Beruflich Dokumente
Kultur Dokumente
Submitted To:
Mr. C. Coker
Course Instructor
Advanced Professional Diploma in Management Studies
City of London College
Submitted By:
Md. Keiser Hossain (BEN)
Roll – 00205970
January 2009
Advanced Professional Diploma in Management Studies
City of London College
Date of Submission: 5th June 2009
Table of Contents
Focus Page
No
Introduction- History 03-04
of Petroleum
References 18
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INTRODUCTION- HISTORY OF PETROLEUM
Petroleum, in one form or another, is not a recent discovery. More than four
thousand years ago, according to Herodotus and confirmed by Diodorus Siculus,
asphalt was employed in the construction of the walls and towers of Babylon;
there were oil pits near Ardericca (near Babylon), and a pitch spring on Zacynthus.
Great quantities of it were found on the banks of the river Issus, one of the
tributaries of the Euphrates. Ancient Persian tablets indicate the medicinal and
lighting uses of petroleum in the upper levels of their society.
Oil was exploited in the Roman province of Dacia, now in Romania, where it was
called picula. The earliest known oil wells were drilled in China in 347 CE or
earlier. They had depths of up to about 800 feet (240 m) and were drilled using
bits attached to bamboo poles. The oil was burned to evaporate brine and produce
salt. By the 10th century, extensive bamboo pipelines connected oil wells with salt
springs. The ancient records of China and Japan are said to contain many allusions
to the use of natural gas for lighting and heating. Petroleum was known as
burning water in Japan in the 7th century. In his book Dream Pool Essays written
in 1088, the polymathic scientist and statesman Shen Kuo of the Song Dynasty
coined the word 石 油 (Shíyóu, literally "rock oil") for petroleum, which remains
the term used in contemporary Chinese.
The first streets of Baghdad were paved with tar, derived from petroleum that
became accessible from natural fields in the region. In the 9th century, oil fields
were exploited in the area around modern Baku, Azerbaijan, to produce naphtha.
These fields were described by the Arab geographer Abu al-Hasan 'Alī al-Mas'ūdī in
the 10th century, and by Marco Polo in the 13th century, who described the
output of those wells as hundreds of shiploads. Petroleum was distilled by the
Persian alchemist Muhammad ibn Zakarīya Rāzi (Rhazes) in the 9th century,
producing chemicals such as kerosene in the alembic (al-ambiq), and which was
mainly used for kerosene lamps. Arab and Persian chemists also distilled crude oil
in order to produce flammable products for military purposes. Through Islamic
Spain, distillation became available in Western Europe by the 12th century. It has
also been present in Romania since the 13th century, being recorded as păcură.
The earliest mention of petroleum in the Americas occurs in Sir Walter Raleigh's
account of the Trinidad Pitch Lake in 1595; whilst thirty-seven years later, the
account of a visit of a Franciscan, Joseph de la Roche d'Allion, to the oil springs of
New York was published in Sagard's Histoire du Canada. A Russian traveller, Peter
Kalm, in his work on America published in 1748 showed on a map the oil springs of
Pennsylvania.
In 1710 or 1711 (sources vary) the Russian-born Swiss physician and Greek teacher
Eyrini d’Eyrinis (also spelled as Eirini d'Eirinis) discovered asphaltum at Val-de-
Travers, (Neuchâtel). He established a bitumen mine de la Presta there in 1719
that operated until 1986.
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Oil sands were mined from 1745 in Merkwiller-Pechelbronn, Alsace under the
direction of Louis Pierre Ancillon de la Sablonnière, by special appointment of
Louis XV. The Pechelbronn oil field was active until 1970, and was the birth place
of companies like Antar and Schlumberger. The first modern refinery was built
there in 1857.
The modern history of petroleum began in 1846 with the discovery of the process
of refining kerosene from coal by Nova Scotian Abraham Pineo Gesner. Ignacy
Łukasiewicz improved Gesner's method to develop a means of refining kerosene
from the more readily available "rock oil" ("petr-oleum") seeps in 1852 and the
first rock oil mine was built in Bóbrka, near Krosno in Galicia(Poland/Ukraine) in
the following year. In 1854, Benjamin Silliman, a science professor at Yale
University in New Haven, was the first to fractionate petroleum by distillation.
These discoveries rapidly spread around the world, and Meerzoeff built the first
Russian refinery in the mature oil fields at Baku in 1861. At that time Baku
produced about 90% of the world's oil.
The first commercial oil well in Romania was drilled in 1857, and the world's first
oil refinery opened at Ploiesti, Romania being the first country in the world with a
crude oil output officially recorded in international statistics, namely 275 tonnes.
The first oil well in North America was in Oil Springs, Ontario, Canada in 1858,
dug by James Miller Williams. The US petroleum industry began with Edwin
Drake's drilling of a 69-foot (21 m) oil well in 1859, on Oil Creek near Titusville,
Pennsylvania, for the Seneca Oil Company (originally yielding 25 barrels per day
(4.0 m³/d), by the end of the year output was at the rate of 15 barrels per day
(2.4 m³/d)). See also the Pennsylvanian oil rush The industry grew through the
1800s, driven by the demand for kerosene and oil lamps. It became a major
national concern in the early part of the 20th century; the introduction of the
internal combustion engine provided a demand that has largely sustained the
industry to this day. Early "local" finds like those in Pennsylvania and Ontario were
quickly outpaced by demand, leading to "oil booms" in Texas, Oklahoma, and
California.
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TASK ONE
BP is one of the world's largest energy companies, providing its customers with
fuel for transportation, energy for heat and light, retail services and
petrochemicals products for everyday items
Bp’s history is full of discoveries, starting in 1908 with oil found in a rugged part
of Persia after a long and difficult search. Since then, discoveries large and small
(and sometimes just in the nick of time) have fuelled our progress.
In the story, you may make a few discoveries of your own. Winston Churchill gives
a rousing speech. The Smurfs cause a traffic jam. Our employees help construct a
giant spool, build the world’s largest deepwater pipeline and bring solar power to
remote villages in the Philippines.
To find oil in Persia, George Reynolds and his caravan of explorers had lived
through seven years of harsh heat, gastric illnesses and disappointments. The next
seven years would be no less difficult for the Anglo-Persian Oil Company, which
would one day become BP.
The company was incorporated in 1909 in England and Wales and changed its name
to BP p.l.c. in 2001. BP is one of the world’s leading oil companies on the basis of
market capitalization and proved reserves. Our worldwide headquarters is located
at 1 St James’s Square, London SW1Y 4PD, UK
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required integration and co-ordination of group activities and represents BP to
external parties.
The Mission Statement of British Petroleum
To translate these into guides for practical action, we build on them in our group
values. By bringing together intentions previously articulated in a number of
different policy statements, these make it clear that the group aims:
For clarity, BP expresses the group values under four headings: performance;
people and capability; health, safety and environment; and external relationships.
A study of BP annual reviews past and present suggests a shift is under way. This
is what BP's values used to be: "Green - demonstrating environmental leadership.
United around a vision of environmental leadership and recognition that the
challenge to develop cleaner energy must be met, we are committed to the
proactive and responsible treatment of our planet's natural resources and to the
development of sources of lower carbon energy."
This is what they are now: "Responsible. BP is committed to the safety and
development of our people and the communities and societies in which we
operate. BP aim for no accidents, no harm to people and no damage to the
environment."
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human rights and natural environments. Confronting this paradox is our mission,
but we cannot do it alone. Where others see contradiction and conflict, we see
opportunities for mutual progress.
It will be the magnet for people who want to change the world with new ideas,
delivering a performance standard that challenges the world's best companies.
The IDC and associated events aim to build awareness and understanding of safe
driving techniques and behaviours which all can adopt in their driving-related
activities. The event also provides an opportunity for drivers, other participants,
line leadership and functional specialists to better understand the challenges
being faced and good practices being employed by the driving workforce from
around BP, and to use the knowledge gained to share best practices and help
shape future driving safety needs.
BP serves millions of customers every day, providing fuel for mobility, energy for
light and heat, and petrochemicals, BP have some 110,000 employees working in
more than 100 countries.
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Company’s Past and Current Strategy
BP remains focused on process safety and asset reliability. We have begun the
implementation of our Operating Management System, which covers everything
from employee competencies to risk assessment, and we’re already seeing the
benefits. BP is building capability with extensive training programmes such as the
Operations Academy developed in partnership with MIT.
BP started up nine major projects and made good progress on controlling costs.
We also delivered our 15th consecutive year of reported reserves replacement of
more than 100 per cent, and resource replacement of more than 200 per cent, a
performance that puts us among the best in the industry.
And BP have begun to reduce the complexity and cost base of BP – by the end of
2008, BP had reduced our corporate overhead by around 3000 people, and are on
track to exceed original target of 5000 by the middle of 2009. BP has also
eliminated nearly 20 per cent of the senior positions.
BP is intent on establishing a track record that is the very best in the industry.
2008 has also seen build operational momentum across the group. In E&P, BP
successfully grew production in line with guidance, the only one of the majors to
do so. Underlying production, excluding the effects of high oil prices on BP
entitlements under production-sharing contracts, was 5 per cent.
All in all, BP made progress in 2008 and expect to see further financial benefits as
BP move into 2009. As we all know, in 2008 oil prices were extremely volatile.
They fell from a peak of $144 per barrel in early July to as low as $34 per barrel in
December. The average for the year was $97 per barrel. In the short term, prices
will be determined by a balance between OPEC cuts and the state of the global
economy and demand for oil.
On the demand side, global oil consumption is likely to decline for a second
consecutive year in 2009, probably by more than 1 million barrels per day – the
largest amount since 1982. BP therefore do not expect a quick recovery and it
would be wise to prepare for continued volatility, which may extend into 2010.
Despite today's pessimism, the future has not been cancelled – merely delayed.
Once economic growth recovers, BP expects oil demand and gas prices to recover
as well. Countries outside the OECD contributed more than half of total global
GDP growth in 2008 and will continue to do so in the future. As growth resumes,
they will need more energy, including oil, to continue their rapid
industrialization. In such a challenging environment, BP’s commitment to
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technology is more important than ever. Technology plays a critical role in
addressing the world’s energy challenges, from fundamental research through to
wide-scale deployment.
TASK TWO
Internal and External Environment of BP
External Environment-
• Micro Environment
• Customers: Meeting the needs, wants and providing the benefits to customers
will result of surviving an organisation. And in the event of failure of do so will
be end up with failed business strategy. BP apply their expertise in technical
innovation to their products and services for the benefit of the customers, in
order to bring them new market opportunities, good value and high quality
products which are reliable and safe. Also they emphasise that they
communicate honestly and openly with the customers, seeking a full
understanding of their requirements and meeting company commitments to
them. We respect the confidentiality of information from our customers to
which we have access. As the organisations like Rolls Royce have loyal top class
customers it is an asset for the company and a threat if they seek for some
other supplier or brand as they spend lot of money for the brand name.
• Employees: Over some 110,000 employees working in more than 100 countries.
To make sure the every employee has thorough knowledge on the products and
the procedures, overall trainings will be given based on given time lines as well
as based on the job role. The company demonstrate its capability by enhancing
the recruitment of excellence, talented and experienced people.
• Competitors: As the company operates in different sectors such as aero, naval
and civil, there are competitors for every sector. Also being number one itself
enclosed business to the competitor’s targets.
• Media: As a renowned organisation advertising is the most important activity
in most of the time to attract the new customers as well as to retain the
existing customers. Audio and video advertising across the country is taking
place to promote the special inventions and the products or services.
• Shareholders: A large scale of share holders across the world investing on the
business as the company has the best recognition among the world. Also the
joint ventures with Marks n Spencer and other main organisations help
recognition of the company and the stability of organisation.
• Suppliers: World renowned fair-trade suppliers are the leaders in supplying
products for the organisation. To make sure that the supply is maintained on
the demand the company always choose reliable and capable suppliers from all
over the world. The contracts and the bonds have been created to fulfil the
requirement of the stores constantly with suppliers.
• Macro Environment
• Political: These refer to the changes and involve of the government on making
decisions which affects the organisation. Political behaviour can affect the
organisations growth in many aspects. On the other hand trade agreement,
tariffs and restrictions can be the barriers. Also the tax levies, tax breaks and
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market regulations can be directly affected to the growth of the business. As
the nature of the business operation needs to work with countries all over the
world, the political stability should be assessed.
• Economic: All businesses are affected by local and global economic factors.
National and global interest rate and financial policy will be set around
economic circumstances. The atmosphere of the economy dictates how
customers, suppliers and other organisational stakeholders such as suppliers
and creditors behave within society. Especially in a situation where the world
economy falls and in a recession, the organisation cannot expand the business
as there is not much demand, even if the company capable for. Also the type
of economic system in each country operates in affects the organisation. Due
to these circumstances the organisation operates as individual units in each
country.
• Social: Organisation should be able to align their product or service to
harmonize and benefit people’s lifestyle and behaviour. If the organisation
fails to do so the market share and the demand for their product or service
will be lose. The organisation has limitations in producing some products as
globally it has restrictions such as for military air craft’s or equipments. So the
company has to manage the efficiency by increasing the productivity even if
the company has the capacity of production.
• Technological: Technological advances have deeply changed the manner in
which businesses operate. Technology such as Internet, Intranet and telephone
which exchange the information faster make the organisations more efficient.
Also the ERP systems (Enterprise Resources Planning) supporting the business
to record and distribute the information as and when required in easy aspects
comparing to the old methods. Also the computers and the devices which help
the organisations operations and day to day business smooth have been
installed. As the nature of the business involves with the technology, the
company should use latest techniques in order to lead the market. And the
company has to do the experiments and inventions in terms of the technology
to survive in the market.
• Environmental: The organisation is responsible for the low emission as much
as they grow in technology. As an initiative for that the company has invested
£95 million on Environmentally Friendly Engine (EFE) programme which was
started in 2006. The programme will make a major contribution towards
achieving the industry targets of 50 per cent lower CO2 emissions, 80 per cent
lower NOx (Nitrogen Oxide) emissions and 50 per cent less noise by 2020, all
from a 2000 baseline. The company’s leading in the industry should invent
environmental friendly technologies, and failure to do so will result in
terminates the operations by the governments.
• Legal: As the business operates in over the world, the company has to manage
their operations according to the legal circumstances of the particular
government. Some government restrictions on products, laws on the
employees, laws in currency exchanges and legally allowed operation patterns
have to be considered. The company’s legal teams cover all areas of the
business and take the initiative in providing advice and assistance to our
businesses so that they can meet their commercial objectives and legal
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obligations. To ensure that they deliver high quality legal services that provide
the best value to organisation, they work hard to gain a thorough
understanding of all aspects of Rolls Royce Company. This enables them to
influence key commercial decisions.
Working Environment of BP
BP’s approach to managing people and developing their skills is consistent with
the principles of our brand. The rights and dignity of all employees. Everyone who
works for BP contributes to our success and to creating a distinctive company.
Working together, drawing from our diverse talents and perspectives, will
stimulate new and creative opportunities for our business. Collectively generate a
more exciting and rewarding environment for work in which every individual feels
responsible for the performance and reputation of our company.
BP’s workplace is safe and healthy- BP’s work premises provide a safe and
healthy place to work:
• workplaces are properly ventilated, with clean and fresh air
• temperatures at a comfortable level (a minimum of 13 degrees C where the
work involves physical activity; 16 degrees C for 'sedentary' workplaces (eg
offices) - there's no maximum limit)
• the workplace and equipment clean
• workrooms are big enough to allow easy movement
• the workplace and equipment in good working order
• floors, walkways, stairs, roadways etc safe to use
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• fit openable windows, doors and gates with safety devices if needed
• provide suitable washing facilities and clean drinking water
• set aside areas for rest breaks and to eat meals, including suitable facilities
for pregnant women and nursing mothers
• make sure that employees who work alone, or off-site, can do so safely and
healthily
TASK THREE
Regulatory forces are the various government regulatory agencies that impact how
an organization operates on a daily basis. Some of the general regulatory forces
that affect the common business and as well as British Petroleum in UK, EU and
internationally are as follows:
National Level
• Health and Safety Executive (HSE)- According to the official web site the
HSE’s mission is “to prevent death, injury and ill health in Great Britain’s
workplaces." They do this through research, information and advice,
promoting training, new or revised regulations and codes of practice,
inspection, investigation and enforcement.
EU Level
• European Commission- European commission is the executive branch of
the European Union. The body is responsible for proposing legislation,
implementing decisions, upholding the Union's treaties and the general day-
to-day running of the Union.
Global Level
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• Federal Communications Commission (FCC)- The FCC is an independent
United States government agency. The FCC was established by the
Communications Act of 1934 and is charged with regulating interstate and
international communications by radio, television, wire, satellite and
cable. The FCC's jurisdiction covers the 50 states, the District of Columbia,
and U.S. possessions.
Effects of Globalization
It is a pleasure, and an honour to have been invited to share a few thoughts with
today. The reflection on the morality of global economy, or globalisation, is
formed looking through three lenses. The first, is the unique lens that brought me
here, namely the corporate lens which comes with being a senior advisor for one
of the worlds largest industrial companies, BP. BP is a company that lives
globalisation. We recognize that we are uniquely positioned to contribute to
shaping human development in many diverse parts of the world. Few other
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entities offer as much opportunity to put reality behind the words "force for
good."
Globalization has various aspects which affect the world in several different ways
such as:
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Corporate Social Responsibility
Corporate Social Responsibility (CSR) policy section focuses on CSR in Europe and
in particular the development of the EU's CSR strategy. Corporate social
responsibility describes a company's commitment to be accountable to its
stakeholders - i.e. those influenced by its decisions and actions, either locally or
internationally - in its operations and activities. The EU's approach to this issue
takes as its starting point the triple bottom line method that combines economic,
social and environmental performance.
BP is one of the largest companies in the world - with a turnover dwarfing that of
some nation states. As an oil company, it is directly linked with the use of fossil
fuels linked with major environmental challenges on a global scale. No company
has achieved a higher profile in its stated determination to completely re-
orientate the business to adapt to the needs of a more sustainable society. With
its major - and controversial - rebranding and commitment to becoming a
sustainable energy company rather than simply an oil company - it has inspired
and impressed some, and irritated others.
During his time in charge, Lord John Browne established himself as one of the
most thoughtful business leaders taking a lead in corporate social responsibility.
This was, however, a position that became tarnished at the end when a series of
major accidents hit the company as a result of safety and maintenance failures.
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.
In his final introduction to a BP social responsibility report, "The past two years
have been difficult for BP. In March 2005, at the Texas City refinery, BP suffered
a tragedy in which 15 people died and many more were seriously injured. BP have
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also experienced operational difficulties in Alaska and the potentially
destabilizing effects of intense and at times unbalanced media scrutiny and
criticism.
BP’s target to reduce group-wide greenhouse gas emissions by 10% from a 1990
baseline over the period to 2010. The reductions will be measured and verified by
external observers.
BP’s pilot internal system for emissions trading allows individual business units to
find the lowest-cost way of meeting the group’s overall target. At this stage 12
business units are involved. Over the next 18 months we will expand that system
to include all the activities of BP Amoco. Our trading system was developed in
partnership with the Environmental Defense Fund (EDF), a US-based
environmental non-governmental organization.
Collaboration with other business organizations and the World Resources Institute
to publish a report entitled Safe Climate, Sound Business, developing a cross-
sectoral approach to climate change.
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References
Books:
Beck, U. (1999) what is Globalization, Cambridge: Polity Press.
Chossudovsky, M. (1997) The Globalization of Poverty. Impacts of the IMF and World Bank
reforms, London: Zed Books.
Manly, Bryan F.J. 2001. Statistics for Environmental Science and Management. Boca
Raton, FL: Chapman & Hall.
Ortolano, Leonard. 1984. Environmental Planning and Decision Making. New York: Wiley.
World Bank (1999) World Development Report 1998/99: Knowledge for Development-
World Bank. [1999, 9 August]. http://www.worldbank.org/wdr/wdr98/contents.htm.
World Bank Research (2002) 'Globalization, Growth and Poverty: Building an Inclusive
World Economy', The World Bank Group
Journals:
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• Environmental Management Processes and Practices for Australia By Ian Thomas
• Environmental Science for Environmental Management, by Timothy O'Riordan
• Human Resource Management, Ivancevich, 7th edition.
• Law & Practice Relating to Disciplinary Actions, S. A. Huq.
Website:
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