British petroleum has also realized the fact that like other energy companies it needs to venture into new markets and increase its supply in order to compete successfully with other international and state owned oil and gas companies. British petroleum has taken the following steps in order to expand into new markets and increase its customer or consumer base. Bio fuels Bio fuels are the area worth discussing over here.
British petroleum has realized that Bio fuels are the ‘future’ and therefore coming up with products which take this fact into account is very important for BP’s survival in the competitive international market. According to an estimate bio fuels right now account for only 3 percent of international transportation fuel but they could reach up to 30 percent in 2030. There are several reasons which account for this new trend.
Firstly, Bio fuels provide energy security to countries which are net importers of oil and related products. Bio fuels do this by diversifying a country’s dependence on international supply of oil by allowing them to make use of their own agricultural products together with some imported oil in order to satisfy the local energy demand. Secondly, Bio fuels are environmentally friendly and
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Thirdly, many governments want to see their agricultural communities become more prosperous, particularly in the developing world, and the prospect of bio fuels offering access to new markets presents an opportunity to do this. In light of the above facts BP has decided to venture into the area of bio fuels as well. Although BP is in the initial stage of producing Bio fuels which can act as a fine substitute for conventional hydrocarbon transportation fuel but it seeks to expand its market in the near future through innovation and the use of new technology.
BP has taken several initiatives so as to introduce Bio fuels to its clientele which include developing a new world-scale bio ethanol plant in the UK, and establishing a joint project in order to produce sustainable bio diesel. Moreover, the BP has also set up a bio fuels demonstration project in India, and has formed an with the local farmers in order to increase the crop yield required for producing bio fuels.