Accounting. Anglo Persian Oil Company
June 11, 2013
ACC 557
Dr. Malone
Assignment #3
BP began as the Anglo Persian Oil Company in the early 1900’s. The company was founded and financed by Mr. D’Arcy of London and the Burmah Oil Company. The oil excavation in Persia took many tumultuous years, with set back after set back that almost led Mr. D’Arcy to financial ruin “But vindication was in the air. By the early morning of 26 May 1908, the whole camp reeked of sulphur. At four o’clock the drill reached 1,180 feet and a fountain of oil spewed out into the dawn sky” (Our History: BP, 2013, pg.1). In the beginning the Anglo Persian Oil Company was limited in their abilities to provide services for oil. The oil market was already dominated by another company and cars were owed by few. Because the snitch from the gas was so potent the company was unable to make money by selling it to heat homes during the cold winter months “Besides that, refining couldn’t remove the Persian oil’s strong, sulphurous stench. It couldn’t be sold as kerosene for home heating, one of the main consumer uses for oil at the time” (Our History: BP, 2013, pg.2). At this point Mr. D’Arcy found himself facing yet another financial crisis, but he received help from an unlikely ally that would change the future of the Anglo Persian Oil Company forever. Winston Churchill convinced the British Parliament that it would be in the best interest of Great Britain to invest in the Anglo Persian Oil Company and the Parliament agreed “The resolution passed resoundingly, and the UK government became a major shareholder in the company. Churchill had ended Anglo-Persian’s cash crisis, and no one had long to quietly ponder the long-term implications of a company entwining its financial interests with a political entity” (Our History: BP, 2013, pg.2). After the Anglo Persian Oil Company regained its financial momentum it acquired British Petroleum in 1917. This merger allowed to company to finally achieve its endeavor, which was to provide oil
ACC 557
Dr. Malone
Assignment #3
BP began as the Anglo Persian Oil Company in the early 1900’s. The company was founded and financed by Mr. D’Arcy of London and the Burmah Oil Company. The oil excavation in Persia took many tumultuous years, with set back after set back that almost led Mr. D’Arcy to financial ruin “But vindication was in the air. By the early morning of 26 May 1908, the whole camp reeked of sulphur. At four o’clock the drill reached 1,180 feet and a fountain of oil spewed out into the dawn sky” (Our History: BP, 2013, pg.1). In the beginning the Anglo Persian Oil Company was limited in their abilities to provide services for oil. The oil market was already dominated by another company and cars were owed by few. Because the snitch from the gas was so potent the company was unable to make money by selling it to heat homes during the cold winter months “Besides that, refining couldn’t remove the Persian oil’s strong, sulphurous stench. It couldn’t be sold as kerosene for home heating, one of the main consumer uses for oil at the time” (Our History: BP, 2013, pg.2). At this point Mr. D’Arcy found himself facing yet another financial crisis, but he received help from an unlikely ally that would change the future of the Anglo Persian Oil Company forever. Winston Churchill convinced the British Parliament that it would be in the best interest of Great Britain to invest in the Anglo Persian Oil Company and the Parliament agreed “The resolution passed resoundingly, and the UK government became a major shareholder in the company. Churchill had ended Anglo-Persian’s cash crisis, and no one had long to quietly ponder the long-term implications of a company entwining its financial interests with a political entity” (Our History: BP, 2013, pg.2). After the Anglo Persian Oil Company regained its financial momentum it acquired British Petroleum in 1917. This merger allowed to company to finally achieve its endeavor, which was to provide oil
References: About Us: ExxonMobile. (2013). Retrieved from ExxonMobile Web site: http://www.exxonmobil.com/Corporate/history/about_who_history_alt.aspx Mergers: Commission clears acquisition of TNK-BP by Rosneft. (2013, March 8). Retrieved from Europa Web site: http://europa.eu/rapid/press-release_IP-13-214_en.htm Our History: BP. (2013). Retrieved from BP Web site: http://www.bp.com/en/global/corporate/about- bp/our-history/history-of-bp/first-oil.html Press, A. (2013, June 1). $14 billion dollars later, BP 's oil spill is cleaned from 3 of 4 affected states . Retrieved from The Christian Science Monitor Web site: Reuters, T. (2013, April 17). Fire at Exxon refinery in Texas injures 12 workers. Retrieved from The Global and Mail Web site: http://www.theglobeandmail.com/report-on-business/industry-