7/29/2019 BP and Global Climate Change

1/15

7/29/2019 BP and Global Climate Change

2/15

7/29/2019 BP and Global Climate Change

3/15

BP Background

3rd largest oil company in the world

Over 100,000 employees in 100 countries

Core business: discovery the earths naturalresources( locating, developing, marketing)

Depend on global communication, technology

innovation and intellectual human capital

7/29/2019 BP and Global Climate Change

4/15

John Browne

an iconic figure in British business

Born: Feb 20, 1948 Hamburg, Germany

Education: Cambridge, Physics / StanfordBusiness 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(5.7million)

7/29/2019 BP and Global Climate Change

5/15

Gas-15.81%

Oil-10.55%

(AIOC)

Gas-3.33%

Oil-1.63%

North Sea

Prudhoe Bay

BPs Expansion Map Before

7/29/2019 BP and Global Climate Change

6/15

Company YearPrice

(BN USD)Country Opportunity

Amoco 1998 57US/exploration in 20

countriesinternational

Arco 2000 27

US/ west coast

based/exploration to Far

East

China/ Russia

Bumrah-

Castrol 2000 4.7 UK/motor oil international

Veba Oel 2002 4Germany, Poland,

Netherland/ Gas stationEurope

TNK 2003 7Russia/Kovykta gas

condensate field

Asia/ Europe

Acquisition

2003, 240BN USD revenue( 400% growth)

7/29/2019 BP and Global Climate Change

7/15

Gas-27.36%Oil-5.67% (TNK)

Gas-3.33%

Oil-1.63%

(Sohio/

Amoco/ Acro)

Gas-0.87%

Oil-1.24%

North Sea

Prudhoe BayAzerbaijan-

developing

Angola-

developing

Ger/ Pol/ Ner/

(Veba Oel)

BPs Expansion Map

7/29/2019 BP and Global Climate Change

8/15

Climate

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

Global Fossil Fuel Emissions andthe Rate of Increase of CO2Concentration in the Atmosphere,

1960-2000

7/29/2019 BP and Global Climate Change

9/15

World Primary Energy Productionby Source, 1970-2004

Climate

Direct C02 Emissions By Business

Segment and Sources Owned by

BP, 1999-2006 (in millions of

metric tons)

7/29/2019 BP and Global Climate Change

10/15

Tony Hayward

Born : May 21, 1957

Education: University of EdinburghOccupation:

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

7/29/2019 BP and Global Climate Change

11/15

Problem Statement

must decide how global climatechange management will figure into

BP's corporate strategy

must consider what actions to take inBP's business strategy and in the

political arena to manage ongoingclimate risk

7/29/2019 BP and Global Climate Change

12/15

BP and Alternate Energy-Solar

Streamlined 30 year oldsolar business in 2003

Doubled solar cellcapacity from 100MW to

300 MW by 2007 end

Solar wafers for energyproducers in Germany,

India, Spain

installed approximately1.6 gigawatts of productsin almost every corner of

the world.

7/29/2019 BP and Global Climate Change

13/15

BP and Alternate Energy-Wind

BP owned land banks in windyregionsWind projects were eligible fortax creditsHeavy investment :Greenlight, Orion, Vestas,GE, Clipper

Gross Generating Capacity of 1955 MW

added over 35% of all new generating capacityover the past 4 years

Remote locationstransmission infrastructurerequired

7/29/2019 BP and Global Climate Change

14/15

BP and Alternate Energy-Biofuels

World BioFuels

Production

(Million tonnes oil

equivalent)

World biofuels productiongrew by 0.7% in 2011

Biodiesel accounts for 27.5%of global biofuels output

TropicalBioEnergia S.A.,Brazil

7/29/2019 BP and Global Climate Change

15/15

Global natural gasproduction grewby 3.1%.

World natural gasconsumption grewby 2.2%

BP and Alternate Energy-Natural Gas