Global Climate Change - Global Climate Change & BP...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Global Climate Change & BP Amoco - in 1997, Browne, Amoco chief executive, had broken with his fellow oil executives by asserting publicly that the science of global climate change was sufficiently compelling to warrant a response Since then BP Amoco had undertaken unilaterally to cut its own emissions of the greenhouse gases held responsible for climate change Had also publicly embraced the idea that industry, particularly the oil & gas industry, should cooperate with governments & others in seeking economically sound & internationally agreed solutions to the climate change problem - Ragauss, graduate of Harvard Business School, was appointed Browne`s “turtle”, his assistant: supposed to evaluate the climate policy & recommend any necessary mid- course corrections his awareness that he would need to think about climate change as source of business risk , but also as as a source of competitive advantage - BUT not sure whether connection can be substantiated concerning policy, several issues have to be taken into account: - uncertainty about both the science & the economic`s - company`s relationships with its customers, capital providers, governments of the nations in which it produced & sold its products & with environmental activists & other nongovernmental organizations also needed to be considered The Political Economy of the Oil Business - target of repeated government intervention - Oil has long been intimalely tied to national security considerations & many government officials have regarded it as too important to leave to market forces - Oil is widely used - demand inelastic natural target for tax authorities - Oil is bounded on local execution - Transportation risk envrionmental risk ( smog precusors, particular matter & carbon dioxide) BP Amoco - began its organizational life as the Anlgo-Persian Oil Company ( later on Anlgo- Iranian), which floated its 1 st shares in 1909 in order to finance oil production - managed to preserve its independence - company expanded its production base into Kuwait, Iraq, Qatar - in 1954, Anglo-Iranian changed into British Petroleum ( officially used BP since 1917, but name changed coincided with a change in strategic focus: rattled by the events in Iran) - one of the biggest backers of the Alaska Pipeline, which carried crude from Prudhoe Bay in northern Alaska to the port of Valdez in order to make the most out of it needet to establish a network of retail marketing outlets in the U.S. BP-Sohio-partnership (resignation after losses) formed BP America Inc., a significant competitor in the U.S. petroleum Industry - Browne, became CEO in 1995, continued the company`s ambitious American strategy Chicago-based Amoco Co, began life as Standard Oil of Indiana effected the largest industrial merger BP Amoco ranked as the 3 rd largest oil & gas firm - compared to its competitors, BP Amoco`s crude oil & natural gas production were heavily concentrated in the US & UK - one of the world`s largest producers of commodity chemicals, incl. basic polymers &
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/11/2011 for the course ECON 202 taught by Professor Sneijder during the Fall '10 term at Erusmus University Rotterdam .

Page1 / 10

Global Climate Change - Global Climate Change & BP...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online