Competitive Analysis : Shell Company

Simply put, BP pretended like there wasn’t a problem in the way they were handling things, and when they came under fire they would lie about it or put the blame on someone else. What they did was they tried to control the message the public was giving them via a method known as ‘corporate greenwashing’, which is a way of giving off the perception that a company’s business model is environmentally friendly, so it can be thought of as putting more money towards advertising how green a company is instead of using it to pursue such practices that would make it so. BP gambled on this and ultimately lost when the Oil Spill occurred; rather than actively doing something about it, they blamed subordinates and contractors to try and take pressure off of themselves while simultaneously showing minimal regard to the impact that their mistake had on the environment. They only made the problem of them getting a bad reputation even worse when they weren’t listening to the public and ultimately paid the price, losing $80 billion and an additional $1.3 billion on criminal

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

Conoco has the best strategy. They have mitigated a lot of the risk and have gotten into the Russian Oil game. With their financial structure, partnering agreements and political backing Conoco may see some losses and volatility in the near term (e.g. I think all companies will suffer the effects and volatility of the Russian Tax code), but by being there and working with the Russian government their long-term outlook for value has them well positioned.

There are very few aspects of how a company behaves as a corporate citizen that do not apply to a company of the size and nature of BP. The most significant of these are the sheer environmental impact - not simply of the extraction of oil and the energy use of BP's own operation, but more significantly of the impact on climate change of the actual use of all the oil by BP's customers. The state of current scientific evidence raises serious question marks over whether or not human society can actually afford to burn all the hydrocarbons whose existence we have already identified - never mind potential future discoveries. Twenty years ago, people worried that one day the oil would run out. Now, it is the case that the real issue has been identified as one of emissions.

The Deepwater Horizon Oil Spill occurred on April 20, 2010 in the Gulf of Mexico. This oil spill was the largest spill in history in front of the Exxon Valdez oil spill of 1989. This oil spill released about 4.9 million barrels of oil into the ocean. This spill not only wreck havoc on the marine life but also the economic players that depended on ocean such as fisherman, tourism, and offshore drilling located along the gulf coast. Along will the spill the oil rig which was named Deepwater Horizon also went up in flames. This proved that the issue went far beyond just an oil rig that blew a line. Since this oil spill had drastic impacts all along the coast, BP which was the most liable for this incident faced criminal charges based on what happened. BP which knew the risks of deep ocean drilling failed to take the necessary safety procedures to reduce the risks of such incident occurring, thus was the reasoning behind placing most of the fault on them and not the other companies. The lack of regulatory oversight led to the issues and cost-cutting procedures opened the rig up to possible malfunctions like the one that occurred. During the spill into the gulf, BP sealed the well with cement which seemed to stop a majority of the oil from escaping the well. BP also recognized that the well was “dead” which was proven wrong when scientists still could conclude was leaking minor amounts of oil into the ocean. This spill not only proved to be harmful to the environment but also

Some internal weaknesses are also existed which could influence the company. For the oil and gas company, the main problems refer to pollution and safety. BP has involved in the largest environment problem which is caused by the spill

The BP Oil Spill An Introductory Background - One of the most controversial ecological disasters in recent history focused on multinational British Petroleum and their Gulf of Mexico Operations. The Deepwater Oil Disaster began on April 20, 2010 with an explosion on the Deepwater Horizon Oil platform, killing 11, injuring 17. It was not until July 15th, however, that the leak was stopped by capping the wellhead, after releasing almost 5 million barrels (206 million gallons) of crude oil, or 53,000 barrels per day into the Gulf of Mexico. It was not until September 19th that the relief well process was complete and the U.S. Government, EPA, and Coast Guard agencies declared the well breach effectively stopped (Cavnar, 2010).

It is significant to note that BP made a total loss of $3,324 million after deducting the cost incurred in that year from the total sales and operating revenues. The loss is largely attributed to the infamous Gulf of Mexico Oil Spill on the 20 April 2010. The incident was triggered by a well blowout in the Gulf of Mexico, which ultimately led to an extensive oil spill. BP, however, responded quickly by funding the oil spill cleanup and setting up the Gulf Coast Restoration Organization (GCRO) that specializes in carrying oil spill cleanup operations, investigations and public reporting (BP p.l.c. 2012c). In the aftermath, BP has suffered considerably in financial performance. Figure 2.1 shows BP’s share price performance through the period of

BP has had a long history of ethical and legal violations because BP chose to put profits above all else. In the past twenty years, BP subsidiaries were convicted of environmental crimes in Texas and Alaska. In addition, BP received the biggest fine in US history regarding safety violations. Although BP accepted responsibility, their record showed questionable and illegal behavior for twenty years. One of BP's major issues happened in a Texas refinery close to Galveston in 2005 (Jennings, 2009). This explosion took the lives of fifteen workers and injured five hundred people and caused residents nearby to become sheltered in their homes (Jennings, 2009). The US Chemical Safety and Hazard Investigation board concluded that BP had

These three companies have all been created by many purchases and mergers over the last hundred years and must be described to have a better understanding. It was the demand for low oil prices, convenience, and superior quality that led to the companies tremendous growth in the last century.

On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a result, a huge loss of money and life was caused and affected serious environmental damage to wild animals and water pollution. BP was accused of their irresponsibility that it took 87 days before the well was closed and sealed. BP’s shares

Besides, the organization has upgraded its technological capacity through the projects and innovation section of its business. In this word, there are few oil companies and most of the oil and natural business is controlled by powerful organizations. The large amount of capital investment tend to remove a lot of supplier of rigs, pipeline, refining and other. even the suppliers product are important info to the oil organizations, the oil organizations still have critical control over smaller drilling and support

Shell is a global group of energy and petrochemical companies. Their operations are divided into four businesses, which are upstream, downstream, integrated gas, and projects and technology. Upstream focuses on exploration of new liquids and natural gas reserves. Integrated gas focuses on liquefying natural gas (LNG) and converting gas to liquids. The downstream division turns crude oil into a range of refined products, which are then moved and marketed around the world for use. Projects and technology is responsible for delivering new development projects (“What We Do”).

Competition in the oil industry is separated by about 10 cents here in the US. The difference between ARCCO, Shell, Mobil, and Chevron, is between 1 and 10 cents. Oil companies don’t compete with each other. With gas prices constantly fluctuating towards the $3 mark, there is little room to raise prices. Consumers will not pay 25 cents more for a gallon of gas. Although Chevron Texaco and ExxonMobil make have a slight difference in price at the pump, the will not try to do anything to rock the boat.

Exxon Mobil Corporation is one of the world’s largest global oil and gas corporations. The Exxon Mobil brand is known around the world and is a leader in delivering its product to consumers. It is a leader in technology and strives for excellence.