WHAT BUSINESS ARE WE INWe are in the multi-utilities industry, dominated by American and European corporations, with five of the 10 largest global corporations being in the same business (Fortune, 2011)
We are a global oil and gas company, the third largest energy company in the world, and the 4th largest global corporation, with an annual revenue of $308,928 millions, in 2011 (BP, 2011)We operate across six continents, employing 79,700 employees and our products and services are now available in more than 80 countries worldwide (BP, 2011) Since the 1920’s, BP has been our main brand, and the foundation for everything we do. “Beyond Petroleum” sums up our brand in the most concise way possible. It is what we stand for, but also a description of what we do. We are vertically integrated in every area of the oil and gas industry. From production, refining, distribution and marketing, power generation and petrochemicals, to renewable energy including solar, wind, hydrogen and bio-fuels. We are at the heart of all these areas, making sure we can supply the world with energy both now, and far into the future. BP is progressive, responsible, innovative and performance driven. We want to be recognized as a great company, one which is competitively successful and a force for progress- by having BETTER PEOPLE, BETTER PRODUCTS and moving BEYOND PETROLEUM. SOURCES:Fortune. Global 500 Full List (2011). Available at: http://money.cnn.com/magazines/fortune/global500/2011/full_list/ BP (2011) Beyond Petroleum. Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9038318&contentId=7019491BP (2011)Where We Operate. Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=6&contentId=7019358BP (2011) The BP Brand. Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9038310&contentId=7037996BP (2011) Our Values. Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9038305&contentId=7005204
BP principally competes within the industry of discovery, extraction, refinery, storage and distribution of oil and natural gases. We use sophisticated technologies and tried-and-true techniques to find oil and gas under the earth’s surface. More recently, scientific techniques and new technologies have greatly improved the odds.We also invest heavily in the development and distribution of alternative energy such as, wind, solar, hydra power and biofuels which are fuels derived from biomass such as cereals, oilseeds, sugarcane and specially grown energy grasses. They can have an environmental impact that is significantly lower than other fuels. Producing biofuels can also reduce dependence on imported oil and provide jobs and markets for farming communities. BP is working to produce biofuels – today and in the future – that are low cost, low carbon, sustainable and able to fulfil the world’s transportation fuel needs on a large scale.Another factor to how BP competes is product differentiation. An example of this would be BP Ultimate Unleaded which is cleaner petrol with more octanes in that therefore emits fewer emissions than regular unleaded which is also sold.SOURCES:Bp.com, 2011. Oil and gas exploration. [online] Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9021489&contentId=7039991 [Accessed 4 November 2011]Bp.com, 2011. Refining technology. [online] Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9017543&contentId=7031695 [Accessed 4 November 2011]Bp.com, 2011. Alternative energy. [online] Available at: http://www.bp.com/sectiongenericarticle800.do?categoryId=9036324&contentId=7067654 [Accessed 4 November 2011]Bp.com, 2011. Biofuels. [online] Available at: http://www.bp.com/sectiongenericarticle800.do?categoryId=9036325&contentId=7067107 [Accessed 4 November 2011]
Managers are most directly affected by forces in their immediate competitive environment. According to Porter, the ability of a firm to earn an acceptable return depends on 5 forces – threat of potential entrants, threat of substitute product or service, bargaining power of suppliers, bargaining power of buyers and rivalry within the industry,It is the collective strength of the 5 forces that determines industry profitability. The stronger the forces, collectively, the less profitable the industry will be: the weaker they are, the greater the profits. Knowing how these forces are likely to affect their industry enables managers to shape their strategy. (Boddy, 2008, p.93) THREAT OF POTENTIAL ENTRANTSThe threat of potential entrants is low due to the high barriers of entry. It is very unlikely for the petroleum market to have any new entrants. BP is in an oligopoly industry and it requires a high entry cost which is the key barrier. (Grant, 2010, p.69) Other aspects that need to be considered are the need for economies of scale (to compete on cost), which are difficult to achieve quickly; access to distribution channels; subsidies that benefit existing firms at the expense of potential new entrants; cost advantages of existing firms, such as access to raw materials or know-how; strong product/service differentiation – brand loyalty. (Boddy, 2008, p. 93-94) 2. THREAT OF SUBSTITUTE PRODUCT OR SERVICEThe immediate threats of substitutes to oil and natural gas is low, as the performance of alternative energy sources is still very much in the developing stages. It will be some time until alternative energy rises to the same consumption level as natural gas and oil. Furthermore, the cost of switching to these sources is very high for corporations and individuals, and in the difficult economic climate of today these additional costs are growing in importance (Grant, 2010, p.70)However, people and corporations are becoming more environmentally aware and with the increasingly challenging government regulations, there is growing tendency to buy substitutes to oil. The price performance of alternative fuels compared to oil is significant to BP and the whole petroleum industry in the current climate, which is why we are investing heavily in R&D to develop intelligent and innovative alternative energy sources.We believe that low-carbon energy will grow considerably in the coming years, (bp.com, 2011) 3. BARGAINING POWER OF SUPPLIERSThe bargaining power of the suppliers is low, as we source our own oil and track the process of the oil getting to the petrol stations, so the bargaining power of suppliers is low. We use sophisticated technologies and techniques to find oil and gas. (bp.com, 2011) 4. BARGAINING POWER OF BUYERSThe bargaining power of buyers is low; there is a small amount of alternatives to oil and natural gas that can be used on such level today. The customers can switch easily, but it is more costly. Petrol is a large part of the buyer’s costs, encouraging the buyer to seek lower prices. (Boddy, 2008, p.95) Our products are considered needed in the countries that we operate and the customers will still be paying the price if it increases. That is because if one petrol company lowers the prices, the others do the same and vice versa. 5. RIVALRY The rivalry in the market is extremely high. As mentioned before, we are in an oligopoly market and the prices tend to be similar. The competition (Exxon Mobile, Royal Dutch Shell, Chevron Company, Total SA, ConocoPhillips, BP plc) is concentrated on promotion, advertising and product development, as are we. Also, the price is the sole basis for competition but us being in an oligopoly, the price competition may be restrained by total agreement or though the ‘’parallelism’’ of pricing decisions. (Grant, 2010, p. 73) There is only a small about of differentiation in this industry, which is why we identify, implement and market helpful new technologies. (bp.com, 2011) SOURCES: Boddy, D. 2008. Management: An Introduction. 4-th ed. Harlow : Financial Times Prentice Hall Grant. R. M. 2010. Contemporary Strategy Analysis. 2-nd ed. John Wiley & Sons LtdBp.com, 2011. Oil and gas exploration. [online] Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9021489&contentId=7039991 [Accessed 4 November 2011]Bp.com, 2011. Refining technology. [online] Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9017543&contentId=7031695 [Accessed 4 November 2011]Bp.com, 2011. Alternative energy. [online] Available at: http://www.bp.com/sectiongenericarticle800.do?categoryId=9036324&contentId=7067654 [Accessed 4 November 2011]
Stakeholders and current channelsEmployeesFormal one-to-one relationship between an employee and his/her manager is the main way in which BP and employees interact. Frequent one-to-one meetings are held annually to discuss the performance of the company, raise and sort out any issues or concerns the employees may have.Senior BP leaders engage with employees through town hall meetings and webcasts and often involve an effective and thorough Q&A session. E.g. Following the Deepwater Horizon accident in 2010, these meetings helped our employees stay updated on progress and developments.Internal BP Magazines are regularly published and given to staff to keep them informed of our progress throughout the year. These keep our employees aware of any changes we are making throughout the company, and provide another feedback channel. Local CommunitiesA set of group social and environmental practices introduced in 2010 laid the foundation of the community engagement principles our project teams must follow in applicable projects. We identify and contact all local stakeholders who have a legitimate interest in the project long before any physical work has started. These communications continue throughout the lifespan of a project. These local stakeholders include:- People likely to be affected by the project, including indigenous peoples.- People in communities adjacent to the project area.- Community based organizations and others.Other channels include newspapers, radio and the internet, posters, information centres, public meetings and workshops.CustomersWe use a variety of methods to engage with our consumers, including interviews, surveys, feedback tools, viral online communications, web-based interactive programmes, and marketing programmes.Following the Deepwater Horizon accident in 2010, we conducted interviews and other forms of customer research to help us understand our customers’ reactions to the spill and the BP’s response. This research helped inform various aspects of the response, from our retail programmes to the informational advertising used to keep the public informed of our progress in the Gulf.MediaBP keeps the media informed of the new developments in our company, response activities, and other newsworthy material through several channels including press conferences, press releases, direct contact with journalists via interviews with employees and surveys. Social media channels include Twitter and Facebook. Shareholders and analystsAs a stock-listed company, recognizing an importance and responsibility in keeping our shareholders and the investment community informed about our progress, is very important to our organization. Our commitment goes far beyond our statutory requirements as a listed company. E.g. Following the Deepwater Horizon accident in 2010, our communications strategy was to be as transparent as possible and keep the constant flow of new information. Regular announcements on the market were made, while senior executives, including the chairman and the group CEO held regular meetings with our shareholders and industry analysts.Other channels include face-to-face meetings and webcasts, and the website.Governments and regulatorsOur communication with governments and regulators largely depends on the legal and regulatory framework in each country. We regularly meet with governmental agencies to discuss our current and future projects in the concerned country. Channels include face-to-face meetings, collaborative projects and lobbying reports to ensure a constant flow of information between the parties.IndustryMembership and participation in regional and international organizations working to find and support collaborative energy solutions.Channels include regular meetings and webcasts.Non-governmental organizationsBP is committed to ongoing engagement with key stakeholders, including NGOs.New projects are regularly consulted with relevant local and international NGOs for insights into our plans. We communicate and listen to NGOs via regular meetings and consultations. SOURCES:BP Stakeholder Engagement, 2010. [online] Accessible at: http://www.bp.com/subsection.do?categoryId=9036693&contentId=7067445&nicam=vanity&redirect=www.bp.com/stakeholders [Accessed on 1/11/2011].
We are still recovering from last years crisis. The accident in the Gulf of Mexico in April 2010 lead to a widespread loss of trust in BP, and damaged our reputation tremendously. The last 18 months we have taken some huge measures to build a sustainable BP for the future; a future with strengthened safety, restored trust and long-term shareholder value.We have moved far. While the majority of our American market disapproved how we handled the Deep Water Horizon Crisis, they haven’t lost their trust in us (Gallup 2010). A majority, up 50% from last year, are now once again in favor of offshore drilling (Gallup 2011a), and believe we should continue our projects in the Gulf of Mexico. We are ready to change the conversation, and while safety and risk management continues to be a top priority and an integrated part of our corporate strategy, we feel confident, that we have now reached a point where we are prepared to change the conversation sensibly and empathetically Moving forward: The Energy Challenge Last week the earth’s population numbered 7 billion people, and by 2030, the world will consume 40% more energy than it does today. The consumption of renewable energy, in particular, continues to grow at a fast pace. For example, solar power grew by 73% in 2011 (BP, 2011). We are committed to supply the increasing demand for energy safely, responsibly and efficiently.We have a vital contribution to make here. That, is the energy challenge ; and the focus of our global business. Here, investment and innovation is the key. The last 5 years we have been investing over 80 billion dollars in oil, gas and alternative energy such as wind, solar and biofuels. Innovation is one of our key values and each year we put huge resources into driving innovation. As the public is getting more and more concerned with the global energy challenge, we wish to be a trustworthy source of information, within the broader discussion in our field of expertise – energy innovation and perspectives on climate change. Now, let’s look at our current media coverage, and where we stand in terms of share of voice… : Statistical Review of World Energy for 2011 : http://www.bp.com/sectiongenericarticle800.do?categoryId=9037134&contentId=7068677 )
Note: The media coverage research is based on our own estimates. The research was taken within a range of British newspapers and news channels within the period of 5th August – 5th November 2011.From a relative perspective, our share of voice in comparison to our main competitors, has remained high over the last three months.Our percentage SOV is substantially higher than theirs, in the areas where we most desire growth and increased awareness.We have invested heavily in innovation and alternative energy, differentiating our brand specifically in these areas. However, analyzing our specific media coverage (which we will cover on the next slide), there is an indication that our large SOV, is somewhat influenced by our company being UK based, and thus creating more headlines in the UK media- as our actual coverage in these areas are nowhere near as favorable. SOURCES: Nexis UK Database, 2011. Keyword search. [online] Accessible at:http://0-www.lexisnexis.com.emu.londonmet.ac.uk/uk/nexis/http://www.bbc.co.uk/news/business-15613162 [Accessed on 6 November 2011]
Note: The media coverage research is based on our own estimates. The research was taken within a range of British newspapers and news channels within the period of 30th August – 5th November 2011. The Deepwater Horizon disaster and its after effects (38 % media coverage) HEADLINESNegative value: (7 Sept.) Protesters continue to march on our US headquarters in Houston. Though this receives less media coverage than it has in the previous months. (14 Sept.) BP is again the measure of strong criticisms when another report on the Deepwater Horizon disaster is published. The report finds seven cases where "BP, and in some instances its contractors, violated regulations". It also comes up with five examples of where BP made "decisions that reduced costs and increased risk" as the well as running £37m over budget. (16 Sept.) BP is accused of under reporting the value of natural gas extracted from lands in New Mexico leased from Native Americans and the US government.BP pays £13m to US authorities to settle the allegations. (21 Sept.) Researchers from Auburn University find tar balls on the US Gulf coast. They link this to BP’s oil spill - and the impact of the spill continues. (28 Sept.) Sightings of oil are found in the Gulf of Mexico near the drill. The Coast Guard issues a warning to Transocean, the owner of the rig.HEADLINESPositive value: (17 Oct.) A settlement is made with Macondo partner Anadarko of all claims related to the Deepwater Horizon accident. (21 Oct.) US regulators approves exploration plans for drilling in the Gulf of Mexico again. With our tightened focus on safety this year, this is a huge milestone for us in winning back the trust of the authorities and our publics. MEDIA VALUE :Even though we had two very positive news stories (the settlement with Macondo and the drilling license) The DH disaster still has an overall bad impact on our reputation. We can conclude that our key message (our new more risk aware business and huge focus on safety) have not been picked up by the media, to a satisfactory extent. The failed joint-venture with Russian Rosneft (32 % media coverage) (30 Aug.) All hopes left for a joint venture with Russian Rosneft finally collapse 30 Aug 2011 when Rosneft signs a deal with Exxon Mobil. Besides missing a major oil exploration opportunity in the Arctic we also hear many grossly disappointed voices from our shareholders in the media. (31 Aug.) The case doesn’t get better when a group of minority investors decide to sue us and two of our executives on the board for a collective £8bn claiming that BP has frustrated the possible £10bn deal with Rosneft. (24 Oct.) The board of TNK-BP decides not to back the $13bn compensation claim against BP. The next hearing in the case is scheduled for November 11.MEDIA VALUE :The story gets a lot of media coverage through a range of media channels. The responds we get, especially from our shareholders, are very negative. The analyzing of the third quarter financial figures (16% media coverage) (Aug) BP receives low expectations from a number of independent analysts for the third quarter numbers, and the City expects third quarter numbers to be its weakest so far this year. (Aug) 30 shareholders announce that they are prepared to put more pressure on Bob Dudley if he is failing to articulate a stronger vision for the future BP at the annual meeting. (Aug) Some investors and analysts are even discussing a possible brake up of the company. Bob Dudley refutes all talk of a potential break-up of BP. (25 Oct.) The third quarter financial figures turn out to be stronger than many had expected. We are increasing our asset disposal program to $45bn from $30bn. We expect our cash flow to increase by 50% between now and 2014. (25 Oct.) After the announcement we receive positive feedback from a number of prominent analysts and investors welcoming the new confidence, optimism and future targets. Shares are rising. (26 Oct.) From some media though, Bob Dudley is being criticized for stressing the latest positive financial results. With phrases like “a turning point for BP” he is accused of being “insensible” and of “rushing a sense of normality back to BP, when there is still a long way to go” (Guardian). MEDIA VALUE :After the annual meeting we receive positive feedback from especially one stakeholder group; our shareholders, investors and analysts. The media picks up our key message – our positive financial results and strong new vision for the future of BP. New investments and exploration contracts (8 % media coverage) (13 Oct.) BP, together with our partners Shell, ConocoPhillips and Chevron win the government’s approval for a £4.5bn oil field investment in the Shetland Islands. The development will provide hundreds of UK jobs in engineering, drilling and in oilfield services. This receives a fair amount of positive press. (Oct.) A $7.2bn production deal is made with Reliance Industries in India. Same month we also sign new exploration contracts in Libya and Brazil. MEDIA VALUE :Our key messages regarding our efforts in new investments and exploration contracts gets picked up by the media – even though we could have wished for more coverage in this area. Other subjects (5 % media coverage) Innovations and alternative energy (1 % media coverage) (27 Oct.) BP signs a wind turbine contract with GE for 560 megawatts. MEDIA VALUE :The little amount of media coverage we get in this field is not satisfying at all. SOURCES:BBC News, 2011. [online] Accessible at: http://www.bbc.co.uk/news/business-15613162 [Accessed on 6 November 2011] BP Press Room, 2011. [online] Accessible at: http://www.bp.com/articlelisting.do?categoryId=2012968&contentId=2006635 [Accessed on 6 November 2011) Nexis UK Database, 2011. Keyword search. [online] Accessible at:http://0-www.lexisnexis.com.emu.londonmet.ac.uk/uk/nexis/http://www.bbc.co.uk/news/business-15613162 [Accessed on 6 November 2011] The Guardian, 2011. [online] Accessible at: http://www.guardian.co.uk/business/bp [Accessed on 6 November 2011]The Independent, 2011. [online] Accessible at: http://www.independent.co.uk/news/business/news/bp [Accessed on 6 November 2011]The Telegraph, 2011. [online] Accessible at: http://www.telegraph.co.uk/finance/newsbysector/epic/bpdot/ [Accessed on 6 November 2011]
We have reached a clear turning point, challenged by the Deepwater Horizon Accident, which left us a changed company.2011 has been a year of consolidation, and we have placed an increased emphasis on value over volume, as we have sharpened our strategy and reshaped the company for growth. With our refocused strategy, we are working to become more responsive and more competitive.We are moving quickly to address out weakness and build on our strengths, not hesitating to go beyond the conventional business model of an international oil company.We believe that differentiation is what sets us apart from other companies in the industry, and we are therefore not afraid to develop innovative and new approaches which redefine the model, setting our brand image apart.We are different. We are strong and safe. We are innovative and intelligent. We care about tomorrow. Differentiation is how we compete- from our employees, to our products, financial integrity, performance and long-term goals; we are different. We want to continue being a leader in high-quality hydrocarbons, while developing the innovative and intelligent options of tomorrow. Our low carbon resources are central to this long-term strategy.We are able to meet the world growing need for energy, but we can only do this if we have the trust of society. Strategy“We are determined that BP will be a safer, more risk-aware business. We will deliver on our commitments from the Gulf Coast incident and work hard to earn back the trust in our operations. We will rebuild value for our shareholders by re-establishing our competitive position within the sector by playing our part in meeting the world’s growing demand for energy, as well as participating in the transition to a low-carbon Economy” Mission“BP’s mission for 2011 and beyond is to grow value for our shareholders in a way that is safe and sustainable. 2011 will be a year of consolidation in which we focus on our number one priority – safety – and strengthen the drivers of long-term performance, such as risk management, capability and relationships. We will invest in areas where we excel, such as exploration, and we will enter into new types of relationships with partners” Now, let’s have a look at our values which determine how we stand apart from the rest, and why we should be trusted… SOURCESBP,2011. Dudley Sets out Priorities for Stronger, Safer BP. BP Press Release. 25/10/2011. [online] Available at: http://www.bp.com/extendedgenericarticle.do?categoryId=2012968&contentId=7071741 Accessed on 09/11/2011. BP, 2011a. Dudley Sets out Priorities for Stronger, Safer BP. BP Press Release. 25/10/2011. [online] Available at: http://www.bp.com/extendedgenericarticle.do?categoryId=2012968&contentId=7071741 [Accessed on 09/11/2011] BP and Technology, 2011. [online] Available at: http://www.bp.com/productlanding.do?categoryId=9025115&contentId=7047794 Accessed on 09/11/2011.BP Summary Review,2010. [online] Available at: http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Summary_Review_2010.pdf Accessed on 09/11/2011 Accessed on 09/11/2011.BP Summary Review, 2010. [online] Available at: http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/common_assets/downloads/pdf/BP_Summary_Review_2010.pdf Accessed on 09/11/2011 BP, 2011b. Renewable Energy. [online] Available at: http://www.bp.com/subsection.do?categoryId=9037155&contentId=7068627 Gallup, 2010. [online] Oil Spill in the Gulf of Mexico. [online] Available at: http://www.gallup.com/poll/140978/Oil-Spill-Gulf-Mexico.aspx[Accessed on 09/11/2011] Gallup, 2011a. U.S. Oil Drilling Gains Favour with Americans. 14/03/2011. [online] Available at: http://www.gallup.com/poll/146615/oil-drilling-gains-favor-americans.aspx[Accessed on 09/11/2011] Gallup, 2011b. In U.S., Expanding Energy Output Still Trumps Green Concerns. 16/04/2011. [online] Available at: http://www.gallup.com/poll/146651/Expanding-Energy-Output-Trumps-Green-Concerns.aspx[Accessed on 09/11/2011]
BP PR Strategy Brief
PR STRATEGY BRIEF
WHO WE ARE “better people better products beyond petroleum”
HOW WE COMPETE Oil – Discovery, Extraction, Refinery, Storage & Distribution BP also lays great importance on product Gas - Discovery, Extraction,Refinery, Storage & Distribution differentiation such as offering Regular Unleaded petrol and BP Ultimate Unleaded petrolAlternative Energy – Development & Distribution Bio Chemicals – Development & Distribution
PORTER’S FIVE FORCES •LOW•LOW THREAT OF •HIGH BARRIERS OF ENTRY•WE SOURCE OUR OWN POTENTIAL ENTRANTS IN OLIGOPOLY INDUSTRYOIL AND TRACK IT BARGAINING INDUSTRY BARGAINING POWER OF SUPPLIERS RIVALRY POWER OF BUYERS •LOW •PRODUCTS NEEDED – CUSTOMERS STILL PAYING THE PRICE•EXTREMELY HIGH THREAT OF•DIFFERENTIATING SUBSTITUTE PRODUCTFROM COMPETITORS OR SERVICE •LOW •GROWING TENDENCY TO BUY SUBSTITUTES TO OIL
STAKEHOLDERS Internal External ChannelsEmployees Internal communications channels: Intranet sites, targeted e-mail, team meetings, surveys and affinity groups. Local communities Consultation activities (interviews, surveys and polls), local and mass media. Customers Global consumer satisfaction programme, focus groups, feedback channels via the website, advertising and marketing. Media Press conferences, press releases, interviews and surveys, social media channels (Twitter, Facebook). Shareholders and Reporting documents (annual report, analysts accounts, annual sustainability report), and published corporate reports. Annual general meetings and Q&A sessions. Governments and Lobbying and advocacy, consulting meetings, regulators product-sharing contracts. Industry Meetings, collaborative projects. E.g. UK Renewable Energy Association, UK Emissions Trading Group. Non-governmental Continuous dialogue and meetings, Organizations consultation on new projects.
STAKEHOLDER MAPPING MATRIX MANAGE CLOSELY: Local KEEP SATISFIED: communities, customers, non- Governments, regulators, shar governmental eholders & analysts organisations, the mediaPOWER MONITOR: The Industry KEEP INFORMED: Employees INTEREST
WHERE WE ARE NOWStill recovering from Huge focus on We are ready tolast years crisis strengthening safety, change the restore trust and building conversation long term shareholder • The tragic accident in value • The last 18 months we • While safety and risk the Gulf of Mexico in have taken some management April 2010 lead to a huge measures to continues to be a top widespread loss of build a sustainable BP priority and an trust in BP and for the integrated part of our damaged our future, strengthen corporate reputation safety, restore trust strategy, we feel tremendously. and build long term confident, that we shareholder value. have now reached a point where we are ready to change the conversation sensibly and empathically. The global energy challenge Investment and innovations the key •Last week the earth’s population •The last 5 years we have been numbered 7 billion people and investing over 80 billion dollars in by 2030, the world will consume oil, gas and alternative energy 40% more energy than it does such as wind, solar and bio-fuels. today. We are committed to Innovation is one of our key supply the increasing demand for values and each year we put energy safely, responsibly and huge resources into driving efficiently. Thats the energy innovation. challenge – and the focus of our global business.
CORPORATE STRATEGY We are determined that BP will BP’s mission for 2011 and BP is investing more and moreSTRATEGY MISSION GREEN be a safer, more risk-aware beyond is to grow value for our money into the development of business. shareholders in a alternative energies. BP’s We will deliver on our way that is safe and alternative energy business is commitments from the Gulf sustainable. 2011 will be a focused on biofuels, wind and Coast incident and year of consolidation in which solar, along with demonstration projects and technology work hard to earn back the we focus on our number one development in carbon capture trust in our operations. priority – safety – and and storage. We believe these We will rebuild value for our strengthen the drivers of have the potential to be a shareholders by re- long-term performance, such material source of low-carbon establishing our competitive as risk management, energy, and they are aligned capability and relationships. with BP’s core capabilities. position within the sector by playing our part in meeting the We will invest in areas where world’s growing we excel, such as exploration, demand for energy, as well as and we will enter participating in the transition into new types of relationships to a low-carbon with partners. Economy.
VALUES ProgressiveWe believe in the principle of mutual advantage and build productive relationships with Responsible each other, our partners and our customers. We are committed to the safety and development of our people and the communities and societies in which we operate. We aim for Performance driven no accidents, no harm to people and We deliver on our promises no damage to the environment. through continuous improvement and safe reliable operations. Innovative We push boundaries today and create tomorrow’s breakthroughs through our people and technology.
WHERE WE WANT TO BE Increased awareness Attitude on change with alternative huge energy Sustain long concerns for term innovations the shareholder environmentRestore trust value we will meetwith a strong the globalfocus on energysafety and risk challengemanagement