BP 2014 Annual Report Download - page 16

We aim to create value for our investors and benefits for
the communities and societies where we operate.
Our business model
We believe the best way to achieve sustainable
success as a group is to act in the long-term
interests of our shareholders, our partners and
society. By supplying energy, we support
economic development and help to improve
quality of life for millions of people. Our activities
also generate jobs, investment, infrastructure
and revenues for governments and local
communities.
Our business model spans everything from
exploration to marketing. We have a diverse
integrated portfolio that is focused and adaptable
to prevailing conditions. Integration across the
group allows us to share functional excellence
more efficiently across areas such as safety and
operational risk, environmental and social
practices, procurement, technology and treasury
management.
Every stage of the hydrocarbon value chain
offers opportunities for us to create value,
through both the successful execution of
activities that are core to our industry, and the
A process engineer monitors instrument readings
at our Castellón refinery in Spain. The refinery has
the flexibility to run sour, heavy and highly acidic
crudes.
In Trinidad & Tobago we are the largest
hydrocarbon producer, accounting for about 50%
of the nation’s oil and gas.
Our business model
Finding oil
and gas
First, we acquire the rights
to explore for oil and gas. Through
our exploration activities we
are able to renew our portfolio,
discover new resources and
replenish our development
options.
Developing and
extracting
When we find hydrocarbon resources,
we aim to create value by progressing
them into proved reserves or by
divesting if they do not fit with our
strategy. If we believe developing
and producing the reserves will be
advantageous for BP, we produce
the oil and gas, then sell it to the
market or distribute it to our
downstream facilities.
Transporting
and trading
We move oil and gas through
pipelines and by ship, truck and rail.
Using our trading and supply skills
and knowledge, we buy and sell at
each stage of the value chain. Our
presence across major trading hubs
gives us a good understanding of
regional and international markets
and allows us to create value
through entrepreneurial trading.
Manufacturing and
marketing
Using our technology and expertise,
we manufacture fuels and products,
creating value by seeking to operate
a high-quality portfolio of well-
located assets safely, reliably and
efficiently. We market our products
to consumers and other end-users
and add value through the strength
of our brands.
application of our own distinctive strengths and
capabilities in performing those activities.
A relentless focus on safety remains the top
priority for everyone at BP. Rigorous
management of risk helps to protect the people
at the front line, the places where we operate
and the value we create. We understand that
operating in politically complex regions and
technically demanding geographies requires
particular sensitivity to local environments.
Illustrated business model
For an at a glance overview of our
business model see page 2.
Our businesses
For more information on our upstream
and downstream business models, see
pages 24 and 29 respectively.
BP Annual Report and Form 20-F 201412