British Petroleum SWOT Analysis

SWOT analysis of British Petroleum (BP)

Strengths

BP is ranked at the world’s 3rd largest energy company and is positioned as a multinational oil company headquartered in London that:

  • Operates petrochemical businesses worldwide through the network of its subsidiaries and retail brands(Amoco; ARCO; BP Express, BP Connect; BP Travel Centre; ampm; Burmah Castrol etc)
  • Participates in London Stock Exchange, IPO in New York Stock Exchange. and is listed in the FTSE 100 Index;
  • BP Amoco strong brand loyalty for oil;
  • Strong brand management driven by the ‘Beyond Petroleum’ slogan.  
  • BO Q3 net profit increase by 83% due to record oil and gas prices. The indicator amounts to $53.43 per share compared to $21.27 during the same period in 2007.

Weaknesses

  • Launch of controversial business with the Baku-Tbilisi-Ceyhan pipeline;
  • Increase in petrol prices in the UK;
  • Explosion of BP refinery in Texas that caused 100 injuries and 15 deaths in 2005;
  • Criminal charges due to the spread of 270.000 gallons of crude oil in the Alaskan tundra in 2006;
  • Toxic spill of 2,000 gallons of methanol in the oil field (Prudhoe Bay) managed by BP.
  • Closing of Alaskan oil wells.

Opportunities

  • 8 b. USD investment in the research of alternative fuel methods, including hydrogen, natural gas, wind and solar over the forthcoming decade;
  • Expansion of frontier areas suitable for BP’s future reserves (post-Soviet Union territories);
  • Extension of strategic oil and gas acquisitions in North Sea area;
  • Launch of more flexible price policy to compete main rivals;

 Threats

  • Environmentally unsound policies due to oil and toxic spills;
  • Occasional refinery explosions;
  • Corrosion in pipelines;
  • Competition from Shell and Chevron
  • Ceasing operations in a number of potential locations  with their further re-branding (Conoco);
  • Sale of corporate-owned stations;
  • More than 5.000 shortages within coming months;
  • $66,71 per barrel creates considerable tensions for running oil business;
  • Further lawsuits considering the company’s ecological activities;

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