BP Magazine Issue 2 2009 Centenary PDF

+ 18 FAMILY AFFAIR
Five generations
44 SHIP SHAPE
A century on
52 TIME TRAVEL
A timeline of
at Whiting the high seas pivotal moments
THE INTERNATIONAL MAGAZINE OF THE BP GROUP ISSUE 2 2009
BPMAGAZINE
CENTENARY SPECIAL
PIONEER
SPIRIT
To celebrate BP’s centennial year
this special edition of BP Magazine
reports on key moments in the
company’s history, including the
discovery that began it all.
Welcome. So much of modern
business is driven by a desire to move contents / issue 2 2009
forward – to be better today than you
+ Features
were yesterday – that it is easy to
forget the value in taking stock of 06 Centennial thoughts Group chief executive Tony Hayward reflects on the
company’s history. Interview by Lisa Davison
what has gone before. Which is why Photography by Richard Davies, Marc Morrison & Stuart Conway
anniversaries can offer a chance to Cover story

reflect on standout moments that 12 First frontier The search for oil in Persia was a long one, but when it
have made a company great. This came, it began a chain reaction of events that changed the industrial face of
the Middle East forever, and led to the incorporation of a company that would
year is BP’s 100th anniversary and endure for 100 years. By Vartan Amadouny & Amanda Breen
throughout this issue, we look back at
18 Generation game The family and the refinery that have grown up together.
some of the people who have worked By Paula Kolmar Photography Marc Morrison
tirelessly on geographical, technical
24 Historic launch How BP Shipping has navigated the waterways of the world
and political frontiers to meet global for almost a century. By Ian Valentine Photography by Barry Halton & Stuart Conway
energy needs. In some instances, the 32 Commercial break A whistle-stop tour of BP advertising. By Tim Wickham
geographical frontiers have not
38 Frozen assets The story of Alaska’s giant Prudhoe Bay field. By Frank Baker
changed but the technical challenges Photography by Marc Morrison
have moved on. In others, the focus
44 Technical evolution The technological advances that have changed the
has been on creating long-lasting way the industry searches for oil and gas. By Nina Morgan Illustrations by Matt Herring
partnerships that enable resource
52 Memory lane Discover some of the key moments in BP’s history and its
development that benefits both heritage companies in a special foldout timeline.
business and community. What this
56 Best of British Thirty years since oil first flowed, BP’s North Sea business is
proves is the key to longevity is in a planning a prosperous future. By Helen Campbell
company’s values. As group chief 62 North Star How the Forties field influenced a nation. By Professor A Kemp
executive Tony Hayward says: “Values
64 Perfect match The partnerships that make BP distinctive. By Lisa Davison
do not change with the year. They are
probably the most enduring thing a 70 Environmental experts Behind a speech on climate change lies more
than 30 years of dedication to environmental issues. By Lisa Davison
company has.” In this issue, both he
and chairman Peter Sutherland talk 74 Distribution network A visual look at some of the different ways oil and
gas have been transported to market.
about what BP means to them. I hope
you enjoy this centennial edition. 78 Growth opportunity The history behind some of BP’s largest mergers
and acquisitions. By Lisa Davison
Lisa Davison> Editor
82 Silver screen Writer/director Nigel Williams talks about making his first
corporate film. By Nev Pierce Photography by Steven Croston
BP MAGAZINE 86 Stop the press BP’s history as seen through the headlines of the day.
The international magazine of the BP Group – ISSUE 2 2009 By Hester Thomas Illustrations by Jason Ford
BP Magazine is published quarterly for external readers around the 90 Profile An interview with BP chairman Peter Sutherland.
world, as well as past and present BP employees. Its contents do not
necessarily reflect official company views. By Martin Vander Weyer Photography by Graham Trott
The copyright for photographs and illustrations in BP Magazine is
not always owned by BP. Please contact BP Photographic Services
for details.
+ Regulars
managing editor design
04 For the record A snapshot of global news from 1909.
Barbara Peen Phil Steed – Steed Design
peenb@bp.com phil@steeddesign.com
11 BP Faces Meet some of the people – from chairmen to project engineers –
www.steeddesign.com who have helped shape BP.
editor
Lisa Davison print management 36 Viewpoint The development of a socially responsible corporation.
lisa.davison@uk.bp.com Williams Lea
distribution image contributors 68 Viewpoint The changing face of the energy industry in Azerbaijan.
Carolyn Copland BP Archive
+44 (0) 20 7496 4340 BP Imageshop 96 Viewpoint The evolution of a brand.
Corbis
Debut Art
98 Factfile The largest oil producers in 1909.
Heart Illustration
Rex Features
100 Parting shot 100 BP faces to celebrate 100 years.
© BP p.l.c., 2009
52 Giant in the field
The Thunder Horse platform
in the Gulf of Mexico is the
world’s largest floating
platform. Learn more about
it and other significant events
in BP’s history in the timeline.
12
51
74
For the record Highlights from around the globe > Spring 1909
the century
in numbers
900 US
Germany
The number of staff Belgium
evacuated from BP’s Northern Ireland

England
France
Britannic House
headquarters during Persia
the Second World War (Iran)
1967 Antarctica
The year Mrs P Harris

of the computer Persia/England: Company incorporated
department became A new company has been The majority of its 1 million businessman William Knox
the first woman to formed to progress ordinary £1 shares have D’Arcy in 1901. He has
development of a major oil been purchased by Burmah subsequently ploughed
reach a senior position discovery in Persia. The Oil, with another 30,000 much of his fortune into
in BP – as defined by prospectus for the company acquired by Lord Strathcona that search. In 1904, D’Arcy
– known as the Anglo- – APOC’s new chairman. Oil turned to Burmah Oil for
joining the senior Persian Oil Company was struck in May last year, financial support and has
dining room Limited (APOC) – was
issued on 19th April 1909.
after years of searching in a
concession acquired by
since been made a director
of the APOC board.
1978
The year BP removed
the stipulation that
directors had to be
British
251.7 million
The number of tonnes
of crude and products
transported by BP
Shipping in 2006 In writing: official documentation
detailing the Persia concession.
04 Issue 2 2009 BP MAGAZINE

top performers
France
Channel flight
Louis Blériot (below), a French inventor
and engineer, has completed the first
flight across the English Channel. The
37-minute flight began a little after
4.30am on 25th July 1909, at the break of
dawn. Bad weather caused Blériot to lose
sight of landmarks at one point and
declare: “I am alone. I can see nothing at
all. For 10 minutes, I am lost.”
■ In January 2005, the world’s largest
passenger plane, the Airbus A380, was

unveiled in France.
Northern Ireland US the New York section of

Luxury liner Instant success the American Chemical
Construction has begun on An Anglo-Belgian inventor Society.
what is expected to be the living in the US has begun ■ Early radios and telephones
world’s largest passenger selling his newly-devised were made of Bakelite because
steamship (above). Capable instant coffee. Although of its properties of insulation
of carrying around 3,500 not the inventor of the and heat resistance.
people, the White Star Line process, George Washington Antarctica
ocean liner is using some of is the first to manufacture Germany Pole position
the most advanced it commercially. It is said he Nobel cause Anglo-Irish explorer Ernest Shackleton
technology of our time, and was inspired by seeing Wilhelm Ostwald has (below right) has received a knighthood
is being described as dried powder on the edge of received the Nobel Prize in from King Edward VII. It follows his
‘unsinkable’. a silver coffee pot while in Chemistry for his work on return from the Antarctic, where he led
■ On the night of 14th April Guatemala. catalysis, chemical an expedition to within 156 kilometres
1912, during her maiden ■ During its height in the equilibria and reaction (97 miles) of the South Pole – the closest
voyage, Titanic hit an 1970s, almost a third of the velocities. He is recognised convergence on either pole in
iceberg and sank, killing roasted coffee in the US was as almost single-handedly exploration history.
1,517 people. converted into an instant establishing physical ■ In 1911, Norwegian explorer Roald
product. chemistry as an academic Amundsen reached the South Pole. Three

US discipline. years later, Shackleton made his third trip on
NAACP founded Belgium ■ Today, catalysts are used the Endurance, which became trapped in ice
The National Association Plastic invented throughout the oil and gas and and sank. Incredibly no one died.
for the Advancement of Belgian chemist Leo petrochemical industries.
Colored People has been Baekeland (below) has
founded. Appalled at the
violence committed against
announced his creation of
‘Bakelite’, the first fully
Top 10
African-Americans, a group synthetic resin – or plastic Largest oil fields in
of white liberals issued a – to become commercially history with BP
call for a meeting to discuss successful, at a meeting of involvement
racial justice. Some 60 1. Burgan, Kuwait
people signed the call, 2. Rumaila, Iraq/Kuwait
which was released on the 3. Ahwaz, Iran
centennial of Abraham 4. Kirkuk, Iraq
Lincoln’s birth. 5. Marun, Iran
■ NAACP is the oldest civil
6. Gach Saran, Iran
rights organisation in the US. 7. Agha Jari, Iran
In 2009, Barack Obama was 8. Prudhoe Bay, US ■ If you have any comments about BP Magazine,
elected the first African- 9. Zakum, Abu Dhabi please send them to: bpmagazine@bp.com or
American president of 10. Bu Hasa, Abu Dhabi BP Magazine, Bldg 200, Chertsey Road,
the US. Sunbury-on-Thames, Middlesex, TW16 7LN, UK
BP MAGAZINE Issue 2 2009 05

AN INTERVIEW WITH BP’S CEO
TONY
HAYWARD
As BP’s group chief executive in its centennial year,
Tony Hayward takes time to reflect on the importance
of the company’s history, values and pioneering spirit.

Interview> Lisa Davison ➔ view fro m
Photography> Richard Davies/Stuart Conway/Marc Morrison th e to p
Leadership skills: since

becoming group chief executive,
Tony Hayward has made it his
business to get out into the BP
world to talk to employees,
whether it’s at an office
‘townhall’ shortly after results
day or at an operational site.

Interview> Tony Hayward
Why do you think it is important for a the Middle East, the first to find oil there, reservoirs, heavy oil and gas. You can think
company to celebrate its history? the company that led the development of in terms of new forms of energy: solar,
People and companies are as much about Alaska and the North Sea, one of the first to wind, biofuels. Advanced conversion is
where they come from as where they are move into deepwater exploration, the another frontier: how do you translate coal
going, and I think the DNA of a company is company that led the industry to recognise into something more useful and not have
forged by the experiences it has been climate change. lots of carbon dioxide associated with it?
through. I think it is important to recognise
that you are standing on the shoulders of Being a pioneer often means working During your BP career, was there a
giants. on a frontier. Where do you think the defining moment when you felt part of
new frontiers are for BP in the future? a team doing something different?
Do you think there is a certain BP You can think of frontiers in different ways. There are three or four moments. The
characteristic that its employees There are physical ones, so deeper water or formulation of the new exploration
demonstrate? underneath the ice, or you can think of strategy in the early 1990s, which moved
If I look back through our history, I think them in terms of the nature of the into very deep water and new geopolitical
the company and its people have a resources that we are developing, for areas; the debate we had at the top of the
pioneering spirit. We were the first to go to instance, more challenging and complex company in 1997 when we took a stand on

“I think the DNA of a
company is forged by the
experiences it has been
through. It is important
to recognise you are
standing on the
shoulders of giants.”
climate change; the decision to go ahead just had about deep water is a great
and merge with Amoco, and then with example of innovation. Progressive is about
ARCO. The decision to take a big step into our relationships with each other, our
Russia was one that I was very intimately partners and customers, based on mutual
associated with. advantage. We operate in many places that
are in transition, which provides additional
Has there been a development during challenge in managing relationships and
your time at BP that you never thought encouraging those societies to develop.
you’d witness when you set out as a That was no different 100 years ago in
young geologist? Persia [now Iran] from some of the
I think the most obvious one is the deep challenges we have today.
water. When I started, deep water was a few
hundred metres. The fact that we are today Many see corporate responsibility as a
producing oil and gas in up to 2,000 metres new concept, but you’re saying it’s
(6,500 feet) of water and exploring in 3,000 something BP has been doing for a very
metres (9,800 feet) of water, and that long time…
technology is as advanced as anything that Absolutely. It sometimes has a different
goes into space – in terms of the pressures form, but absolutely. The final thing is
and temperatures – is astonishing. about being a responsible operator. We
have talked about being green in the past,
How do you think the BP of the past but I think it is more than that. It is about
links with the BP of today? the safety and development of our people
The best way to look at it is through our and the communities and societies in
four values – progressive, responsible, which we operate, as well as being
innovative and performance-driven, and I environmentally responsible. Values do not
would say that you can trace them all back change with the year. They are probably the
into our history. We’ve only started to most enduring thing that a company has.
articulate them in the past 10 years, but I
think their roots go back a long way. Unless The role of international oil companies
you perform as a company, you cannot has changed over the past 100 years.
persist for 100 years. The conversation we What do you think their role is in the
21st century?
“The role of the international company is to do I think if you look back over the history of
the industry, you would say there was a
the very tough stuff, the stuff that others cannot, fundamental change in the late 1960s,
or choose not to, do because of the risk involved. early 1970s with the arrival of OPEC and
the establishment of national oil
That means we have to work on the frontiers.” companies, which chose, quite reasonably,
to develop their own resources. The role of
the international oil company is to do the
very tough stuff, the stuff that others
cannot, or choose not to, do because of the »
Interview> Tony Hayward
risk involved. That means we have to work Do you think BP might exist in another “We provide the light,
on the frontiers. When we went to Persia, it 100 years’ time?
was the frontier of its day. When we went I do not see why not, if we continue to heat and mobility that
to the North Sea and Alaska, they were the perform and innovate and are engaged people want, and it’s our
frontiers. The deep water and the Caspian with society. We have to earn the right to
were the frontiers of the 1990s. Today, they be here in 100 years’ time – but provided responsibility to
are under the ice, in ever deeper water and we offer something that people want and continue to do that in a
more difficult reservoirs. I think the role are prepared to pay for, then as a
of the international oil companies has commercial enterprise, we will be here. I do way that makes a
always been to live on the frontier and to believe that it is not really the person at the difference in the world.”
do that, we have to have the world’s best top that creates the sustainable nature of
technology. the company; it is each and every one of
our people around the world who works
How much of a role do you think the for, and is connected to, BP. ■
energy industry played in shaping the
20th century?
We need to be modest in our assertions, but
we clearly played a part by providing a
reliable, affordable form of energy globally.
BP has played an important part in making
that market work and, because we are
present in so many countries and
participate in the world’s energy
infrastructure in such an holistic way, by
our very presence we have an influence.
We provide the light, heat and mobility
that people want, and it’s our responsibility
to continue to do that in a way that makes
a difference in the world.
BP Faces
Photography> BP Archive
NEW VENTURES
William Knox D’Arcy / Businessman
May 1908 represented last chance saloon for businessman and oil prospector William Knox D’Arcy. Down to his last $15,000,
his mansion on the market, and with a personal overdraft of some $700,000 (equating to roughly $50 million in modern
terms), Knox D’Arcy needed some good news. Having made his fortune in Australian gold, he acquired exclusive rights to
search for oil in southwest Persia in 1901, and ploughed his life’s fortune into the venture. By 1905, a new injection of capital
was required, so Knox D’Arcy formed the Concessions Syndicate Ltd with Burmah Oil, which took over management of the
firm. Three years later, however, Burmah was threatening to abandon operations. Knox D’Arcy never visited Persia himself, but
on 31st May, 1908, he received a telegram at dinner in London. He reportedly read the notice, placed it under his water glass
and waited until the meal was over. He then told the butler to open the champagne: “They have struck,” he declared. Oil had
been discovered five days earlier at Masjid-i-Suleiman, eight years after the search had first begun. ■

➔ oil discovery Early days> BP in the Middle East
First strike: engineer George Reynolds

first struck oil on 26th May 1908 (right).
Above, 1,000 local labourers worked to lay
the 220 kilometres (130 mile) pipeline
from Masjid-i-Suleiman to Abadan.
It is sometimes difficult to prise apart

truth and romance when it comes to
history, but in BP’s case what is clear is
that the journey to first oil in 1908 and
the incorporation of the Anglo-Persian Oil
Company a year later pushed the
frontiers of technology, knowledge,
patience and human spirit. But it was an
endeavour that would yield riches far
beyond financial gain.
DRAMATIC
PROSPECTS
Report> Amanda Breen / Vartan Amadouny

Early days> BP in the Middle East
B
old and insightful. Just two discovering an enormous field of around an extent that on the day its stock opened
adjectives used to describe 1.5 billion barrels of oil equivalent. Its for trading in London and Glasgow, people
one businessman’s move to significance could not be over-estimated stood more than five deep in front of
secure an exclusive oil for a country, a region and an industry. cashiers in one Scottish bank.
concession in Persia (now The formation of the Anglo-Persian Oil Anticipation of success was rife, but at
Iran) at the turn of the 20th Company (APOC) – later BP – came hot on the time Britain lacked expertise in
century. William Knox the heels of this discovery. Knox D’Arcy’s petroleum exploration and development.
D’Arcy’s speculative gamble almost concession had started it all, but besides a The Middle East would become the place
bankrupted him, but it would unlock the seat on the board and some shares in the where the company, and increasingly
country’s riches and from these risky company, his involvement had become British employees, learned the techniques
beginnings emerged a new oil company. increasingly limited over the years. of operating in diverse, difficult conditions.
Knox D’Arcy was a capitalist, through Meanwhile, the British press talked up At Masjid-i-Suleiman that meant
and through, investing his wealth, first in this new company’s vast potential to such building an infrastructure in which a
gold and later oil. He was not particularly
interested in the projects themselves, only
in the return on investment he might
make. But the Englishman was forced to be
patient for that return. Years passed and no
pay-off came, forcing him to enter into
business in 1905 with Burmah Oil, forming
the Concessions Syndicate Ltd.
A further three fruitless years passed, and
the drilling of two holes near Masjid-i-
Suleiman was viewed as the syndicate’s last
chance. Over the years, Knox D’Arcy’s man
on the ground – engineer George Reynolds –
faced a string of interruptions to
exploration: bad weather, sickness and
breakages, not to mention variable relations
with the local indigenous communities.
This bad luck did not change with the final
two wells – torrential rains washed away
four months’ work on a link road and a drill
bit fell off the first well, losing the operation
a precious 10 days in recovery.
Finally, in the early hours of 26th May,
1908, Reynolds and his team struck oil,
Zagro
s
BP profile: George Bernard Reynolds
Mou
nta
ins Born in the mid-19th century, possibly at sea, Reynolds (below left) graduated
from the Royal Indian Engineering College and worked as an engineer in
Tembi Sumatra for Royal Dutch before being engaged by William Knox D’Arcy to
search for oil in Persia. Although often tetchy with his superiors, Reynolds laid
Masjid-i-Suleiman the foundations for the Iranian oil industry. He was patient and persuasive in
Eup
oil field handling his staff of different nationalities, sustaining their endeavours through
h
rat
rains and searing heat and inspiring those depressed by lack of success and
ru
es
Ka
homesickness with his assuredness and determination to strike oil.

er
Riv
IRAN
e
elin
Pip
Tigris
Basra Abadan
IRAQ
KUWAIT PERSIAN
AREA
GULF ENLARGED
Kuwait
14 Issue 2 2009 BP MAGAZINE km 75 150
In the search for a job and workforce could live and operate in its workers and sickly locals. Dr Young would
rugged territory. Just six months after become APOC’s chief physician and a local
better life, many people striking oil, Daily Telegraph correspondent legend, developing a network of clinics and
moved to Abadan.” Percy Landon reported of well-built drillers’ hospitals across Persia.
houses, rough-and-ready workshops, offices As well as facilities for employees, a
Cyrus Rezaei and stables, as well as ‘sardabs’ or pipeline and refinery were urgently
‘shabadans’ cut into hillsides, providing required. Scottish engineer Charles Ritchie
shelter from the searing summer heat. led the challenge to lay a 220km (130-mile)
Medical needs were attended to by Dr pipeline over remote hillsides to the site of
Morris Young, who had joined the the first refinery at Abadan, on the edge of
expedition in 1907. He established a free the Persian Gulf. More than 6,000 mules
healthcare service and practised from a dragged pipe over steep gradients to reach
stone dispensary, treating both injured the route, with a special team of 37 engineers »
New development: local

people were drawn to jobs,
electricity and clean drinking
water at Abadan refinery
(below and left), and between
1936 and 1950, BP built some
21,000 homes for employees.

Early days> BP in the Middle East
Did you know? explored frontiers where there were no Local talent: the Anglo-Persian Oil
Company provided young Persians
facilities until the company created them.
■ The Anglo-Persian Oil Company made with industry training (left). Above,
These frontiers became a laboratory of ideas the pipeline between Masjid-i-
its first trading profit in 1915 and paid
and experience. Metalled roads for access to Suleiman and Abadan refinery
its first dividend to ordinary crossed rugged territory.
fields, pipelines to carry the oil, modern
shareholders two years later.
port facilities for shipping products around
■ The original oil concession signed in the world were just some of the physical
1901 for a term of 60 years was infrastructure BP and partners had to create It took three years for staff to return and
cancelled in 1932 by His Imperial in order to function. These came alongside production to resume, albeit under
Majesty Reza Shah, who threw the telecommunications, housing and ancillary different terms by which the company,
company file in the fire. A new revised services in medicine, education and now BP, would work in partnership with
concession came into effect from 1933, housing, all of which were previously non- other international oil companies.
covering a reduced area of 260,000 existent in most areas. Nationalism would come to rise again,
square kilometres (100,000 square Between 1936 and 1950, BP built some though, firstly in Libya under Muammar al-
miles), chosen by the company. 21,000 homes around its refinery at Abadan, Ghaddafi, who nationalised BP’s interests in
the first and, for many years, the world’s the country in 1971. Iraq and other Arab
largest oil processing plant. Job states soon followed suit, as did Iran in 1979.
opportunities, electricity and treated water Although the wave of nationalisation
and 1,000 local labourers working on the drew people from across the country’s that swept BP out of its prolific Middle
project. When he got bored inspecting the southern provinces. One employee, Cyrus Eastern states changed the character of the
pipeline on horseback, Ritchie bought an Rezaei, born in Abadan to the indigenous company, the links to the region were
aeroplane, the first in Persia. It nearly cost Bakhtiari tribe, describes how the place never entirely severed.
him his life, though, when he later developed “a cosmopolitan culture, where BP continued to lift oil from Abu Dhabi,
crashed it. you found mixed tribes, dialects and UAE, in a service agreement with its
Remote conditions and basic apparatus languages. You could have the local government, and by 1974, had entered
characterised exploration work during the indigenous Arab population, lots from the Egypt, where its primary focus was the
early years. Before seismic reconnaissance Bakhtiari tribes; from the Southern Province country’s gas reserves. Indeed, gas became a
became the industry norm, early geologists who were living around Shoushtar and new departure in a region dominated by oil.
rode through Iran on donkeys, with Masjid-i-Suleiman. In the search for a job One hundred years after entering the
knapsacks and hammers, ‘reading the and better life, they all moved to Abadan.” Middle East, BP is still there, pumping oil in
landscape’ with their eyes to find the places Abu Dhabi and developing oil and gas in
where geological anticlines and seepages Imbalance of revenue Egypt, along with gas production in Algeria
indicated the presence of oil. Nationalism came to threaten the stability and a return to Libya and Oman, where
Chief geologist for BP by 1955 Norman of these operations and lifestyle. In the late technology and expertise developed in
Falcon, recalled how camping in the 1940s, resentment emerged at the some of its ‘newer’ businesses are now
wilderness brought unwelcome guests. imbalance of revenue shared between the being applied for the first time in the
“Occasionally, somebody had a company and the Iranian government, region where it all began for BP.
gramophone and we would have [it] on, leading to the nationalisation of the A certain amount of luck and
and suddenly in front of my tent there was country’s oil in 1951, along with the judgement prompted Reynolds and his
a terrific shindig because three or four evacuation of employees and the closure of men to position that last ditch well at the
jackals had come and heard the sound, and Abadan refinery. By October that year, chief right spot in Masjid-I-Suleiman in 1908. It
were screaming away.” chemist Monty Sawyer was one of four was a discovery with an impact far beyond
The growth of the oil industry – slow at remaining staff at the colossal refinery. “It rescuing Knox D’Arcy’s bank balance. The
first but accelerating in the 1950s as demand was very strange but we kept going. We got strike in Persia would turn Britain into a
grew in the industrialised world – opened the staff out, stayed on and quite frankly, it major player in the energy industry, shape
up new opportunities, not only in Iran, but was not unpleasant. But the day came – we the Middle East’s politics, economy and
other parts of the Middle East and North were escorted out…with many of my society. And it would be the catalyst that
Africa, where BP became a major player. Iranian graduates in tears, they never would eventually create a company that
In Iran, Iraq, Kuwait and Qatar, BP thought it would happen.” has endured for one hundred years. ■
BP Faces
EXPLORATION EARTH
Norman Falcon / Chief geologist
“It was all fairly civilised as far as possible,” recalled Norman Falcon of conditions on Persian reconnaissance
missions during his early career with the Anglo-Persian Oil Company. The Cambridge graduate served his
apprenticeship from 1927 on a well-site in Persia, before joining the Bakhtiari Mountains survey. Working in rugged,
roadless, mountain terrain was of little hardship, Falcon said in an interview in 1991, geologists even managed a
daily bath with “not hot, but warm” water. Falcon and others mapped some 230,000 square kilometres (90, 000
square miles) at a 1:250,000 scale – work recognised as one of the greatest feats of geological exploration in the 20th
century. As BP’s chief geologist from 1955, Falcon saw the company through a period of transition following the
nationalisation of the Iranian oil industry and the company’s expulsion from Iran. A decade in the role saw Falcon
mastermind an exploration programme, which produced a series of major discoveries at a time when the company
needed to replace lost reserves. His contribution to petroleum geology was honoured in 1963 by the Royal
Geographical Society’s Murchison Award. ■
➔ r e fi n i n g Generations> The Warzyniak family
WE
ARE
FAMILY
Over the years BP has grown into a global giant, but at operational
sites such as Whiting refinery – an Amoco heritage site – a sense of
family remains. Just ask the Warzyniaks, who have worked at the
refinery for five generations.

Interview> Paula Kolmar Photography> Marc Morrison / Whiting Archive

Generations> The Warzyniak family
‘B
refinery’s pumping system that pumped from Poland, and found his way to the fast-
from Lake Michigan into the plant for growing area that is now Whiting. Born in
various purposes. The system also served to the 1860s, Joseph would have been in his
provide the city of Whiting with its water mid-30s at the time of the refinery’s
source for purification and storage and construction. Near a major water source
distribution to homes, along with the fire and railroad, the sparsely populated area
department and businesses. was a prime site for a refinery. This was
And since 1889, when the refinery was long before technology streamlined
e back home when built by John D. Rockefeller’s Standard Oil refining, which meant many strong backs
the whistle blows,” Dolores Warzyniak Company, the plant has been a workplace were necessary to handle crude oil
calls from the porch, as her two young sons of huge importance for Whiting and its processing.
run out to play with friends on a warm, families. For at least five generations and
sunny summer day in the 1960s, in a small counting, that’s certainly been the case for Prosperous refinery
US town near Lake Michigan. She might the Warzyniak family. Whiting – not even a city until 1903 – had
have told them to take their shoes off What was the refining business like in 115 citizens, according to the Census
before playing in the water sprinklers, and the US a century ago? Stories and traditions Bureau count of 1880. Success found the
then gone inside to make a pot of coffee passed down from Warzyniak fathers to refinery and, as it prospered, it brought
with water from the tap, while planning to sons over 10 decades tell us it has changed more workers, who, with their paychecks,
sort the laundry for washing. dramatically, from the refinery products built houses and raised families. Refinery
Whistle, water sprinkler, coffee, laundry and economy, to technology, safety and and community share deep roots and have
– all of these brought the nearby Whiting environmental responsibility. What hasn’t grown together. Joseph chose to start his
refinery into their daily lives, as it did for all changed, however, is what makes a refinery family there.
of the citizens of Whiting, Indiana. Everyday strong enough to stay in production for Though records from that time are
at 4.30pm, the whistle blew, signalling the more than a century: responding to energy scarce, Joseph would have been among the
end of the 8am day shift; the piercing pitch demands, making a positive impact on the first generation of Whiting employees. One
could be heard throughout the town. community and building pride in work – of the vital jobs in his day was that of a
Everyone knew when it was 4.30pm. often based on family heritage. greaser or oiler. Whiting made grease and
Water for drinking, washing and In the 1880s, Joseph Wawrzyniak (the oil to sell as machinery lubricants; the
watering the flower beds came from the extra ‘w’ was later dropped) came to the US machinery at the plant was no exception
Family fortunes: opposite l-r, son and
father Bob and Ray Warzyniak, Andrew
Kuiper (Bob’s stepson) and Jake Warzyniak
in the family home. This page, historical
snapshots of Whiting refinery.
and needed constant greasing to prevent it 1976, later promoted to captain, before
from seizing and wearing down parts. Men retiring from the plant in 1990. No longer
carried it around in buckets, applying it part of the Standard Oil Company – which
where needed. It was this job that gave the broke up under anti-trust laws in 1911 –
Whiting High School sports teams their Whiting’s refinery was an Amoco business
name: The Oilers. and security jobs were given to employees,
Whiting, with other refineries across the not outsourced as most are today. It was
country, made a profit by producing also the period when the Occupational
kerosene rather than gasoline. Beeswax and Health and Safety Administration and the
asphalt, too, would eventually be top-sellers. US Environmental Protection Agency
Joseph’s son, Steve Wawrzyniak, was a (EPA) began oversight on behalf of workers,
new employee at Whiting in 1934, when the the environment and citizens. Regulations
deep depression made jobs a rare commodity slowly changed the way industries and
in the US. By that time, and over the next few companies ran their businesses; refineries
decades, cars and trucks began to fill the new got a lot of attention.
asphalt roads criss-crossing the country, and
finally gasoline and asphalt became Long service
important refinery products. Gasoline’s Remember the two boys who ran home
demand vaulted when the US joined the ‘when the whistle blew’? Bob and Steve
Second World War, making the 1940s a Warzyniak are 51 and 54 now, and have
period of fuelling military vehicles and been working for the refinery for 28 and 29
airplanes for refineries. years, respectively. Raymond is ‘Dad’.
Raymond Warzyniak, Steve’s son, was Steve, who joined in 1981, knows a lot
next to carry on the family tradition at about EPA regulations. In his job as an
Whiting, working there for four years, Golden anniversary: poster celebrating
optimisation engineer, he is closely
before joining the Marines. After Ray – now the joint 50th birthday of Whiting as a involved in the water quality and pumping
81 – retired from a long career in Whiting’s city and refinery. facility at Whiting. “I started as a
police department, he returned to the technician in the lab, where I also met my
refinery to become a security guard in wife, Cheryl, who is a lab supervisor,” he »
Generations> The Warzyniak family
Young love: Steve Warzyniak

and his wife Cheryl work
together at Whiting refinery.
notes. “But as the importance of water uphold in a way. Warzyniaks have been at
quality grew in the 1980s and 90s, the this refinery a long time and since my son WHITING TIMELINE
refinery added jobs that were focused joined the plant as a machinist’s apprentice 1870: Standard Oil Company (SOC)
entirely on making certain the water we two years ago, it looks like our name will formed
put back into Lake Michigan was as clean, go on far into the 21st century.” Indeed, the
or cleaner, than when we pumped it out.” Warzyniak family name may have crossed 1890: The first shipment of finished
three centuries of the refinery’s history. petroleum product, 125 tank cars of
High expectations In his work as a hydroprocessing long- kerosene, is shipped from Whiting
So in 1997, a year before Amoco became term asset coordinator, Bob – with the refinery. (Gasoline was considered a
part of BP, Steve entered his current refinery since 1980 – is responsible for long- waste product and was often discarded)
position and says, “Lake Michigan’s water is term asset coordination, which involves 1903: Whiting is incorporated as a city
cleaner today than it has ever been, largely scheduling turnarounds, complex budget of Indiana
because of what the EPA requires of planning, ensuring reliability and necessary 1911: SOC dissolved, Whiting refinery
industries, but more so because the long-term maintenance. “I’ve seen the safety becomes part of the American Oil
communities in the area depend on that culture change in big ways. Over the past 20- Company (Amoco)
water. They have high expectations plus years, employees and contractors have 1918: For the First World War effort, US
regarding our environmental performance, come to take personal safety very seriously, gas production rises to 12 million
and we want the water we return to Lake and it’s made a big difference in the way we barrels, compared with 2 million
Michigan to be pristine.” Just consider that work and the way we make decisions,” he in 1914
relationship and you can see how family says. “Safety is not optional or just a good
heritage and pride in work keeps the thing to do.” He also points out the impact of 1941: During the Second World War,
refinery strong. computers. “They are efficient and improve Whiting researchers developed new all-
“My wife, my brother and nephew, Jake, quality, but they are so integral to my weather, heavy-duty motor oil
and perhaps even my son, Bradley, after group’s work that if the system is down, we 1977: Whiting establishes an all-time
graduation, are part of the ongoing family can’t perform our jobs.” production record for the refinery by
history at Whiting refinery. We’re not the No whistle blows at shift change in 2009 processing 504,000 barrels of crude oil in
only family with heritage here, but we are – that’s low-tech – but the young boys who a 24-hour period
very proud to be one of the long-term came home when the whistle once blew, 1980-81: Bob and Steve Warzyniak
names in Whiting’s history.” remember it. Refining has changed a lot become the family’s fourth generation
Bob, his son, Jake, and stepson, Andrew since the 1800s and continues to change at working at Whiting refinery
Kuiper, share the sentiment: “When your Whiting. But it still processes crude oil, still 1998: Amoco and BP merge.
family name echoes back to you from a has an impact on communities and still has
century ago, you feel a sense of honour to enduring families. ■
BP Faces
Highlights from history
Trawl through the archives of

BP’s long and distinguished
history and you’ll find no
shortage of key moments
that helped shape the
company we know today. But
what do the organisation’s
previous leaders feel were the
highlights of their tenure at
the top? What single event or
activity stands out for them
as the defining moment of
their leadership?
SIR PETER WALTERS

Chairman 1981-1990
“My pinnacle moment as chairman of BP
was the outright purchase of Standard Oil
of Ohio [Sohio] in 1987. We’d had a 55%
stake in Sohio since the 1970s, but it had
remained under the control of local
management, apart from two BP non-
executive directors. By 1986, however, it
was clear that around $6 billion of revenue
had been squandered on a series of useless
projects, so I wrote to the chairman and
chief executive, asking for his resignation
and saying I would be in Cleveland with
my deputy chairman, Roger Bexon, the
next day. He didn’t really put up a fight, and
all the Sohio directors accepted our
proposal to put Bob Horton and John
Browne in charge. All, that is, except one
non-executive – a lady who was principal
of the Wharton School of Finance. She told
me: ‘This is not the way we do business in
this country… I need to give Al a big hug!’
The decision was clearly right, though. The
following year, we bought the remaining
45% of Sohio shares, and if we hadn’t done
that, it would not have been easy to buy
Amoco and ARCO later. I sat next to that
lady non-exec on a flight the following
year. She apologised for misjudging me,
and said that since Bob and John had been
in charge, she had seen what good
management was all about!” ■
Interview: Nick Reed
Illustration> James Carey

➔ business fo cus BP Shipping> A century at sea
British flagship: launched in

1924, the British Aviator was the
60th member of the APOC fleet
and the most powerful single-
screw motor ship in the world.

Report> Ian Valentine
Photography> BP Archive / Barry Halton / Stuart Conway
BP’s shipping business is almost as old as

the company itself, with its first ship
delivered in 1916. Since then, its fleet has
navigated oceans, politics and economics, all
with a steady hand and a determination to be
a leading force in the transportation industry.
TAKE A BOW
A CENTURY OF SUCCESS ON THE OCEANS
BP Shipping> A century at sea
L ooking back across the

economic, political and military struggles
that rocked Europe and the Middle East in
the 20th century, it is hard to believe that a
shipping company could have delivered
crude oil uninterrupted in that arena for
the past 95 years. Yet BP Shipping has not
only navigated the choppy waters of
change, but has motored into the new
millennium as a leading force in the global
oil transportation industry.
The maritime arm of BP can trace its
roots back to the early days of the Anglo-
Persian Oil Company (APOC), the
precursor to today’s BP. As soon as oil had
been struck in Persia, now Iran, the need to
ship it back to Britain arose. This was
primarily undertaken by contractors, until
one of the directors of APOC, a visionary
Scotsman named Sir Charles Greenway,
saw that a modern petrochemicals business
ought to be vertically integrated: able to
find, extract, refine and market the oil
itself. In 1915, the British Tanker Company
Limited (BTC) was formed with a budget of
$144,000 to build seven steam-powered
tankers. All those ships and later additions
to the fleet would bear the prefix ‘British’.
Over the next decade, as the need for oil
in the developed world gathered pace, the
BTC grew to meet this demand. By just
1924, the fleet numbered 60, with the 60th
being the flagship, 10,762 deadweight
tonnes (dwt), British Aviator. It was APOC’s
first diesel engine oil tanker, the most
powerful single-screw motor ship in
Launch party: the British Premier the world.
was launched at Jarrow on Tyne
on 25th August 1922 (top).
Middle, the British Victory leaves Weathering the storm
the fitting-out wharf, and right, The good times were about to end,
British Fame, Merlin and Reliance
in the ice channel into the port
however, with the onset of the Great
of Stockholm, Sweden, during Depression in the early 1930s. Rising
severe weather conditions. unemployment within the merchant navy
meant it was not unknown for fully
qualified masters to take jobs as deck
hands, while work was scarce for
apprentices and cadet officers. But, through
a policy of strategic mergers, as well as the
continued support of the Shah of Iran,
APOC weathered the storm, strengthening
its position within the industry.
In 1939, the British government
chartered the whole fleet of 93 vessels to
supply fuel for its forces during the Second
World War. “Our seamen were just doing
their jobs, which they delivered with great
ability under severe pressure,” says Dave
Williamson, vice president for Fleet
Operations, who arrived at the company as
a cadet 37 years ago.
Within a year of peace in 1945, the BTC
fleet had returned to its pre-war total of 93
ships. The recovery was further bolstered
by an order for 57 new tankers, each 12,000
dwt, which would increase the tonnage of
oil transported from Abadan refinery in
Iran, but remain light enough for the
tankers to pass through the shallow waters EXPERIENCE MATTERS
of the Suez Canal.
E
ntering the BP Shipping headquarters at Sunbury-on-Thames, the history
Lessons learnt of the company is unavoidable. A model of one of the tankers from
In 1951, however, this arrangement was yesteryear sits in the main atrium, while memorabilia from the list of
changed by the nationalisation of the global destinations serviced by BP hang on the walls.
Iranian oil industry. APOC removed its staff I put this to John Ridgway, who joined BP as a 16-year-old officer cadet in 1971.
from the country. This sudden shortage left Thirty-seven years later, he is now chief executive of BP Shipping, while many of his
it over a barrel, and although oil would fellow senior executives have also worked in the company for more than 35 years.
again flow west from the Iranian oil fields, “Shipping is steeped in tradition, whether it is part of the language or the
the lessons were quickly learnt. culture. We have a fantastic reputation for safety and professionalism that has
The newly-renamed British Petroleum been built up over many decades. BP Shipping has had a clear purpose for almost
Company duly recognised the need to 100 years, to safely transport the oil and gas of the BP Group to its customers
widen its network of suppliers and worldwide. We all need to play a part in continuing the traditions and continually
refineries, in particular forging alliances improving what we do, as others have done for the past 95 years.”
with Kuwait and Bahrain. In the early Chief marine incident investigator Bob Fleming arrived at the same time as
1950s, it also increased the size of deep-sea Ridgway, and served alongside seamen who experienced the war. “There is a sense
ships, building 13 so-called supertankers at of history within BP Shipping,” he says. “Yet, being a seafarer transcends
more than 30,000 dwt. These bigger ships nationalities and politics. You are a seaman first and foremost, governed by the
were particularly useful in 1956, when the laws of the oceans. But we must not forget the past, otherwise we cannot
first Suez Crisis closed the Suez Canal, understand the journey of how we arrived at the company we are today.”
forcing ships to travel around the South Indeed, BP Shipping seems to have as many ‘lifers’ in its ranks as other parts of
African Cape, adding more than 9,000 the company. There are officers who have been serving more than 40 years.
nautical miles to the journey. The crisis Ridgway adds: “We also have a vibrant pensioners club who keep in touch with
lasted a year, but again alerted the company colleagues long after they have left. At sea, you live, eat, work and play together.
to the changing nature of world politics and You learn each other’s strengths and weaknesses, and you learn tolerance.
the need to build ever-larger ships. By the Colleagues become lifelong friends. At sea, it is very simple: you need to rely on
end of the decade, the BP Tanker Company every member of the team to succeed.”
numbered 146 vessels, including mammoth The 95-year history of BP Shipping is part of the cultural history to which
tankers of 42-, 50- and 60,000 dwt, with every employee can relate. “We are very proud of our unrivalled ethos of
plans already being drawn up for 100,000 professionalism,” says Ridgway. It was instilled by those who worked for BP
dwt tankers, which could hold more than Shipping before us, and it is continued by those who work for her now as we
25 million gallons of crude oil. continue to perform for the company.”
In 1967, when the canal was again
blocked, this time by the wreckage of
sunken warships during the Six-Day War, “Shipping is steeped in tradition, whether
BP’s tankers were once more routed around it is part of the language or the culture.
the Cape. This challenge demanded bigger
tankers, including the first of the very large
We have a fantastic reputation for safety
crude carriers (VLCC), one of which was and professionalism that has been built
the British Explorer, which was launched in
Japan, with a capacity of 215,000 dwt of
up over many decades.”
cargo. By now, BP had struck oil in the » John Ridgway
Did you know?

■ The Anglo-Persian Oil Company’s first
tanker was the British Emperor, which
launched in 1916
■ In 1983, BP Shipping transported just
500,000 tonnes of oil from the Middle
East, compared with 140 million
tonnes less than a decade earlier
■ BP’s Trader-class liquified gas carriers
were the first to be ordered for general
trading purposes rather than on a
contract basis
■ BP’s first very large crude carrier was
the 215,000 tonne British Explorer,
built in 1969.

Vast vessel: the inside of the
gas storage unit on the British
Merchant, one third of BP’s
Trader-class fleet. It is a double
hulled LNG tanker.

North Sea and was also exporting oil from In 1982, BP Shipping, as it was now strategy of expansion that has resulted in
Nigeria. It was soon to find oil in Alaska, known, was again drawn into the British the growth of its operated fleet to its
further lessening its dependence on the military effort, this time the Falklands War current size of 54 ships, out of a total of
Middle East. in the South Atlantic. Eleven tankers were more than 300 required daily for BP
The 1960s were a time of prosperity and requisitioned from trade to provide fuel for business. BP Shipping can boast one of the
expansion, but the economic bubble burst warships to support the government effort. most modern and sophisticated fleets in
in 1973 when the Organisation of the Throughout the 1980s and the first half the world. Even Sir Charles Greenway
Petroleum Exporting Countries (OPEC) of the 1990s, BP Shipping underwent a would might have been impressed. ■
caused the price of crude oil to increase period of consolidation. At one stage, the
from $3 to $12 overnight. The high prices at company had just 22 BP ships. Yet, the Exxon
the pumps led to a drop in consumer Valdez incident of 1989, which heralded the
demand. BP’s maritime arm stopped building of ships with double hulls, had Historic fleet: built in 1922, the British
building and began to shrink. A further oil forced the company to grow more capability Workman (top) was one of the first 60
crisis in 1979 pushed the price of crude to actively manage marine risk. ships to be constructed for the British
Tanker Company. Middle, the British
from $13 to a high of $35 a barrel, which In 1999, following merger with Amoco
Courage launched in 1928. Bottom, the
again caused new orders to be cancelled and and the subsequent acquisition of ARCO, British Ruby is one quarter of the new
condemned old ships to the breaker’s yard. BP decided to embark on an ambitious Gem-class LNG fleet.

BP Faces
SIR ROBERT HORTON

Chairman & chief executive
1990-1992
“I had been working on a major cultural
change programme at BP for a couple of
years before I became chairman, so I was
able to announce it as ‘Project 1990’
immediately after I took office. The
programme was all about reducing the
complexity and extraordinary bureaucracy
that had built up within the company, and
it called for greater openness,
accountability and responsibility, in much
the same way as Tony Hayward’s current
‘forward agenda’ does today. It hinged on
the assumption that information confers
responsibility, not power. I knew at its
launch that Project 1990 would be
important, one way or another. Looking
back, I think it is now generally
acknowledged that it transformed BP quite
a lot, and the company wouldn’t have been
the same without it. All the other major oil
companies went through the same process,
but later than BP. But trying to convince the
media that it wasn’t some cynical exercise
to reduce staff numbers during a time of
deep recession meant it took a lot longer
to implement. It also left me tagged as
‘Horton the Hatchet’, which was something
I would rather not have following me
around. But there were so many happier
things to compensate and the media do like
their tags.” ■

➔ brand Advertising> Distinctive campaigns Report> Tim Wickham
THE ART OF
ADVERTISING
Since the 1920s, BP has been creating
iconic and memorable advertising.
From posters to television campaigns, it
is famous for its distinctive approach.
As a result, BP adverts are instantly
recognisable.
“With most print advertising, for
example, only around 15% of people
can correctly identify the company if
you remove its brand and logo. With BP,
the recall rate is nearer 60%,” says
director of brand Duncan Blake. “The
public recognises the look and feel of
our advertising.”
Such influential advertising has
always given BP a strong competitive
advantage. The challenge is to stay
ahead. Today, the message is that BP
leads the way in securing dependable
energy by investing in both
conventional and alternative sources.
Advertising today is a more
complicated and competitive business
than ever. “You have to be far more
sophisticated and respond quickly to
changing conditions, which makes it a
real challenge,” says Blake. “BP’s brand
communication is particularly effective
and often cited as a good case study. It’s
a tradition we intend to uphold.” Iconic imagery: adverts such as this one (bottom),
designed by Clement Cowles in 1933, were used on lorries,
Over the next few pages, BP Magazine often regarded as travelling art galleries. Wit and humour
were used, as well as visual impact, to entertain the
highlights three great eras of BP customer. Above, a poster promoting BP Super was
advertising. produced by distinguished French poster artist Savignac.
BP Super was to become the first product to be featured in
simultaneous print and television campaigns.

Proud sponsor: BP sponsored many speed
record and flight attempts, including those
1930s/1940s/1950s >
made by Captain George Eyston (above). Like Art of advertising
other sponsors, BP took any opportunity to
advertise the fact that drivers and pilots had This classic period of brand promotion saw
used its products in their pursuit of glory. BP inspire in the art of advertising. It was
Below, Edward McKnight Kauffer created one
of the first artistic adverts, using the recently
spearheaded from the 1930s by the newly
opened Whipsnade Zoo as a theme. formed Shell-Mex and BP (SMBP) – a joint
marketing venture. Only wealthier people
could afford cars, so advertising appeared
mainly in the quality press.
SMBP publicity manager Jack Beddington
was a patron of the arts who encouraged young
unknown artists, as well as famous names, to
design adverts. The Whipsnade Zoo advert by
commercial artist Edward McKnight Kauffer
was one of the first to be commissioned.
Adverts were humorous and witty, with
strong visual impact. Links to racing wins and
speed records achieved with BP products were
promoted, including Malcolm Campbell,
holder of many land and water world speed
records, and racing legend Stirling Moss, who
was the first BP ‘Superman’.
The reintroduction of branded petrol in the
1950s triggered new advertising opportunities
as garages began to sell single brands. Garages
became brighter and more modern, with
consistent advertising to strengthen the brand
image. BP burst on to TV screens in 1957 with
BP Super.
Advertising> Distinctive campaigns
1980s/90s > On the move Hollywood glamour: by the

1990s, BP was using television
During the 1980s, the focus shifted from advertising – and sometimes
print to television. The 1980s began with Hollywood directors – to
promote its messages. Above,
BP at its best. One of the most memorable, in the BP on the move campaign
1984, showed BP as a successful British showed the range of
company with diverse activities. By the end transportation using BP
products. Left, Elevator was
of the decade, BP launched the For all our directed by Steven Spielberg
tomorrows campaign, highlighting how it and was designed to showcase
was working to solve tomorrow’s problems the different types of business
through technical expertise, social BP was in. Below, the For all our
tomorrows campaign
responsibility and environmental care. highlighted the company’s
By 1992, it developed BP on the Move, early efforts to diversify its
with planes, trains and trucks bearing energy mix.
down on a service station. This period
marked a renewed emphasis on marketing
activities. Centralised global brand
development ensured greater consistency
and higher quality in its advertising.
Just as earlier advertising called on the
skills of great artists, this period saw BP
enlist Hollywood’s creative geniuses.
Ridley Scott (Alien, Blade Runner) directed
For all our tomorrows and Industrial Light
and Magic – George Lucas’s (Star Wars)
company – created an advert showing oil
pouring over Rodin’s sculpture, The Thinker.
Meanwhile Elevator – in which a pizza
delivery boy visits the different BP
departments – was directed by Steven
Spielberg, with music by John Williams.

2000- > The new BP
The new century began with a new brand
and ‘beyond petroleum’. It signalled BP’s
arrival as a global energy company.
The new brand was quickly established
and it provided BP with a positive image
that helped the company stand out from
the competition
Last year, it was once again time to
refresh the advertising message. “Generally
speaking, every four or five years we need
to think about where to go next,” says
Blake. “Like many things in business, you
can’t stand still for too long; you have to
move on, or your competitors will catch
up. Having said that, the best brands evolve
slowly over time.”
The icons used in the current
advertising represent oil, gas, wind, solar
and biofuels. “They are proving very
effective at getting across how we invest in
a combination of hydrocarbons and low
carbons to provide for a dependable energy
future. They are all important,” says Blake.
New media and changes to traditional
media have transformed the way companies
advertise. Online activity can account for
nearly half BP’s advertising budget in some
campaigns. “Online advertising enables us
to be more targeted, to focus on niche
websites and develop deeper relationships
with consumers. You can link them to our
website and measure how many people
interact and click through.” ■
New look: a new brand required new advertising (above)

to promote BP’s global scope and scale. Since then, its
campaigns have increasingly focused on its ability to
provide energy diversity to benefit the environment and
provide security of supply (below). Specific product
advertising is still used, such as the recent BP Ultimate
campaign promoting ‘more performance, less pollution’.

Viewpoint> Mutual advantage
United Kingdom Persia Indonesia Azerbaijan
Responsible operations
BP’s license to operate is founded on the principle of mutual advantage – seeking to act in a manner
that benefits both company and community. Over time, this concept has meant many things. In the
early 20th century, it meant constructing houses, schools and clinics to ensure its refinery staff in both
Persia and Wales had access to living quarters, education, social activities and healthcare – in Persia,
Dr Morris Young developed a fully-fledged hospital to help improve the health of local communities.
In 1968, it meant the creation of the UK Schools Link programme – still going strong today – and
more recently the creation of the A+ for Energy programme in the US, both designed to encourage
schoolchildren to study science. More recently, BP has sought to build local content and participation
in its operations, by developing skills and businesses relevant to the energy industry, through
initiatives such as the Azerbaijan Enterprise Centre. In countries such as Angola and Trinidad &
Tobago, it means providing local technical training, to develop national skills. Responsibility also
means working harmoniously and positively with communities nearest to its operations. In
Indonesia that meant the successful relocation of a village – complete with housing and healthcare
programmes – in order to develop the country’s gas reserves, while in Alaska, it means working with
indigenous communities and supporting efforts such as the Alaska Native Heritage Center. In wider
development-related issues, BP supports several initiatives designed to promote the effectiveness of
economic development in countries rich in natural resources. It has also embedded its commitment
to respect human rights through various policies and practices, as well as in several significant
investment agreements.
REPORT: LISA DAVISON / PHOTOGRAPHY: BP ARCHIVE / BP IMAGESHOP

US Trinidad & Tobago United Kingdom Alaska
Angola
Fully prepared: safety training at
the ESSA facility in Angola is
compulsory for all BP staff. Part of
that training includes advanced
fire-fighting techniques.

➔ ex ploration + production Extreme frontiers> Alaska
NORTHERN
EXPOSURE

Report> Frank Baker
Photography> Marc Morrison / BP Archive
BP’s relationship with Alaska stretches

back 50 years to a time when the company
had lost its dominance in the Middle East
and was desperate to find the next big
thing. The searing heat of Persia was
swapped for the arctic wilds of Alaska’s
North Slope and the discovery of North
America’s largest oil field.
Barren landscape: geologists probe the

foothills of Alaska’s Brooks Mountain
Range (above). Middle, the Trans-Alaska
Pipeline snakes south from the North
Slope. Below, the BP-operated Northstar
field in the Beaufort Sea.

Extreme frontiers> Alaska
Alaskan explorer: geologist

Roger Herrera (above left),
on a BP field survey in 1960
and in 2009 (opposite).
Silence. That was the first thing Roger Herrera noticed samples,” he recalls. Sometimes, food itself
became a problem if the airplane couldn’t
after a small helicopter had set down himself and four other get to their camp for resupply. “Fog and
other bad weather sometimes kept the
BP geologists in the foothills of Alaska’s Brooks Mountain supply plane away for a week or longer,”
Range, hundreds of kilometres north of the Arctic Circle, and says Herrera. “When we ran out of food,
we’d eat fish caught in the streams and
far removed from civilization. lakes. On reflection, it seems like we spent
quite a bit of time looking at the sky,
It was the summer of 1960, and Herrera Captain James Cook and Ernest Shackleton listening for airplanes or helicopters.”
was a member of BP’s first geological field – who had journeyed to the far ends of the
survey team in Alaska, which only a year earth. Yet, aged 24, Herrera had only First maps
earlier had become America’s 49th state. travelled to tropical climes. Herrera says that by using aerial
The company’s exploration manager, Peter The silence didn’t last. It was soon photographs and information gathered from
Cox, had flown over the northern reaches interrupted by the high-pitched drone of the ground, the team began drafting the
in 1959 and recognised large surface mosquitoes. Clouds of them. Through the area’s first maps. But geological evidence
formations, such as anticlines, similar to rest of the summer, only a gust of wind or a soon prompted BP’s explorers to look farther
those of Iran’s Zagros Mountains. At Cox’s persistent breeze kept the insects at bay as north, towards the Arctic’s coastal plain.
recommendation, BP sent geologists to the team set out each morning to gather After drilling a series of unsuccessful wells
explore this remote region. In 1959, BP rock samples and collect other geological in the foothills region and the Colville River
opened its first office in downtown data. “We were as prepared as anyone can Delta, to the west of Prudhoe Bay, BP shifted
Anchorage to support this ambitious effort. be, with head nets, repellent and netting in its attention to the east and began seismic
“My geology professor at Oxford our tents,” says Herrera. “But it definitely reflection surveying around the present-day
University was good friends with BP’s chief took some getting used to.” Prudhoe Bay. Through these surveys, BP
geologist, Norman Falcon,” recalls Herrera. Bears were also a concern, but Herrera gained sufficient confidence to bid in three
“Falcon asked my professor if he would says they had very few problems, as long as state lease sales in the 1960s – and gained a
recommend a student to go on the survey, they were careful about food storage and strong acreage position in the area now
and I was the lucky one.” disposal. They never carried high-powered known as Prudhoe Bay.
Born and raised in the UK, Herrera had rifles for protection. “By the end of the day, Atlantic Richfield (ARCO), one of BP’s
been fully steeped in the epic lore of the they were too heavy, bearing in mind we heritage companies, was also actively
country’s renowned explorers, including always had a rucksack full of rock exploring the area. In March 1968, ARCO
Barrow ARCTIC OCEAN
RUSSIA Umiat
Ri
ve
r Colville Prudhoe
Bay oilfield
Pipeline LE
CIRC
ARCTIC
BERING Fairbanks
SEA CANADA
kon
er Yu
v ALASKA
Ri
Anchorage
AREA
ENLARGED
Valdez
JUNEAU
km 250 500 PACIFIC

OCEAN
“Fog and other bad weather

sometimes kept the supply plane
away for a week or longer. When
we ran out of food, we’d eat fish
caught in the streams and lakes.”
Roger Herrera
announced a major strike at Prudhoe Bay. first oil. “We had 24 oil wells. Some of these several others on the team, had a strong
BP continued drilling, and on 13th March, were Saudi-sized monsters capable of background in process engineering.
1969 made announcements that it too had producing more than 25,000 barrels per day, “Collectively, we had the right mix of
discovered oil – confirming ARCO’s with enormous pressures. We had to be people to troubleshoot and get the bugs out
discovery. careful how we opened the chokes, or valves, of the new equipment and systems,” says
While ARCO captured newspaper on those big producers. All the controls, Brott, now an operations support manager
headlines, and reaped the glory of feeder pipelines and related equipment had at the BP-operated Northstar field.
Prudhoe’s discovery, BP would later prove to be tested and retested. There was
that its acreage held more than half the definitely a learning curve as those first Plateau rate
field’s recoverable oil – then estimated at barrels of oil flowed into the pipeline.” Within months, oil production ramped up
around 9.6 billion barrels, along with Before joining BP in 1977, Brott worked to 250,000 barrels per day, and by the
around 26 trillion cubic feet of natural gas. at Texas National Chemical Co and, like following year, with the second gathering
The three-year construction of the centre operational, oil production reached
$8 billion, 1,300km (800-mile) Trans- 1 million barrels per day. The 1.5 million
Alaska Pipeline (TAPS) from Prudhoe Bay barrel plateau rate was achieved in 1981
to Valdez, on Alaska’s southern coast, is still and sustained until 1989, when the field
considered one of the greatest engineering began its gradual, but predicted, decline.
and construction feats. Requiring around Jim Barrett, currently North Slope safety
30,000 workers from 1974-77, the 120cm team leader, arrived on the Slope in 1974 to
(48-inch) diameter pipeline crosses three help get a critical facility – the central
mountain ranges, 600 streams and rivers power station (CPS) – up and running. In a
and the Denali fault – an area known to be few years, it would become one of the
seismically active. Designed and built to largest power stations in Alaska, capable of
transport up to 2 million barrels of oil per providing power for a city of around
day to tanker ships at the Valdez terminal, 80,000. To this day, it is the sole source of
the pipeline received its first oil on the electric power for Prudhoe Bay production
morning of 20th June 1977. operations, and plans call for its expansion.
BP’s Lowry Brott, then a member of the “When we flew into Prudhoe Bay for the
commissioning team at the first facility to very first time in 74, there were very few
Historic moment: journalists, dignitaries
send Prudhoe Bay oil to the pipeline, says he and others huddle around the Alaska lights,” he recalls. “Our camp was a small
remembers intense months leading up to pipeline during the 1977 startup. trailer unit, and electrical power came from »
Extreme frontiers> Alaska
a small diesel generator. It was a bootstrap recovery of the oil in place – which experts of Barrow to other population centres
operation to get the CPS operational to say is unheard of for super-giant oil fields across the state.
provide that first power to the field.” throughout the world. “It is clear to me now that Alaska may
TAPS – designed and built by Alyeska The success of BP and its partners in well not have survived as a state had not oil
Pipeline Service Co, a consortium of oil optimising North Slope oil production over been found and produced,” notes Willie
industry majors, including BP – grabbed the past three decades spurred an economic Hensley, a native Alaska leader, former
most of the headlines in the 1970s and bonanza in Alaska that has also benefited member of the Alaska Legislature and
1980s. But development of Prudhoe Bay oil the nation, providing a significant portion recently published author. “Oil revenues
field facilities and continued expansion of of the country’s domestic oil production have enabled Alaskans to have a lifestyle
the field’s infrastructure, such as the power for more than 25 years. comparable to many states in the lower 48
station, gathering centres and flow states, if not better.”
stations, and drilling of hundreds of oil Royalties and taxes Former Alaska governor Bill Sheffield
wells, was a significant undertaking, University of Alaska, Anchorage economist adds: “From healthcare to education to
requiring an investment of more than Scott Goldsmith calculates that since North social issues, oil benefits every resident of
$30 billion by BP and its partners. Slope oil production began in 1977, around this state. Oil provides around 85% of the
Development of other oil fields over $77 billion has been paid by petroleum state operating budget, and this money
succeeding years – some 24 in all – producers to the state treasury in oil affects the entire state and its people.”
required billions more in investment. royalties and taxes. Around $64 billion has
Today, BP operates 13 of those fields. been paid by the industry over the same
Through the advancement of drilling period into the private economy through
technology, enhanced recovery techniques payrolls and purchase of goods and services.
and improved reservoir management, Oil revenues also help build Alaska’s
Prudhoe and some of the other larger North savings account – its Permanent Fund –
Slope oil fields have yielded many more which until the recent US economic
barrels than experts predicted. Prudhoe downturn, had peaked at more than
alone, in which BP has a 26% interest, has $40 billion. Once a year, all Alaska
produced more than 11 billion barrels, and residents take a share of the fund in the
it is widely believed 2 billion more barrels form of a substantial dividend cheque.
are recoverable. This is roughly 60% Over the past half century, Alaska has
grown as a state and the lives of its citizens
have improved dramatically, from
the most northern community
Did you know?

■ It took 38 days for the first supply of
oil from Prudhoe Bay to travel
through the 1,300km (800-mile)
Trans-Alaska Pipeline to the terminal
at Valdez. The first oil left Prudhoe Bay
on 20th June 1977
■ At the time of its construction in the
1970s, the Trans-Alaska Pipeline was
the most expensive private
construction project in American
history.

Project engineer Anna Horstkoetter is championing drilling in the Arctic
part of a team that is embarking on a National Wildlife Refuge (ANWR) in
multi-billion dollar project to renew and northeastern Alaska, which geologists
update Prudhoe Bay infrastructure. Like believe contains billions of barrels of oil.
many BP newcomers, she is optimistic “There were more than 20 votes taken in
about the company’s future in Alaska. US Congress over 25 years, and only two of
“People talk a lot about the past, but with those votes failed,” he says. “But, inevitably,
the company’s plans moving forward to legislation got blocked at the President’s
develop light and heavy oil, and desk or in the Senate,” he says.
commercialise the Slope’s natural gas, I Herrera says that after the Prince
can see a promising 50-year future.” William Sound oil spill in 1989, industry
Logistics support: when it is not cold enough
BP Alaska’s new president, John Mingé, is for ice roads, hovercraft are used to transport
never gained enough momentum to
also bullish about the company’s long-term workers and material at Northstar Island. convince Congress that ANWR could be
position in the state, and its plans for the developed in an environmentally
future. “We have built a strong and diverse responsible manner, as was clearly
workforce and are making the large feet of natural gas waiting to be developed, demonstrated over the years at Prudhoe
investments necessary to create a the next 50 years could be as rewarding as Bay and other North Slope oil fields.
sustainable, long-term future,” he says. the previous 50. “However daunting the task, you never
Mingé adds that BP Alaska’s Liberty give up,” Herrera says with a sage smile.
Workforce growth project, currently underway, will push the “That was part of my training as a young
Over the past two years, the company’s limits of extended reach drilling technology geology student back at Oxford.”
workforce has grown by more than 40%, to to tap an offshore field that contains an On a popular hiking trail near Alaska’s
almost 2,000 employees, and its contractor estimated 100 million barrels of recoverable largest city, Anchorage, Herrera, now 73,
workforce has risen to more than 6,000 jobs. oil. Production is expected to begin in 2011. looks up at the wind-scoured mountain
The last time the Slope’s workforce reached Liberty will require a special drilling rig peaks, studying their relatively young
this level was in the 1970s and early 1980s that is currently being constructed in the geologic features. There’s a distant look in
when the Prudhoe Bay field was in lower 48. It will be the largest land rig ever his eyes reminiscent of his early days as a
development. “BP Alaska has invested used on the North Slope. field geologist for BP, half a century ago,
around $30 billion over the past decade to Roger Herrera retired from the company when he spent a lot of time peering at the
manage the light oil decline,” says Mingé. in 1993. For the better part of his career horizon, listening to the silence, or
Most agree that with 20 billion barrels with BP and afterwards, he has worked perhaps, the sound of an airplane or a
of heavy oil in place and trillions of cubic relentlessly as an industry lobbyist, helicopter. ■
“All the controls, feeder pipelines and related

equipment had to be tested and retested.
There was definitely a learning curve as those
first barrels of oil flowed into the pipeline.”
Lowry Brott
BP veteran: Lowry Brott was on

the North Slope when first oil
production began in 1977. He is
currently Northstar operations
support manager.

➔ evolving te c h n olo g y Report> Nina Morgan
Illustration> Matt Herring
FROM
SCIENCE
FICTION TO
SCIENCE
FACT From satellites to seismic, many of the
familiar technologies used in the energy
industry today were once just a gleam in a
science fiction writer’s eye. Nina Morgan
talks to BP’s science and technology gurus
to explore the company’s technology past
and to peer into the future.

Spotlight> Technology evolution
A group of
geologists gather in one of BP’s interactive
environments to explore for hydrocarbons.
By moving a computer mouse, they are
able to manipulate three-dimensional
seismic data to allow them to take a
detailed look inside a potentially
interesting structure located many
from the Geological Society of London.
Harrison, who joined the APOC – the
forerunner of BP – as a geologist in 1918,
carried out exploration work for the
company in Honduras, Mexico, British
North Borneo, Peru, Jamaica, Venezuela,
Trinidad and Colombia, as well as in Persia
(now Iran), before resigning in 1938 to
“BP has a track record of
applying technology in
developments on a
significant scale in very
difficult places.”
kilometres below the surface in a become a lecturer in geology at Oxford David Eyton
previously unexplored area. After University, UK.
examining the structure closely from all Harrison’s description of his exploration
angles and considering all the evidence, days as ‘exciting’ was something of an
they recommend drilling. Some months understatement. In his day, exploration
later, their predictions are verified when fieldwork was carried out on foot and
the well encounters oil. Then, a long and horseback, and geologists camped out
detailed process of appraisal and under the stars while mapping vast
development of the find begins. swathes of unexplored territory in their
But it wasn’t always like this. In the early search for promising oil seeps, anticlines
20th century, a career in oil exploration (dome-shaped structures) and other
was a very tough option. “I was lucky that promising leads. In the same speech,
my colleagues in the Anglo-Persian Oil Harrison recalls ‘strolling’ about the Zagros
Company [APOC] found exploration as Mountains in Iran with a colleague for
exciting as I did,” recalled Dr John Vernon almost eight years while “we mapped upon
Harrison in 1961, in his acceptance speech the clean paper on our plane-tables the
on receipt of the prestigious Lyell Medal topography and geology of some 155,000

square kilometres technologies that the hydrocarbons, such as heavy, viscous oils,
(60,000 square early explorers would or very tight gas, which is contained in
miles) of southwest have found difficult to reservoirs where the permeability is
Iran as we saw it on the imagine. “By and large, the extremely low.
ground.” He and his development of new exploration, drilling “BP has a track record of applying
colleagues regarded office and laboratory and production technologies over the past technology in developments on a significant
work as soft options; and the number of century and a half have enabled people to scale in very difficult places,” says Eyton. “It
mules who died in Harrison’s service understand the provenance of oil and gas doesn’t matter whether it’s Azerbaijan or
became a byword among the APOC staff. in the world – how it’s made and how it’s Alaska, the deepwater Gulf of Mexico or the
trapped – and to begin to push into new middle of the rainforest in Colombia, we
Yesterday, today and tomorrow frontiers in a number of ways,” explains consistently undertake developments at the
In Harrison’s day, onshore surface David Eyton, BP’s head of research and frontier.” And, he adds, “I would not
geological mapping was still the only way technology. underestimate the extent to which
to extrapolate – or ‘see’ – the geology and The big breakthroughs, Eyton notes, technology is going to march forward and
identify potential hydrocarbon-bearing range from the development of seismic continue to change our industry.”
structures below the ground. Before the technology, which makes it possible for Predicting what these future
widespread adoption of rotary drilling geologists to ‘see’ underground more developments will be is far from simple. “If
techniques, it was only possible to drill accurately than ever before; to rotary you think of the accelerating pace of
wells to test prospects located at relatively drilling, that allows faster and more technology today, I think it now makes it
shallow depths. targeted drilling to greater and greater even more difficult to project 100 years
These days, offshore exploration is depths. These developments, in turn, have into the future than it would have been
common. The oil industry routinely drills made it possible for the industry to move when APOC was founded in 1909,” says
to great depths – wells that penetrate over into new and challenging frontiers, both Steve Koonin, BP’s chief scientist. But,
9,100 metres (30,000 feet) are not unusual – offshore and in harsh terrains, and to nevertheless both Eyton and Koonin are
and takes advantage of sophisticated exploit the more difficult-to-produce able to spot a few trends. »

“We are starting to understand the elements that

make up life, how those elements fit together into Evolutionary
functioning systems and how they change.” developments
Steve Koonin that could change
the world
The most predictable developments, developments in environmental Finding more energy and protecting
notes Koonin, are evolutionary ones – technologies, such as carbon capture and the environment will be the key
advances that build on existing storage, are already taking place. drivers for technology developments
technologies (see right: evolutionary But, Koonin and Eyton argue, the real in the next 100 years, predicts Steve
developments that could change the revolutionary developments – the sorts of Koonin. The game-changing energy
world). These include improvements in things that now excite the imaginations of technologies we can look forward
seismic, electro-magnetic and gravity science fiction writers – are more likely to to include:
measurements, and satellite imaging emerge from unexpected areas. Some of the
techniques to enhance exploration and most important, says Eyton, may well ■ Battery-powered electric vehicles.
development; as well as the development spring from nanotechnology, or molecular- These are already under
of smaller and more sensitive sensing scale engineering. “You can imagine that development by some companies
devices to see inside wells, and improved nanotechnology could enable you to create
■ Low-cost and efficient photovoltaics.
chemical and physical technologies to nano-bots – tiny devices that can go off and
BP and other manufacturers are now
assist in development and to improve oil do whatever you want them to do in
working together to bring down
recovery. New technologies to make it environments that humans cannot reach,”
costs and improve efficiency to make
possible to exploit unconventional he muses. “The ability to design structures
solar cells available for more
resources such as tar sands and heavy oil and materials that function at the nano-
widespread use
more efficiently and in an environmentally scale could have a vast range of
friendly way, along with methods to applications in the energy industry (see ■ Small nuclear fission reactors that
economically make use of extensive left: thinking small). There are areas of operate on scales of a 10th of a
reserves of methane hydrate, or methane nanotechnology that could literally change gigawatt. BP is not involved in
ice – a solid form of water that contains a the energy landscape.” this area
large amount of methane within its crystal ■ Carbon capture and storage. This is
– also look to be on the cards. Further Life changing an area where BP is heavily involved.
Even more speculative and exciting, say “You could argue whether this is
Eyton and Koonin, will be the application evolutionary or revolutionary,” says
Thinking small of biosciences – biology and the life Koonin. “But the ability to really
sciences – to the energy industry. “We are practise carbon capture and storage
Just imagine this, says David Eyton. starting to understand the elements that on a large scale would really change
Thanks to developments in make up life, how those elements fit the game.”
nanotechnology, in a 100 years we together into functioning systems and how ■ Finding biological or chemical
could look forward to: they change,” says Koonin. A key link means to suck CO2 out of the
■ Nano-sensors, to obtain information between biology and the energy industry, atmosphere. “A wild idea,” admits
where current technology cannot he points out, is carbon. “Living things are Koonin, and not one that BP is
penetrate, such as deep in oil and mostly composed of carbon,” he explains, working on. But, he adds, “you never
gas reservoirs. “so you might expect that there will be know!”
■ Nano-sorting machines, which powerful synergies between our ability to
■ Nuclear fusion. “If we could develop
could make it possible to feed in a understand and manipulate life, and our
working fusion reactors a 10th of the
mixture of gases and separate out ability to manage carbon, either by
scale of reactors such as the
the CO2 for subsequent producing it in the form of hydrocarbons,
International Thermonuclear
sequestration and long-term storage. or controlling its release, in the form of
Experimental Reactor, this,” says
■ Nano-structures, for converting carbon dioxide (CO2), into the
Koonin, “would change the game.”
energy from one form to another, environment.”
for example to turn sunlight into Eyton agrees. “The sophistication of ■ Superconducting electricity
electricity more cost-effectively biological processes, such as transmission lines. An area where
than today’s silicon-wafer-based photosynthesis, which have evolved BP is not involved, but one, notes
photovoltaic cells. naturally, is way in advance of the physical Koonin, that could really change the
■ Nano-materials, capable of storing and chemical processes we currently use in energy scene by making it possible
and releasing energy more our industry.” For a start, he points out, no to move huge amounts of electricity
efficiently than existing batteries. one has yet managed to create a method for around over vast areas.
converting sunlight into hydrocarbons as »
“One hundred years from now, I would imagine

Energy Biosciences Institute
that we will have a remarkably sophisticated
understanding of the application of biological, The Energy Biosciences Institute, a
partnership between BP, the University
chemical and physical processes.” of California, Berkeley, the Lawrence
David Eyton Berkeley National Laboratory, and the
University of Illinois, was established in
November 2007. The Institute, which is
efficiently as plants have. Thanks to and microbes are both capable of taking solely funded by BP, carries out research
advances in biology, it’s now possible to CO2 out of the atmosphere, they could, in in all areas of biology related to energy.
map the genome of a living form to gain a theory, prove to be powerful This ranges from genetics, to the
better understanding of how it works environmental allies when it comes to agronomy of feedstocks, the conversion
naturally. This knowledge, could, he tackling the CO2 problem. These of ligno-cellulose material into sugars,
predicts be adapted for different purposes. possibilities, and more, are currently being and the conversion of sugars into fuel
For the energy industry, the possibilities explored by scientists working in the BP- molecules. “Our mission,” says Institute
are many and exciting. Today’s biofuels – funded Energy Biosciences Institute (see director Dr Chris Somerville, “is to
liquid hydrocarbon fuels that contain right: Energy Biosciences Institute). harness the potential of bioenergy, to
energy captured recently from the sun by “One hundred years from now, I would make discoveries and commercialise
plants – are just the start. “But imagine a imagine that we will have a remarkably realities out of these, which could
plant designed to capture sunlight and sophisticated understanding of the benefit the world.” For more
engineered to make whatever you want – application of biological, chemical and information, visit:
be it plastics or fuels,” says Eyton. Microbes, physical processes,” says Eyton. “And by www.energybiosciencesinstitute.org
too, he predicts, have capabilities that may then, I hope we will be able to use this
prove very useful. Microbes that move understanding to supply effective, reliable,
around in the subsurface could, perhaps, be secure energy and energy products that are
induced to create chemicals or changes in non-damaging to the environment.”
the environment to make oil flow more Koonin agrees. “Whatever the future holds,
easily, and thus enhance oil recovery. Or it thanks to our growing understanding of
may prove possible to draw on the skills of biological and physical processes, we can
bacteria that are capable of converting coal certainly look forward to great
or heavy oil underground into opportunities for optimism and
hydrocarbons that can flow. Since plants improvement.” ■

BP Faces
Photography> Marc Morrison
“We knew that

polyester was a
key synthetic fibre
but we didn’t have
a clue that
demand for it
would grow at
the rate it did.”
LIFE CHANGING
Del Meyer / PTA chemist
Many would agree that the 1960s were incredible: man
landing on the moon, the hippie movement and the
discovery that made polyester an enduring part of our
lives. You can thank Delbert Meyer, retired Amoco
chemist, for the bottle of water at your side. It’s made
from a raw material derived from crude oil processing:
purified terephthalic acid (PTA). So is most, if not all
products, using any form of polyester. In 1963, Meyer
discovered the process that changed our lives. “We knew
that polyester was a key synthetic fibre, but we didn’t
have a clue that demand for it would grow at the rate it
did,” he says. “Our customers were anxious to move into
this fast-growing market and really put the heat on
Amoco to produce a lot of PTA.” They did, and today BP
is a leader in PTA production, with a global market share
of 21% on an equity basis. So look for the PET mark
(PTA is in most PET) on your bottle of water and give a
nod to this innovative scientist. ■
Special feature>
100-year timeline
1909
A century
of adventure
1866 1870 1874 1898 1899 1901
The Atlantic Atlantic begins Atlantic joins Thirteen German Charles ‘Cheers’ English businessman
Petroleum Company, refining oil. Rockefeller’s mining companies Wakefield founds William Knox D’Arcy
the ‘A’ in ARCO, is Standard Oil Trust. form an association CC Wakefield and gets exclusive rights
formed in to find uses for Company, supplying to search for oil in
Philadelphia to store Standard Oil of Ohio benzene – a waste lubricating oils to the southwest Persia. His
and ship oil products. – later Sohio – is
incorporated, kick-
1889 product from the
coal coking process.
railways in Britain. entire fortune will go
into the hunt.
starting John D Rockefeller forms Most people called
Rockefeller’s oil Standard Oil of the association BV –
empire. Indiana, which will short for Benzol-
later become Amoco. Verband.
1907
A medical doctor,
Morris Young,
joins Reynold’s
exploration team
in Persia. He will
go on to develop
a network of
clinics and become
a legend in the
region.
1970
To almost everyone’s
surprise, BP discovers oil
under the North Sea. “There
won’t be oil there,” Sir Eric
Drake, BP’s chairman, tells
Reuters in April. Six months
later, crews find the Forties
1965 field, which will eventually
produce 400,000 barrels of
BP discovers the West Sole field. It crude oil a day. Five years
is the UK’s first gas discovery, and later, Queen Elizabeth II will
is the beginning of the North Sea symbolically start the flow
as a hydrocarbons province. of oil from Forties.
1965 1966 1967 1968 1969 1970

BP opens the UK’s Atlantic Refining BP unveils the ARCO and its partner BP discovers oil Like most oil
first self-service merges with world’s first all- Exxon, discover the under Alaska’s North companies, BP
station. Richfield Oil to form plastic service largest oilfield ever Slope. The company responds to industry
Atlantic Richfield. station in England. found on US soil, in has no infrastructure uncertainty during
The company adopts northern Alaska, in the US, so one the 1970s by
a bold new symbol, prompting rival BP year later, takes a diversifying its
the ARCO spark. to get back to its 25% stake in Sohio in business and BP
own search nearby. order to refine and Proteins is launched.
market its Alaskan Over the next decade,
Castrol Ltd is crude. In 1971, BP BP develops interests
acquired by the Castrol GTX is becomes the in coal, gold,
Burmah Oil launched. It will majority Sohio telecommunications
Company. become the most shareholder. and computing. Many
famous motor oil will be sold off by the
ever made. early 1990s.

1909
1903 1908 1911 1914
Sohio oil lubricates the Knox D’Arcy’s explorer, The US Supreme The British
four-cylinder engine George Reynolds, and Court dismantles the government becomes
that keeps the Wright his team strike oil. Standard Oil Trust. a major shareholder
Brothers’ plane aloft “If this is true, all our The flow of oil into in Anglo-Persian,
during their first flight. troubles are over,” THE ANGLO-PERSIAN OIL Atlantic’s refineries following a speech
Knox D’Arcy beams COMPANY – LATER BP – abruptly stops. In near by First Lord of the
when he hears desperation, Atlantic’s Admiralty Winston
IS FORMED.
1905 the news. president is said
to have urged his
Churchill urging
Britain to secure a
Richfield Oil, the ‘R’ employees to ‘go dedicated oil supply
CC Wakefield develops lubricants
in ARCO, is founded find the company to protect its global
for cars and airplanes. Wakefield
on the US west coast. some crude.’ interests.
researchers make a signature discovery.
It quickly grows to be
A measure of castor oil – a vegetable
one of the region’s
oil made from castor beans – makes
leading gasoline
a motor oil of superior consistency.
marketers.
They call it Castrol.
1914
Castrol begins its sponsorship
of the world land speed
record, sponsoring big name
drivers, such as Major Henry
Seagrave, Captain George Eyston
and Sir Malcolm Campbell.
Between 1922 and 1939, the world
land speed record is broken
23 times, 18 of them with Castrol
in the engine. BP sponsors similar
record attempts.
1978
Smurf mania hits Britain.
BP has been giving away
Smurf figurines in its
European stations since
the 1960s, and their arrival
in Britain has families
queuing at the pumps.
1970 1971 1974 1979 1981 1983

Amoco launches the Colonel Ghaddafi Stimulated by oil Iran’s oil industry is BP Photovoltaics is South Atlantic battle
first unleaded regular nationalises BP’s supply vulnerability, fully nationalised, incorporated as a honours are awarded
gasoline to be interests in Libya. By an active programme effectively ending BP’s wholly owned to some of the BP
marketed across the end of the decade, of research is association with subsidiary of BP ships chartered by the
the whole of the US, almost all Middle underway at several the country. International Ltd. By Ministry of Defence
four years before a new Eastern oil will be BP research sites to 1997, BP Solar will be during the Falklands
federal law requires it. nationalised. investigate single-cell one of the top five War.
Amoco spends more photosynthetic plant solar manufacturers.
than $100 million cultures as biomass
modifying its refineries sources for protein
and service station and fuel. The same
equipment to process year, BP Coal is
the fuel. formed.
1917 1924 1925 1926 1930 1935
Anglo-Persian buys Gasoline was in short Standard Oil of Indiana Anglo-Persian Standard Oil finds a Persia changes its
British Petroleum – supply in Germany purchases an interest launches the BP large discovery in east name to Iran and
the subsidiary of a during the First World in the American Oil Aviation Service, Texas. Four years later, Anglo-Persian does
German company War, so BV chemist Company, which supplying fuel to a second field near the same.
confiscated early in Walter Oswald spends markets under the the fledgling airline Houston is found.
the First World War. the next decade Amoco trademark business.
combining benzene in the eastern US.
and gasoline to create
a new fuel. He names
it Aral, taking the ‘Ar’
from aromatic
(benzene’s chemical
grouping) and the ‘al’
from aliphatic
(gasoline’s group).
1915
The British Tanker Company Limited is formed to carry products for
Anglo-Persian. A year later, it takes delivery of the British Emperor, the
first oil tanker built to the company’s specifications.
1987 1998
The British government BP and Amoco
sells its shares in BP. merge. At the
Despite the fanfare, it is time, it is the
terrible timing as stock largest-ever
markets crash on Black industrial
Monday. BP acquires merger.
full ownership of Sohio.
1985 1988 1991 1994 1997 2000

Standard Oil of ARCO introduces BP Nutrition is one of The ‘contract of During a speech at ARCO and Burmah-
Indiana is renamed America’s first the company’s four the century’ is Stanford University, BP Castrol become part of
Amoco, after its environmentally- main businesses, and signed between group chief executive the BP group. BP
major brand. engineered gasoline, is the largest supplier the Azerbaijani Lord Browne accepts decides it is time for a
EC-1 Regular. Within of animal feed in the government and the link between new look. After 70
three years, ARCO’s world, leading animal an oil consortium, human activity and years, the BP shield is
cleaner fuels are breeder and major headed by BP, to climate change. It is retired and in its place
credited with feed supplier for the develop Azerbaijan’s considered by many to a sunburst of green,
removing 100 million fish farming industry. offshore hydrocarbon be the first public yellow and white
pounds of pollutants Three years later, the resources. acknowledgment of is born.
from the southern whole division will this connection.
California air. have been sold off.
Veba Oel acquires Aral.
Two years later, BP will
buy Veba Oel.
1951 1954 1955 1960 1962 1963
Iran nationalises its Production resumes Operations begin at The Castrol brand BV renames itself Amoco scientist
oil. Anglo-Iranian at Abadan but on Kwinana refinery in is so well known Aral AG. Del Meyer invents
workers evacuate different terms. Now, Australia. It will that CC Wakefield purified terephthalic
and Abadan refinery just one of several become the country’s & Co changes its acid – the base
closes. companies in Iran, largest refinery with name to Castrol Ltd. chemical for
Anglo-Iranian a capacity of 137,000 polyester.
becomes British barrels of crude oil
Petroleum. per day and supply
most of western
Australia’s fuel needs.
1939
Second World War. Gasoline is
a rationed commodity, all
brands are suspended and oil is
‘pooled’. Anglo-Persian boosts
oil production at an onshore
field in Nottingham, England,
which is eventually described
as one of the war’s best-kept
secrets. Some 44 company
tankers are sunk during
the war.
2008
BP announces it will be the oil and gas partner
at the London 2012 Olympic Games.
2001 2003 2005 2006 2007 2008

BP becomes a BP becomes a major Alternative Energy is The Baku-Tbilisi- BP signs two Oil and gas
sponsor and player in the Russian launched, bringing Ceyhan pipeline exploration and production begins at
technical partner oil industry through BP’s renewable begins transporting production-sharing Thunder Horse, in
of the Ford World the joint venture, energy businesses Caspian oil to world agreements: one the deepwater Gulf
Rally Championship TNK-BP. together. markets. It is one of with the Libyan of Mexico. With a
team. Using BP the longest pipelines Investment topside area
fuel and Castrol in the world. Authority and Libya’s equivalent to three
lubricants, the Kwinana refinery, National Oil football fields, it is
team will win 27 Australia, launches Company; and a the world’s largest
races, rack up 1,024 Opal, a low aromatic second with the floating platform. Its
points and clinch fuel designed to help Government of reservoir lies five
two constructors’ reduce petrol sniffing Oman. The kilometres (three
titles over the next – a serious issue for agreements mark miles) beneath mud,
eight years. many remote a resurgence in BP’s rock and salt, topped
indigenous connections with the by 1.6km (one mile)
communities. Middle East. of ocean.

2009
The founders of the Anglo-Persian Oil Company – the forerunner to BP –
lived in a world without plastics, central heating and mass transportation.
A century later, they’d be hard pressed to recognise the world around
them, including the company they created. One thing that wouldn’t
surprise them, though, is the impact oil has had. And while BP may have
changed beyond recognition, its dedication to pushing the frontiers of
discovery to bring energy to market has not.
➔ ex ploration + production Significant discoveries> North Sea
Elder statesman: BP’s Magnus

oil field celebrated its 25th
anniversary in 2008. Thanks
to enhanced oil recovery
techniques, its life has been
extended by 15 years.

Report> Helen Campbell
BACKYARD
DISCOVERIES
Viewed through a sparkling new window across
a car park, BP’s former Aberdeen office is soon to
be demolished, just like the belief of some
commentators in the 1990s that the North Sea
was finished. Reflected in its new building is BP’s
new North Sea vision and plan for a solid future,
one that sees oil and gas production sustained
for the next decade and beyond.

Significant discoveries> North Sea
The North Sea story began in 1965 with BP’s West Sole gas find. Industry
expectations for oil were low, until the 1969 Ekofisk discovery off Stavanger,
Norway, saw a surge of interest in the UK, leading BP to discover the Forties
field off Scotland’s east coast in 1970. Onstream five years later, to a national
sigh of relief that the UK was not going to be reliant on Middle East oil,
Forties at its peak met a fifth of UK oil demand, and was the backbone of
North Sea production for many years.
But as it and other fields matured, and new North Sea today – to development and
and exotic frontiers enticed operators, production, and decommissioning.
including BP, industry doomsayers all but “Our vision is very simple. We are going
signed the North Sea’s death warrant, to be the best oil and gas company in the
Field profile: Norway repeatedly predicting the majors’ North Sea, and we have every intention of
departure. But BP is in the North Sea to stay. being here for the long run. There is
BP, through Amoco, has had a With a new confidence about how to commitment to the North Sea all the way
presence in the Norwegian North Sea achieve it, BP has a clear vision to become up through BP Group leadership. We have
since 1965 and currently operates four the best operator in the region. fantastic people here; people who remain
fields – Valhall, Ula, Hod and Tambar. “We want people to know that we are as excited about what they’re doing today
Discovered in 1969 and onstream in not leaving, and we intend to be here when as they did in the beginning.”
the last drop of oil is recovered from the
1982, Valhall (below) is the eldest of
North Sea,” says Bernard Looney, the new Sustainable output
the four fields. It produces 50-60,000 head of BP’s North Sea business. “We are BP’s North Sea oil and gas production – UK
barrels of oil per day and is likely to investing more today than we were five and Norway – is expected to be about
continue producing until 2050. A years ago, and undertaking a broader range 320,000 barrels of oil equivalent per day
helicopter trip to Valhall is longer of activities, everything from licence (boepd) in 2009, from 350,000 boepd in
than to any other field in the acquisition and exploration – the latter not 2008 and 600,000 boepd five years ago. The
Norwegian sector. something necessarily associated with the company is confident of sustaining output

THEN + NOW
MORTY DENHOLM> Head of wells
“Joining the sector in 1977 aged 22, after a

month in the nuclear industry, was a leap of
faith. Advice back then was that oil and gas
was risky, a flash in the pan. Obviously with
hindsight, making the move was a good
decision. In the early days, contact with the
beach [onshore] was via ship-to-shore radio,
there was no email. You booked a call at a
certain time, went to the radio room and
waited in a queue for all the different rigs
calling in, and you heard everyone’s
conversations. Now rigs have satellite and
fibre optic links and people can use the
phone and email freely. Accommodation
was in six-man rooms, unless you were the
boss, and we had communal showers. Now,
it’s virtually all two-man rooms, and with
day and night shifts, you almost have a
room to yourself. Do the guys these days
have it easy? Absolutely!”
at around 300,000 boepd for the next “These things epitomise BP’s hub
decade and well beyond, and is applying strategy,” says Looney. “It is a question not
strategies to manage and optimise its just of looking down, but of looking out
regional portfolio. These include a and making the most of the positions that
complete study of North Sea potential we have. It has allowed us to see things that
that will result in a new drilling we have not seen before, and we want to do
programme in 2011. much more of this.”
A main focus of the North Sea business is
the ‘hub strategy’, which involves BP Technical breakthroughs
consolidating its position around its key field Also crucial are technological
groupings, or hubs, and maximising the developments. One such example is the
value of its extensive infrastructure. This 5 billion barrel Clair field, discovered in
largely involves ‘tiebacks’ or satellites – Modern means: like most other 1977 and yet undeveloped for 30 years
aspects of life offshore, technology
linking a new well or field to an existing has changed over the years (top). until technical breakthroughs enabled BP
platform to handle production – or mutually Above, BP’s new office in Aberdeen. and its partners to develop it.
beneficial arrangements with third parties. “Clair is a huge complex and highly
The Ula platform offshore Norway, for fractured reservoir, so the difficulty with
example, is now expected to be onstream the field has always been to understand,
until 2028, with reserves recovery once you start drilling and producing, how
augmented by the injection of gas procured much you are going to be able to recover,”
from a nearby third-party operator. And the says Dave Wall, head of operations, Clair
Andrew platform, a small field that began and Magnus. “Clair needed more analysis
producing offshore UK in the mid-1990s, and risk assessment than most fields before
will process oil from the 25 million barrel we could justify a case for development of
Kinnoull discovery, made in 2008. the reserves.”
Clair has been onstream for three
“We have fantastic people here; people who years and just 1% of its 5 billion barrels of
oil in place have been produced to date. A
remain as excited about what they’re doing 1% change in the recovery rate means
today as they did in the beginning.” 50 million barrels and, Looney adds, a 50
million-barrel discovery in the North Sea
Bernard Looney today “would make all sorts of headlines.” »
Significant discoveries> North Sea
Over three decades,

what’s changed?
One of BP’s North Sea veterans is
For new graduate engineers, working in Magnus, which celebrated its 25th
the North Sea meant a steep learning anniversary in 2008. According to original
curve. The vital support service estimates, that anniversary would have
infrastructure that has sprung up in seen the end of its operational life, but
Aberdeen and Stavanger over the past enhanced oil recovery – injecting gas into
three decades was not there in the early the reservoir to push the deeper oil out – is
days, meaning that BP and other giving Magnus at least a further 15 years of
operators carried out almost everything, production.
from drilling and inspection, to catering
and helicopter provision, themselves. Greater clarity
Hours and roles were less regulated in Additionally, advances in seismic
the 1970s and 1980s, and everyone technology have allowed greater clarity in
mucked in. People speak fondly of the reservoir mapping and, consequently, the
strong camaraderie that characterised drilling of previously unknown parts of Flying high: the Bruce field lies
the early days, with communal TV fields. BP also has an advanced technology 340km (210 miles) northeast of
Aberdeen, in the northern North
rooms, makeshift cinemas and limited programme analysing the opportunities for Sea. It came onstream in 1994.
contact with the outside world. There further improvement.
was even an industry-standard two-cans- “The Foinaven field initially had a 10-
a-day beer allowance. Although life year life that should have ended in 2007,”
offshore has changed dramatically, for says Dave Lynch, head of resources. “We
many of the people who’ve been around have repeated seismic surveys every two
since the beginning, the North Sea has years to build up a clearer picture of the
never lost its appeal. A number of BP reservoir changing over time and, in doing
offshore personnel even have their so, have identified additional barrels that
“The sector will continue
children working offshore, sometimes we couldn’t see before, doubling resources as long as there is oil in
on the same platform. And the food since sanction to around 400 million the ground, providing a
apparently remains as good as ever, barrels, and extending field life to 2021.
with the steaks and traditional Boxing Seismic improvements have also allowed future for our children
Day seafood buffets receiving us to identify new prospects on other fields and grandchildren.”
particular accolades. such as Machar East, where we drilled a
new well in the third quarter of 2008, the Elzbieta Kaliszuk
THEN + NOW
ELZBIETA KALISZUK>
Offshore installation manager,
Valhall and Hod (Norway)
“When I first went offshore in the 1980s,

I didn’t meet a single other female on the
rigs in technical professions. Particularly
over the past four or five years, things
have changed and now there are a lot of
women in these positions offshore
Norway. Our safety culture has also
changed a lot since the early 2000s, when
the sector had a lot of high-potential
incidents. We have clearer roles,
responsibilities and rules about how long
people can work out on the platform in
noise-exposed areas, and so on. This is a
great place to work. Valhall has the
reserves to be producing until 2050 and,
from the perspective of those offshore,
the sector will continue as long as there
is oil in the ground, providing a future for
our children and grandchildren.”
JOHN CAMPBELL>
Leading the way: the Andrew Offshore installation manager,
jacket leaving Nigg Bay, Magnus
Scotland in April 1996.
“There were around 1,500 people on
results of which have opened up even more teams. And to complement the wealth of Magnus for the offshore hook-up, and it
opportunities for us to pursue.” experience gained by the people who have was pretty congested. For several years
BP is also seeking to drive down costs worked in the North Sea for three decades, after, we were finding old mattresses and
through supply chain efficiencies and the business offers great opportunities for sleeping bags in strange areas, because
working at scale where possible. Different new entrants to the sector. there were so many people and less
parts of the business can learn a lot from “We are going to be here for decades yet control than we have now. We had four-
each other and a new functional and we have to renew the organisation,” man cabins, and people on night shift
organisation has been designed to reshape says Looney. “People ask if there are were always finding someone new in
the way the business works, allow more exciting opportunities for young people their room when they woke up. I’ve
communication and exchange of ideas and here, and we have lots. Here, you get to worked in maintenance, as an operations
optimise staff allocation. experience a whole swathe of activities engineer, and now as offshore installation
from the very beginning, right through to manager, and my son has worked on
Aligning people the very end. It’s the perfect place for a Magnus recently. I’ve always stayed on
“This is all about having one North Sea young person to come and learn.” Magnus, and never got bored because of
organisation,” says Looney. “We have The majority of BP’s projects today were the sheer size of it, and because there’s
restructured into a functional organisation not in the plan 10 years ago, but access to always been something happening.”
so, instead of having different teams new technology can transform everything.
working on their own areas, we are aligning Since its first horizontal well 15 years ago,
people up on a discipline basis. We want to BP has developed Andrew, Harding, Clair,
make sure that we don’t compete against Foinaven, Schiehallion and others, all with
each other, do things with a common lens horizontal wells. Oil prices go up and
and maximise our human resources. down, major banks disappear and much of
“And for the first time, we have one the world is in financial turmoil. But oil
hopper of reserves opportunities instead of and gas reserves that have been in the
the 13 we had before, making it easier to ground for millions of years are not going
step back and look at the whole picture.” to disappear overnight.
That ‘one hopper, one North Sea’ ethos is All it takes is for technology to catch up
apparent in the new building the moment to reveal new opportunities; the
people walk in. The 1,200- strong ‘human ‘impossible’ becomes possible and the
resource’ now arrives through one door entire picture changes. Who knows what
only, fostering contact and information the future of the North Sea will look like
exchange between individuals on different 20 years from now? ■
➔ profile
The Forties field Report> Professor Alexander Kemp
M THE ROARING
any individual events can
claim to be landmarks in
the history of North Sea
oil and gas, but perhaps
FORTIES
the strongest is the
discovery of the Forties field, which had far-
reaching consequences for the development
of the UK Continental Shelf (UKCS) and the
wider national economy.
When exploration of the UKCS began in
1964, industry interest was restricted to the
southern North Sea, despite numerous GIANT DISCOVERY THAT CHANGED A NATION
blocks on offer in the central and northern
regions. When the second licensing round was a risk regarding the stability of the rate was around 500,000 b/d. In the early
took place in 1965, moderate interest was whole structure. In the event, all went well days, this was a mixed national blessing.
shown in these blocks. Initially lukewarm, and valuable lessons were learned for the Detailed depletion policy arrangements
BP decided to apply. Industry reluctance to installation of future jackets. were in place, which involved phased
conduct exploration continued, but The cost of the development required the approvals of development and production.
everything changed with the discovery of use of substantial external finance and The unexpectedly prolific behaviour of
the giant Ekofisk field in the Norwegian resulted in the innovative Forties loan – Forties meant BP had to obtain permission
sector, in 1969. In the summer of 1970, BP arranged in 1972 through a syndicate of 66 to exceed its approved production rate,
commenced drilling in Block 21/10, and in banks. It was the first North Sea project- causing lively debate within government,
October, the Forties field was discovered, based financing scheme. More accurately, it with some concern about the consequential
ushering in a new era. was a production lending arrangement substantial oil exports.
Forties lay below 120 metres (400 feet) of whereby the revenues from field production In the event, the so-called ‘upward
water in an area subject to high winds and were used to service and repay the loan. At profile variation’ was approved, principally
large waves. Field development in such an the time, the oil price was $2.50. because of the pressing need for further tax
environment pushed the frontiers of revenues from the North Sea. By 1981, the
existing knowledge. A much heavier ‘jacket’ Loan repayment top marginal rate of tax on Forties
was required and innovative stress relief A further feature was the incorporation of a production exceeded 90%, with BP making
equipment was developed to reduce the forward sale agreement involving a vehicle a tax payment of almost $860 million (in
chance of brittle fractures, which could company, which used the loan to buy oil money-of-the-day terms), essentially based
occur at low temperatures. forward from the operator who had a on the revenues from Forties that same year.
The size of the field necessitated the corresponding obligation to produce The field also proved important to the
deployment of four large platforms, and two enough oil to repay the loan. These features wider development of the UKCS. Facilities
construction yards were identified, were subsequently repeated in several other and the associated pipeline became a magnet
including Nigg in Easter Ross, which, at its North Sea deals. for new fields. Over the years, more were
peak, generated direct employment for Production from Forties commenced in connected to the Forties Charlie platform or
around 3,000 people. A major housing November 1975. Initial estimates put the Unity Riser platform and some 70 fields
shortage necessitated the deployment of recoverable oil reserves at 240 million are currently tied in, with throughput at
two ships in Nigg Bay as living quarters. tonnes, with plateau production of 400,000 around 45% of current oil production.
The float-out and installation of the barrels per day (b/d). Both turned out to be Today, while no longer a part of the BP
platforms were nerve-wracking, given the considerable underestimates. By 2000, initial portfolio, Forties remains a substantial
size of the jackets and the vagaries of the recoverable oil reserves were estimated at producer and it is arguable that in its
weather. A particularly critical episode was 347 million tonnes, making it the largest oil absence, further exploration of the region
the so-called ‘crash dive’ period, when there field in the UKCS. The plateau production would have been considerably slower. ■
Forties statistic
By 2000, initial
recoverable oil reserves
were estimated at
347 million tonnes,
making it the largest
oil field in the UKCS.

BP Faces
Libya> Business profile
LORD ASHBURTON
Chairman 1992-1995
“My most important moment came while I
was the senior non-executive director at BP,
and was discussing the future executive
leadership of the company with my non-
executive colleagues. It was decided that
the position of chairman and chief
executive should be split – a completely
new idea for BP, because the two roles had
always been identical. I was in total
agreement with the decision. But then, out
of the blue, I was invited to become
chairman! Never in my wildest dreams had
I seen this coming, and my immediate
reaction was to say ‘no’. On reflection,
however, I concluded that my background
and experience in the City made it a logical
step. I also knew and liked David Simon,
who was to become chief executive, and I
was confident that we could make the new
arrangement work. Having discussed the
idea with my wife and family, who were as
surprised as me, I agreed to become
chairman for three years and moved my
office into Finsbury Circus, on the same
floor as David Simon. As to the effect it had
on the company, I leave it to others to
judge. I enjoyed my time as chairman
immensely, and will always be grateful to
David and his executive colleagues for
accepting the change, and for the friendly
and helpful way in which they treated me
throughout my three years as chairman.” ■
3 2009
➔ bu s in e s s p a rtn e rs h i p Strategic co-operation> Case studies
UNITED Shell-Mex and BP

There aren’t many business partnerships
that can say they endured for 44 years,
especially ones between arch rivals. And
WITH
yet, in 1932 – a time when availability of
oil was high and the price was low – the
Anglo-Persian Oil Company and Shell
took the decision to join forces and create
Shell-Mex and BP (SMBP), a joint UK-
THE
based marketing business designed to
create some order in the market, and
protect the businesses from a tough
economic climate. Shortly after its birth,
the Second World War broke out, which
led to the ‘pooling’ of all oil companies’
BEST
supplies and a ban on branded fuels. Its
staff played a key role in the wartime
Petroleum Board and the company
emerged in the post-war period as a
marketing tour de force. It grew to handle
a staggering 40 million tonnes of oil per
year through the combined use of
Throughout its history, BP has worked in partnership refineries, pipelines, transportation and
service stations. “It had a market share at
with a variety of different businesses, communities, one stage of about 50%,” remembers
non-governmental organisations, government bodies, Mike McMonagle, former SMBP
employee and editor of the 44 Club News.
competitors and academic institutions, all with a Meanwhile, one of its most imaginative
single aim – to deliver heat, light and mobility to achievements, says Charles Madge,
secretary of the 44 Club, was the creation
customers around the world. The key to a successful of the central heating market in the UK.
partnership is one that delivers mutual advantage to “It was a brilliant marketing stroke.
Because of the post-war increase in
all parties, and in this BP believes it is distinctive. demand for petrol, there was a surplus of
Whether it is pushing the boundaries of technology gasoil and kerosene. We created a desire
in householders to install central heating
with the very best scientists to develop cleaner energy, – of which most people knew nothing –
working with local communities to create sustainable using these fuels. Initially, the futuristic
Mrs 1970 advertising campaign
business development opportunities, or testing the vigorously promoted this wonderful new
product, supported by a network of fuel
latest fuel or lubricant and engine advances with car distributors and installers.” Although
manufacturers, BP uses its partnerships to look disbanded in 1976, SMBP’s legacy
continues to this day with around 4,000
beyond traditional ways of doing business to create former employees belonging to the 44
new possibilities. Its 100-year history is dotted with Club more than 30 years after its break-
up. “There was an atmosphere about the
examples of this in action and over the next few pages, company,” says McMonagle. “It
BP Magazine showcases just a few of them. encouraged a team spirit and people
looked out for each other.”
Report> Lisa Davison Photography> BP Archive / Corbis / Rex / SPL

Distinctive partnerships> Case studies
Azerbaijan
In 1994, Azerbaijan’s government signed a
deal – known as the ‘contract of the century’
with a consortium of 11 companies, headed
up by BP. Since then, $25 billion has been
invested in the country, helping develop
infrastructure to bring offshore oil and gas
to international markets. This multi-
national support was crucial, but local
participation lay at the development’s heart,
and so BP and its partners in the Azerbaijan
International Operating Company, the Baku-
Tbilisi-Ceyhan Pipeline Company (BTC) and
Shah Deniz gas project have supported a
range of initiatives – from developing
Azerbaijani professionals; to the Azerbaijan
Enterprise Centre, which helps local
companies develop their businesses; to the
Caspian Technical Training Centre to train
Azerbaijani technicians; plus countless
initiatives aimed at supporting sustainable
community development, construction
yards, pump stations and the Sangachal
terminal. At the launch of the
BTC pipeline in 2005, President Ilham
Aliyev, spoke of the “effective teamwork
and co-operation” and described BP as
having become “an integral part of
Azerbaijani society.”
Original equipment
manufacturers
Of all BP’s relationships, the one that has
changed most dramatically is that with
automotive original equipment
manufacturers (OEMs). BP has moved from
being simply a supplier of fuel and engine
oil to a more integrated partner, delivering
cleaner, more efficient, longer-lasting
vehicles. Using its knowledge of fuels,
lubricants, solar, wind and carbon
management, BP also provides progressive,
sustainable options to develop more
efficient manufacturing processes. “By
working in partnership, we are helping
OEMs enhance and commercialise
technology to meet our mutual consumers’
demands for more efficient and responsible
personal transport,” says Bertrand Boulin,
BP’s strategic account manager for Ford.
Technical innovation is key and has led to
the creation of performance fuels and
lubricants specifically tested on the latest
engines. “The difference today is we very
often think and operate as integrated teams.
That way, we can make a difference to an
automaker’s performance and add long-
lasting value to both parties. It’s a powerful
combination that requires expertise, trust
and commitment.”
FedEx
“It demonstrates the strategic value of a ‘one’
BP,” says Richard Bartlett, accountable for
leading BP’s strategic co-operation with
FedEx. As one of the world’s largest delivery
companies, FedEx is a major consumer of
energy. In the past, it only bought some jet
fuel and lubricants from Air BP. But thanks
to strong executive-level relationships and
differentiated offers, a partnership has
developed in which BP and FedEx are
working to implement wide-ranging supply,
efficiency, alternative energy, marketing and
logistics plans. As well as increases in the
amount of fuels and lubricants BP supplies
FedEx, BP is helping it reduce its carbon
footprint through solar projects, fuel-
efficient lubricants and bio-diesel. In return,
FedEx is BP’s global courier and business
reprographics provider. This integrated
approach was rewarded in 2007 with the
partnership award in BP’s internal
recognition programme, as well as a 2008
‘best supplier’ award in FedEx’s equivalent
scheme. “We provide security of supply,
total cost of ownership and differentiated,
quality brands, products and services,” says
Bartlett. “We customise solutions to help
each other do business in a smarter, more
efficient way.”
GE
For the past four years, BP and GE have
developed a strong relationship to help
deliver commercial growth and
operational efficiency, access and
commercialise new technologies and
advance environmentally-sensitive,
commercially-robust products and
services. “As well as us selling products to
each other, we develop solutions that
enhance the experience and cost
efficiencies of our mutual customers,”
says Marcell Ulrichs, BP strategic account
manager, GE. The co-operation spans the
breadth of BP’s businesses across a variety
of industry sectors and includes
preferential wind turbine procurement
agreements and an upstream joint
technology programme
to identify mutually beneficial
opportunities – for example, in electric
subsea processing, water treatment or
inspection technologies. “The BP/GE
relationship has been transformed from
non-strategic to very productive,
delivering significant benefits to the two
companies and our joint customers. This
step change in quality and materiality is
recognised at both corporations,”
says Ulrichs.

Viewpoint>
Azerbaijan then and now
The reawakening giant

Azerbaijan’s oil connections are long and illustrious, with written references stretching back as far as
the 9th century. Almost 11 centuries later, the Swedish Nobel brothers kick-started the
commercialisation of Azerbaijan’s black gold, drilling their first well in Balakhani, an oil-rich suburb of
the capital city of Baku (see below). By the beginning of the 20th century, Azerbaijan was producing
more than half the world’s supply of oil. During the Soviet era, Baku became the centre of platform
construction for Russia. But independence in the mid-1990s brought a new lease of life to the country’s
oil and gas industry, as its government signed the ‘contract of the century’ with a consortium of
international energy companies, headed up by BP. The contract called for the development of the
offshore Azeri-Chirag-Gunashli oil and Shah Deniz gas (main image) fields, located in the Caspian Sea,
along with the construction of two major pipelines – the Baku-Tbilisi-Ceyhan oil pipeline and South
Caucasus gas pipeline – to transport its hydrocarbons to international markets. With all elements now
up and running, Azerbaijan’s status as an energy giant has been truly reaffirmed. ■
REPORT: LISA DAVISON / PHOTOGRAPHY: BP AZERBAIJAN ARCHIVE / SHAHIN ABASALIYEV

➔ e n vi ro n m e n t Historic focus> Responsible operations Report> Lisa Davison
Photography> BP Imageshop
DEDICATION
TO THE CAUSE
In 1997, BP took a stand on climate change with huge impact. But as the
people who have dedicated their BP careers to managing environmental
impact explain, it was just the tip of a long-standing iceberg.
“If we are all to take actively joining an oil company decades techniques to manage effluent water
earlier, with the belief that they could treatment. “In the mid-70s, teams didn’t
responsibility for the future make a difference, and who chose BP have the word environment in them – that
of the planet, then it falls on because it already had the reputation for crept in later – but it was environmental
being the ‘greenest’ of the oil companies. management in its own way.”
us to take precautionary People like Philip Chown, Refining & BP’s interest in environmental impact
action now.” Marketing health, safety, security, can be traced back to the early 1960s, when
environment compliance director. His it formed an anti-pollution advisory group,
passion for environmental issues looking at the causes and effects of
That was the message delivered by former developed after a holiday as a teenager in pollution in cities. In 1966, it began
BP group chief executive Lord Browne in Germany’s Black Forest. A walk on a cloudy studying air pollution, which led to the
1997 during a speech at Stanford day left him with stinging eyes (caused by development of cleaner chimneys,
University. It was a pinnacle moment acid rain) and a desire to do something including on large refineries.
regarded by many as the first time an oil about it. A doctorate in chemistry was In 1970, it founded the Environmental
company had accepted the link between swiftly followed by a job offer from BP to Control Centre to explore the policy and
human activity and climate change and become part of a research team looking at science of environmental issues and
made a pledge to play its part in dealing the impact of oil in water. “BP was one of commissioned The Shadow of Progress, a
with the situation. Such was its the few with a reputation for trying to do documentary exploring the way in which,
significance, it caused one industry veteran something about its impact on the in meeting the demands for a richer, fuller
to declare that BP had ‘left the church’. “It environment while still being considered life, technology has polluted much of
was a bold, significant move,” remembers ‘dirty’,” he remembers. “I saw it as an man’s environment, with a discussion of
Mike McMahon senior advisor, climate opportunity to make a difference.” possible solutions.
change, “people sat up and took notice.” He was not alone. Around the same It was also during the 1970s that it began
But behind this is another quieter, but time, Graham Bunch advisor, water a process of environmental documentation
equally important, story. A story of people management, joined BP working on better – the precursor to today’s formal
environmental impact assessments – to
Pure shores: pollution
better mitigate its ‘footprint’. “They were
control exercise taking place pretty rigorous for their time,” says Chown.
in Beaulieu River at Wytch During the 1970s and early 80s, much of
Farm, UK, in June 1991.
that focus was on water – either through
spills or a plant’s waste water management.
“BP was doing some cutting-edge work to
protect the water resources around its
facilities,” says Chown. “It was exciting to be
part of that.” Part of that work found he and
Bunch working on the development of
waste water treatment at Grangemouth
refinery in Scotland, a period of time that
both men look back on with a sense of pride.
“We built a state-of-the-art plant – one of the
best in Europe – using pure oxygen and
several new innovations,” says Chown.
“Grangemouth used to have one of the
highest refinery discharge levels in »
Aerial view: Furzey Island is
part of BP’s Wytch Farm
project and famous for its
population of red squirrels
that BP actively monitors.
“BP was one of the few with a reputation for

trying to do something about its impact on
the environment. I saw it as an opportunity
to make a difference.”
Philip Chown
Historic focus> Responsible operations
Europe,” adds Bunch. “The new plant Minimal impact: an operator removes
floating sludge at Grangemouth’s effluent
helped us put that right.” treatment plant (top left). Above, Wytch
Thirty years later, BP handles more Farm pioneered certain technologies, such
water than oil and its management as extended reach wells.
remains a challenge. “Since the 1990s, there
has been an additional emphasis on fresh oil terminal,” says Mike Mason advisor, debate began over whether that policy
water use,” says Bunch. “If you think about environment. Having joined BP in 1985 as a should move to one of precautionary
it, water and energy are inextricably linked. specialist in oil pollution response, Mason action. Two years later, the switch was
You need water to produce energy and was posted to Wytch Farm, UK – an made and the Stanford speech was born.
water companies need energy to treat and environmentally sensitive area and the During the speech, Browne made a
move their product. Climate change is location of the largest onshore oilfield in series of pledges: to control BP’s own
often about altering water patterns and western Europe – essentially to hide the emissions; to fund continuing scientific
new businesses, such as biofuels and heavy operation of the oilfield from public view. research; to work with others to limit and
oil rely on sustainable water supplies.” At Mason spent 17 years overseeing an reduce net emissions of greenhouse gases;
Bulwer and Kwinana refineries in Australia, environmental and planning team to to develop alternative energies for the long
teams have become more creative, using develop detailed design, gain planning term; and to contribute to the public policy
recycled municipal waste water for permission, construct and operate the oil debate. Through its work with associations
industrial processes. field, including a host of drilling and such as the Carbon Mitigation Initiative at
Over on Alaska’s North Slope, the production techniques designed to Princeton University, US, and the Chinese
upstream business has had to be conscious of minimise BP’s impact on the area. “Wytch Academy of Sciences, along with a
its impact from day one and it is now one of Farm is a special place. It’s reputation grew reduction in its emissions and the creation
the most intensely surveyed regions in North because it was designed to show BP could of Alternative Energy (AE) in 2005, all
America. Onshore drilling sites and roads be a responsible operator. We used to host these pledges have been realised.
were elevated above the tundra on thick around 10 visits a month to show what we BP continues to improve its
gravel pads, while ice road technology has were doing and how.” environmental management practices
reduced the number of gravel roads. Special In many ways, it was a model and and publishes information on its
burial of the Northstar field’s pipeline deep test bed, developing principles of environmental performance externally.
beneath the seafloor and a sophisticated leak environmental management now common Meanwhile, AE is developing key areas,
detection system were both firsts in Arctic today, along with pioneering technologies such as wind in North America and a new
oil field technology. Large sections of the such as extended reach drilling, which biofuels business in Brazil.
Trans-Alaska Pipeline were raised from the avoided construction of an offshore island Since Stanford, media coverage on
ground to prevent warm oil melting the and brought the field onstream a year ahead climate change has gone through the roof
permafrost and elevated over caribou of schedule. That experience and approach and public knowledge is at an all-time
crossings to avoid impact on migration. has held BP in good stead as it develops high. But while that speech may have
Indeed, the number of Central Arctic caribou other projects in equally sensitive areas, caused a sea change in the industry, it’s fair
moving through the Prudhoe Bay, Kuparuk such as the Tangguh gas field in Indonesia. to say that for the scores of BP people who
and Alpine fields has increased from around While all of this was being developed by were environmentalists even before the
3,000 in 1972 to 32,000 today. people with a passion for their phrase was coined it was simply a matter of
“We learnt a lot from the experiences on environment, officially it was still under doing the right thing all along.
the North Slope and Shetland’s Sullom Voe BP’s policy of ‘no regrets’. In 1994, internal “Stanford was rightly a distinctive
moment for BP,” says Bunch, “but in truth,
“There are many people across the company who there are many people right across the
company who have spent the past decades
have dedicated their careers to ensuring BP delivers creating a bedrock of responsibility –
on its environmental commitments.” people who have dedicated their careers to
ensuring BP delivers on its environmental
Graham Bunch commitments.” ■
BP Faces
LORD SIMON
OF HIGHBURY
Chief executive 1992-1995
Chairman 1995-1997
“When I took over as chief executive at
short notice in 1992, I found myself
sitting down on a sunny Sunday
morning at my Norfolk cottage,
wondering what I would say to the
company and the investment
community in the coming days; how I
would articulate my mission and my
management approach. The shares were
wobbling, and I had the likes of Lord
Hanson [one of the most influential
British businessmen of the 20th century]
and Larry Fuller at Amoco, calling to
discuss giving BP ‘a helping hand’! So I
knew I needed something motivating
and memorable that would give people
confidence going forward. I quickly
settled on three simple words
‘peformance, reputation, teamwork’. I
knew the acronym PRT would resonate
with people, because it is the same as
petroleum revenue tax! The idea was
that we would focus on the efficiency of
the company, rebuild its reputation and
make every individual feel responsible
for our success. We lived by these
principles for three years, first through
organic rehabilitation, then on towards
strategic growth. John Ashburton, the
chairman during this crucial period, and
the entire executive team gave full
support to the approach. I am convinced
that PRT turned BP around at an
extremely sensitive time. Without it, I
believe the company could have found
itself on the wrong end of a merger. After
the recovery of 1992 to 1997, John
Browne took the company forward with
a professional growth strategy that had a
strong foundation.” ■

➔ t ra n s p o rtation Product delivery> Modes of distribution
ON THE
MOVE
A CENTURY OF ENERGY
TRANSPORTATION
When it comes to moving oil and gas around
the globe, modes of transport have changed
immeasurably – mules are a pretty rare sight
these days – but there’s no doubt that each
form has done its bit to ensure BP delivers
heat, light and mobility to its customers.
Top: branded horse-drawn tank wagons

replaced barrel-laden carts in the 1880s.
Above: motorised tankers became a
much more common sight in the early
20th century, and came in all shapes
and sizes. Right: BP had to construct a
pipeline to transport oil from its first
field – Masjid-i-Suleiman – to Abadan
refinery on the coast of Iran. It was 220
kilometres (130 miles) long and required
1,000 people to construct it. By
comparison, the Baku-Tbilisi-Ceyhan
pipeline is 1,768 kilometres (1,098 miles)
and, at its height, employed 21,000
people. Below: mule was the most
common way to transport Anglo-
Persian’s burning oil in Iran and Iraq.
Left: rail transportation was common in
Britain in the mid-20th century.

Report> Lisa Davison

Product delivery> Modes of distribution
Above: gas has been transported as a

liquid since the 1950s, with the Methane
Pioneer carrying out the first transatlantic
voyage in 1959. Right: the 1,300 kilometre
(800 mile) Trans-Alaska Pipeline received
its first oil in 1977. The pipeline zig-zags
across Alaska’s North Slope so that
movements caused by temperature
changes and seismic activity can be
absorbed. Below: road trains are a
common sight in Australia, where long
distances require large amounts of fuel to
be transported at one time. The average
length of a road train is around 54 metres
(180 feet) and can transport up to 100,000
litres (22,000 gallons) in one go.

BP Faces
Photography> David Gold
A LIFE OFFSHORE
Jim Barr / Offshore installation manager
When Jim Barr’s (left) school geography teacher told the class around 1966 that North
Sea oil was going to transform the northeast of Scotland, they all thought she was
dreaming. Jim joined BP 10 years later, and has since spent 32 years in the industry,
primarily offshore. He recalls an early high level of responsibility in a fast-developing
sector. “I was initially a trainee production engineer and worked on the Forties Pipeline
System. For a pretty raw graduate, to be cutting into a major national asset like the
Forties line was quite something.” Offshore, life was characterised by good food and
good company, even if the entertainment options were limited. “Offshore is one of the
worst places to be when you have nothing to do, but in operations that isn’t often the
case. We had a ‘Super-8’ projector for watching films and got the reels sent out. Tired
after our shifts, quite often we’d watch for half an hour and most of the room would be
asleep. It wasn’t unusual to wake up and find the first reel flicking around and the screen
empty, so the second reel was pretty much an optional extra!” ■
Proud history: during the late
1990s and early 21st century, BP’s
mergers and acquisitions team was
kept busy and distinguished
brands, such as Amoco and ARCO
in the US and Aral in Germany,
joined BP, creating a super major
with global scope and scale.

Company evolution> Heritage businesses ➔ m e rg e rs + a c q u i s i ti o n s
Report> Lisa Davison

EXPANDING
HORIZONS
It took a mere 100 working days to complete and was environment. But it is only an edge…[the]
competition is and will remain intensive.”
kept a secret by conducting meetings in the British That difficult environment was largely a
consequence of oil prices plummeting
Airways Concorde lounge at John F Kennedy airport in below $10 a barrel. Suddenly, size mattered.
New York. But the merger between BP and Amoco is just Speaking to the press at the time, Browne
declared that “in such a climate, the best
one chapter in a long story of acquisitions and mergers. investment opportunities will go
increasingly to companies that have the
I
t was, at the time, the largest-ever size and financial strength to take on those
industrial merger, catapulting BP into large-scale projects that offer a truly
the top three global oil and gas distinctive return.”
players. “It was a tremendous surprise Speaking to BP’s in-house magazine,
to everyone,” says Lord Browne, Horizon, former Amoco chief executive
former BP chief executive and architect of Larry Fuller added his thoughts: “[It] gives us
the BP Amoco merger in 1998. The numbers the upper hand in withstanding the current
tell the story – it added 63% to BP’s existing industry downturn and becoming one of
oil and gas reserves, with another 63% on the leaders in the industry. BP Amoco is the
production. It became the largest gas great competitor of the future.”
producer in the US overnight and the top Inside BP, there is still something quite
retail marketer east of the Rocky Mountains. special about the deal. “It changed the
It also transformed the industry landscape for us and the industry,” says
landscape. Within months, Exxon and Skinner. Despite the record-breaking
Mobil had joined forces, Total took on Fina completion time, it was far from a whim.
and Elf – although not before Elf BP was the first oil company to set up its
attempted a reverse takeover of Total – own dedicated M&A team in 1986, with
while Chevron and Texaco realised they the purpose of bringing more
were a match made in heaven. professionalism into acquisitions and
Consolidation was all the rage. divestments of non-core activities. In 1987,
Global reach: Founded in 1899,
For BP, Amoco was just the start. From BP bought out the minority shareholding
Castrol, formerly CC Wakefield and 1999 to 2003, the company’s mergers and in Standard Oil of Ohio – Sohio – and in
Co, was to become a global giant in acquisitions (M&A) team, headed up by 1988, acquired Britoil, reinforcing its
the lubricants business. Its
acquisition in 2000 gave BP a
now retired Roger Skinner, oversaw a series presence in both the US and the North Sea.
leading position in 50 countries. of acquisitions, including ARCO, Castrol, By 1990, the team was reviewing new
Veba Oel, and the Russian joint venture – targets, and two names were in the frame –
TNK-BP. In total, this activity added a Mobil and Amoco. “Both were a good fit
staggering 157% to BP’s proven oil and gas and gave us the potential to create scale
reserves, 193% to its production and 111% and reach,” says Skinner.
to its refining capacity. Five years later, BP and Mobil agreed a
The late 1990s was a tough period for joint venture. “We were pushing the
the industry. Speaking at the time of the frontier,” says Skinner. “We had a meeting
Amoco deal, Lord Browne said: “The and said ‘look, we fit, we’re both too small
merger gives us an edge in the very difficult in the current climate, how about it?’” »
Company evolution>
Heritage businesses
It marked the first time any major oil Diversification came in rather unusual
company had publicly admitted it could forms and, as a consequence, BP became the
not stand on its own. “It showed that two owner of forests in New Zealand, prawn
major companies could swallow their pride farms in Thailand and the world’s leader in
and share branded space,” says Skinner. It silk screen printing inks. It was not alone.
also demonstrated the benefits of regional One oil company bought a department
scale in the European downstream business. store chain, while another bid for a circus.
But BP wanted global scale. And for that, By 1986, it was becoming clear that a lot
it turned to Amoco. “I rang Larry Fuller one of these deals were not turning out quite as
day and said, ‘I think I’d like to come and the company had envisaged. The new
talk to you about the future,’” remembers M&A department was created and an
Browne. “So, we agreed to meet in the intense phase of consolidation began,
Concorde lounge in JFK and we had our first including, 12 months later, the decision to
discussion. The rest, as they say, is history.” buy out the final 46% share in Sohio.
It was a bold, opportunistic move, It was the start of something big.
something Skinner believes is Between 1997 and the end of 2004, BP
characteristic of BP as a company. “BP has engaged in M&A to the total value of
been doing deals for a long time,” he says. $101 billion. Its merger with ARCO made it
“In the 1920s and 30s, we had a lot of crude Following the discovery of the Prudhoe the leading US west coast retail marketer,
oil in the Middle East, but no channels of Bay field in Alaska, BP realised it needed a gave the company coast-to-coast reach and
our own through which to market that presence in the US. One company stood out a major gas position in Asia. Through the
crude.” The quickest solution was to – Sohio, one of Rockefeller’s old guard. “It acquisition of Castrol in 2000, it inherited a
acquire distribution businesses, mainly had very little debt and not much crude oil leading lubricants position in 50 countries,
in Europe. in relation to its marketing power,” says while in 2002, Veba Oel made it the leading
While not all deals lived up to their Skinner. “It was the ideal partner.” German oil marketer. And in 2003, the
potential, some were transformational. The deal was done in 1969, allowing BP creation of TNK-BP turned BP into Russia’s
Precisely 30 years before the Amoco deal, to take an initial 25% of the company. largest foreign investor.
BP was busy creating another phoenix-like Once so reliant on Middle Eastern oil, BP BP as a company has transformed itself,
moment. In the late 1960s, BP produced was now a big hitter in the US. “Developing and is not the same organisation that it was
around 4 million barrels of oil per day and bringing Prudhoe Bay to market was a even 15 years ago. However, that
and, yet, refined and marketed barely half large commercial undertaking and transformation has only been possible
this amount. provided us a lifeline. In the history of the thanks to an unswerving desire to stay
company, it stands alongside Amoco in ahead of the competition through
what it did for our future,” says Skinner. innovation. “Through its mergers and
“Through its mergers and While that US future looked strong, the acquisitions, BP has combined the
mid-1970s proved tough, with many strengths of its heritage parts,” says
acquisitions, BP has Middle East and African concessions Skinner. “BP became one global group
combined the strengths nationalised. “In response, BP, like the rest of with the capabilities and resources to
its peers, looked for renewal opportunities meet the challenges and opportunities
of its heritage parts. BP through diversification,” says Skinner. of the future.” ■
became one global group
Marketing giant: the
with the capabilities to merger with ARCO
turned BP into the
meet the challenges and leading retail marketer
on the US west coast.
opportunities of the
future.” Roger Skinner

BP Faces
LORD BROWNE
OF MADINGLEY
Chief executive 1995-2007
“There are two highlights from my time

leading BP – the merger with Amoco in
1998, and the Stanford speech on climate
change in1997. The Amoco deal came
about after attempts to merge with Mobil.
I called Larry Fuller, the chief executive at
Amoco. He said a merger wasn’t on his
agenda, but could we get together the next
day. I caught a Concorde flight to New York,
and set in train the events that led to what
was, at the time, the world’s largest
industrial merger. It was a hot August day,
when the whole of the BP executive team,
and a host of other colleagues, were
waiting in the study at my house in
Belgravia, waiting for Amoco’s decision. At
least 250 BP people knew about the
discussions, but not a word leaked out.
That’s a real demonstration of a great team.
The merger made BP more competitive,
and allowed us to do things we had always
dreamed of. It improved our technological
capability: today’s seismic innovations are
founded on Amoco research, for example.
The Stanford speech was another industry-
changing moment. We knew it would have
a major impact. Some in the industry
thought we were ludicrous, and there were
many within BP who were extremely vocal
in their opposition. But we knew this was a
growing issue. We wanted a seat at the
table when people were discussing our
future. It has changed the way the industry
does things today. There is more
responsibility now. It showed we are
prepared to do something about a situation
with which we are inextricably linked.” ■

➔ history on film Documentary> Centenary: The BP Story
Report> Nev Pierce
Photography> Steven Croston
SLICK S
ummer, 2006. Last orders have
been and gone. Two men stumble
from a bar, into the balmy west
London night. Nigel Williams –
writer, director, novelist and
documentarian – has had a couple of
drinks. And he’s having a couple of second
thoughts, too, about his decision to make
FLICK
BP’s centenary film. “I’ve never made a
corporate film!” he says, turning to Steven
Croston, commissioning editor of BP TV. “I
don’t think I should do this.”
He takes a few steps into the street.
Stops, thinks, says to himself: “If you get to
the point you think it’s not right, you can
always walk away…”
Three years later, Williams has finally
Adventure, daring and surprise… Centenary: The BP reached the point of walking away, but only
Story showcases a vivid, rich history that spans the because the film – Centenary: The BP Story –
is finished. “I feel rather sad it’s all over,” he
20th century and beyond. Writer/director Nigel says. “Initially, I was worried I might be
Williams talks censorship fears and recreating a censored in some way. That proved
absolutely not the case. In fact, I got less
world-changing discovery. interference than I did from a lot of people
at the BBC, where I worked for 30 years!”
Williams, who used to run the BBC’s
acclaimed arts documentary series
Omnibus, is an industry veteran, whose
Veteran storyteller: writer/director
Nigel Williams (below) on set of screenwriting work includes the BAFTA
the reconstruction of first oil at and Golden Globe-winning Elizabeth I,
Masjid-i-Suleiman. starring Helen Mirren. By his own
admission, he knew little about the oil
industry when he fell in with independent
production company Lone Star and pitched
to write and direct the corporation’s
centenary film. “My take on it was we
should talk to everybody in the company,
not just the bosses,” he says. “We had to talk
to drillers and chemists and just ordinary
guys, in so far as you can fit them into the
story. BP seemed to like that approach.”
“To begin with, Nigel wasn’t sure about
it at all,” laughs Croston, who took quite a
career-swerve when he joined BP in 1992,
given he used to be a professional
percussionist. “But he very quickly
consumed a three-volume history of BP and
said, ‘This is fascinating. I want to make
this film.’”
Croston’s enthusiasm for the company’s
heritage is infectious – particularly its
filmmaking. Since the 1920s, the company
has recorded footage of key events – and
made documentaries to speak to its staff »
Historic reconstruction: the
moment that George Reynolds
struck first oil was created by
Williams and his team, with
the Californian desert standing
in for 1908 Persia.

Cinematic history>
Centenary: The BP Story
and the world at large. Croston has made it “We tried to find people whose memories went back as
his mission to recapture what he considers
the finest period of BP’s in-house screen early as possible. Their testimony is fantastic. The real
work, ‘the halcyon days of the 60s and 70s’. tragedy is so much of it we haven’t been able to use,
When considering how to mark the 100-
year anniversary of BP’s inception, he went because we had hours and hours of material.”
to the company’s board with a proposal. “I Nigel Williams
said, ‘I’d like to make a film, not a video.
And this is not going to be a corporate film:
it’s going to be a film about a corporation.’”
A proper film required a proper filmmaker, as possible. We interviewed one guy, Peter desert, funded by William Knox D’Arcy.
so Williams was in. Armed with Croston’s Jones, who was a driller in Iran in the 30s – They had a notion there was a bit of oil out
brief and the invaluable help of producer he’s died, sadly, since the interview. And in southwest Persia… But they were
Elena Adams, who undertook extensive another man, a wonderful old boy called burning cash. Finally, Reynolds was told
research, he viewed hours of BP’s own Monty Sawyer, who was a chemist at ‘this is the last bite of the cherry: if you’ve
company films to discover its history. “It’s a Abadan refinery in the 40s and was there drilled to 1,100 feet and haven’t found oil,
riveting story,” says Williams, who also when Iran nationalised its oil industry in abandon operations and come back!’ He
read voraciously about the subject. the 50s. Their testimony is fantastic. The struck oil. That was the birth of oil in the
But Williams didn’t find his facts solely real tragedy is so much of it we haven’t Middle East, and the spiritual birth of BP.”
on paper. Instead, he sought out first-hand been able to use, because we had hours and “It’s a very exciting thing,” says
accounts from company employees, hours of material!” Williams. “As one of the geologists told me
stretching back as far as possible. “We The toughest challenge for Williams was, – this remark didn’t actually make it into
spoke to at least 40 people,” he says. “One indeed, one of compression: taking 100 years the film – ‘outguessing the sub-surveys is a
person led to another… We tried to find of history and putting it into a manageable fascinating detective story.’ Because it’s
people whose memories went back as early format. “That was the real struggle. I had to very easy to miss even a big field. There are
cut my way through the jungle, wade plenty of people in the business who never
through the avalanche of facts.” found any oil.”
The Masjid-i-Suleiman find was a
W
ith the final film clocking in at sequence reconstructed for the film, with
83 minutes, Williams has Williams and co recreating the incident on
succeeded in making the story location, with the Californian desert
digestible, and just hopes he’s done the standing in for what is now Iran. “The
subject justice. “It is a film of record,” he principle was to use reconstruction only
says. “One of the guys on the centenary for sequences where we couldn’t find
committee said, ‘I expected something people to describe it in other terms,” says
flashy, but it’s very erudite!’ I said, ‘you Williams. “It’s not dramatised in an ‘Oh, I
mean it’s boring!’ He said, ‘No no, dear boy, I say!’ way. As I work in drama, I’m very
just mean it’s erudite.’ But it’s a very aware of those wooden, pseudo-historical
complicated subject. You can’t do it in a representations. The production team did a
simplistic way or talk down to people.” wonderful job. The rest of the challenge
It is an immense subject to tackle. Oil, was finding people and talking to them and
like cinema, straddles the 20th century. In compression, compression was the issue.”
Well, well, well… many ways, it is the story of the 20th Boiling it down meant leaving out
Nigel Williams on his century. There isn’t an area it doesn’t touch certain fascinating incidents and
favourite oil movie. – from central heating to journeying to the achievements. “The history created its own
moon. “It’s a story of politics, a story of war, logic: it’s really about the things that made
“I love There Will Be Blood. I thought it a story of peace,” says Williams. “The or broke the company in the time it’s been
was brilliant. I worked with Daniel Day- reason the British government became a developing over the past 100 years.
Lewis once – he was in a play of mine, majority shareholder in BP was because Centenary: The BP Story still includes
years ago. He’s probably forgotten. He’s a Churchill wanted a secure supply of fuel more than its fair share of astonishing
brilliant actor and I thought this was a for the navy. accomplishments, which will be
superb picture of a complete lunatic, “I don’t know if another oil company appreciated by audiences at special
despotic tyrant. Of the kind I did not find would be as interesting. BP had this screenings at The British Museum and the
in BP! One of the geologists – the guy fantastic, amazing, romantic origin of this HQ of the British Academy of Film and
who found the Forties field – said ‘it’s all massive find: billions and billions of barrels Television Arts (BAFTA), in London, before
teamwork’, which is a very British thing of oil at Masjid-i-Suleiman. It was still being more widely screened elsewhere. For
to say. But that kind of figure Day-Lewis going in 1951, from being found in 1908! Williams, it’s been an immensely satisfying
was portraying was, I think, very true It’s unbelievable!” journey. “It’s fascinating: the whole of the
about the early days of American oil The discovery of the field that made BP oil business is just completely fascinating,”
exploration…I loved the movie.” very nearly didn’t happen. As Croston he says, and smiles. “Whether the film is, I
explains, “George Reynolds was out in the don’t know, we’ll have to see!” ■
< Oscar glory
BP has a long history of using film
to document its work, stretching
back more than 80 years. In that
time, it has won numerous prizes
for its filmmaking, but the pinnacle
moment came in 1961 when
Giuseppina (left) won the Oscar for
best documentary, short subjects.
The film, directed by James Hill,
follows a young Italian girl who
spends the day with her father
meeting customers at his BP garage.

➔ B P in the press Media coverage> Through the ages
READ ALL
spent on construction, the huge challenges
of building in a remote and difficult terrain,
as well as the need to maintain good
relations with local tribal chiefs and
national government.
Four years later, APOC had plenty of oil
ABOUT IT
but was almost bankrupt. With the country
on the brink of war, Winston Churchill,
First Lord of the Admiralty, came to the
rescue. He believed the Royal Navy should
switch from coal to oil-fuelled ships.
The government injected £2 million of
W
From the very beginning, hat was to become a new capital into APOC in return for a
very public story, majority shareholding. In addition, a
BP and its forerunners began in private. It contract was agreed for 40 million barrels
have been in the public came in a coded of fuel oil to be delivered to the Admiralty
telegram, announcing over 20 years. It was a great coup for both
eye. The early decades an oil find in Persia (now Iran) and arrived government and company.
provided scant, though after an eight-year search, funded largely by The First World War provided APOC
the English businessman William Knox with an unexpected opportunity. It
tantalising details while D’Arcy. Both money and hope were almost acquired the name that would, in due
the past 50 years have fully spent. course, become one of the most famous in
witnessed an exponential That discovery led to the establishment global corporate history. The antecedents
in 1909 of the Anglo-Persian Oil Company of the British Petroleum Company,
growth in media coverage. (APOC). By 26th July 1910, London’s The however, were not British at all. For this
BP Magazine journeys Times newspaper, reported the company’s was the subsidiary of a German company,
first ordinary general meeting. The which, at the onset of war, had been placed
through the archives and chairman, Lord Strathcona, recorded the in the hands of the Public Trustee for
talks to Roland Gribben, a sum of $325,500 – vast in those days – Enemy Property.
Now owning a valuable distribution
veteran writer on the organisation, APOC made BP its brand
energy industry. name. While the brand grew more familiar
as petrol pumps were built to fuel the

Report> Hester Thomas
Illustration> Jason Ford
increasing number of cars, media coverage the company to give everything it could. oil assets. By 1954, Anglo-Iranian had
of APOC focussed principally on company Indeed, the refinery at Abadan in Iran become British Petroleum. It was no longer
meetings and share price reports. This was played a major role in supplying Allied air the owner and sole operator of the oil
a different age, when newspapers were forces, while Anglo-Iranian’s tanker fleet industry it had built in Iran, but a 40%
slim, business pages few and public suffered heavy casualties carrying share owner of the Iranian Oil Participants
interest limited. essential supplies. consortium. Needing to find new
The style of reporting was very different, The untold story included one of the opportunities, by the late 1950s, BP had
too. On 28th June 1935, The Times covered war’s best-kept secrets. Having recently developed further interests in Nigeria,
APOC’s 26th general meeting, not so much found oil on mainland England, Anglo- Kuwait, Iraq, Qatar and Libya.
with a headline but with summary bullet Iranian increased its crude oil production “Among journalists, BP was regarded as a
points. These included notice that the four-fold to 2,000 barrels a day, providing company that could find oil but not sell it,”
company name was changing to Anglo- much-needed support to the home market. says Gribben, “while Shell couldn’t find oil
Iranian Oil Company Limited, reflecting Post-war, the world changed rapidly as but could sell it. This was the result of one
Persia’s change of country name. nations became increasingly dependent on company having good geologists and the
Curiously, the report also includes oil to drive growth. Roland Gribben, former other good marketers.”
details of chairman Sir John Cadman’s tour business editor at The Daily Telegraph and That situation changed for both
of the company’s operations. This involved now semi-retired, covered the energy companies as each improved its skills base.
him travelling 65,000 kilometres (40,000 industry from 1967. He recalls this era as, However, BP’s geologists proved their
miles) and being away for four months – a “the glory days when oil was fuelling the worth yet again when, in 1969, the
prospect that any company chairman world economy, oil companies were literally company struck oil in Alaska. Despite The
would now regard as corporate suicide. breaking new frontiers in discoveries and Times’ cautious reporting, this was thought
Come the Second World War, technology, the petrochemical industry was to be a field containing up to 10,000
newspapers had bigger stories to tell than taking off and new products were being million barrels of oil – one of the largest
shifts in corporate fortunes. Yet, Anglo- brought to market.” found in North America at that point.
Iranian was among those that played a Fresh oil fields were sought, not only to This news was dwarfed, in UK media
significant part in the war effort. Winston meet greater demand but also because terms at least, by BP’s next major find – the
Churchill, now prime minister, called on countries, such as Iran, were nationalising first substantial discovery of oil in the »

Media coverage> Through the ages
British sector of the North Sea. The Times non-OPEC oil fields, it also saw its major acquisitions. ARCO, Castrol and Veba Oil
splashed the story on its front page, while shareholder – the government – begin to all came into the fold, but the most
the nation celebrated at the prospect of withdraw. The final share sell-off came in spectacular acquisition was that of Amoco.
owning liquid gold. “The Alaskan and 1987 and, as Gribben states tersely, “The This was the largest-ever industrial merger,
North Sea finds propelled BP into the oil British government got the sale creating Britain’s leading company and the
super-league,” notes Gribben. “They disastrously wrong.” world’s third largest oil company.
transformed its fortunes and, importantly, It was hailed as the biggest private share “This major expansion in North
reduced its reliance on the Middle East.” sale the Stock Exchange had ever seen, America was the greatest achievement
By 1975, oil was flowing into the British with the government selling its remaining made by John Browne when he was chief
economy at what The Times reported as a 32% stake in BP. The offer price of 330p a executive,” says Gribben. “It also
“rate of £28 a second.” Whatever the share was set below the trading price to demonstrated the complete change in
hyperbole, the news was undoubtedly tempt investors with an instant profit. As management culture and confidence. In
good. “Almost at a stroke, tax from oil the issue had been underwritten by a my early days of covering BP, the
revenues ended Britain’s balance of consortium of institutions, the government management behaved as it if was an
payments deficit,” states Gribben. “This already had the £6 billion guaranteed extension of the civil service.”
was the UK’s first new industry for many proceeds from the sale. The new millennium has seen BP
years and, for a short time, the nation was Three days later, share prices – including launch a new global brand identity, become
among the world’s top five oil producing BP’s – collapsed. The underwriters, several a major player in the Russian oil industry,
countries.” fearing bankruptcy, pressed the through the joint venture TNK-BP,
However, there was no room for government to shelve the issue. It declined. establish a renewable energy business, BP
complacency. By the 1970s, the Spotting a bargain, the Kuwait Alternative Energy, and complete the Baku-
Organisation of the Petroleum Exporting Investment Office, acting on behalf of the Tbilisi-Ceyhan pipeline carrying oil from
Countries (OPEC) had stolen the lead from Kuwait government, purchased 22% of BP. the Caspian to the Mediterranean – of
oil companies, by regulating both “Within days, BP found the Kuwait which the company is a major stakeholder.
production and price. government rather than the British Oil price shocks have continued. The
The first price shock came in 1973, government as its biggest shareholder,” last in 2008 – when oil hit $147 a barrel,
when oil rose from $2.90 a barrel at mid- summarises Gribben. “It left the company before tumbling back to around $50 –
year to $11.65 by year-end. As a result, oil in an extremely difficult political and made all previous ones look trivial in
exporters saw their wealth increase rapidly commercial situation.” comparison. Gribben shakes his head with
while the economies of oil-consuming A resolution was found 18 months later, a mixture of admiration and pity for oil
nations were hit badly. when BP bought back half the Kuwaiti-held industry managers who must plan in the
“I was in Kuwait at the time,” recalls shares and cancelled them, costing the face of such volatility. “To run an oil
Gribben. “The Shah of Iran said, ‘the company a cool £2.4 billion. company today,” he notes, “senior
honeymoon is over.’ The stable price of oil The late 1990s saw BP involved in a managers need to know how to drive
– trading between $1 to $2 a barrel – had remarkable period of takeovers and performance and gain efficiencies, while
suddenly evaporated.” also being skilled politically and
The 1970s and 1980s were a period of diplomatically. It’s hard work.”
great change for BP. As well as developing Lord Strathcona, were he to time-travel
from 1909, might be inclined to agree. ■

BP Faces
Photography> Shahin Abasaliyev
MAJOR SCOOP
Tamam Bayatly /
Communications manager
“I have seen history in the making” says Tamam Bayatly of
her 14 years as BP’s spokesperson in Azerbaijan. Sitting in on
high-level negotiations for the huge Azeri-Chirag-Gunashli
(ACG) offshore oil development, and subsequent Baku-
Tbilisi-Ceyhan (BTC) pipeline, she has witnessed decisions
that have shaped her country’s destiny. Back in September
1994, speeches in English at the signing ceremonies for the
‘contract of the century’ were the first indicator that change
was afoot. But the Azerbaijani people were unsure what to
expect of the country’s first deal with a foreign investor.
“Only a few believed it would be a decisive step to turn us
“ACG has given the Azerbaijani towards an independent future,” says Tamam, a former
nation power and confidence, while television news anchor, who joined BP in early 1995.
“Luckily, the contract put the past behind us forever. ACG
BTC has allowed the country to has given the Azerbaijani nation power and confidence,
step onto the international stage. while BTC has allowed the country to step onto the
international stage. I’m really proud to be part of both
I’m really proud to be part of both projects through BP.” ■
projects through BP.”
➔ profile
Interview> Martin Vander Weyer Photography> Graham Trott
AN INTERVIEW WITH BP’S CHAIRMAN
PETER
SUTHERLAND With the hunt under way for his successor as chairman of BP, Peter
Sutherland talks about his extraordinary career in business and
public service – and what he’d like to do next.

Profile> Peter Sutherland
F or the record, Peter Sutherland

is not only the longest-serving chairman in
the history of BP, but has also chaired the
investment bank Goldman Sachs
International in London since 1995. Yet
perhaps the most remarkable thing about
this formidable boardroom operator is that
he never had any ambition to build a
business career.
He started out as a barrister in Dublin –
when he wasn’t turning out as prop-
forward for the Lansdowne club – and he
might have stayed there, if other doors had
not opened: “I would have been happy as a
Rumpole figure. I loved impressing a jury. I
often have to remind myself that had I
come up through the corporate route, I
would never have aspired to where I ended
up. I was fortunate to be parachuted in. I
could never have been a chief executive.” someone stupidly asked me to become for. But throughout our conversation, it is
It certainly wasn’t business that drew chairman of Allied Irish [Banks]. I’d never also obvious that what matters most to him,
Sutherland away from the bar: it was his even been to a board meeting.” He also both in his past and in future possibilities, is
appointment in 1981, at 35, as Ireland’s became a director of GPA – the aviation public service. I ask him, for example, what
attorney-general, a role in which he served business – and in 1990, he was invited to he’s most proud of in his working life so far.
two short stints, before becoming a join the board of BP – where he had made a The answer is, first, the creation of the
European Commissioner in 1985 and powerful impression a few years earlier, WTO, and second, being part of the first
discovering what might have been his true when he slapped a fine on the company as Delors commission. Here, as commissioner
mission. He has called the European Union EU competition commissioner. for education, he proposed the Erasmus
(EU) “the most noble political ideal in programme – as a result of which, 2 million
T
European history” and he almost became hus, Peter Sutherland the business students have to date, spent a year in a
part of its destiny when he was lined up to titan we know today was launched. university outside their own home country.
succeed Jacques Delors as president of the But there was still another direction Third, “I did my best when I was attorney-
Commission, in 1995. to be followed: in 1993, he was asked to general of my own country.” This is the
An untimely change of Irish take over as director-general of the General wider Sutherland landscape, in which he
government put the mockers on that – but Agreement on Tariffs and Trade (GATT), a places his tenure at BP as one important
by then, the Sutherland career path had seemingly interminable, Geneva-based peak among many.
already found other directions. Back in global talking-shop, which everyone he “The company has been through a
Dublin, at the end of his Commission term consulted told him he’d be mad to take on. period of enormous change,” he says. “But
in 1989, he returned to the bar – but only By sheer force of personality, he turned the I’ve always had the view that the role of the
for one case. “No sooner had I done it, than job into a personal triumph – with the chairman is to run the board, and not to
creation on 1st January 1995 of the World manage the company, so although I
“The company has been Trade Organisation (WTO) as GATT’s participated in these achievements, I don’t
successor. claim credit for them. I’ve worked with two
through a period of Five months later, he returned to the chief executives, John Browne and Tony
enormous change. But I’ve business scene, rejoining BP as non- Hayward, who have been very effective in
executive deputy chairman. Two years after their different ways in transforming the
always had the view that that, when then chairman David Simon was company, and that transformation has been
the role of the chairman is recruited into Tony Blair’s government, radical. It has been important not merely
Sutherland took over the chair. for BP, but for UK and European industry.”
to run the board and not to There’s no doubt he is immensely proud “When I came back in 1995, having
manage the company.” of BP and everything the company stands participated in the GATT Uruguay round,
“We’ve also developed a robust committee structure for
remuneration, audit, safety, ethics and the
environment. I believe the whole area of corporate
governance has been significantly advanced by BP.”
which provided some of the building blocks executives and to structure the board with a become too high for the company’s good?
of globalisation, it was particularly degree of knowledge and experience, which “For a very long period of time, John’s
interesting to become involved in the can augment the capacities of the executive profile was extremely good. He was
practical implementation of that process – in the analysis of difficult situations.” He consistently voted the best businessman in
which required BP to develop a strategic thinks BP has created a good model – with a Britain. From BP’s point of view, that profile
vision of its place in an interdependent group secretariat, separate from the brought many positive effects, and pride
world. In response, we opened significant executive structure, which provides within the company itself. It personalised
activities, both in China and Russia, the latter independent support to the chairman and leadership – and even if that gave
through TNK-BP. We’ve created a portfolio of other board members. something less than a full presentation of
exploration and production opportunities the way the company functioned, I’m not
“W
that spans the continents; and with the e’ve also developed a robust complaining about it.
additions of ARCO and Amoco to our committee structure for “I had some differences of view on
existing activities in Alaska and elsewhere, remuneration, audit, safety, strategic issues (but only very occasionally)
we have become the largest domestic US oil ethics and the environment. I believe the with John, just as I might have from time to
company. We’ve transformed BP from a whole area of corporate governance has time with Tony,” Sutherland admits, “but
medium-sized European company to a been significantly advanced by BP. But I that’s the way a balanced relationship
global company of major proportions.” never saw the chairmanship as a very should work. If the chairman
BP has also transformed internally and in public role. I can’t recall giving one automatically agrees with the chief
that respect, much credit does go to interview in my first eight years as executive, it wouldn’t do much for the
Sutherland. He is very clear about divisions chairman; I only became a public face checks and balances. There were moments
of responsibility in a 21st-century public of BP when it became inevitable.” of disagreement with John that became
company: “The role of the chairman and the The inevitable happened when internal public, but both of us were big enough to
board is to develop the strategic issues, tensions over the end-date of Lord Browne’s continue working effectively together and
including merger activity, and to act as a tenure as chief executive became very to remain socially compatible. It never
check and balance to executive public indeed. With hindsight, does became a matter of such aggravation that
performance; to hire and fire chief Sutherland think Browne’s profile had we couldn’t communicate. And it was very »
Profile> Peter Sutherland
“I plan to continue to be involved in

international affairs: a great passion of
my life is European integration, and I
intend to pursue that vigorously.”
temporary, given the long run of time that the like of which has not been seen in our development – I have a great interest in
we worked together.” lifetime,” Sutherland says. “It would be that, too – and an honorary ambassador of
The last year of Browne’s tenure was hazardous to speculate how deep or how the UN Industrial Development
certainly Sutherland’s most public moment long it will be. I’m in the camp that sees Organisation, for which I’ve done very little
at BP. Once that was over, and Hayward had this not as a short-term crisis, but one that over the past few years, but when I have
settled in, another blew up with BP’s is going to take a significant time to more time, I’ll do more.”
Russian partners in TNK-BP. Sutherland resolve, and that will bring serious At 63, he’ll clearly have plenty of
again played a decisive role in resolving the economic damage. The implications for the choices. And some of his countrymen have
situation, and Tony Hayward referred to oil industry are self-evident, because there wondered aloud whether he might not
Sutherland as ‘the Irish tank at his back’. But is certain to be a period of weakness in oil choose to become a little less international
it left open the big question of whether a prices – but I don’t believe that’s going to be – to return instead to national politics in
combination of energy security issues and prolonged because even in a malign Dublin, where he remains an influential
rising nationalism make it difficult to scenario, the demand for oil will remain at figure. Does he secretly aspire to be
sustain the business model of an high levels relative to supply. In the Taoiseach or president, I wonder? Quite
international oil company like BP. meantime, we’ll have to balance the supply firmly, he says not – but adds that, despite
projects we go into – in BP’s plans, we living outside Ireland for the past 25 years
S
utherland dismisses that suggestion maintain enough flexibility to allow us to or so, “most people still think I’m there,”
with the cheerful – if slightly hold back when we need to.” and perhaps more significantly, “Ireland
intimidating – brusqueness he What worries him about the current will always be big enough for me.”
famously deploys from time to time. It is, crisis is a lack of access to capital for
A
he says, “palpable nonsense… The reality is businesses in the wake of the credit crunch. nd whatever he does next, you can
that we bring enormous benefits in terms At least the oil industry is relatively secure be sure it will be done with the
of our flexibility and skill-set, which in this respect, he says: “You have assets in muscularity of grip and intolerance
cannot be duplicated by national oil the ground that will be used in the future, of waffle that has carried him this far. Even
companies. We bring global reach. I believe and which clearly have a significant value. so, it requires quite some technique to
the model we have is extremely effective.” I can’t see that the raising of capital should manage such a diverse portfolio of
As for specific tensions in Russia, he is in any way be impaired, even by the severe commitments: how does he actually do it?
impeccably diplomatic: “We hope that’s lack of liquidity that prevails today.” “When it comes to technology, I’m
now behind us. It was an unfortunate time, So what is Peter Sutherland going to do appalling. I don’t have a BlackBerry. I just
but not unique in joint ventures of this after he steps down from the BP chair? “I carry an antique mobile. But one skill I
kind. The interdependence of the market have a continuing connection with think I have is that I’m a good delegator. I
economy means everybody has to play by a Goldman Sachs, which I enjoy, and other surround myself with good people, I’ve
rule-based system, which provides avenues of activity that interest me: I’m done that all my life.”
reasonable assurance with regard to chairman of the London School of It takes more than a good support
investment. That rule-based system is in Economics, where there’s plenty to do. I system to be as effective as Peter
everyone’s interest.” plan to continue to be involved in Sutherland, however. The real secret, he
But if TNK-BP was the headline problem international affairs: a great passion of my finally reveals, lies in something his father
for 2008, this year’s is something much life is European integration, and I intend to taught him: “If the ball is at your foot, he
bigger and less susceptible to negotiation: pursue that vigorously. I’m the special told me, kick it. Most of my life has been
an unprecedented global economic representative of the United Nations (UN) spent finding balls at my feet. And I’ve
downturn. “We’re moving through a crisis secretary general on migration and never been reluctant to give them a kick.” ■
BP Faces
Photography> Marc Morrison
ALL FIRED UP
Greg Machado / Mechanical technician
“I do feel responsible for the lives of my peers out in the deep waters of the Gulf of Mexico,” says Greg Machado, mechanical
technician and member of the fire and rescue teams on BP’s Na Kika platform. At 97 kilometres (60 miles) offshore, in water
depths of more than 1,770 metres (5,800 feet), the Na Kika platform is a floating town with a group of highly trained fire and
rescue teams like any city. “Being part of the fire and rescue teams is voluntary, but I like the training and being prepared for
anything out here.” Out at sea, with hydrocarbons all around, means that quick and effective action is needed should
anything happen. “We train with different scenarios that simulate every possible event. This training is challenging and
valuable, and it’s as useful at home as on the platform.” One never knows when Greg may come in handy. ■

Viewpoint> Evolution of a brand
1921-1922 BRAND 1922-1930 1930-47

AND
DELIVER
A company’s brand
is its shop window
and usually the
thing people
remember most
about a business.
Like other
longstanding
brands, BP has
developed a
distinctive look
and feel over the
past century. But a
great brand evolves
with time and in
2000, after 70 years,
the famous shield
was retired. In its
place, a new
‘sunburst’ logo was
launched to reflect
all forms of energy.
Its multiple petals
showed that many
companies had
merged to work
together as BP.
1921
BP Magazine 1922 1930
US President Warren Harding reflects on the Mr AR Saunders from the The Mickey Mouse comic
signs a joint Congressional seven eras of BP purchasing department strip makes its first
resolution declaring an end to created the first BP mark, appearance; Clyde
America’s state of war with
branding, and after winning an employee Tombaugh discovers
Germany, Austria and remembers some of competition in 1920; the Pluto; Elm Farm Ollie
Hungary; Albert Einstein is the events taking British Broadcasting becomes the first cow to
awarded the Nobel Prize in Corporation is launched; in fly in an airplane; the
physics for his work with the place around the Egypt, British archaeologist Chittagong Rebellion
photoelectric effect; the world as each Howard Carter finds the begins in India; Ellen
Communist Party of China is change occurred. entrance to the pharaoh Church becomes the first
officially founded; just 13 Tutankhamun’s tomb in the airline stewardess;
spectators attend a football Valley of the Kings; the sponsored by Anglo-
match between Leicester City Barbary lion, Amur tiger and Persian, Amy Johnson
and Stockport County, the Californian grizzly bear all becomes the first woman
lowest attendance in the become extinct. to fly solo from England
Football League’s history. to Australia.

1947-1958 1958-1989 1989-2000 2000-
1947 1958 1989 2000

Percival Prattis becomes Sputnik 1 falls to Earth from The Forties field enters the Y2K passes without serious
the first African-American its orbit; the US Army inducts Guinness Book of World computer failures; the final
news correspondent Elvis Presley, transforming the Records as the first oil field in original Peanuts comic strip is
allowed in the US House ‘King’ into US private western Europe to produce published, following the
of Representatives and #53310761; Nikita 2 billion barrels of oil; the death of its creator, Charles
Senate press gallery; the Khrushchev becomes premier Berlin Wall comes down; the Schulz; Vladimir Putin is
International Monetary of the Soviet Union; US first of 24 Global Positioning elected president of Russia; the
Fund begins operating; Congress formally creates the System satellites is placed into billionth living person in
Miracle on 34th Street is National Aeronautics and orbit; 12 European India is born; the first resident
released in cinemas; Space Administration Community nations agree to crew enters the International
Princess Elizabeth marries (NASA); for the first time, ban the production of all Space Station; Republican
Philip Mountbatten, Duke total passengers carried by air chlorofluorocarbons (CFCs) by governor of Texas, George
of Edinburgh; India gains exceeds total passengers the end of the century; the first Bush, defeats Democratic vice
independence from the carried by sea in transatlantic full-length episode of The president Al Gore in the
British Empire. service; instant noodles go Simpsons, premieres in the US. closest US election in history;
on sale. BP launches a new brand.

Factfile
Top 5 producers
The discovery of oil in Persia changed the Middle Eastern
landscape, but in 1909 other – sometimes surprising –
parts of the world were the key players in the industry.
Corbis
1
United States Imperial
3
Dutch East Burma
5
Romania
Russia Indies
On 28th August 1859, At the beginning of the Aeilko Jans Zijklert, a The modern oil industry Like many parts of the
George Bissell and Edwin 20th century, Baku – the tobacco planter, moved in Burma was largely oil-producing world,
L Drake made the first capital of Azerbaijan – to Sumatra’s east coast in developed by the Romania’s connections
successful use of a was producing more 1880. During his travels Burmah Oil Company, stretch back centuries.
drilling rig in the US to than half the world’s oil around the island, he founded in 1886 by the However, the first well
produce oil at a site on supply from onshore came across traces of oil, Scottish-born merchant, was drilled in 1861 to a
Oil Creek in fields first developed by and by 1885, had drilled David Cargill. The depth of 150 metres
Pennsylvania. In 1901, oil the Swedish Nobel his first successful well. company introduced (500 feet), using wooden
was struck at Spindletop brothers. Meanwhile, in By the turn of the new technology to the rods and auger-type bits.
(above), in south Galicia, Ignacy century, oil had been Burmese operations, Ploiesti, in south-central
Beaumont, Texas, tripling Łukasiewicz founded the discovered in north and including mechanical Romania, is the chief
US oil production first oil well in 1854 and, south Sumatra, central drilling. In 1909, its oil centre of the industry,
overnight and kick- during the second half of and eastern Java and east fields and refinery were and in the 19th century,
starting the modern the 19th and early 20th Kalimantan, much of connected by a 440 was the largest oil-
Texan industry. By 1909, centuries, Galicia was which became a kilometre- (275 mile-) producing centre of
the main producing consistently among the valuable resource for pipeline. southeast Europe.
area was Oklahoma, world’s top 10 producers. industrialising Europe.
followed by Texas.

BP Faces
THE NEXT GENERATION

Anna Horstkoetter / project engineer
Project engineer Anna Horstkoetter, who joined BP two years ago, is among
a new generation of professionals who are preparing the company for a
long-term future in Alaska. Anna’s father, John Horstkoetter, joined BP in
1979, and was involved in the design and construction of the field facilities
in North America’s largest oilfield – Prudhoe Bay. Today, decades later,
Anna is part of the Alaska North Slope renewal programme team that will
“With the company’s plans to upgrade and modernise that infrastructure. “With the company’s plans to
develop light and heavy oil and commercialise the Slope’s natural gas, I
develop light and heavy oil and can clearly see a promising 50-year future. These are very exciting times,”
commercialise the Slope’s she says. A graduate of Stanford University, Anna holds a Master of Science
degree in construction engineering and management. She is based at the
natural gas, I can clearly see a company’s Anchorage headquarters. ■
promising 50-year future.”
Photography> Marc Morrison BP MAGAZINE Issue 2 2009 99

Parting shots
“People who work for BP care deeply

about the company; they have green
and yellow blood in their veins and I
think that’s because this is a company
that tries to do the right thing.”
Tony Hayward

contributors>
NINA MORGAN FRANK BAKER NEV PIERCE

worked as an is a lifetime Alaskan is editor-at-large for
exploration geologist who retired from BP in Empire, the world’s
for seven years before 2007 with 29 years of biggest movie
turning to freelance service. He is currently magazine. He has
science writing. She a contract writer for interviewed everyone
now specialises in the company. from Christian Bale to
writing about all Brad Pitt. His favourite
branches of science film is Fight Club,
and technology. when it’s not It’s A
Wonderful Life.
HELEN CAMPBELL MARTIN IAN VALENTINE

never gave the oil VANDER WEYER is a freelance
industry a thought as is the business editor journalist, with a
a ‘green-leaning’ and columnist of The background in country
languages graduate, Spectator, as well as and environmental
until a two-year stint editor of its monthly issues, who lives in the
reporting on European sister magazine, Cotswolds. He has
oil markets required Spectator Business. written for BP titles for
her language skills. He is also a regular the past eight years.
She’s been hooked contributor to the
ever since. Daily Telegraph.
TIM WICKHAM ALEXANDER G. KEMP HESTER THOMAS

is a business journalist is professor of writes for and about
with more than 15 petroleum economics FTSE companies. She’s
years’ experience at the University of particularly interested
writing about the Aberdeen, and has in the energy industry,
serious and humorous been appointed by the marketing, corporate
sides of corporate life. British prime minister social responsibility
to write the official and profiling people.
history of North Sea
oil and gas.
With special thanks to Bethan Thomas at the BP Archive

and Vartan Amadouny of the BP History team.
The next edition of BP Magazine will be out in July 2009.
BP Magazine was printed using vegetable based printing

50%
inks and low alcohol damping on press. The paper was

manufactured using 50% de-inked post consumer waste
fibre and 50% virgin fibre pulp sourced from well managed
forests at a mill accredited for EMAS, ISO14001 and FSC.
BP p.l.c
Chertsey Road
Sunbury-on-Thames
Middlesex
TW16 7LN
United Kingdom
web: www.bp.com/bpmagazine

BP Magazine Issue 2 2009 Centenary PDF

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

BP Magazine Issue 2 2009 Centenary PDF

Diunggah oleh

Hak Cipta:

Format Tersedia

+ 18 FAMILY AFFAIR

THE INTERNATIONAL MAGAZINE OF THE BP GROUP ISSUE 2 2009

anniversaries can offer a chance to Cover story

The number of staff Belgium

evacuated from BP’s Northern Ireland

the Second World War (Iran)

The year Mrs P Harris

04 Issue 2 2009 BP MAGAZINE

passenger plane, the Airbus A380, was

Northern Ireland US the New York section of

product. chemistry as an academic Amundsen reached the South Pole. Three

BP MAGAZINE Issue 2 2009 05

6 Issue 2 2009 BP MAGAZINE

Leadership skills: since

BP MAGAZINE Issue 2 2009 7

8 Issue 2 2009 BP MAGAZINE

BP MAGAZINE Issue 2 2009 11

First strike: engineer George Reynolds

It is sometimes difficult to prise apart

BP MAGAZINE Issue 2 2009 13

homesickness with his assuredness and determination to strike oil.

New development: local

BP MAGAZINE Issue 2 2009 15

18 Issue 2 2009 BP MAGAZINE

BP MAGAZINE Issue 2 2009 19

Young love: Steve Warzyniak

Highlights from history

Trawl through the archives of

SIR PETER WALTERS

Interview: Nick Reed

Illustration> James Carey

British flagship: launched in

24 Issue 3 2008 BP MAGAZINE

BP’s shipping business is almost as old as

L ooking back across the

Did you know?

28 Issue 2 2009 BP MAGAZINE

BP MAGAZINE Issue 2 2009 29

30 Issue 2 2009 BP MAGAZINE

SIR ROBERT HORTON

Illustration> James Carey

32 Issue 2 2009 BP MAGAZINE

1980s/90s > On the move Hollywood glamour: by the

34 Issue 2 2009 BP MAGAZINE

New look: a new brand required new advertising (above)

BP MAGAZINE Issue 2 2009 35

United Kingdom Persia Indonesia Azerbaijan

REPORT: LISA DAVISON / PHOTOGRAPHY: BP ARCHIVE / BP IMAGESHOP

36 Issue 2 2009 BP MAGAZINE

BP MAGAZINE Issue 2 2009 37

38 Issue 2 2009 BP MAGAZINE

BP’s relationship with Alaska stretches

Barren landscape: geologists probe the

BP MAGAZINE Issue 2 2009 39

Alaskan explorer: geologist

km 250 500 PACIFIC

“Fog and other bad weather

Did you know?

42 Issue 2 2009 BP MAGAZINE

“All the controls, feeder pipelines and related

BP veteran: Lowry Brott was on

BP MAGAZINE Issue 2 2009 43

44 Issue 2 2009 BP MAGAZINE