BP case study

Question 1

What are the different stages in BP’s operations?

Answer 1

Finding and developing hydrocarbon resources, with selective exploration mostly focused near their hubs

Extracting oil and gas

Moving oil and gas

Making fuels and products

Selling fuels and products

Question 2

Countries where BP is exploring and producing.

Answer 2

BP employs 85,000 people in 80 countries, in Europe, Americas, Africa and Asia. Company also drilled 18 exploration wells in total (produce 3.2 million oil barrels per day)

Question 3

How does BP transport its oil?

Answer 3

Some oil & gas fields are far away from demand, so tankers are used to transport them via sea

Pipelines can be built above or under land or underwater, if pipeline runs through an environmentally sensitive area/ close to city; it can be buried to minimise the likelihood and impact of potential accidents

There’s pump stations along the pipeline to keep it moving

Question 4

Where are its major refineries?

Answer 4

Many of BP’s major refineries are in the US (where the market is largest)
Consumption = nearly 19 million barrels per day.

-eg. Washington - cherry point refinery

Question 5

how ‘global’ is the BP brand? Does it incorporate any other brands?

Answer 5

-BP consists of 5 main brands.

• BP produces fuels for transportation, energy for heat and light, lubricants to keep engines functioning, and petrochemical products for use in every day items.

Wild bean cafe are located in Europe, Australia, and South Africa ( but also with a presence in India and China). It consists of cafes next to BP fuelling stations and provides food and beverages.

Question 6

Development of alternative energy sources BP (link to energy futures)

Answer 6

BP is more involved in conventional energy sources but is still developing alternative energy sources.

Wind power:
-The company operates 13 wind farms and are invested in 13 others.

-produce enough energy to power 500,000 US homes.

Biofuel
-use GPS to maximise the amount of sugar cane being cultivated and other technological advances have led to an increase of 45% in BP’s sugarcane value chain.

-BP is also working with other companies to create biobutanol which has the benefits of ethanol and can help reduce the amount of Greenhouse Gases being released to the atmosphere.