BP 2011 Annual Report Download - page 27

Business review: Group overview
BP Annual Report and Form 20-F 2011 25
Our organization: Business model
BP is one of the world’s leading integrated oil and gas companies.a Our objective
is to create value for shareholders and supplies of energy for the world in a safe
and responsible way. We strive to be a safety leader in our industry, a world-class
operator, a responsible corporate citizen and a good employer.
At each stage of the hydrocarbon value chain there are opportunities for us
to create value – both through the successful execution of activities that are core
to our industry, and through the application of our own distinctive strengths and
capabilities in performing those activities.
We have two main business segments: Exploration and Production, and
Refining and Marketing. Through these, our activities are focused on finding,
developing and producing essential sources of energy, and turning these
sources into products that people need. We provide our customers with fuel for
transportation, energy for heat and light, lubricants to keep engines moving, and
the petrochemicals products used to make everyday items like plastic bottles.
We also invest in renewable energy sources, which we believe will be an
increasing source of value for BP. Our activities are focused on biofuels and wind.
These are managed through our Alternative Energy business, which is reported in
Other businesses and corporate.
Our projects and operations help to generate employment, investment and
tax revenues in countries and communities around the world. The relationships
we form with governments, partners, contractors, customers, franchisees and
suppliers are very important to the success of our business. We are committed to
being responsible, meeting our obligations, and building long-lasting relationships.
As a global group, our interests and activities are held or operated through
subsidiaries, branches, joint ventures or associates established in – and subject
to the laws and regulations of – many different jurisdictions. Our worldwide
headquarters is in London. The UK is a centre for trading, legal, finance and other
business functions as well as three of BP’s major global research and technology
groups. We have well-established operations in Europe, the US, Canada, Russia,
South America, Australasia, Asia and parts of Africa. Around 61% of the group’s
fixed assets are located in OECD countries, including around 37% in the US and
around 18% in Europe.
The significant subsidiaries of the group at 31 December 2011 and the group
percentage of ordinary share capital (to the nearest whole number) are set out in
Financial statements – Note 45 on page 251. For information on significant jointly
controlled entities and associates of the group, see Financial statements – Notes
24 and 25 on pages 215 and 216 respectively.
a On the basis of market capitalization, proved reserves and production.
BP’s business model is to create value across
the entire hydrocarbon value chain. This starts
with exploration and ends with the supply of
energy and other products that are fundamental
to everyday life.
Above When completed in the
second half of 2013, modernization
work at our Whiting refinery should
enable BP to capture additional
margins.
In detail
For definitions of subsidiaries,
joint ventures and associates,
see Miscellaneous terms.
Page 4
In detail
For more information about
Alternative Energy, see Other
businesses and corporate.
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