British Petroleum (BP) is one of the world largest energy companies providing its customers

with fuel for transportation, energy for heat and light, retail services and petrochemicals products
for everyday items. BP Trinidad and Tobago (bpTT) is one of the leading oil and gas production
companies, through their heritage companies, Amoco Trinidad Oil Company and BP Amoco,
have been operating in Trinidad and Tobago since 1961, producing the first barrel of crude oil in
1972. They are now the country’s largest hydrocarbon producer, accounting for more than half of
Trinidad and Tobago’s national production of oil and gas. Globalization had contributed to this
development as it has opened the door to export-led industrialisation as it brought many benefits,
such as more open market in many new locations. This had lead to a fully integrated global
capital market of astonishing scope.

The issue of globalisation is inevitable in business globally, it have multiple effects both
positive and negative in business. The process of globalization has been intensified and will
continue to progress. Therefore there must be solutions made towards globalization so that it can
be use in a morally constructive way. According to the speaker Lord Browne in his speech dated
on 31st, October, 2001.He said that one cutting edge of globalisation is the need of value of
diversity and to understand the distinctive character of different communities in order to
appreciate their aspirations and to identify ways in which we can work together in a spirit of
genuine mutual advantage. This issue have not been meeting globally as Globalisation isn't
complete within the energy sector.

This is seen in the speech made by Lord Browne where global markets are still imperfect and
limited as seen in BP industry only 30% of the world’s oil and gas supplies are open to private
investment. This resulting to 70% of the resources is still under state control, an example of this
is where business illusion of national self-sufficiency still guides their policy. These are places
where some forms of energy such as coal and nuclear power are still subsidised imposing
unnecessary costs and in some cases physical risks. Another example would be markets closed or
distorted by corruption, or by the absence of the sort of clear and fair rules which allow
companies to invest with confidence. At Bp there is a direct interest in the process of
globalisation in the aim of continuing and extending to incorporate a larger proportion of the
world’s population. There is also a direct interest in the resolution of the challenges which
globalization is posing, this interest can’t be advance by Bp alone government intervention is
needed.
 It is perceived that one of the major effects of globalization is to threaten the notion of the
territorial nation state, in respect to the loss of autonomy. At Bp presently they are still learning
how to combine the central direction which is necessary for the development of strategy with the
autonomy which, individual business units spread across the world need if they are going to be
innovative and entrepreneurial. Also the loss of competence is another effect of globalization this
is the inability of the nation state to meet demand of their citizens without international
cooperation. This is as evidence of the declining competence of states which lead to a widening
and weakening of the individual state. The problems and the challenges of global integration
seem more important than the positive implications globalization may bring.

Globalization overall has been extremely positive to Bp company. But this globalization
comes with a price as it is still incomplete but still dramatic in the opening of some of the
world’s key market and the rapid development of global information systems. This process of
globalisation has a number of effects as it weakening the traditional national structures of policy
making and limiting the power of national government to control their own territory. Due to this
the obvious place to point the finger is to the global companies which are growing and producing
large profits.

According to the speaker, David Rice on the 7th, October, 1999. He said in his speech that the
co-chairman of Bp Mr Peter Sutherland noted in a speech how global corporation “increasingly
raise challenges to political governance structures”. This is one of the issues, most of the time the
relationships are very cooperative and productive but at particular moments and on particular
issues they raise significant challenges. This can be resulted insufficient governmental tax as it
has weakened the tax and regulatory policies of national authorities. The others are the growing
labour insecurity; this is where there is not enough sufficient human resource in the company, as
this becomes a justification for regressive policies. Also the internationalisation of crime, fraud
and terrorism, this has imposed new pressures on enforcement institutions such as the courts and
the police which in the first place do not have strong roots in much of the world. Of course the
issues of crime, fraud and terrorism are globalizing as well. When things go wrong in this more
free-wheeling environment, the impact can be severe. Nor is this fall-out limited to lower income
societies. Also an unpredictable change, in the world financial markets is another issue as this
would affect Bp efficiency.
 It can be see that the lack of knowledge and the ability to accept change by the governments
of the countries hinder the globalization of the Bp companies globally. This is so because of the
different views the Government have against global companies. As it is seen in the speech made
by Sir John Browne on the 29th March, 2001. Where he saw the role of Governments is broad,
they have to cover everything from defence and education to the quality of the sewage system.
There is a wide responsibility for the common good and they have to find a balance between
them all. As they are responsible to and for their citizens. Where as Companies are narrower.
They concentrate on a few specific activities in line with their skills. They are responsible
primarily for delivering performance for their shareholders but, of course, they can only do that
if they're aware of what their customers, and the communities they touch, expect in terms of
quality and service and behaviour. Companies depend on people choosing to do business with
them.

Bp have accepted the view of the government as this bring to the company attention that if
they are going to succeed they have to be capable of listening of understanding, what is
happening in society they choose to locate. As there principle is based on strong and enduring
relationships which are built on mutual long term advantages with enduring values. To reach this
point of mutual advantage in any relationship there should be understanding on both the role,
purpose and the limits of the government with whom they are dealing with. As their purpose and
mode of operation is very different from Bp. The issues which were discussed demonstrated the
dark side to globalization which hamper its development of Bp companies globally, as some
countries are ill prepared for change, and the sense of unfilled expectation driven by the fact that
globalisation is incomplete. As many areas of activity and many places and people are untouched
by this process and is denied the benefits which globalisation can bring.