BP was founded by William Knox D'Arcy, an Englishman who, shortly after the turn of the century, ventured to Persia (Iran) in search of oil. D'arcy's company was first registered in 1909 under the name Anglo-Persian Oil and for the next 60 years the company's focus lay in the Middle East. It later expanded into Canada, South America, Africa, Papua and Europe.
In the mid 1900’s its name changed to BP. Like most of the companies BP also had its ups and downs in the oil industry. In 1998, BP merged with Amoco, creating a new company, BP Amoco. This new name was short-lived, however, and the company was renamed BP in 2000. That year, BP acquired two other companies: Arco and Burmah Castrol.
BP's growth over the years has not been without problems. In 2005, an explosion at a BP refinery near Houston, Texas, killed 15 workers and injured dozens more. The facility was one of the largest refineries in the world. BP has since admitted that mismanagement on its part played a role in the disaster.In 2006, a pipeline leak, resulting from line corrosion, spilled thousands of gallons of oil in Alaska. As a result, BP replaced miles of pipeline and closed leaking wells in the Prudhoe Bay area.In 2010, BP had the biggest oil spill ever occurred in the world. The leak amounted to about 4.9 million barrels of oil spreading over 68,000 sq. miles. It happened in the Gulf of Mexico and caused extensive damage to marine, wildlife, and the fishing and tourism industry. A Final settlement was reached on the 14th of November 2012 with BP having to pay$4.5 billion in fines. This may be the largest penalty, under the Clean Water Act, which could amount to as much as $21 billion in fines. The company has new leadership and has undergone restructuring with a focus on recovery and safety.
Corporation: A company or group of people authorized to act as a single entity and recognized as such in law.
Nationalize: Transfer from private to state ownership or control.
Sector: An area or portion that is distinct from others.
Corrosion: The process of corroding metal, stone, or other materials.
Restructuring: Organize differently: "restructure the department"
Written by Kanwal S. Raza