BP is also BO (Big Oil). It is the world's third largest integrated oil concern, behind Exxon Mobil and Royal Dutch Shell. The company, which was formed in 1998 from the merger of British Petroleum and Amoco, grew by buying Atlantic Richfield Company. BP has proved reserves of 17.8 billion barrels of oil equivalent, including large holdings in Alaska. BP is the largest oil and gas producer in the US and also a top refiner, processing about 3.8 million barrels of crude oil per day. BP operates more than 25,000 gas stations worldwide. With the success of its BP Solar International subsidiary, BP has created an Alternative Energy unit with an initial investment of $1.8 billion to develop green energy sources.
In 2007 the company sold its Coryton refinery in the UK to Petroplus Holdings for $1.4 billion. That year BP acquired Chevron's 31% stake in a Netherlands-based refinery and other assets for $900 million.
In 2007 BP's long-term chief executive John Browne was forced to step down over a personal scandal and was replaced by BP veteran Tony Hayward. That year the company announced a major restructuring with a focus on core divisions Exploration & Production and Refining & Marketing, and a new Alternative Energy unit dedicated to solar power, wind energy, and carbon capture technology.
In 2007 BP agreed to pay US authorities $373.5 million in fines relating to the 2005 Texas City refinery explosion, the 2006 Alaska oil spill and a propane price-fixing scandal.
In 2008 the company temporarily shut down its oil pipeline in Georgia following that country's armed conflict with Russia. That year the company signed a deal with Enbridge to pipe oil sands crude from Canada to the Texas Gulf Coast. Enbridge and BP with spend up to $2 billion to expand existing pipelines and build new connections to deliver up to 250,000 barrels a day to Gulf Coast refiners by 2012.
BP is making good progress in its drive to improve performance, chief executive Tony Hayward said today as the company announced underlying profits for the third quarter of 2008 of $8.9 billion, excluding non-operating items and fair value accounting effects.
Despite some operational upsets, including hurricane damage in the Gulf of Mexico and interruptions to output from its Caspian fields, BP’s oil and gas production was slightly up on the same period of last year and the underlying result for the refining and marketing business rose by 70 per cent.
BP and Princeton Renew Partnership To Tackle Climate Problem
Release date: 15 October 2008
BP has committed to a five-year renewal of a joint research partnership with Princeton University that identifies ways of tackling the world's climate problem. It will support Princeton to at least its current level of funding for the years 2011 to 2015.
Chesapeake Energy Corporation and BP America Announce Fayetteville Shale Joint Venture
Release date: 02 September 2008
OKLAHOMA CITY, OK AND HOUSTON, TX, SEPTEMBER 2, 2008 - Chesapeake Energy Corporation (NYSE:CHK) and BP America (NYSE:BP) today announced the execution of a Letter of Intent for a joint venture whereby BP will acquire a 25% interest in Chesapeake's Fayetteville Shale assets in Arkansas for $1.9 billion.
The assets have current daily net production of approximately 180 million cubic feet of natural gas equivalent and include approximately 540,000 net acres of leasehold which the companies believe could support the drilling of up to 6,700 future horizontal wells. As a result of the transaction, BP will own approximately 135,000 net acres of this leasehold and Chesapeake will own approximately 405,000 net acres.