Is BP a Safe Investment?
T = Trends for a Stock’s Movement
BP is an integrated oil and gas company. The firm provides its customers with fuel for transportation, energy for heat and light, lubricants, and the petrochemicals products used to make items like paints, clothes, and packaging. It operates in two business segments: exploration and production, and refining and marketing. BP provides energy products to consumers and companies worldwide. Without the oil and gas products provided, many consumers and businesses would not be able to operate on a daily basis.
BP dropped plans to invest in a refinery in China and “dismantled” a team assigned to the project late last month, said the International Energy Agency. BP had considered investing in the 200,000 barrel-a-day Qinzhou plant operated by PetroChina, according to the IEA, an energy adviser to developed nations. The refinery in the southern province of Guangxi started operations in 2010 and is currently being upgraded to handle a wider range of feedstock, it said in its monthly Oil Market Report today.
David Nicholas, a BP spokesperson in London, declined to comment on the report today. Chinese and international oil companies are reconsidering their refinery-investment plans as the Asian nation’s oil consumption expanded at the slowest pace in six years in 2013, according to the IEA. About 4.3 million barrels a day of primary distillation capacity was scheduled for completion by 2018, “by far exceeding” demand projections, it said. “Growing concerns over the risks of oversupply in the Chinese fuels market have led at least four projects to be canceled in recent months,” according to the report.