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Avinash Gandhi

Michael McGillen

Diwaker

BP is one of the world's largest oil and gas companies in terms of production capacity. In 2008, the company's exploration and production segment produced approximately 3.8 million barrels of oil equivalents(BOE) per day while the company's refining throughput averaged 2.2 million barrels/day.^[1] BP expands its production capacity through improved rig equipment and technology as well as expansions into other countries.^[2] As of April 2009, BP's operates in 29 countries including Mexico, Russia, Algeria, and many others in the Middle East and Africa.^[3] While BP's global reach gives the company an ability to access "untapped" reserves, many of its operations are exposed to political risk in those countries. In particular, BP's Russian operations have faced significantly managerial problems in 2007 and 2008.^[4]

BP's production and refining operations are exposed to world-wide oil and natural gas prices and consumption.^[5] When oil prices dropped during the second half of 2008, BP cuts its overall production of oil and gas.^[6] As a result, production in 2008 increased less than 1% when compared to production in 2007.^[7] However, production increased to 4 million BOE/day during the first quarter of 2009 after a new production field in the Gulf of Mexico became fully operational. Despite low consumption of oil and natural gas products in late 2008 and early 2009, BP plans to continue its expansions into other countries in 2009.^[8] The company believes that world energy demand could be 45% higher by 2030, and its world-wide operations have the potential of giving it an advantage over its competitors.^[9] BP has also created a separate business that specializes in alternative, renewable forms of energy known as BP Alternative.^[10] Through investments of $2.9 billion from 2005 to 2009, BP Alternative is capable of profiting from the use of renewable energy and reducing BP's reliance on oil and gas.^[11]

Company Overview

In 2009, both rising oil prices and BP's ability to cut costs during the fourth quarter contributed significantly to the $4.3 billion quarterly profit.^[12] During the same quarter in 2008, BP reported losses of $3.34 billion.^[13] For the quarter, oil prices increased 12% sequentially. Daily production rose 2.5% sequentially to 4.05 million barrels of oil equivalent. While the rise in oil prices benefited its production segment, rising prices coupled with low sales led to sub par performance in its refining division.^[14] In regards to natural gas, prices fell 28% in the fourth quarter 2009.^[15]

BP's ability to reduce operating costs by 40% over the course of 2009 also contributed to annual and quarterly profits.^[16] For 2009, BP reported earnings $16.58 billion, down 22% from 2008. Annual daily production for 2009 increased approximately 4% from 2008 averaging 3.98 mboe/d. Tony Hayward, the CEO of BP, attribute the rise in production to superior production performance from its wells and rigs and the relative low damage to rigs during hurricane season.^[17] The refining and marketing unit earned $15 million before interest and taxes, which was much lower than Wall Street expectations of $571 million. For 2009, the average refining margin was $1.49 per barrel compared to $5.20 in 2008.^[18]

Business Segments

Exploration and production(22% of 2008 Revenues): Through its Exploration and Production segment, BP engages in the search for undeveloped oil and gas reservoirs, the development of reservoirs, and the production and transportation of oil and natural gas from developed wells.^[19] BP’s upstream activities include the exploration and extraction of crude oil and natural gas from wells in eight different countries.^[20] In 2008, the company completed nine major production projects. On December 31, 2008, production began at four wells in BP's Thunder Horse field, the world’s largest semi-submersible oil platform in terms of reserves, with production capacity around 200,000 barrels of oil equivalent per day.^[21] BP processes and transports the extracted crude oil and natural gas through a series of pipeline networks, processing facilities and terminals, and LNG facilities.^[22]

High energy prices and increased production resulted in record profits for BP in 2008. Profit before tax and interest was $37.9 billion, 39% higher when compared to annual profit for 2007. BP’s 2008 profits were higher primarily because of rising oil prices, which peaked at $147 per barrel in July 2008.^[23] For BP, the average prices of crude oil and natural gas liquids in 2008 respectively increased 30.8% and 8.5% when compared to average prices in 2007.^[24] Production of natural gas and oil increased 5% and also contributed to 2008 profits.^[25] Production in 2008 totaled 3,838 million of barrels of oil equivalent per day. ^[26]In September 2009, BP announced the discovery of a deepwater oil field in the Gulf of Mexico. The oil field, which is capable of holding 3 billion barrels of oil equivalent, is 4,000 feet below water.^[27] Putting the oil from this discovery on the market has the potential of taking up to 10 years.^[28]

In December 2009, BP sold its interest in Kazakhstan's Tengiz oil field and pipeline carrying oil between Kazakhstan and Russia for $1.6 billion to Lukoil.^[29]

Refining and Marketing( 78% of 2008 Revenues): BP’s Refining and Marketing operations include the processing of crude oil into refined petroleum products and the sale of those products to wholesalers and retailers located in over 100 countries around the world. In 2008, the Refining and Marketing segment was reorganized into the fuels value chains (FVCs) and international businesses (IBs) groups.^[30] The FVCs integrate the activities of refining, logistics, marketing, supply and trading, on a regional basis.^[31] The IBs include the manufacturing, supply and marketing of lubricants, petrochemicals, liquefied petroleum gas (LPG) and aviation and marine fuels.^[32] In total, BP operates 17 refineries worldwide with total throughput capacity of 2,155 million barrels per day.^[33] As of December 31, 2008, BP’s worldwide retail network consisted of 22,600 stations branded BP, Amoco, ARCO and Aral.^[34]

In 2008, crude oil prices had a significant effect on the profits BP made from processing and selling petroleum products like diesel and gasoline.^[35] While revenue increased 27.7% in 2008, BP had a net loss of $1.9 billion for 2008,compared to a net profit of $6.1 billion in 2007.^[36] Rising crude prices in the first half of 2008 cut the price differential between the selling price of refined petroleum products and the cost of making those products and lead to BP's net loss in 2008.^[37] BP’s profitability was also negatively effected by the declining value of BP’s inventories when gasoline prices dropped in the second half of 2008. BP Alternative Energy: In 2008, BP created BP Alternative Energy, a separate company that focuses on low-carbon energy sources.^[38] In 2008, BP invested $1.4 billion in BP Alternative Energy as part of BP's commitment to spend $8 billion between 2005 and 2015 on the development of alternative energy sources like wind, solar, biofuels, and carbon capture and storage systems.^[39] In 2008, BP's solar capacity declined by 15 megawattts.^[40] On the other hand, wind energy capacity increased 251% due to increased investments in the construction of wind farms and turbines.^[41] In May 2009, BP's chief executive Tony Hayward said that solar power remains an inefficient source of energy compared to crude oil and natural gas.^[42] BP has been closing factories around the world, and announced a cut in its investment in alternative energies from $1.4bn in 2008 to $1bn in 2009.^[43] In 2009, BP solar began using sub-contractors in China to manufacture its solar products. Outsourcing manufacturing has given BP the capacity to produce about double 2008 output.^[44] However, BP Alternative Energy's production of energy and profits have the potential of declining in 2009 when compared to 2008 as a result of weak demand for alternative energy sources, such as solar power.^[45]

Although a separate company, BP Alternative Energy reports its earnings to BP's other businesses and corporate segment.^[46] Revenue for 2008 was $5 billion, compared to $3 billion in 2007. However, BP's alternative energy operations had a net loss of $1,258 million in 2008 and $1,233 million in 2007.^[47]

in August 2009, BP formed a joint venture with Martek Biosciences (MATK) in order to develop biofuels out of sugars.^[48] While Martek Biosciences (MATK) has the developed the technology to convert sugars into fuel, the joint venture seeks to build that technology for use on a large scale.^[49]

Key Trends and Forces

After difficult year, BP expresses its 'oil outlook' for 2010 and its strategy for the future

In November 2009, BP CEO Tony Hayward argued that oil prices are unlikely to reach their 2007 levels and suggested the need of finding a strategy to account for declining oil demand. Annual gasoline consumption in the United States fell 3.2% in 2008 when compared to a year earlier.^[50] Lower prices and oil consumption in 2008 due to the economic recession beginning in 2007 contributed to BP's 4.2% drop in annual sales.^[51] Hayward argued that oil consumption in devloped economies is likely to decline in the future due to an emphasis on renewable energies and increases in energy efficiency.^[52] However, Hayward also said that oil consumption has the potential of increasing significantly in developing countries as people in China and India purchase more motor vehicles.^[53] In order to benefit from these changing market conditions, BP plans to adjust its operations to produce more biofuel and increase its market penetration in developing economies.^[54] BP has began developing biofuels such as biobutanol and forming joint ventures with ethanol companies to build larger-capacity plants.^[55]

BP finds potentially 3 billion barrels of oil in the Gulf of Mexico, but is it worth drilling?

In September 2009, BP announced the discovery of a field in the Gulf of Mexico that potentially holds more than 3 billion barrels of oil equivalent.^[56] However, the oil, which is located under 4,000 feet of water and another 35,000 feet of sea bed, is hard to extract at a profit. Oil located in the Gulf's lower tertiary requires extremely advanced, and expensive technology. To drill each well costs about $200 million and also requires deepwater pipelines and floating facilities.^[57] As a result, the deepwater find has the potential of being unprofitable unless oil prices rise or new technology reduces the costs of drilling.^[58] Despite the potential costs, many Western oil companies have begun exploring deepwater regions in order to expand their oil sources.^[59] Many countries like Saudi Arabia, Venezuela, and potentially Brazil are nationalizing oil production, which has left oil majors like BP with few places to explore and drill.^[60]

BP’s profits fall 57% in first half of 2009, business strategy becomes “Simplicity and Efficiency”

BP’s net profit after taxes for the first quarter of 2009 was $2.38 billion, down 62% from the first quarter of 2008.^[61] The decline in BP’s profits is primarily the result of the low price of oil. Averaging $43 per barrel in the first quarter of 2009, oil prices were 56% lower in the first quarter of 2009 when compared to prices for the first quarter of 2008.^[62] Lower prices had such a strong effect on BP’s net profits because the price of oil affects BP in two ways.^[63] Lower oil prices reduce both the profit BP receives from the sale of its oil products and the value of its oil inventories. Oil majors like BP have have not had to cut capital spending as severely as independent refiners and producers. However, BP funded its first quarter 2009 capital expenditures by drawing from fund investments or dividends, and the first quarterly profits of 2009 barely covered BP’s dividend payments according to the Financial Times.^[64]

For BP, second quarter profits declined 53% from profits for the second quarter 2008. Profits from exploration and production operations fell 53% too as a result of lower earnings from its equity-accounted entities like TNK-BP.^[65] However, year-over-year production increased 4% for the quarter due to the completion of offshore projects in the first quarter of 2009.^[66] Within BP's Fuels Value Chains, refining margins in the first half of 2009 decreased when compared to refining margins in the first half of 2008.^[67] BP's refining margins were lower than the global average due to BP's highly upgraded facilities, which were negatively impacted by a narrow light-heavy crude spread.^[68]

In an effort to offset declining profits, BP has reduced capital spending for 2009 and taken additional measures to cut operating costs. Through numerous layoffs and cuts in capital expenditures, BP has the potential of reducing annual costs from $32 billion in 2007 to $28 billion in 2009.^[69] According to BP’s chief executive Tony Hayward, BP’s cost reductions in the first quarter of 2009 reflect the company’s, “continued focus on simplification and efficiency.”^[70] The completion of the expensive Thunder Horse Platform in early 2009 is capable of reducing costs in the remaining quarters of 2009 as well.^[71]

For the third quarter of 2009, BP reported profits that were 34% lower than for the same quarter in 2008.^[72] Although its profit slipped in 2009, BP's ability to reduce costs across its operations improved its profitability.^[73] Restructuring and increases in efficiency accounted for almost half of the cost cuts in the third quarter.^[74] The remaining cost reductions came from foreign currency effects and lower energy costs.^[75] As a result of these efforts, the costs associated with producing oil and gas fell 18% during the quarter, BP experienced positive cash flow, and net debt fell $800 million from the second quarter.^[76] In June 2009, BP predicted that its overall cost cuts had the potential of reaching $3 billion in 2009. Given the Company's success at reducing costs in the third quarter, BP is predicting that cuts have the potential of reaching $4 billion by the end of 2009.^[77]

To reduce costs, BP restructures its alternative energy operations,and plans for biofuel rebound

Between 2005 and 2015, BP plans to spend $8 billion in developing energy from wind turbines, solar cells, biofuels, and carbon capture systems.^[78] Through these investments in cleaner forms of energy, BP has the potential of financially benefiting from U.S. Government mandates for cleaner fuel. BP began restructuring its solar operations in 2009 as part of the company's plan to reduce operating costs and make solar power an economically competitive form of energy.

In order to combat solar cell prices that have been falling since the fourth quarter of 2008, BP Solar has outlined plans that have to potential restructure how the company manufactures its solar product as well lower overall production costs in 2009.^[79] BP Solar plans to close its cell manufacture and module assembly facilities in Frederick, Maryland and Madrid, Spain.^[80] Despite these planned reductions, BP's global manufacturing capacity has the potential to increase in 2009 and 2010 due to manufacturing contracts that BP Solar signed in 2008 to supplement its own manufacturing capacity.^[81] In 2009 BP Solar has the raw material resources and capacity to produce and sell 320MW in modules, a 100% increase from 2008.^[82]

In order to profit from the U.S.’s renewable fuel mandates, BP and Verenium have formed a 50-50 partnership to build a commercial-scale cellulosic ethanol plant in the U.S. by 2010 and begin ethanol production by 2012.^[83] BP’s partnership with Verenium is in response to Federal mandates from the U.S. Government which aim to increase concentration of cleaner-burning biofuels in gasoline mixtures. By 2022, the U.S. government is expected to require that 36 billion gallons of biofuel be mixed with the U.S. gasoline supply according to the New York Times.^[84] At the end of 2008, most U.S. refiners received their ethanol from contracts with third party producers and mixed it in with their refinedgasoline.^[85] In 2007, 6.5 billion gallons of ethanol were mixed into a supply of 142 billion gallons of gasoline.^[86] BP’s biofuel partnership has the potential to profit from higher biofuel standards not only because BP will not have to purchase ethanol from outside sources but the company will also be able to sell its ethanol to U.S. refiners required to mix the fuel with their refined fuel products.^[87]

Despite it efforts to reduce solar costs and increase its biofuel capacity, BP has begun to reduce spending on its alternative energy operations.^[88] In July 2009, BP closed its BP Alternative Energy office in London. Additionally, CEO Tony Hayward said in July that BP's strategy in 2009 focuses on its oil and gas operations rather than its wind, solar, and biofuel operations.^[89] Hayward said that BP's shift away from alternative energy is a result to rising costs and declining profits in the alternative energy industry. In the first quarter of 2009, BP Alternative Energy provides less than 1 per cent of BP’s revenues and none of its profit.^[90]

To increase production BP's moves operations abroad, exposing the company to political risks

As one an oil majors, BP controls oil resources in countries around the world. 72% of BP's oil comes from North America and Europe, but the company's exploration and production segment has a strong incentive to push forward and explore in countries that are less politically stable.^[91] By expanding around the globe, BP has the potential of increasing its production capacity and reserve life.^[92] At the end of 2008, BP had invested 67% of its capital in Organizations for Economic Cooperation and Development(OECD) countries, and its U.S. and Europe operations are the company’s largest. .^[93] Of BP’s assets, 41% are located in the US and 20% in Europe. ^[94] While its refining operations are located almost completely in the U.S. and Europe, BP’s has exploration and production operations are located in 29 countries.^[95] Major development projects are located in the Gulf of Mexico, Azerbaijan, Algeria, Angola, and parts of Pacific Asia.^[96] Although BP’s expanding global reach is capable of increasing its production capabilities, political instability in many of these countries has the potential of damaging or destroying BP’s operations. The company believes its operations most exposed to political risk are located in Iran, Cuba, Syria, and Russia.^[97]

BP's Russian Ventures Meet Resistance from Co-Investors

In 2003, BP formed a 50-50 joint venture with several high-worth Russians to create TNK-BP, an integrated oil company operating in Russia and Ukraine.^[98] Since December 2008, BP and its Russian partners in TNK-BP have tried to agree on a suitable chief executive for Russia's third largest oil company in terms of production capacity.^[99] BP has been unable to agree with its co-investors on who should head the company, and both parties have agreed to put forward nominees for CEO in June 2009.^[100] Robert Dudley, TNK-BP's former CEO, was forced to resign after management disputes and accusations from Russian investors that his actions favored BP's interests.^[101] The six month temporary term of Mr. Dudley's replacement, Tim Summers, expires in June 2009, and Russian investors and BP are fighting for control over the top executive position.^[102] Although Tim Summers' interim contract has the potential of being renewed, neither BP nor its Russian partners have expressed interest in keeping Mr. Summer's as TNK-BP's permanent CEO.^[103] For CEO, BP has nominated Pavel Skitovich, and the Russian investors have nominated Maxim Barsky. Because the venture is split 50:50 between the two parties, the position of CEO is capable of deciding who has control over TNK-BP.^[104]

In January 2010, BP announced that the tension between the company and its Russian partners has eased. Both parties agreed to appoint Maxim Barsk as CEO, but he will not assume the position until 2011.^[105] With this behind them, both BP and Russian investors plan to increased capital expenditures in 2010 by 33% in order to improve production capacity.^[106] The productions expansions are likely to occur in areas where BP-TNK has a technological advantage, like Iraq and Venezuela.^[107]

BP is Vulnerable to Natural Disasters, like the Hurricane Season

The Gulf of Mexico, where 21% of BP's 2008 production occured^[108], is prone to violent hurricanes during the last few months of summer. These storms can damage drilling rigs and refineries, and injure workers. Like most oil companies in the region, BP reduces production during hurricane months. Still, some storms can do real harm. In 2008, Hurricane Ike and Gustav resulted in a significant amount of rig shut downs.^[109] The impact of both hurricanes was a reduction equivalent to approximately 24mboe per day for 2008.^[110] BP's Thunder Horse operations, completed in 2009, are also susceptible to hurricane destruction.

Competition

BP competes with global players Exxon Mobil (XOM), Chevron, Royal Dutch Shell (RDS'A), Sunoco (SUN), Valero Energy (VLO), Petrobras (PBR), LUKOIL, and ConocoPhillips (COP). The table provided below compares the Royal Dutch Shell Company with its competitors for the year 2008.

(1) Latest data is for 2007 (2) Does not include reserves of equity affiliates

(1) Latest data is for 2007

References

1. ↑ BP Annual Review 2008
2. ↑ BP Annual Review 2008
3. ↑ BP Annual Review 2008
4. ↑ BP Annual Review 2008
5. ↑ BP Annual Review 2008
6. ↑ BP Annual Review 2008
7. ↑ BP Annual Review 2008
8. ↑ BP Annual Review 2008
9. ↑ BP Annual Review 2008
10. ↑ BP alternative: About Us
11. ↑ BP alternative: About Us
12. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
13. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
14. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
15. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
16. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
17. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
18. ↑ Market Watch: BP swings to profit on oil price rise, cost cuts, January 2009
19. ↑ BP 2008 20-F, pages 13-14
20. ↑ BP 2008 20-F, pages 13-14
21. ↑ BP 2008 20-F, pages 13-14
22. ↑ BP 2008 20-F, pages 13-14
23. ↑ BP 2008 20-F, pages 13-14
24. ↑ BP 2008 20-F, pages 13-14
25. ↑ BP 2008 20-F, pages 13-14
26. ↑ BP 2008 20-F, pages 13-14
27. ↑ Marketplace.publicradio.org: BP weighs profits of deep sea oil, September 2009
28. ↑ Marketplace.publicradio.org: BP weighs profits of deep sea oil, September 2009
29. ↑ WSJ: BP Sells Lukarco To LukOil For $1.6B, December 2009
30. ↑ BP 2008 20-F, pages 27-28
31. ↑ BP 2008 20-F, pages 27-28
32. ↑ BP 2008 20-F, pages 27-28
33. ↑ BP 2008 20-F, pages 27-28
34. ↑ BP 2008 20-F, pages 27-28
35. ↑ BP 2008 20-F, pages 27-28
36. ↑ BP 2008 20-F, pages 27-28
37. ↑ BP 2008 20-F, pages 27-28
38. ↑ BP 2008 20-F, page 33
39. ↑ BP 2008 20-F, page 33
40. ↑ BP 2008 20-F, page 33
41. ↑ BP 2008 20-F, page 33
42. ↑ Financial Times: Sun sets on BP’s solar hopes, May 2009
43. ↑ Financial Times: Sun sets on BP’s solar hopes, May 2009
44. ↑ Financial Times: Sun sets on BP’s solar hopes, May 2009
45. ↑ Financial Times: Sun sets on BP’s solar hopes, May 2009
46. ↑ BP 2008 20-F, page 33
47. ↑ BP 2008 20-F, page 33
48. ↑ BP.com: BP and Martek Biosciences Enter a Joint Development Agreement to Deliver Advanced Biodiesels August 2009
49. ↑ BP.com: BP and Martek Biosciences Enter a Joint Development Agreement to Deliver Advanced Biodiesels August 2009
50. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
51. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
52. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
53. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
54. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
55. ↑ WSJ: BP CEO Says US Gasoline Demand Peaked In 2007, November 2009
56. ↑ MarketPlace: BP weighs profits of deep sea oil, September 2009
57. ↑ WSJ: BP's Big Oil Find Cements Gulf's Revival, September 2009
58. ↑ MarketPlace: BP weighs profits of deep sea oil, September 2009
59. ↑ MarketPlace: BP weighs profits of deep sea oil, September 2009
60. ↑ MarketPlace: BP weighs profits of deep sea oil, September 2009
61. ↑ FT.com: BP’s 62% profit drop sets tone for big oil , April 2009
62. ↑ FT.com: BP’s 62% profit drop sets tone for big oil , April 2009
63. ↑ FT.com: BP’s 62% profit drop sets tone for big oil , April 2009
64. ↑ FT.com: BP’s 62% profit drop sets tone for big oil , April 2009
65. ↑ www.bp.com: Second Quarter 2009 Results
66. ↑ www.bp.com: Second Quarter 2009 Results
67. ↑ www.bp.com: Second Quarter 2009 Results
68. ↑ www.bp.com: Second Quarter 2009 Results
69. ↑ FT.com: Simplification and efficiency are key at BP, April 2009
70. ↑ FT.com: Simplification and efficiency are key at BP, April 2009
71. ↑ FT.com: Simplification and efficiency are key at BP, April 2009
72. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
73. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
74. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
75. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
76. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
77. ↑ WSJ: BP's Net Slips, Beats Forecasts, October 2009
78. ↑ 2008 Annual Report, page 37
79. ↑ BP.com: BP Solar lowers cost in drive toward grid competitive electricity, March 2009
80. ↑ BP.com: BP Solar lowers cost in drive toward grid competitive electricity, March 2009
81. ↑ BP.com: BP Solar lowers cost in drive toward grid competitive electricity, March 2009
82. ↑ BP.com: BP Solar lowers cost in drive toward grid competitive electricity, March 2009
83. ↑ Financial Times Online: BP and Verenium in biofuels joint venture, February 2009
84. ↑ New York Times Online: In Gas-Powered World, Ethanol Stirs Complaints, July 2008
85. ↑ New York Times Online: In Gas-Powered World, Ethanol Stirs Complaints, July 2008
86. ↑ New York Times Online: In Gas-Powered World, Ethanol Stirs Complaints, July 2008
87. ↑ Financial Times Online: BP and Verenium in biofuels joint venture, February 2009
88. ↑ Ft.com: Back to petroleum, July 2009
89. ↑ Ft.com: Back to petroleum, July 2009
90. ↑ Ft.com: Back to petroleum, July 2009
91. ↑ BP 2007 20-F
92. ↑ BP 2007 20-F
93. ↑ 2008 Annual Report, page 16
94. ↑ 2008 Annual Report, page 16
95. ↑ 2008 Annual Report, page 16
96. ↑ 2008 Annual Report, page 16
97. ↑ 2008 Annual Report, page 16
98. ↑ 2008 Annual Report, page 27
99. ↑ Financial Times: BP and Russians put nominees forward, May 2009
100. ↑ Financial Times: BP and Russians put nominees forward, May 2009
101. ↑ WSJ: Misreading the Kremlin Costs BP Control in Russian Venture, December 2008
102. ↑ Financial Times: BP and Russians put nominees forward, May 2009
103. ↑ Financial Times: BP and Russians put nominees forward, May 2009
104. ↑ Financial Times: BP and Russians put nominees forward, May 2009
105. ↑ WSJ: BP Dispute With Russian Partners Eases, January 2010
106. ↑ WSJ: BP Dispute With Russian Partners Eases, January 2010
107. ↑ WSJ: BP Dispute With Russian Partners Eases, January 2010
108. ↑ http://www.bp.com/extendedsectiongenericarticle.do?categoryId=9021605&contentId=7040949 2008 Annual Report, page 21]
109. ↑ 2008 Annual Report, page 23
110. ↑ 2008 Annual Report, page 23
111. ↑ COP 2008 10-K, Item 8,Page 149
112. ↑ COP 2008 10-K, Item 8,Page 152
113. ↑ ^{113.0 113.1} RDS’A 2008 20-F, Supplementary Information, Crude oil and natural gas liquids
114. ↑ ^{114.0 114.1} XOM 2008 10-K, Item 1, Page6
115. ↑ ^{115.0 115.1} CVX 10-K 2009, Item 1, Page 7
116. ↑ ^{116.0 116.1} BP 2008 20-F, Item 1, Page 16
117. ↑ Lukoil Investor Relations – Fact Book 2008, Page 11
118. ↑ ^{118.0 118.1 118.2 118.3} ENI S.p.A. – Fact Book 2007, Page 11
119. ↑ ^{119.0 119.1} TOT 2008 20-F, Item 4, Page 10
120. ↑ COP 2008 10-K, Item 8, Page 151
121. ↑ ^{121.0 121.1} RDS’A 2008 20-F, Supplementary Information, Natural gas
122. ↑ Lukoil Investor Relations – Fact Book 2008, Page 12
123. ↑ ^{123.0 123.1} COP 2008 10-K, Item 6, Page 42
124. ↑ ^{124.0 124.1} XOM, 2008 10-K, Item 6, Page 36
125. ↑ ^{125.0 125.1} CVX 2008 10-K, Item 1, Page 5
126. ↑ ^{126.0 126.1} BP 2008 20-F, Item 1, Page 14
127. ↑ Lukoil Investor Relations – Fact Book 2008, Page 13
128. ↑ ^{128.0 128.1} TOT 2008 20-F, Item 4, Page 12
129. ↑ Lukoil Investor Relations – Fact Book 2008, Page 14
130. ↑ E 2007 Annual Report
131. ↑ SUN 2008 10-K, Item 7, Page 35
132. ↑ ^{132.0 132.1} CVX 10-K 2009, Item 1, Page 24
133. ↑ VLO 2008 10-K, Item 1, Page 3
134. ↑ ^{134.0 134.1} XOM 2008 10-K, Item 6, Page 43
135. ↑ RDS’A 2008 20-F, Results, Refining Data
136. ↑ Sinopec Investor Relations, Operational Statistics for 2008
137. ↑ WNR 2008 10-K, Item 7, Page 34
138. ↑ ^{138.0 138.1} COP 2008 10-K, Item 1, Page 16
139. ↑ ^{139.0 139.1} BP 2008 20-F, Item 1, Page 29
140. ↑ Lukoil Investor Relations – Fact Book 2008, Page 15
141. ↑ Conversion factor is 1 BPD = 50 tonnes per year
142. ↑ ^{142.0 142.1 142.2} TOT 2008 20-F, Item 4, Page 36
143. ↑ SUN 2008 10-K, Item 1, Page 1
144. ↑ ^{144.0 144.1} VLO 10-K 2008, Item 1, Page 1
145. ↑ RDS’A 2008 20-F, Results, Manufacturing
146. ↑ Sinopec Refining Overview
147. ↑ WNR 2008 10-K, Item 1, Page 19
148. ↑ Lukoil Investor Relations – Fact Book 2008, Page 16
149. ↑ SUN 2008 10-K, Item 1, Page7
150. ↑ CVX 10-K 2008, Item 1, Page 25
151. ↑ CVX 10-K 2008, Item 1, Page 26
152. ↑ XOM 2008 10-K, Item 2, Page 25
153. ↑ RDS’A 2008 20-F, Results, Marketing
154. ↑ Sinopec 2008 Annual Report, Business Review and Prospects, Page 20
155. ↑ WNR 2008 10-K, Item 1, Page 3
156. ↑ COP 2008 10-K, Item 1, Page 18
157. ↑ BP 2008 20-F, Item 1, Page 30
158. ↑ Lukoil Investor Relations – Fact Book 2008, Page 60

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