BP is not only venturing into new areas but it also expanding its current oil and gas facilities in order to expand its supply, increase its sales and ultimately increase its profits. BP has taken several initiatives and invested huge amounts of money for acquisition of new fields and expansion of its existing gas fields which will have a significant impact on BP’s bottom line profits. One such initiative is the expansion of Wamsutter Natural Gas Field in Wyoming, North America.
The Wamsutter gas field is one of the best gas fields of North America which has produced around 2 trillion cubic gas up till now. BP signed a project under which it aimed to invest around $2. 2 billion in this gas field so as to further expand it and seek greater profits from this field. Moreover, in order to further expand gas supply to it US customers the company is looking for permits so that it can construct a new LNG (liquefied natural gas) receiving terminals in Texas and New Jersey which can be connected to a pipeline project which aims to deliver the natural gas of Alaska to North American market.
Furthermore, in order to expand its production facility BP is also exploring new fields in the Deepwater Gulf of Mexico, where four new fields have started production in the last three years and two new fields are being developed. If British petroleum continues to expand its market by introducing new products and exploring and tapping new reserves then it can successfully face the fierce upcoming competition from other oil and gas firms.
Not only will it allow BP to withstand competition but such proactive measures, as described above, will allow British petroleum to further increase its market share and gain a competitive edge over its rivals and competitors. In short BP has responded well to the changes in its external environment by taking some proactive measures, instead of reactive ones, like planning to introduce bio fuels, exploration of new gas fields and having joint ventures with other firms in order to explore new avenues.