Bp Executive Summary
[pic]
BP Case Study
November 10, 2011
Professor: Steven Lee
Strategic Management
Mississippi College
British Petroleum[pic]
Executive Summary
The history of BP was set in motion as the Anglo-Persian Oil Company in Persia in 1901. William Knox D’Arcy, an English entrepreneur hired George Reynolds, a geologist and explorer to dig Persia for oil. Reynolds could smell natural gas and was most certain they would hit oil. After several years and after D’Arcy had spent nearly all his savings and on the verge of losing his homes, he gave Reynolds one last attempt. The orders were to drill 1600 feet and give up. This took several months of trials and tribulations but eventually paid off on May 26, 1908 after drilling 1,108 feet. A fountain of oil was discharged. Within a year, the Anglo-Persian Oil Company now known as BP became a business.
The previous years for the explorers were rough but they were no comparison over the course of the next fifteen years, where situations didn’t improve. A few factors which hindered the process of turning thick crude oil into a useable product included lack of equipment, construction delays and sickness. In 1914, the Anglo-Persian project was near bankruptcy for a second time. The problem didn’t consist of producing the oil but they had no product market. To protect Britain in World War I, the company British Petroleum was created to market its product. During the next ten years, major adjustments were made. Gas and electricity replaced kerosene, gasoline would fuel delivery vehicles and the automobile use immensely increased.
During the 1920’s and 1930’s, gasoline pumps began to appear around Britain. All was going well until World War II which caused gasoline to become a rationed commodity and forced BP as well as others to pool their fuel together. After the war ended, companies began to move forward. D’Arcy reached an agreement with
BP Case Study
November 10, 2011
Professor: Steven Lee
Strategic Management
Mississippi College
British Petroleum[pic]
Executive Summary
The history of BP was set in motion as the Anglo-Persian Oil Company in Persia in 1901. William Knox D’Arcy, an English entrepreneur hired George Reynolds, a geologist and explorer to dig Persia for oil. Reynolds could smell natural gas and was most certain they would hit oil. After several years and after D’Arcy had spent nearly all his savings and on the verge of losing his homes, he gave Reynolds one last attempt. The orders were to drill 1600 feet and give up. This took several months of trials and tribulations but eventually paid off on May 26, 1908 after drilling 1,108 feet. A fountain of oil was discharged. Within a year, the Anglo-Persian Oil Company now known as BP became a business.
The previous years for the explorers were rough but they were no comparison over the course of the next fifteen years, where situations didn’t improve. A few factors which hindered the process of turning thick crude oil into a useable product included lack of equipment, construction delays and sickness. In 1914, the Anglo-Persian project was near bankruptcy for a second time. The problem didn’t consist of producing the oil but they had no product market. To protect Britain in World War I, the company British Petroleum was created to market its product. During the next ten years, major adjustments were made. Gas and electricity replaced kerosene, gasoline would fuel delivery vehicles and the automobile use immensely increased.
During the 1920’s and 1930’s, gasoline pumps began to appear around Britain. All was going well until World War II which caused gasoline to become a rationed commodity and forced BP as well as others to pool their fuel together. After the war ended, companies began to move forward. D’Arcy reached an agreement with