BP facts for kids
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Headquarters at 1 St James's Square in Westminster, London
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Formerly
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| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=GB0007980591 GB0007980591] |
| Industry | Oil and gas |
| Predecessors |
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| Founded | 14 April 1909 (as the Anglo-Persian Oil Company) |
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| Headquarters | London, England, UK |
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Area served
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Worldwide |
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Key people
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Production output
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 2.3 Mbbl/d (370×103 m3/d) of BOE (2023) |
| Services | Service stations |
| Revenue |  US$210.13 billion (2023) |
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Operating income
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US$27.35 billion (2023) |
| US$15.88 billion (2023) |
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| Total assets |  US$280.29 billion (2023) |
| Total equity | US$85.49 billion (2023) |
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Number of employees
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87,800 (2023) |
BP p.l.c. is a large British company that deals with oil and gas. Its main office is in London, England. BP is one of the biggest oil and gas companies in the world. It handles all parts of the oil and gas business, from finding oil and gas deep underground to making it into fuel and selling it.
BP started as the Anglo-Persian Oil Company in 1909. This company was created to use the oil found in Iran. Over the years, its name changed several times, becoming British Petroleum in 1954 and then BP Amoco p.l.c. after merging with Amoco in 1998. In 2001, its name was shortened to BP p.l.c..
BP operates in many countries around the world. It produces a lot of oil and gas and has many service stations (gas stations) under the BP, Amoco, and Aral brands. BP is one of the largest oil companies owned by investors.
BP has been involved in several important environmental and safety incidents. These include the 2005 Texas City refinery explosion, which sadly killed 15 workers, and the 2010 Deepwater Horizon oil spill. The Deepwater Horizon spill was the biggest accidental oil spill into the ocean ever, causing a lot of damage to the environment and costing BP billions of dollars.
BP's Journey Through Time
Early Years: 1909 to 1954
In May 1908, British geologists found a huge amount of oil in Iran. This was the first big oil discovery in the Middle East. William Knox D'Arcy got permission to look for oil there, which changed the history of the whole region. This oil discovery led to the growth of the petrochemical industry.
On 14 April 1909, the Anglo-Persian Oil Company (APOC) was formed. The British government soon bought a large part of the company in 1914. This was pushed by Winston Churchill, who wanted the British navy to switch from coal to oil for their ships. APOC also agreed to supply oil to the Royal Navy for 30 years at a set price.
After World War I, APOC started selling its products in Europe. It built refineries in places like Llandarcy in Wales and Grangemouth in Scotland. The company also helped create the Turkish Petroleum Company (TPC) in 1912 to find oil in what is now Iraq.
In 1935, Iran's leader asked the world to call his country 'Iran'. So, APOC changed its name to the Anglo-Iranian Oil Company (AIOC).
After World War II, many countries wanted to control their own resources. In Iran, the government decided to take control of its oil industry in 1951, forming the National Iranian Oil Company (NIOC). AIOC left Iran, and Britain tried to stop other countries from buying Iranian oil.
Later, in 1953, the British and US governments helped change the Iranian government. This allowed AIOC to return to Iran.
Growing Bigger: 1954 to 1979
In 1954, AIOC changed its name to the British Petroleum Company. BP started exploring for oil in new places like Alaska and the North Sea. In 1965, it was the first company to find oil in the North Sea.
BP became known for taking on risky projects, which brought in a lot of money but also led to safety problems. In 1967, a huge oil tanker called Torrey Canyon, chartered by British Petroleum, crashed off the English coast. This caused Britain's worst-ever oil spill at the time.
During the 1970s, many countries where BP operated took control of their own oil resources. This meant BP lost direct access to much of its oil supply. Because of this, BP started to look for oil and gas in other parts of the world and to expand its business. In 1978, it bought a large part of Standard Oil of Ohio (Sohio) in the United States.
In 1979, the Iranian Revolution happened, and the new government took over all of BP's assets in Iran without paying for them. This caused BP to lose a big part of its global oil supply.
Changes and Growth: 1979 to 1997
The British government started selling its shares in BP between 1979 and 1987, making it a fully private company.
BP continued to grow by buying other companies and expanding its operations. In 1987, it acquired Britoil and the remaining shares of Standard Oil of Ohio.
In 1981, BP also started getting into solar energy by buying part of Lucas Energy Systems, which later became BP Solar. This company made and installed photovoltaic solar cells.
BP entered the Russian market in 1990 and the Azerbaijani market in 1992, signing important agreements for oil and gas projects there.
Big Mergers: 1998 to 2009
Under its leader, John Browne, BP became one of the largest oil companies in the world by buying other companies. In 1998, British Petroleum merged with Amoco, becoming BP Amoco plc. Many Amoco gas stations in the US were changed to the BP brand. In 2000, BP Amoco also bought ARCO and Burmah Castrol.
In 2001, to show its focus on new energy sources, the company changed its logo to a green and yellow sunburst symbol called "Helios" and rebranded itself as BP, with the slogan "Beyond Petroleum."
BP also became a key partner in the Baku–Tbilisi–Ceyhan pipeline project, which helped transport oil from the Caspian region. In 2003, BP formed a joint company called TNK-BP with a group of Russian billionaires.
However, BP faced serious safety issues. On 23 March 2005, 15 workers died and many more were injured in the Texas City refinery explosion. This accident showed problems with safety at the refinery.
In 2009, BP started a project to develop the huge Rumaila field in Iraq.
Recent Times: 2010 to Present
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On 20 April 2010, the Deepwater Horizon oil rig exploded in the Gulf of Mexico, causing a massive oil spill. This was the largest accidental oil spill in history. It led to big changes at BP, including a new CEO, Bob Dudley. BP had to sell many of its assets to help pay for the cleanup and damages.
BP also started to change its focus towards cleaner energy. In 2011, it formed a partnership with Reliance Industries in India. In 2012, BP sold its share in TNK-BP to Rosneft, a Russian oil company.
Between 2011 and 2015, BP reduced its involvement in some alternative energy businesses, like solar power. However, it continued to invest in other areas like biofuels.
In 2018, BP bought BHP's shale oil assets in the US for $10.5 billion. It also acquired Chargemaster, which runs the UK's largest electric vehicle charging network.
In 2020, BP announced plans to speed up its move to a lower carbon economy. It sold its petrochemicals unit and its operations in Alaska. BP also partnered with Equinor to develop offshore wind power and acquired a company that develops carbon offsets from forests.
In 2022, BP announced it would sell its shares in Rosneft due to the 2022 Russian invasion of Ukraine. In late 2022, BP also bought Archaea Energy Inc., a company that produces renewable natural gas.
In February 2023, BP reported its highest annual profits ever. However, the company also changed its goal for cutting greenhouse gas emissions, aiming for a smaller reduction than it had promised before.
Murray Auchincloss became the new CEO in January 2024.
How BP's Logo Changed
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1920
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1930
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1947
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1961
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1989
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2001
How BP Works
As of 2018, BP worked in 78 countries around the world. Its main office is in London. BP's work is divided into three main parts:
- Upstream: This is about finding new oil and natural gas, and then getting it out of the ground.
- Downstream: This involves turning crude oil into useful products like gasoline, and then selling them.
- Renewables: This focuses on cleaner energy sources.
Since 1951, BP has published its Statistical Review of World Energy every year. This report is a very important guide for the energy industry.
Where BP Operates
United Kingdom
BP has a large office in Sunbury-on-Thames with many employees. Its operations in the North Sea are based in Aberdeen, Scotland. BP also has three main research centers in the UK.
BP focuses its oil and gas work in the UK North Sea on big projects like the Clair oilfield, which is the largest oil and gas resource in the UK.
There are about 1,200 BP gas stations in the UK. Since 2018, BP also runs the UK's biggest electric vehicle charging network through its company BP Pulse.
United States
BP's operations in the United States make up almost one-third of its total business. BP has about 14,000 employees in the US.
BP's main company in the US is BP America, based in Houston, Texas. This company handles finding, developing, producing, refining, and selling oil and natural gas.
BP also has a lot of oil and gas production in the Gulf of Mexico. It operates large platforms like Atlantis and Thunder Horse. In April 2023, BP launched a new oil rig called Argos in the Gulf.
BP runs oil refineries in Indiana and Washington. It also operates nine wind farms in six states, generating a lot of clean energy.
Other Countries
BP has important operations in many other countries:
- Egypt: BP produces a lot of oil and gas here, especially from offshore gas fields.
- Angola: BP is involved in offshore oil development in nine different areas.
- India: BP owns a share of oil and gas projects operated by Reliance Industries.
- Indonesia: BP runs the Tangguh LNG project, which produces a lot of liquid natural gas.
- Iraq: BP works in the Rumaila oil field, one of the world's largest oil fields. However, there have been concerns about air pollution from gas burning near homes, which some believe is linked to health problems.
- Oman: BP has a large share in Block 61, one of Oman's biggest gas blocks.
- Australia: BP operates the Kwinana Oil Refinery, the country's largest refinery. It also has a share in the North West Shelf project, which produces LNG and gas.
- Azerbaijan: BP runs the two largest oil and gas projects in the Caspian Sea, including the Azeri–Chirag–Guneshli oil fields.
- Europe: BP has refineries in the Netherlands, Germany, and Spain. It also sells fuel at gas stations in many European countries under the BP and Aral brands.
- Canada: BP's Canadian operations are based in Calgary, focusing on oil and gas in Newfoundland.
- Trinidad and Tobago: BP is the largest oil and gas producer here and a big shareholder in Atlantic LNG, a large LNG plant.
- Brazil: BP has shares in offshore oil and gas exploration and runs biofuel production facilities that make ethanol.
Finding and Producing Oil and Gas
BP's Upstream business explores for new oil and natural gas, develops ways to get these resources, and then produces, transports, stores, and processes them. This work happens in 25 countries.
BP plans to reduce its oil and gas production by about 40% by 2030, as it shifts towards cleaner energy.
Making and Selling Fuel
BP's Downstream business involves refining crude oil, making and selling petroleum products, and transporting them. This part of BP's business includes fuels and lubricants and operates in Europe, North America, and Asia. BP owns or has a share in 11 refineries.
BP is also one of the world's biggest oil traders. Air BP is BP's aviation division, providing fuel and services for airplanes. BP Shipping handles moving BP's oil and gas around the world using a large fleet of ships.
BP has about 18,700 gas stations worldwide. Its main retail brand is BP Connect, which combines a gas station with a convenience store. In Germany, it uses the Aral brand, and on the US West Coast, it uses the ARCO brand. In Australia, BP operates large "Travel Centres" that include restaurants and facilities for truck drivers.
Castrol is BP's main brand for lubricants, which are oils and greases used in cars and industries.
BP's Green Energy Goals
BP often talks about moving towards cleaner, low-carbon energy. However, some studies have suggested that the money BP spends on clean energy is still small compared to its fossil fuel investments.
BP was one of the first big oil companies to say it would focus on energy sources other than fossil fuels. It started an alternative and low-carbon energy business in 2005. BP has said it will increase its yearly investments in low-carbon energy to $5 billion by 2030. It aims to become an integrated energy company that focuses on low-carbon technologies and plans to reduce its oil and gas production by 40% by 2030.
BP operates several wind farms in the US and is working to acquire shares in offshore wind farms. It also invests in companies that develop solar farms and electric vehicle charging networks.
In Brazil, BP owns companies that produce ethanol from sugarcane. It also invests in companies that develop crops for biofuel and produce biomethane.
In 2023, after reporting record profits, BP changed its emissions reduction targets, aiming for a smaller cut than it had previously promised. The company stated it needed to keep up with the current demand for oil and gas.
Company Information
Business Trends
Here's a quick look at BP's business over the past few years:
| Year | Revenue (US$ bn) | Net income (US$ bn) | Employees (k) |
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| 2017 | 240 | 3.4 | 74.7 |
| 2018 | 298 | 9.4 | 75.0 |
| 2019 | 278 | 4.0 | 70.1 |
| 2020 | 180 | –20.3 | 63.6 |
| 2021 | 164 | 7.6 | 64.0 |
| 2022 | 248 | –2.5 | 66.3 |
| 2023 | 213 | 15.2 | 66.5 |
Company Leaders
As of October 2023, the main leaders on BP's board are:
- Helge Lund (Chairman)
- Murray Auchincloss (chief executive officer)
Stock Information
BP's shares are mainly traded on the London Stock Exchange. They are also listed on the Frankfurt Stock Exchange in Germany and on the New York Stock Exchange in the United States.
Brand and Public Image
In 2001, BP changed its logo to the "Helios" symbol, a green and yellow sunflower, and started using the slogan "Beyond Petroleum." This was meant to show their focus on new energy sources.
However, some environmental groups and experts criticized this, saying that BP's activities in alternative energy were only a small part of its business. They called it "greenwashing" – making a company seem more environmentally friendly than it really is.
BP's public image was badly hurt by the series of accidents in the 2000s, especially the Deepwater Horizon oil spill. After the spill, BP tried to improve its image through advertising and social media.
Environmental Impact
Climate Goals
Before 1997, BP was part of a group that questioned global warming. But in 1997, BP left that group and said that climate change was a serious issue that needed action. In 2002, BP's chief executive, Lord John Browne, stated that global warming was real and urgent action was needed.
However, from 1988 to 2015, BP was responsible for a significant amount of industrial greenhouse gas emissions. In 2015, some groups said BP was strongly against actions to fight climate change in Europe.
In February 2020, BP set a goal to cut its greenhouse gas emissions to net-zero by 2050. This means they aim to remove as much carbon from the atmosphere as they put in. BP is changing how it operates to meet these goals, focusing more on low-carbon technologies.
In August 2020, BP America's chairman said that federal rules to prevent methane leaks are very important for protecting the environment.
In 2023, BP announced it would change its emissions reduction target from 35-40% to 20-30% by 2030. This decision was made to keep up with the current demand for oil and gas.
Past Environmental Issues
Hazardous Waste Dumping (1993–1995)
In 1999, a BP company in Alaska admitted to illegally dumping hazardous waste. They had injected waste oil and other toxic substances into oil wells. BP had to pay fines and set up a system to manage environmental safety at its facilities.
Air Pollution Problems
In 2003, California authorities accused BP/ARCO of thousands of air pollution violations over eight years. In 2005, BP agreed to pay $25 million in fines and spend money on environmental improvements and community programs.
In 2013, people living near BP's Texas City Refinery sued the company, saying it released toxic fumes in 2011 and misled the public about how serious it was.
Colombian Farmland Damage
In 2006, a group of Colombian farmers reached a settlement with BP for alleged environmental damage caused by the Ocensa pipeline. They claimed the pipeline caused landslides and hurt their crops and water supplies. BP said it acted responsibly and compensated landowners fairly.
Canadian Oil Sands
Since 2007, BP has been involved in oil sands projects in Canada. Some environmental groups have called this a "climate crime" because extracting oil from oil sands can be very damaging to the environment and produce a lot of greenhouse gases.
Accidents and Violations
BP has faced many fines and criticisms for safety problems. Between 2007 and 2010, BP refineries in Ohio and Texas had most of the serious safety violations found by US regulators.
1965 Sea Gem Oil Rig Disaster
In December 1965, Britain's first oil rig, Sea Gem, tipped over while being moved. Thirteen crew members died. No oil was spilled in this accident.
Texas City Refinery Incidents
The former Amoco oil refinery in Texas City, Texas, had many environmental problems, including chemical leaks and a deadly explosion in 2005.
2005 Explosion
In March 2005, the Texas City refinery exploded, killing 15 workers and injuring 180. The explosion happened because a column filled with hydrocarbons overflowed, creating a vapor cloud that ignited. Investigations found that safety and maintenance at the plant had been cut to save money.
BP pleaded guilty to violating the Clean Air Act and was fined $50 million, the largest fine ever under that act at the time. Regulators found serious safety problems at all levels of BP.
2010 Chemical Leak
In August 2010, BP was accused of illegally releasing harmful air pollutants from its Texas City refinery for over a month. BP admitted that equipment problems led to the release of over 530,000 pounds of chemicals, including benzene and carbon monoxide. The state said BP failed to properly maintain its equipment.
Prudhoe Bay Oil Spills
In March 2006, a BP oil pipeline in Prudhoe Bay, Alaska, leaked, causing the largest oil spill on Alaska's North Slope at the time. BP admitted that cutting costs led to less monitoring and maintenance of the pipeline.
After the spill, BP was ordered to inspect its pipelines. In August 2006, another small leak was found, and BP had to shut down part of the Alaskan oil field for repairs. BP later agreed to replace many miles of its pipelines in Alaska. In 2007, BP was fined $20 million for the negligent discharge of oil.
In 2011, BP paid a $25 million civil penalty for failing to properly inspect and maintain the pipeline. This was the largest fine per barrel for an oil spill at that time.
Deepwater Horizon Explosion and Oil Spill
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The Deepwater Horizon oil spill was a huge industrial accident in the Gulf of Mexico in 2010. It killed 11 people and injured 16. About 4.9 million barrels of oil leaked into the ocean, making it the largest accidental marine oil spill in history. This disaster cost BP over $65 billion in cleanup costs and penalties.
The oil rig exploded after a sudden release of oil and gas. After burning for two days, the rig sank. The well was finally stopped on 15 July 2010.
Environmental Impact
The oil spill caused a lot of damage to animals and habitats in the Gulf. The mixture of oil and chemicals used to break up the oil spread through the food chain. Studies found toxic effects on fish, mammals, birds, and corals. For example, infant dolphins died at six times the normal rate.
Researchers found that as much as one-third of the spilled oil might still be in the Gulf, and oil on the seafloor was not breaking down. The oil also increased erosion in coastal areas because it killed mangrove trees and marsh grass.
Studies in 2014 found that toxins from the oil spill caused heart problems in fish like bluefin tuna. Even small amounts of crude oil could slow fish heartbeats.
Effects on People's Health
Studies showed that oil spill cleanup workers had chemicals from the oil and dispersants in their bodies. Many people living near the Gulf reported mental health problems like anxiety and depression. A study found that more than a third of children living near the coast had physical or mental health symptoms.
Some reports said that BP's own safety information on the dispersant Corexit warned of "high and immediate human health hazards," but cleanup workers were not given proper safety equipment.
Paying for the Damages
In June 2010, BP agreed to pay $20 billion into a fund to help victims of the oil spill. In 2012, BP reached a settlement with businesses and residents affected by the spill, costing over $9.2 billion.
In 2015, BP and five US states agreed to an $18.5 billion settlement for penalties and claims related to the Clean Water Act.
2022 Ohio Refinery Fire
On 20 September 2022, a fire at BP's Toledo refinery in Ohio killed two workers. The refinery had to shut down, which was expected to cause gasoline prices to rise in the US.
Political Influence
Lobbying and Contributions
BP has been involved in lobbying governments. In 2002, BP said it would stop making political contributions from company money. However, later reports showed that BP North America had donated millions to political groups, mostly to fight against ballot measures that aimed to raise taxes on the oil industry. BP clarified that its earlier promise only applied to contributions to individual candidates.
In 2009, BP spent nearly $16 million to influence the U.S. Congress.
Oman 1954 War
In 1937, the Iraq Petroleum Company (IPC), partly owned by BP, signed an oil agreement with the Sultan of Muscat. In 1952, IPC offered money to help the Sultan create an armed force to take control of an area in Oman that was thought to have a lot of oil. This led to the Jebel Akhdar War in Oman, which lasted for more than five years.
Market Investigations
Propane Market Manipulation
The US Justice Department accused a BP subsidiary and some BP traders of trying to unfairly raise the price of propane in 2004. In 2007, BP paid $303 million in fines and restitution as part of an agreement. BP was charged with trying to control and manipulate propane prices.
Gas Market Investigation
In 2010, US regulators started investigating BP for possibly manipulating the gas market in 2008. BP denied any wrongdoing. In 2011, regulators said they believed BP had unfairly traded natural gas to increase its profits.
European Price Manipulation Investigation
In 2013, the European Commission began investigating BP and other companies for allegedly reporting false prices to a price reporting agency, possibly to manipulate oil and biofuel prices. This investigation was closed in 2015 due to a lack of evidence.
Pricing in Australia and New Zealand
Studies of gasoline prices in Perth, Australia, from 2001 to 2015 suggested that BP and other retailers might have been working together to set prices.
In 2018, an internal email from BP in New Zealand was leaked, showing plans to raise prices at certain gas stations. This led to a government investigation into regional fuel prices.
Images for kids
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A BP photovoltaic (PV) module that is composed of multiple PV cells. Two or more interconnected PV modules create an array.
