BP

BP is a major multinational oil and gas company headquartered in London. It is one of the world's seven supermajor oil companies and a constituent of the FTSE 100 Index. The company's history dates to 1909 with the founding of the Anglo-Persian Oil Company, which discovered oil in Iran and became vital to the Royal Navy before World War I.

History

The company was founded as the Anglo-Persian Oil Company after William Knox D'Arcy secured a concession from Mozaffar ad-Din Shah Qajar of Persia. The discovery of oil at Masjed Soleyman in 1908 by geologist George Reynolds led to its incorporation. The British government, led by Winston Churchill, then First Lord of the Admiralty, invested in the company in 1914, securing fuel for the Royal Navy. It was renamed the Anglo-Iranian Oil Company in 1935 and expanded operations significantly after World War II, but its assets were nationalized in 1951 during the Abadan Crisis led by Mohammad Mosaddegh. The company later became a founding member of the Consortium for Iran in 1954. It transformed into British Petroleum in 1954 and grew through major discoveries like the Forties oilfield in the North Sea and the Prudhoe Bay oil field in Alaska. Major acquisitions included Standard Oil of Ohio in 1987 and Amoco in 1998, after which it rebranded as BP. The early 21st century saw further expansion with acquisitions of ARCO and Burmah Castrol, though it also faced catastrophic incidents like the Texas City Refinery explosion and the Deepwater Horizon oil spill.

Operations

The company's activities span the entire hydrocarbon value chain, operating in over 70 countries worldwide. Its upstream division explores for and produces crude oil and natural gas, with key operations in basins such as the Gulf of Mexico, the North Sea, Azerbaijan, and Angola. Major projects include the Thunder Horse oil field and the Clair oilfield. The downstream segment refines, markets, and transports products, operating numerous refineries including Whiting Refinery in Indiana and Rotterdam Refinery in the Netherlands. It also has a vast global network of service stations and retail brands like am/pm. The company has invested in low-carbon energy initiatives, including wind power projects in the United States and solar power through its Lightsource BP venture, while also developing hydrogen and electric vehicle charging infrastructure.

Environmental record

The company's environmental performance has been heavily scrutinized following several major incidents. The 2005 Texas City Refinery explosion resulted in 15 deaths and led to a record Occupational Safety and Health Administration fine. The 2006 Prudhoe Bay oil spill in Alaska was the largest spill on the North Slope. The most catastrophic event was the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, which killed 11 workers and caused a massive marine environmental disaster, leading to billions in fines, penalties, and settlements under the Clean Water Act and Oil Pollution Act of 1990. The company has publicly committed to becoming a net-zero company by 2050, outlining a strategy to reduce oil and gas production and increase investments in renewable energy. It has faced ongoing criticism from environmental groups like Greenpeace and legal challenges over its climate change policies and historical emissions.

Corporate affairs

The company is headquartered at 1 St James's Square in London and is governed by a board of directors chaired by Helge Lund, with Murray Auchincloss serving as chief executive. It has undergone several major rebranding efforts, notably adopting a green and yellow Helios logo in 2000 with the "Beyond Petroleum" slogan. The company has been involved in numerous political controversies, including allegations of influencing the Invasion of Iraq and its historical dealings with oppressive regimes. It is a major sponsor of cultural and sporting institutions, having been a partner of the British Museum, the Royal Opera House, and the London 2012 Olympic Games. Its operations have been the subject of documentaries like The Prize: The Epic Quest for Oil, Money, and Power and Deepwater Horizon (film).

Financial performance

As one of the world's largest integrated oil companies, its financial results are heavily influenced by global crude oil prices as set by benchmarks like Brent Crude. Major asset sales followed the Deepwater Horizon liabilities, including disposals in Vietnam, Venezuela, and the North Sea. The company pays a significant dividend to shareholders and its stock is a core component of the FTSE 100. Its market valuation and profits fluctuate with the energy industry cycle, facing challenges from the 2020 Russia–Saudi Arabia oil price war and the global transition towards renewable energy. The company has outlined plans to increase spending on low-carbon energy while reducing its oil and gas output over the coming decades.

Category:Companies listed on the London Stock Exchange Category:Oil and gas companies of the United Kingdom Category:FTSE 100 Index