BP Global (BP) SWOT Analysis

BP Global (BP) SWOT Analysis

Strengths

Geographically Diverse Business Geographically diverse business and revenue should help shield the business from shocks in any one...
Extensive in-house Petroleum/Engineering Expertise This is the opposite of what exists at BP. BP has farmed out or contracted the bulk of their...
Incremental increase in supply According to the Economist, shale drillers can speed up production or wind it down, just as an...
Superior Oil-Related Technology Oil production related technology can help maintain revenue and profits by giving the controlling...
Government Oil Concessions Government contracts are difficult to win in the oil industry. Knowledge of local governments and...
Best in Class Explorer BP's position as the best in class oil explorer, means they can explorer and find oil at a lower...
Focused on Conventional Oil Conventional oil is less costly to produce, so it offers higher margins for oil producers. This is...
Large Producer in Gulf of Mexico BP is the largest producer of oil in the Gulf of Mexico. This strength brings economies of scale to...
Complex Refiner When oil companies possess the ability to refine lower grade oil feed stocks, this results in higher...

Weaknesses

Negative Public Perception Some industries have a negative public perception, because actions in the past have fed the...
Corporate Governance in safety Procedure Safety whistle blowers sacked. Disintegrated communication of Risk infos to top management.
Hostile Foreign Governments Foreign governments are hostile to international companies that make lots of profits off the...
Political Risk for Oil Companies Political risk affects all companies to a certain degree, but oil companies are frequently targeted...
Declining Oil Reserves Energy reserves decreasing without new replacements. Could lead to shrinking supply and less...

Opportunities

Energy Independence Calls for energy independence may increase spending to achieve this goal, which will increase...
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Energy Companies Do Well in Inflationary Environment inflation hits consumers, they can rarely afford to cuts down in energy consumption. This means that...
Emerging Markets Demand from emerging markets is helping growth and margins. Emerging markets create new...
European Exploration of Shale Gas Numerous natural gas related companies are fanning out across Europe to find gas trapped in shale....
Iraq Oil Projects Iraq is one of the few places in the world that foreign oil companies can still win concessions to...
Tony Hayward New management team led by Tony Hayward has the potential to increase revenue and profits has his...
High Quality Oil Higher quality oil means less refining and cost go into it's production and refinement. Companies...
Fuel Prices Rising fuel prices increase revenue and margins. They also encourage customers to change their...

Threats

Gulf Oil Spill Multi-billion dollar oil spill will lead to years of litigation and environmental problems
Fuel Economy Regulation US and EU governments are planning to regulate fuel economy standards, which would put additional...
International Market The international market offers great sales and profits. The economies of scale from higher...
Russian Oil Joint Venture - TNK-BP The BP joint venture in Russia has a high degree of political and economic risk associated with...
Political Risk Political risk increases the cost of doing business, especially in foreign territories. This risk...
Volatile Oil Industry Volatile industries increase the risk to company projections and valuation. When projections are...
Political Action Windfall tax and other politically-motivated issues may increase risk to future earnings.
Unstable governments Unstable government in oil producing countries could make the inventory supplies volatile.
Windfall Tax Political action. Windfall tax for very high profits. Could decrease cash flow if taxes are...
Alternative Energy Long term threat could be investment in alternative energy if fuel prices stay high enough for...
Volatile Industry Volatile industries increase the risk to company projections and valuation. When projections are...

BP Global (BP) SWOT Analysis Profile

BP Global plc (BP, formerly known as British Petroleum) is unique among petroleum companies in that it also engages in the production and distribution of aluminum coils for the beverage industry. Appearing in the marketplace under two well known brand names; BP and AMOCO the company offers its crude and refined fuel products (including the byproducts) in a host of venues across the globe. Their products are marketed to both wholesale and retail customers. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

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SWOT Conclusion

Strengths + Opportunities = 25

Threats + Weaknesses = 20

Near term problems still affect BP. Over the long term, they have better potential. … A good defense against threats lowers the risks that profits will decrease.

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