Bp Oil Company Case Study

June 11, 2013

ACC 557

Dr. Malone

Assignment #3

BP began as the Anglo Persian Oil Company in the early 1900’s. The company was founded and financed by Mr. D’Arcy of London and the Burmah Oil Company. The oil excavation in Persia took many tumultuous years, with set back after set back that almost led Mr. D’Arcy to financial ruin “But vindication was in the air. By the early morning of 26 May 1908, the whole camp reeked of sulphur. At four o’clock the drill reached 1,180 feet and a fountain of oil spewed out into the dawn sky” (Our History: BP, 2013, pg.1). In the beginning the Anglo Persian Oil Company was limited in their abilities to provide services for oil. The oil market was already dominated by another company and cars were owed by few. Because the snitch from the gas was so potent the company was unable to make money by selling it to heat homes during the cold winter months “Besides that, refining couldn’t remove the Persian oil’s strong, sulphurous stench. It couldn’t be sold as kerosene for home heating, one of the main consumer uses for oil at the time” (Our History: BP, 2013, pg.2). At this point Mr. D’Arcy found himself facing yet another financial crisis, but he received help from an unlikely ally that would change the future of the Anglo Persian Oil Company forever. Winston Churchill convinced the British Parliament that it would be in the best interest of Great Britain to invest in the Anglo Persian Oil Company and the Parliament agreed “The resolution passed resoundingly, and the UK government became a major shareholder in the company. Churchill had ended Anglo-Persian’s cash crisis, and no one had long to quietly ponder the long-term implications of a company entwining its financial interests with a political entity” (Our History: BP, 2013, pg.2). After the Anglo Persian Oil Company regained its financial momentum it acquired British Petroleum in 1917. This merger allowed to company to finally achieve its endeavor, which was to provide oil for machines, automobiles and trains. In the early 1900’s BP’s major customer was the British Navy, but by the mid 1900’s BP began to supply oil primarily to car owners. Cars had now become a necessity for many and there was now a need for gas stations to supply the product to consumers. As time progressed and technology evolved so did BP. By the beginning of 2000 the company demonstrated leadership in their innovation and consciousness of the future “Under this new banner BP took bigger and bigger steps towards addressing climate change. It installed solar panels at its service stations, brought solar power to remote villages in the Philippines, helped bring hydrogen-fuelled buses to London and introduced new, cleaner types of motor

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