Notesale: Turn your study into money

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BP – Case Study of an Energy TNC
BP is a British oil and gas company
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8million
barrels of oil equivalent per day which are distributed to the consumers at 22,400 service
stations worldwide
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The company
has looked to and started to diversify by seeking and using alternative energy resources but
still the main money maker and predominant interest of BP is crude oil which is used for
petrol, diesel, gas and a variety of other chemicals which I will go onto explain, all adding to
the ever changing price of oil
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The way it
works is that a motorized pump is positioned over
a well to extract the oil and gas into tanks or a
pipeline where it can then be transported away via
pipelines

This is an example of one of BP’s refineries
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Crude oil enters the refineries, such as the one above and then is heated in the fractionating column
and are then separated into their separate fractions such as: the bitumen at the bottom is used for
lubricating oil and the making of roads; the petroleum is obviously used for petrol and fuel for cars;
kerosene is used as aviation fuel and diesel fuel as an alternative fuel to petrol
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International Reach – exploration and production
BP operates in 80 different countries which span into every continent except for Antarctica;
their headquarters are based in London
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Obviously this does not mean that
everyone benefits, as in many cases the local people may be severely affected by the rigs
and oil pipelines but in many cases, as long as BP are getting their oil and the money which
isn’t given to the government from it, they turn a blind eye to the means by which the
government is operating and controlling the locals
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Africa:
The exploration and production activity in Africa is mainly focused on three countries:
Algeria Angola
• Egypt
On top of these areas, BP also has refineries and a significant retail presence in Southern
Africa for their marketing products such as oil and gas along with solar panels across the
continent, providing sustainable, renewable energy for those who can afford the panels
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Solar panels are particularly abundant in Africa due to
the great deal of sun which they receive so can potentially obtain more energy from sunlight
than most other continents
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The exploration is high in all these countries as despite them already having
proved oil reserve in proves that it is an area abundant in oil and so is more likely to contain
more oil, which could potentially save more money than exploring more countries as BP
already have an established relationship between these four countries:
• China
• Indonesia
• Vietnam
• Pakistan
As well as this much of the refinery work and chemical manufacturing is done in China,
South Korea and Malaysia; all areas with prominent ports to transport the chemicals via

tanker and not too far away to transport the oil via lorry or pipeline
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Many of the
consumers are in India, China and Japan
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Both countries, despite the relatively low populations,
have major retail operations of gas, oil and energy with BP
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The UK is
home to much of BP’s quaternary industry with three major global research and technology
groups here
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Azerbaijan is a major country for the exploration and
production of oil with the refinery work spread across the whole of Europe with BP owning
seven refineries across Europe
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North America:
North America is predominantly constituted of the USA and Canada and BP is one of the
largest gasoline retailers in the United States, being the largest non-US company on the New
York Stock Exchange
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In
Canada the focus is on the production of natural gas and derivatives
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In South America, in particular Brazil, BP have
established the latest business of biofuels for energy
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This then fell with fluctuation before settling at around $20 before another sharp rise to $100 per
barrel to a peak in 1980 due to the Yom Kippur war, before falling and rising again in 2000
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Oil is a scarce
product since there is an overall demand which is greater than the supply
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This map shows the distribution of countries’ consumption of oil in tonnes per capita
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