Developments in the strategic planning of the major oil companies

Various developments in strategic planning made by major oil companies are highlighted. One of the most significant changes which has emerged since the 1970s is the requirement for the different parts of the major oil companies to trade with each other using spot market prices. The management structure has been simplified with clearer and more direct lines of accountability and remunerations are more closely linked to results. BP's and LTPP focuses on performance within the oil sector and observes at performance against demanding three-year shareholder return, profitability and growth targets. Some oil companies are planning to offer large consumers fixed price contracts and a variety of derivative deals.