The History of BP Oil
Since the 1908 discovery of oil in present-day Iran, British Petroleum has been a leading player in the global energy market. The London-based multinational is the world's third-largest energy company, behind Exxon Mobil and Royal Dutch Shell. Officially incorporated in 1909 as the Anglo-Persian Oil Company, BP turned 100 years old in 2009.
History
After years of exploration, adventurer William Knox D'Arcy discovered oil in Persia (now Iran) in 1908. This was the first oil discovery in the Middle East. In April 1909, the Anglo-Persian Oil Company was incorporated. This company was the predecessor of BP.
Controversy
In 1935, after Persia became Iran, the company renamed itself Anglo-Iranian Oil. After World War II, the company became the focus of discontent among Iranians, who charged that the dividends they received from oil production were too small. In 1951, under the leadership of Mohammed Mossadeq, Iran nationalized its oil industry. This led to a 1953 coup that resulted in Mossadeq's overthrow. The British government and the U.S. Central Intelligence Agency were implicated in the coup, which some critics charged was undertaken in part to protect Anglo-Iranian Oil's profits in the region. By 1954, Anglo-Iranian Oil was renamed British Petroleum and resumed oil production in Iran. BP continued its Iranian operations until 1979, when the regime of Ayatollah Ruhollah Khomeini confiscated the company's assets in Iran.
Diversification and Expansion
The situation in Iran demonstrated to BP leaders the hazards of depending on one country for its oil. During the early 1950s, BP expanded into other parts of the Middle East, as well as Canada, Africa, and Europe. BP became a key player in Alaska after the discovery of oil at Prudhoe Bay. It further expanded its activities in the United States when it acquired marketing and refining capacity from Atlantic Richfield (Arco).
Privatization
For years, the British government had owned a stake in BP. This changed in the 1980s under the privatization policy of then-Prime Minister Margaret Thatcher. By 1987, the British government had sold its holdings in BP.
Mergers
Under the leadership of Lord Browne as its chief executive, BP became larger, thanks in part to a series of major acquisitions. In 1998, BP merged with Amoco, creating a new company, BPAmoco. 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.
Troubles
BP's growth over the years has not been without its 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.
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