BP Background

3rd largest oil company in the world Over 100,000 employees in 100 countries Core business: discovery the earths natural resources( locating, developing, marketing) Depend on global communication, technology innovation and intellectual human capital

John Browne
an iconic figure in British business Born: Feb 20, 1948 Hamburg, Germany Education: Cambridge, Physics / Stanford Business School Occupation:
Joined BP in 1966 / still in university CEO of BP (resigned on May 1, 2007 ) Chairman of the board of Apax Partners one of the most highly paid executives in the UK(5.7 million)

BPs Expansion Map Before

Prudhoe Bay North Sea Gas-3.33% Oil-1.63%

Gas-15.81% Oil-10.55% (AIOC)

Acquisition

2003, 240BN USD revenue( 400% growth)

Company Amoco Arco BumrahCastrol Veba Oel TNK Year 1998 2000 2000 2002 2003

Price (BN USD)

57 27 4.7 4 7

Country US/exploration in 20 countries

Opportunity international China/ Russia international Europe Asia/ Europe

US/ west coast based/exploration to Far East

UK/motor oil Germany, Poland, Netherland/ Gas station Russia/Kovykta gas condensate field

BPs Expansion Map

Ger/ Pol/ Ner/ (Veba Oel) Prudhoe Bay North Sea

Gas-27.36% Oil-5.67% (TNK)

Azerbaijandeveloping Gas-0.87% Oil-1.24%

Gas-3.33% Oil-1.63% (Sohio/ Amoco/ Acro)

Angoladeveloping

Climate
Observed Global Avg Temperature (deg. C), 1861-2000

Global Fossil Fuel Emissions and the Rate of Increase of CO2 Concentration in the Atmosphere, 1960-2000

Climate

Direct C02 Emissions By Business Segment and Sources Owned by BP, 1999-2006 (in millions of metric tons)

World Primary Energy Production by Source, 1970-2004

Tony Hayward

Born : May 21, 1957 Education: University of Edinburgh Occupation:

Joined BP in 1982 as a Rig Geologist President of BP Venezuela in 1995 August 1997- Director of BP Exploration Chief Executive of Exploration and Production in Jan 2003 Group CEO on 2 Feb, 2007

Problem Statement

must decide how global climate change management will figure into BP's corporate strategy

must consider what actions to take in BP's business strategy and in the political arena to manage ongoing climate risk

BP and Alternate Energy-Solar

Streamlined 30 year old solar business in 2003 Doubled solar cell capacity from 100MW to 300 MW by 2007 end
Solar wafers for energy producers in Germany, India, Spain installed approximately 1.6 gigawatts of products in almost every corner of the world.

BP and Alternate Energy-Wind

BP owned land banks in windy regions Wind projects were eligible for tax credits Heavy investment : Greenlight, Orion, Vestas, GE, Clipper

Gross Generating Capacity of 1955 MW added over 35% of all new generating capacity over the past 4 years Remote locations transmission infrastructure required

BP and Alternate Energy-Biofuels

World biofuels production grew by 0.7% in 2011 Biodiesel accounts for 27.5% of global biofuels output

World BioFuels Production (Million tonnes oil equivalent) Tropical BioEnergia S.A.,Brazil

BP and Alternate Energy-Natural Gas

Global natural gas

production grew by 3.1%.

World natural gas

consumption grew by 2.2%