How a near-bankrupt oil venture in the Persian desert became a global energy giant.
In short: Founded in 1909 to exploit a struggling Iranian concession, the Anglo-Persian Oil Company transformed from a desperate gamble into a cornerstone of British naval power. Its evolution through nationalization, mergers, and environmental disaster mirrors the volatile history of the modern energy industry, eventually shaping the company known today as BP.
The company originated from a 1901 concession granted to English investor William Knox D’Arcy, who sought oil across vast swaths of Persia. By 1908, after sinking over £500,000 into the venture without success, D’Arcy and his partners at the Burmah Oil Company ordered their geologist, George Bernard Reynolds, to cease operations. In a stroke of luck, Reynolds ignored the order and struck oil at Masjed Soleymān on May 26, 1908. The Anglo-Persian Oil Company was formally registered on April 14, 1909, to manage this discovery.
The company’s strategic importance surged in 1914 when the British government, led by First Lord of the Admiralty Winston Churchill, acquired a controlling interest. Churchill sought to modernize the Royal Navy by transitioning from coal to oil, which offered greater energy density and range. This move effectively made the British government a hidden power behind the company, securing a vital energy supply while reducing reliance on competitors like Standard Oil. By 1938, the refinery at Ābādān had become the largest in the world.
The company’s trajectory was marked by significant geopolitical friction, including the 1951–53 nationalization crisis under Prime Minister Mohammad Mosaddegh. Following its renaming to the British Petroleum Company in 1954, the firm expanded globally, eventually merging with Amoco in 1998 and acquiring ARCO in 2000. These acquisitions integrated parts of John D. Rockefeller’s former oil empire into the company’s structure. By the 21st century, the firm—now BP PLC—faced immense challenges, most notably the 2010 Deepwater Horizon disaster, which resulted in the largest marine oil spill in history and billions of dollars in legal settlements.
In recent years, the company has navigated the complex transition toward lower-carbon energy. While it initially promoted a "Beyond Petroleum" strategy, the company has periodically recalibrated its focus. By 2025, facing pressure from investors to improve profitability and following weaker returns from some renewable ventures, BP increased its planned investment in traditional oil and gas production, highlighting the ongoing tension between sustainability goals and the demands of the global energy market.
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Sources
- Summary by Intellect · source: BP PLC | History, Deepwater Horizon, & Operations | Britannica Money
- Also: Anglo-Persian Oil Company
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