wide deepwater exploration proportion with eight exploration blocks in the Campos and Camamu-Almada basins, and the rest of two blocks are in the Parnaiba basin as well (datamonitor, 2010). On the other hand, project such as oil and gas exploration could help the company to increase the output of its productions. During the year 2009, several plans have been study out. For instance, datamonitor (2010) listed that in February 2009, BP made its seventeenth oil detection in Angola. Moreover, BP is also lay emphasis on

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