From BP's headquarters, a lofty tower in the City of London, the word has gone out to the troops in the field that a period of calm lies ahead after the traumatic experiences and dramatic initiatives of the past three or so years. The world's third largest oil company by turnover, its seventh largest industrial concern and the largest crude oil producer in both the US and the UK, is pausing to draw breath and think about what has happened to it and what it should do next. It thus seems an apt time to evaluate BP's strategic moves so far and consider the direction in which the company may well be heading. Following a review of what has happened in the oil market and how BP has responded to the changing circumstances, this paper will examine strategic planning in BP and assess the company's current strategy. It will end with a discussion of the other oil majors' strategies and the latest strategic thrusts of the members of OPEC.