SWOT analysis of British Petroleum (BP)
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.
- 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.
- 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;
- 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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