Essay Writing and Essay Style

<h1>Essay Writing and Essay Style</h1><p>What is an exposition style composing? This is an inquiry I get regularly from my associates just as from the understudies I guide. The greater part of them are absolutely ignorant regarding the essential contrasts among this and ordinary exposition writing.</p><p></p><p>Style-First off, style in article composing is assuredly not quite the same as different sorts of composing. One can't give instances of style composing from the works of others. To think of a general portrayal, style recorded as a hard copy, regardless of whether formal or casual, is a norm. That is, the style has a built up method for composing and word decision that is viewed as right and right by most of readers.</p><p></p><p>Writing-This is the meaning of style that causes you to recognize easygoing composition and expert composition. Generally, the last has the sponsorship of some position and one knows it and furthermore knows why and how they ought to compose. Style, then again, is in no way, shape or form subject to the power, since every author is a star and can do as he pleases.</p><p></p><p>Fact-The reality, or the primary topic of the exposition, relies upon the particular reason. Regardless of whether the reason for existing is for joy or for establishing a decent connection with the peruser, the reality must be of some significance so as to enable the author to accomplish the objective.</p><p></p><p>Essay-Essays are short articles. They must be succinct, simple to peruse and composed. The writer should place into the exposition all the data that is expected to recount to the story. Every single snippet of data must be recorded thoroughly.</p><p></p><p>Style is a word that recognizes the different sorts of expositions. Nobody who knows anything about it is sufficiently silly to believe that style doesn't assume a job in articles. Despite what might be expected, the style is without a doubt significant so as to make article composing intriguing and appealing. The nearness of style in article composing is an extraordinary advantage.</p><p></p><p>Style has a great deal of effect by they way one composes an exposition. Since one feels increasingly loose, agreeable and guaranteed to have the option to place his contemplations in a composed structure, style proves to be useful. What's more, in papers, style makes it conceivable to introduce your thoughts in a straightforward and engaging way. Style is the thing that causes us to go past our standard experience and investigate new and amazing things in our lives.</p>

The Advantages of Literary Journalism Essay Topics

<h1> The Advantages of Literary Journalism Essay Topics</h1> <p>Keep rehearsing, you will arrive. There's a colossal weight on understudies, and they should complete their news coverage exposition in time. The paper on news-casting requests inside and out comprehension of the ideas, and what's more, it needs a great deal of time and commitment. After you find a grant you have to discover increasingly about, address your consultant with the goal that they can help answer your inquiries in regards to the application approach. </p> <p>Literary writings can be deciphered from multiple points of view. Scholarly news coverage is a sort of true to life that consolidates authentic detailing with some of the account techniques and expressive systems customarily associated with fiction. News coverage morals is an indispensable part in guaranteeing that the data distributed is sensible to all (Stovall, 2005). For example, one grant might be for business majors, however you're studying training. </p> <p>While the case writers are correspondence experts, the converse doesn't remain constant. The colossal inquiry that is typically posed in the news coverage circles is whether columnists are allowed to deceive can uncover the authentic conduct of others. Our specialists are absolutely furnished with an entire openness to libraries and universally eminent distributions. Inside this paper, an endeavor will be made to exhibit the contrasts among writing and reporting. </p> <p>You will be going outside your own encounters to find and compose your accounts. Along these lines, it's a noteworthy establishment for grouped epic stories! Make sense of which of the subjects, you at present have a genuinely decent foundation on which will make it workable for you to have a relative edge. For a few, it may be the absolute first time they've been away from family for a drawn-out period. </p> <h2>Why Almost Everything You've Learned About Literary Journalism Essay Top ics Is Wrong </h2> <p>Morality Essay Topics Morality is a theme that is precious to a lot of people. Any citations or copyrighted material utilized in the paper must be perceived appropriately. While choosing a theme for an essential exposition verify you take a subject you're ready to oversee. Truth is a condition of news coverage and the report must be important. </p> <p>Journalism articles ought to have infectious inscriptions and must be fascinating notwithstanding educational. Kawamoto states that Digital Journalism is an intense plan to characterize exactly as it can mean different things to different people. Reporting must be valid yet authors of fiction are allowed to lie. It must be valid while journalists of writing are permitted to lie. </p> <p>Literature paper points empower you to limit back on a particular thought or detail, it's critical to pick the article themes you're keen on. Articles must be written in English. Composing an incredible convincing exposition isn't a simple activity, nonetheless, it's feasible. Regardless of whether you are keen on an article about news coverage or a natural issues paper, you'll get it at the absolute best cost. </p> <h2>Literary Journalism Essay Topics - What Is It? </h2> <p>By taking as much time as necessary to perform arbitrary on-line inquire about, you will experience heaps of assets web based contribution you the absolute best hacks and exhortation to build up the best papers or reaction to writing article model. You will find that some of the subjects can be adjusted to suit practically any kind of composing task. Settling on the most appropriate subject that will draw the enthusiasm of a wide assortment of perusers is critical. Endeavor to for estall referencing superfluous for the subject info.</p> <p>Writing quality papers is the chief utilization of our administrations. Ensure that you don't succumb to various administrations where they use absolutely a similar report for various understudies. Moreover, we also offer you some additional advantages at whatever point an understudy recruits us for our paper composing administrations. A few understudies use the absolute first thought that shows up in their mind and work on it, yet the result isn't beneficial. </p>

The Point of a College Essay

The Point of a College EssayThe point of a college essay is to engage in a creative process. By engaging in the process of creating an essay, one is able to make their voice heard.Even if you do not have much writing experience, it is not too late to get started. By the time you have finished your high school graduation requirements, you will probably be feeling the need to take up the writing craft.When starting an essay, the point is to begin by writing an outline of what the essay is going to cover. This should give you a good idea of how to approach the rest of the writing.Once you have an outline of what you are writing about, it is time to write your thesis statement. Thesis statements usually center on an academic or scientific topic and are an important component to the overall structure of the essay.After the thesis statement is written, you will have to decide what subject matter to address. The subject of the essay will play a major role in how it will be written.When it c omes to writing an essay, the format can really be used as a tool to tell the story you want to tell. There are plenty of examples to be found online that will help you in creating your own unique format.A great way to begin writing a college paper is to write out your thoughts before you have any ideas about what you are going to write. Writing them down before you even start thinking about your essay is a great way to help with brainstorming.After writing out a few ideas and brainstorming a bit, you will be ready to begin writing a college essay. The point of a college essay is to stimulate your mind, and by writing it you are stimulating your mind in a positive way.

British Petroleum Description Of The Company Essay Example Pdf - Free Essay Example

British Petroleum is one of the five major energy companies in the world engaged in the business of oil and natural gas exploration and marketing as well as development of renewable energy devices across 80 countries of the world. The company with around 80300 staff members on its payroll in 2009 made an annual turn of US $ 239 Billion that made the BP the fourth largest global production house (BP, 2010, pp. 46-49). The company also has a large market share in store and sale of petrochemicals. British Petroleum has four major operations in energy business, namely; (a) exploration; (b) refining, production and marketing; (c)Petrochemicals and (d) Power, Gas and Renewable (Article 13, 2004). British Petroleum that started its operation as a joint venture called Anglo Persian Oil Company (APOC) in 1909 made a remarkable journey from a modest start in oil exploration to become one of the largest players in the energy sector currently engaged in business of (a) Crude Petroleum Natural Gas; (b) Natural Gas Liquids; (c ) Petroleum Refining; (d) Lubricating Oils Greases; (e) Natural Gas Transmission; (f) Crude Petroleum Pipelines; (g) Refined Petroleum Pipelines; (h) Petroleum Bulk Stations Terminals; (.i) Chemicals Allied Products, and (j) Offices of Holding Companies and so on (Anonymous). After its privatisation in several tranches in the 1980s (Poole, 2008), it has eventually become the large st private corporation in the United Kingdom as per the Forbes list for the year 2000 (Times, 2009). In its attempt to portray its image as a responsible and sustainable business enterprise in the energy sector, the company also ventured into solar energy and other forms of non conventional energy sources that brought it a fame termed in many circles as Beyond Petroleum although such claims of being responsible has been under threat due to some accidents that occurred in recent times that brought the company under heavy criticism (Hayes, 2010]. However, our present purpose here is not to get into these details but to get into an analysis of company finance after presenting a brief overview of the company, its profile and its role in the sector. The physical and financial performance of the British Petroleum is provided in Table-1 and Table-2. The information in the table is reproduced in Chart-3 and Chart-4 in the form of indexes taking year 2005 as the base. Chart-1 Source: h ttps://www.wikinvest.com/stock/BP_%28BP%29/Data/Market_Capitalization Chart-2 Source: https://www.wikinvest.com/stock/BP_%28BP%29/Data/Market_Capitalization As can be seen from Chart-1 and Chart-2, both in terms of Market Capitalization by its own as well as in comparison with other players in the sector, the BP has shown weaknesses in the recent years in comparison to its earlier performance. This can largely be contributed to the recent oil spill incident highlighted in the media caused by the negligence of BP in ensuring adequate safety measures in its operations. Table-1 Performance in Physical Output of British Petroleum Year 2005 2006 2007 2008 2009 Crude Oil Production for Subsidiaries (000 barrels per day) 1423 1351 1304 1263 1400 Crude Oil Production for Equity Accounted Entities (000 barrels per day) 1139 1124 1110 1138 1135 Natural Gas Production for Subsidiaries (Million Cubic Feet per day) 7512 7412 7222 7277 7450 Natural gas production for Equity Accounted Entities (Million Cubic Feet per day) 912 1005 921 1057 1035 Source: BP, 2010, 13 Table-2 Financial Performance of British Petroleum over Recent Years Year 2005 2006 2007 2008 2009 Sales and other operating revenues from continuing operations* 239792 265906 284365 361143 239272 Profit before interest and taxation from continuing operations* 32182 35658 32352 35239 26426 Profit from continuing operations* 22133 22626 21169 21666 16759 Profit for the year 22317 22601 21169 21666 16759 Profit for the year attributable to BP shareholders 22026 22315 20845 21157 16579 Capital expenditure and acquisitions# 14149 17231 20641 30700 20309 Source: BP, 2010, 12 As can be seen from Table-1 and Table-2, although the output level of BP has not undergone significant changes except for some marginal decline in the most recent years, in most of its financial indicators, it has shown significant decline between 2008 and 2009. In terms of profit, it is has performed miserably even compared to its 2005 levels as can be clearly noticed from the index lines presented in Chart-4 Chart-3 Source: Drawn on the basis of information in Table-1 Chart-4 Source: Drawn on the basis of information in Table-2 With this broad overview, let us now focus on the financial structure of the BP Plc. Financing Structure of British Petroleum: A Comparative Perspective As we are aware, financial structure is a framework of various types of financing employed by a firm to organise resources required for its operations. Usually, it consists of equity capital, loan capital, over draft and some short term liabilities. Table-3 provides the major financial trends for the British petroleum in the last five years. As can be seen from the table-3, the debt to equity ratio for the British Petroleum has gone up from 24 percent to 34 percent between 2005 and 2009. The debt equity ratio is calculated to measure the companys financial leverage or risk. Although it is a problematic measure of leverage, it is one of the most used financial ratio to calculate the risk of business. An increase in the debt equity ratio holds that the risks associated with the financial aspects of British Petroleum have increased over last few years. Table-3 Major Financial Trends in British Petroleum 2005 2006 2007 2008 2009 Total Assets 206914 217601 236076 228238 235968 Net Assets 80450 85465 94652 92109 102113 Share Capital 5185 5385 5237 5176 5179 BP Shareholders Equity 79661 84624 93690 91303 101613 Finance Debt Due after more than one year 10230 11086 15651 17464 25518 Net debt 16,373 21,122 26,817 25,041 26,161 Equity 80,765 85,465 94,652 92,109 1,02,113 Select Financial Ratios Debt to debt-plus-equity ratio 19% 22% 24% 27% 25% Debt to equity ratio 24% 28% 32% 36% 34% Net debt to net debt-plus-equity ratio 17% 20% 22% 21% 20% Net debt to equity ratio 20% 25% 28% 27% 26% Source: BP 2010 -a, 27 It is very difficult to draw conclusions on the basis of financial information for a single company unless we compare it with others in the same industry. This is particularly so because, the level of risks that can be comfortably undertaken, the amount of profit that can be considered as adequate etc can be misleading as they are very specific to the industry under review. Therefore, in order to analyse the financial situation of the BP Plc, we have undertaken a comparison of it with the Exxon Mobil, another major in the sector that is also a world leader and even larger in terms of its coverage and business compared to the BP Plc. Table-4 provides a comparison between BP plc and Exxon Mobil on the basis of several select indicators over last five years. However, before we make such a comparison, it might be useful to take into account the concepts used in these comparisons. Return on equity is the ratio of the sum of net income from the total operatio ns of the last five years (2005-2009) and the sum of common equity over the last five years. The ratio exhibits the level of business strength a company commands in terms of its income or revenue. Return on assets is the ratio of the sum of income for last five years to the sum of total assets. This indicates the productivity of the assets held by the company. Return on invested capital is the ratio income and invested capital, which shows the productivity of the capital. Gross profit margin is the ratio of gross profit (income minus cost) to the total income over the last five years. The different between pre -tax and post tax profit margin indicate the comfort a company enjoys in terms of its consistency with the acceptable level of rules and regulations in the area it operates. SGA indicate the ratio of summation of selling, general and administrative expenses to overall revenue of the company. Total debt equity ratio takes into account both short term and long term debts in calc ulating debt equity ratio. Table-4 A Comparison Between Selected Financial five year averages of BP Plc and Exxon Mobil. BP Plc Exxon Mobil Return on Equity 22.8% 31.7% Return on Assets 9.2% 16.0% Return on Invested Capital 19.4% 29.9% Gross Profit Margin 20.0% 34.7% Pre-Tax Profit Margin 11.3% 17.9% Post-Tax Profit Margin 7.4% 10.2% Net Profit Margin (Total Operations) 7.4% 10.2% SGA as a % of Sales 5.2% 4.2% Debt/Equity Ratio 0.18 0.06 Total Debt/Equity Ratio 0.32 0.08 Source: For BP Plc, https://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=bp For Exxon Mobil, https://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=XOM As can be noticed from the comparison between Exxon and BP Plc, in most of the cases indicating the strength factors, Exxon has performed much better than the British petroleum. On the other hand, a lower SG A for Exxon ind icates that BP Plc spends a lot of money in advertising its brand and other non productive expenses compared to the total revenue of the company, This also indicate that on account of returns from advertising and other non-output related expenses, BP lags behind the Exxon. Finally, on account of risk factors associated, the figures for BP are alarmingly higher than the Exxon Mobil. While the average debt equity ratio indicating the leverage or risk of the company is around 18 percent for BP, it is only 6 percent for the Exxon Mobil. If one takes into account the short term debts also, the proportion of debt equity ratio almost doubles the longer term debt equity ratio to reach around 32 percent for BP plc compared to only 8 percent in terms of Exxon. From the analysis, it is clear that the financial structure is not appropriate in case of BP Plc when compared to other market players in the industry. The lower differences in the post tax and pre tax profit margin for British petroleu m might indicate that the company enjoys tax benefits as well as other privileges compared to others. A deeper analysis is required for the same. Chart -4 gives a visual comparison of the information provided in Table-4. Chart-5 Source: As per information in Table-4 Cost of Capital in British Petroleum For any production centre, cost of capital is a significant factor for consideration, as it measures to cost a company incurs towards its funds. As we are aware, funds of a company consists of both debt and equity and the cost of such funding would require a consideration of both the cost of debt as well as the cost of the equity or the required rate of return to ensure investment in a company. Cost of debt includes the risk free rate of bonds, credit risk rates and tax rate. On the other hand, the cost of equity is a function of dividend yields and the growth rate of dividends. In other words, the required return on any equity, as per the Capital Asset Price Modelling, is the risk free rate plus beta times expected market risk premium (Megginson, 336). Or E(RS ) = Rf + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²s (Rm -Rf) Where, E(RS) is the expected return, Rf is the expected risk free return in the market or the government bond yield rate, ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²s is the sensitivity to market risk for the security, and Rm is the historical return of the stock market. On the other hand the weighted average cost of capital is represented by the formula; WACC = {D/(D+E)}rd + {E/(D+E)}re, Where, D and E are the market value of the firms debt and equity, .rd and re are the rates of return expected by investors on debt and equity (Megginson, 343). In the Table -5 We have provided a WACC calculation for both BP Plc and Exxon Mobil. As the information shows, the value of WACC for BP Plc is at 9 percent compared to a lesser value of 7 percent for Exxon. This indicates that the capital risk level of British petroleum is higher compared to its competitor. Table-5 We ighted Average Cost of Capital for BP Plc and Exxon Mobil Indicators BP Plc Exxon Mobil Price of the Stock ($) 27 59 Beta Levered 0.72 0.42 Debt (Million $) 35127 14428 Shares (Million $) 3131 4698 Equity(Million $) 85719 279108 Capital (Million $) 120846 293536 Debt equity (%) 40.98 5.17 Debt Capital (%) 29.07 4.92 Tax (%) 31.9 43.4 WACC Calculation 9.00% 7.00% Cost of Debt 7.00% 7.00% Cost of Equity 10.00% 9.00% Risk Free Rate 4.40% 4.40% Sources: For BP Plc. https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1show=tb%2Cfb%2Crh%2Cch%2Cmb%2Csl%2CHYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch ,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1bookid=3616934HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1version=2HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1frame_style=border%3A9px%20solid%20%23666%3Bh eight%3A380px%3Bwidth%3A100%25HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-BP?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616934version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1edit=1 For Exxon Mobil: https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1show=tb%2Cf b%2Crh%2Cch%2Cmb%2Csl%2CHYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1bookid=3616948HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1version=2HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,f b,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1frame_style=border%3A9px%20solid%20%23666%3Bheight%3A380px%3Bwidth%3A100%25HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1HYPERLINK https://www.editgrid.com//publish/calc/user/wikiwealth/Stock-Research-Summary-XOM?savebar=0show=tb,fb,rh,ch,mb,sl,bookid=3616948version=2frame_style=border:9px solid #666;height:380px;width:100%edit=1edit=1 PART-II A Preliminary Report on the new Venture of the British Petroleum site in Cambodia Background: In last fifty years, there has been several efforts in vain for economic e xploration and production of petroleum products in Cambodia. The French tried it initially in late 1969 and stopped their efforts in 1975 after the fall of the Khmer Republic(Library of Congress, 2009). However, by 1998, three out of nine exploration wells drilled by UK, French Australian and Japanese companies bore successful results. The initiative by UKs Enterprise Oil at two test sites in Angkor -1 well and Khao Tang-1 well have capacity to produce 6 million cubic feet of gas and 1500 barrels of oil per day. While it is possible to make these efforts economically profitable through negotiations with the present government there which has a open attitude for international trade and FDI, the strategic and locational advantages of initiating a business venture in Cambodia are many. However, in this report, there has been an attempt to focus on the economic aspects of the effort only. It might also be useful to mention some other players interested in the offshore oil ventures in th e gulf of Thailand under the jurisdiction of Cambodia. They are Chevron Overseas Petroleum (Cambodia) Ltd, Moeco Cambodia Company (a subsidiary of Mitsui Oil Exploration Company Ltd.), Singapore Petroleum Company Ltd, PTTEP International Ltd, Resourceful Petroleum Ltd and Cooper Energy Ltd. (Janes 2009). Given the overall condition there, a new LPG production plant can be established by BP in Cambodia. Table-A World Natural Gas Reserves, Production and Consumption Proven Reserves As on January 2008 Production in (2007) Consumption (2007) (Tcm) share (%) (Bcm) share (%) (Bcm) share (%) North America 8 4.5 767.3 26.3 791.5 27.1 Latin America 7.4 4.1 147 5 128.7 4.4 Europe 6.2 3.5 288.8 9.9 544.4 18.6 Former Soviet Union 53.8 30.1 790.7 27.1 629.7 21.6 Africa 14.6 8.1 191.5 6.6 85.3 2.9 Middle East 73.9 41.3 353.9 12.1 298.3 10.2 Asia and Oceania 15.1 8.4 381.2 13.1 442.3 15.1 Total 178.9 100 2920.4 100 2920.4 100 Source: Kobayashi, (2010) As can be seen from Table-A, the consumption in the Asia Pacific region is much higher than the production level and this can form the basis of the rationale behind having a fully owned subsidiary in the region. On the other hand, the rise in the international price of natural gas in the form of liquefied petroleum gas (LPG) has increased from $ 194 per metric tonne in 2002 to around $ 802 in October 2008. This indicates that the business will have adequate potential for profit in the region (See Chart-A). Chart-A Trends in International Price of LPG ($/MT) Source: GOI (2008) Table-B provides a business plan for a small scale LPG production unit in Cambodia. As we can see from the Table, Table-B Plant Features Estimated Plant cost ($ Million) 25 Annual Gas Input (Quantity in Billion SCF) 20 A nnual Gas Input Cost ($ per SCF) 0.25 Annual Gas Input Total Cost ($ Million) 5 Products LPG (12.17%) Dry Gas (85.10%) Condensate (1.61%) Quantity 142930 17 million 300400 Unit tonnes 000 SCF bbls Product Unit Cost ($) 150 per tonne 0.5 20 Product Value ($ Million) 21.44 8.5 6.01 Plant Depreciation @ 10 % ($ Million) 2.5 Expected surplus over production material cost (Excluding labour and other costs) (in $ Million) 13.94 8.5 6.01 Based on the Calculations provided by TATA MESSIRI Chart-B Wholesale Price Index of LPG in the Region Note: In the absence of information on Cambodian data, Indian figures have been take as indicative figures: Source: GOI 2010 As can be seen from the Table, the rough calculations would indicate a huge return from operations in the locality. Given that the the country can provide cheap labour, the final costs would not be much higher. The plant construct ion and production would not take more than two years given its small size and by that time, while the output cost will increase significantly, wages being sticky, the input cost would not increase that much. So from this preliminary analysis, this can be considered as an economically viable project. What follows is a brief projections about the operation of the plant. In order to present the NPV, we need to calculate the free cash flow statement and the cost of capital. The cost of capital for BP is assumed to be at 9 percent. Table-C gives the calculations for NPV for the new project. As per the formula, NPV=ÃÆ'Ã… ½Ãƒâ€šÃ‚ £0t FCF t / (1+WACC) t FCF0 Where, Expected Quantity in MT =14293 WACC for BP assumed to be fixed at 9% =0.09 Table-C NPV Calculation for the New Project Price per MT Expected Revenue Unit Cost of production Total Cost of production FCF t (1+r)t FCFt/(1+r)t Nt 2008 851 Nil 2009 1030 Nil 2010 1246 0 700 10005100 -10005100 0 1.0 -10005100 -20010200 2011 1508 0 847 12107018 -12107018 1 1.1 -11107356 -21112456 2012 1824 26073206 1025 14648467 11424739 2 1.2 9615974 -389126 2013 2207 31550786 1240 17725885 13824901 3 1.3 10675360 670260 2014 2671 38179122 1501 21449821 16729301 4 1.4 11851459 1846359 2015 3232 46199970 1816 25956100 20243870 5 1.5 13157127 3152027 2016 3910 55905874 2197 31409077 24496796 6 1.7 14606639 4601539 2017 4731 67650839 2658 38007642 29643197 7 1.8 16215844 6210744 2018 5725 81863240 3216 45992463 35870777 8 2.0 18002333 7997233 2019 6927 99061448 3892 55654772 43406676 9 2.2 19985639 9980539 2020 8382 119872734 4709 67346984 52525750 1 0 2.4 22187445 12182345 NPV 5129264 Notes: Price per MT (extrapolated as per annual average growth rate in WPI of LPG at 21% as given in Chart A) Cost of production @ 700 per MT as per local Calculations available from Secondary sources as in 2010 and with a growth rate similar to the price of LPG FCF = Free Cash Flow Statement (=Net Revenue-Net Cost) t is the time period in years As can be seen from the table, the NPV calculated shows the viability of the project. Appendix (Charts) Chart 1 Market Capitalisation4 Chart 2 Market Capitalisation of BP and its competitors.4 Chart 3 Trend of output performance of BP6 Chart 4 Financial Report of BP in recent years.6 Chart 5 Comparison between BP and Exxon.9 Chart A Trends in International Price of LPG..13 Chart B Wholesale Price Index of LPG in the Region14 Appendix (Tables) Table-1 Performance in Physical Output of British Petroleum.5 Table-2 Financial Performance of British Petroleum over Recent Years.5 Table-3 Major Financial Trends in British Petroleum7 Table-4 A Comparison Between Selected Financial five year averages of BP Plc and Exxon Mobil..8 Table-5 Weighted Average Cost of Capital for BP Plc and Exxon Mobil.11 Table-A World Natural Gas Reserves, Production and Consumption..12-13 Table-B Plant Features.14 Table-C NPV Calculation for the New Project .15