Can Recent Headlines Help Boost BP’s Stock?
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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 has signed a deal with a group of oil companies to pump gas via a pipeline from a field in Azerbaijan to Italy, giving the European Union an alternative to Russia as a source of pipeline oil, Bloomberg reports. This comes after arguments about gas pricing between Russia and Ukraine made European leaders worry about disrupting shipments of oil, as several major pipelines run through those two countries. The Shah Deniz field in Azerbaijan will be expanded to increase production by 16 billion cubic meters a year, according to BP. The project involves drilling in the Caspian Sea and building pipelines through Turkey leading into Greece, Albania, and Italy. Oil from the Shah Deniz field will reduce the EU’s dependence on oil from Russian monopoly OAO Gazprom, which currently transports a quarter of the EU’s oil that comes via pipeline, according to Bloomberg.