Performance Analysis Assignment : BP plc. And Caltex
12 Pages3249 Words60 Views
Added on 2021-05-30
Performance Analysis Assignment : BP plc. And Caltex
Added on 2021-05-30
ShareRelated Documents
Running Head: Performance AnalysisThe Analysis on the Performance of BP and CaltexBy (Name)(Tutor)(University)(Date)
Performance Analysis2Executive SummaryThe oil industry is the world’s largest industry in dollar value as its output is widely and variedly used in households, institutions, basically every aspect of life. It has seen shifts in its operations to deep-water drilling, introduction of drillship and a global network of tankers and pipelines. The industry is mainly comprised of national corporations with few multinationals. In this paper we look at BP plc. And Caltex their current performance. The industry is faced with many factors which tend to one way or another influence their operations and performance (political, social, economic). We however focus on the economic aspect in this case. They include interest rates levels, supply and demand factor, costs, tax levels and the economic state (financial crisis). This paper also looks at the financials of BP and Caltex companies to evaluate their performance.For the financial year 2017 Caltex is seen to perform better than BP. Multinationals are advised to conduct careful analysis when setting up operations abroad and to build sustainable relationships with international oil and gas partners as they run the nationalization risk.
Performance Analysis3Table of ContentsExecutive Summary.........................................................................................................................2History.............................................................................................................................................5BP Plc...........................................................................................................................................5Caltex...........................................................................................................................................6Top Down Analysis.........................................................................................................................7Bottom up Analysis.........................................................................................................................8Summary and Recommendations..................................................................................................11Bibliography..................................................................................................................................12
Performance Analysis4The Analysis on the Performance of BP and CaltexIntroductionThe oil industry entails the exploration, extraction, refining, transporting and marketing of petroleum products. Fuel oil and petrol is the largest volume produced from the above process. Over 80% of the world’s oil reserves are controlled by national oil companies. Of the top 20 largest oil companies 15 are national companies i.e. are state owned. The seven largest (super majors) international oil companies in order are; Exxon-Mobil, Royal Dutch Shell, BP/ Amoco, Total, Chevron and Conoco Phillips. These are publicly traded oil companies. 30 billion barrels of oil industry products are consumed every year, making this industry the world’s largestin dollar value. Of the total oil produced in 2007 the USA consumed 25%. (Anon, 2018).The use of oil (unrefined) can be traced back to the early human history where it was prominently used for fires and in warfare. Humans’ oil usage has evolved from the use of whale oil for lighting in the 19th century and well into the 20th century, where greater industrialization necessitated the use of coal and wood to complement whale oil as energy sources. The demand for petroleum increased in the 20th century after it was discovered that kerosene could be extracted from crude oil, (Halliday, 2018). The popularity of kerosene lamps led to the growth ofthe oil refinery sector. Americans first oil refinery was established in 1853 by Samuel Kier. The first oil tanker, Zoroaster, was commissioned in 1878 by Ludvig Nobel on Branobel Company and plied the Caspian Sea. Up until the 1st quarter of the 10th century, Russia was, the leading oil producer. It was however overtook by the USA. After WW2, the Middle East took the lead in oilproduction from the USA. New techniques have been adopted in the oil industry ever since such as deep water drilling, introduction of drill ships and a global network of tankers and pipelines. However despite the necessity and importance of the oil industry it remains to be a source of great environmental pollutant in all its stages leading to air pollution, acid rain, ailments etc.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Understanding Oil and Gas Spring 2017lg...
|7
|2015
|142
Competitive Strategy Assignment : BP Plclg...
|13
|3459
|41
Performance Analysis of Caltex Australia Limitedlg...
|22
|4873
|197
Business Environment Assignment - British Petroleum PLClg...
|16
|4423
|344
Global Supply Chain Strategies for British Petroleum and Marks & Spencerlg...
|17
|3970
|185
Risk Management and Innovation in BP PLClg...
|14
|3203
|392