This text discusses the management structure of BP, roles and responsibilities within any two divisions of the company as well as how the company is contributing to the local community.
BP (British Petroleum) is one of the largest and most dominant oil and gas companies in the world by market capitalization and revenue. Its business in the energy industry included exploration of fossil fuels, production, and refining, petrochemicals, distribution and marketing. Although its primary dealings are in the fossil fuels sector, the company has recently developed interests in renewable sources of energy such as wind power and biofuels.
The corporation, whose headquarters are located in London, is rated among the ‘supermajor’ in the global energy sector. BP was founded in the early 20th century as the Anglo Persian Oil Company. It underwent several challenges in the first half of the century before it was acquired by the United Kingdom government, which led to a change of name to British Petroleum (BP). Today, it has a presence throughout the world. BP is mainly present in geographical locations where fossil fuels exist as well as the strategic location for refining, transporting and marketing its products.
Frequently asked questions
What is the structure of BP's management?
BP's management structure consists of a board of directors accountable to the company's owners, composed of thirteen members including a chairman, executive members, non-executive members, and an independent director. The executive management, led by the CEO and CFO, reports to the board, overseeing the day-to-day operations.
What are BP's main operating divisions?
BP operates through two major divisions: Upstream and Downstream. The Upstream division focuses on exploration, extraction, and transportation of fossil fuels. The Downstream division handles manufacturing, blending, and marketing of BP products, including fuels, lubricants, and petrochemicals. A third division focuses on renewable energy sources.
What are the responsibilities of the Upstream division?
The Upstream division's responsibilities include exploration for oil and gas, field development and production, transportation, and storage of raw materials. They also oversee processes such as maintaining key portfolios in major fossil fuels basins and ensuring operational safety.
What does the Downstream division do?
The Downstream division focuses on the manufacturing and blending processes, as well as the marketing of BP's products. This includes refining crude oil into fuels like gasoline and diesel, managing the supply chain, engaging in retail business and trading activities, value addition processes, and marketing petrochemicals.
How does BP contribute to the local community?
BP contributes to local communities through employment opportunities, and undertakes social and environmental activities, and is committed to ethical human resources management practices. These initiatives include local development programs such as education, disaster relief, donations to charity, and working with local indigenous people to promote their culture.
What environmental initiatives has BP taken?
BP has reiterated its commitment to contributing to a low-carbon future. Its environmental initiatives include preparedness for oil spills and related accidents, collaboration in dealing with climate change and greenhouse gas emissions, water management, and addressing unethical practices like hydraulic fracturing.
- Quote paper
- Selina Kolls (Author), 2016, Introduction to Oil and Gas Environment. The Management Structure of BP, Munich, GRIN Verlag, https://www.grin.com/document/337841