...BP Oil Spill Public Relations Response Introduction BP Oil Spill which is also known as Gulf of Mexico and Deepwater Horizon oil spill is the largest marine oil spill throughout the history which was caused by an explosion on offshore oil platform namely Deepwater Horizon on 20th April, 2010 located at the Mississippi River delta. British Petroleum (BP) was the principal developer of Macondo Prospects oil field where the accident held. The accident occurred when they were closing the oil well for using it in future prospects. BP claimed that on July 15, 2010 they capped the well by stopping the flow of into the Gulf of Mexico in 86 days. Following the hazards of oil spill U.S. Government held British Petroleum responsible for the incident and told the company for all cleanup measure which result in oil spill. BP accepted the responsibility and cleanup costs. According to numerous reports, abnormal amounts of high-pressure methane gas accumulated inside the rig's marine risers, a complex system of tubing that runs between an underwater oil sources. The methane gas traveled through the risers and expanded rapidly, igniting the oil within. The exact cause of the explosion and fire are still under investigation, but according to interviews conducted during BP's internal investigation, several workers aboard the rig reported that a bubble of methane gas had in fact escaped from the well and shot up the drill column, expanding as it burst through several seals and barriers before...
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...analysis and strategic recommendations of BP After oil spill disaster in USA Table of content: Introduction 3 Executive Summary 3 Approaches 3 Background of BP 3 BP in USA 3 PESTEL analysis of BP in USA 4 Political Environment 4 Economic Environment 5 Socio-cultural Environment 6 Technological Environment 7 Legal Environment 7 Environmental Analysis 8 Summary 8 SWOT Analysis of BP 8 Strengths 9 Weaknesses 9 Opportunities 10 Threats 11 Summary 11 Strategic Recommendations 11 Porter’s Generic Competitive Strategy 11 Ansoff Model 12 Conclusion: 13 References & Bibliography: 15 Appendix: 17 Introduction: As the global business environment is turbulent and dynamic every business organisation should adopt their strategy with the changing business conditions and conduct external and internal analysis on regular basis to cope up with the changing environment. This paper will analyse the overall situation of BP in USA after the Gulf of Mexico oil disaster. The oil spill creates a new condition for their operation in USA and requires considerable and serious change in the strategic decision making and positioning of the company. Executive Summary: This paper will start with a brief background of BP. A PESTEL analysis will be carried...
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...BP Deep-water Horizon Oil Spill Public Relations BP Deep-water Horizon Oil Spill: Executive Summary The Deepwater Horizon oil spill or the BP oil spill was a disaster in the Gulf of Mexico that took place in the Macondo Prospect. Macondo Prospect was a BP operated project, and one of the oil spill disasters that has been considered to be one of the most destructive accidents on marine environment. In fact, it has been considered the most expensive and life threatening accident in the petroleum industry. The disaster was an explosion in a deep-sea oil drilling facility owned by BP Company, in which the resultant explosion caused the sinking of the Deepwater Horizon oilrig, killing 11 people in the incident. The disaster let free a gush of oil from under the seabed, flowing for an estimated three months. The result of the BP oil disaster was indeed catastrophic not just too marine life, but also to all other sectors of the economy that depended either directly or indirectly on marine environment (Alexander, 2010). In what remained to be a disaster, the wellhead had continued to gush oil for up to 87 days before a team finally succeeded in July 2010. By this time, it was estimated that the oil spill had discharged approximately 4.9 million barrels, a quantity estimated to be 780,000 cubic meters. By this time, marine life had been put in jeopardy while a lot others had died, or been seriously affected. Apart from marine and wildlife habitats...
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...Agency, 2012). The Gulf connects to the Atlantic Ocean through a current from the Yucatan Straight, circulating around the Gulf and exiting through the Florida Straight, forming the Gulf Stream (The Environmental Protection Agency, 2012). With over 600,000 square miles of area and 16,000 miles of shoreline, the Gulf of Mexico supports a host of economic activities. Tourism, shipping, agriculture, fishing, fisheries, oyster production, shrimp production, oil and gas production, and more from the Gulf produce annual economic activities in excess of $234 billion (Hargreaves, 2010). Oil and gas industry creates $124 billion annually, the largest chunk of Gulf economic activities (Hargreaves, 2010). This industry, while creating the largest economic impact in the area, is also responsible for creating its largest ecological disaster. On April 20, 2010, The BP and Transocean operated oilrig Deepwater Horizon had recently suspended drilling operations more that 50 miles southeast of Venice, Louisiana’s coast (Rigzone). BP had filed a permit to temporarily abandon the well and move the rig to a new location. At 10 p.m. an explosion ripped through the rig killing 11 workers (Rigzone). A bubble of methane gas escaped the well and traveled up the well bore, expanding as it climbed. The combustible bubble of gas burst through the barriers designed to contain it, bypassing the blowout preventer, and making it to the rig where the friction from the bubble could create a static charge...
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...A CRITICAL ANALYSIS OF THE BP OIL SPILL RESPONSE AND PREPAREDNESS PLAN FOR THE DEEP HORIZON – WHY DID IT FAIL? Toni Josina Elfrieda Beukes* May 2012† ABSTRACT: Based on events that unfolded in the U.S. in the weeks and subsequently months of the Macondo well blow-out, it is clear that neither industry nor government was equipped to deal with a spill the scale and complexity of the Deepwater Horizon disaster. As one of its key recommendations to President Obama for addressing the causes and consequences of the spill, the National Commission on the BP Deepwater Horizon Oil Spill in its final report, stated the need for “strengthening oil spill response, planning and capacity”. Industry best practice dictates that quickness and accuracy are key requirements for effective oil spill response and preparedness planning (OSRPP); yet it took nearly three months to seal the Macondo well. This paper is accordingly concerned with the reasons for the apparent failure of the BP oil spill response plan. This failure will be considered in light of current international environmental regulations on OSRPP and applicable United States legislation, whilst assessing the BP oil spill response plan’s compliance therewith. The study will also consider some theory in the development of OSRPP by looking specifically at risk assessment tools and applying key criteria to the BP oil spill response plan to determine its adequacy and appropriateness for its operations in the GOM. What...
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...BP & Deepwater Horizon C. Nelson BP & Deepwater Horizon Every business, in some way, is affected by public and private criticism. One industry that is never too far away from criticism is the oil and gas industry. Over the course of this essay, we will explore BP, its stakeholders, some of their criticisms, and BP’s response to those criticisms. BP, formerly British Petroleum, is the fourth largest oil and gas companies in the world in terms of revenue and sixth based on production. (Statista, 2015) (Forbes, 2015) Although BP doesn’t have an official mission statement, the company does have a few statements entitled “Our Values”, “Clear Priorities”, and “Our strategy and sustainability”. BP (2015) states, “We have five values that express our shared understanding of what we believe, how we aim to behave and what we aspire to be as an organization.” Those five values include safety, respect, excellence, courage, and one team. “Clear Priorities” (2015) details three main topics that top the company’s interests including: safe, reliable and compliant operations; disciplined financial choices; and competitive project execution. Thirdly, BP has a commitment to sustainability and states (2015), “We believe that the best way for BP to achieve sustainable success is by acting in the long-term interests of our shareholders, our partners and society.” The three pillars augment the lack of a mission statement and express BP’s commitments and responsibilities....
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...aspects of BP’s ethical culture could have contributed to the Gulf Coast oil spill disaster? BP’s ethical culture did contribute to the Gulf Coast oil spill disaster which occurred on April 20th, 2010 resulting from an explosion which killed eleven (11) employees. This disaster created an environmental catastrophe as millions of gallons of crude oil were sent into the Gulf of Mexico, wreaking havoc on the livelihoods of fishermen and others who depended on the Gulf for income. The aspects of BP’s ethical culture that contributed to the Gulf Coast oil spill are: BP did not have in place adequate safety measures. The rig did not have a remote control cut off switch. A BP official falsely informed Fox News after the incident that BP had successfully activated part of a failed blowout preventer, which was slowing the oil flow. This announcement turned out to be false as BP’s underwater robot did in fact trigger a device, but the device did not stop the flow of oil. While the remote controlled cut out switch was not required by law as long as the Rig had a backup control system, BP could have ensured that some sort of emergency shut off system was in place. BP cut corners to save time and money while not providing sufficient oversight. Seventy five percent of incidents that caused Federal investigations into safety on deep sea drilling rigs in the Gulf of Mexico were on Transocean drilling rigs and BP were their biggest client. Therefore it was BP’s responsibility to ensure...
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...environmental disaster that impacts the Gulf of Mexico of which the long term effects will not be known for generations to come. British Petroleum Deepwater Horizon On April 10, 2010 the offshore drilling rig, operated by the world’s sixth largest oil producer British Petroleum, erupted in flames. The result of this disaster caused “170 million gallons of crude oil to spill into the waters of the Gulf of Mexico” ("NRDC.org", 2011, p. 4), killing 11 people, and creating what could be the largest ecological disaster of the 21st century. This disaster is considered by many to be the largest oil spill ever to occur. Clean up efforts are still ongoing after almost two years. British Petroleum (BP) has spent billions of dollars in cleanup cost, restitution and community development; however the greater effects on the environment will not be determined for many years to come. The direct cause of this disaster has been identified as mechanical failure of a blowout preventer located at the base of the well directly above the site entry on the bottom of the sea floor. When this mechanical valve failed, it cause as large plum of highly flammable gas to erupt from the oil well and ignite. After an explosion on the surface, fire raged out of control for over 36 hours. After three days, the floating oil rig sank to the bottom of the ocean floor some 5000 ft below the surface. Oil continued to flow from the well site until it was contained on July 15th, 2010(British Petroleum [BP], n.d., para...
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...29 February 2012 BP Oil Spill Oil rigs provide the world with the fuel that is needed to keep it running. However, it is common knowledge that they may potentially cause harm to not only living creatures but also the environment they rely on to survive. This was proven in the spring of 2010 when an oil rig off the Gulf of Mexico exploded and resulted in an oil spill. This catastrophic event opened millions of eyes to the errors that can be found in the way oil rigs are set up. It also caused people to take a closer look at whose responsibility it is to make sure all the safety codes and procedures are being followed before a drilling plan in approved. The BP disaster not only drew people’s attention to the process of oil drilling, it also had a serious impact on the economy and an even more tragic impact on the environment and wildlife around it. It also provided a perfect example of the dangers oil drilling can pose if it is done in an area not prepared to handle the consequences. On April 20, 2010 an offshore oil rig owned by BP (British Petroleum) blew up, taking the lives of 11 people before beginning to dump dangerous amounts of crude oil into the ocean and coastlines of the Gulf of Mexico. The oil rig, known as Deepwater Horizon, is believed to have dumped more than 200 million gallons of the oil before it was capped off three months later. This number however, is only an estimate due to the refusal of BP to allow accurate measures of the spilt oil to be obtained by...
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...Ethics in the Workplace Case Study: BP Oil Spill On April 20, 2010 off the Gulf of Mexico, there was a blowout of the Macondo well which is owned by British Petroleum also known as BP. When the blowout took place it got immediate media attention because aspects of the event were known over the world. Within events transpiring it was discovered how limited the resources and reaction to the disaster was going to be. This paper will detail aspects of the event from symptoms of the problem, the root cause, important unresolved issues, roles of the organization’s key players and stakeholders, and explain the focus of specific ethical systems. Also discussed in this paper are relevant strategies and alternatives, the effect of globalization on the choice of preferred alternatives, the most valid alternative and resolution recommendations, and an example of a successful implementation of the solution. Symptoms of the Problem Natural disasters or any disaster of any kind is hard to manage just for the purpose that these is no real planning for the situation and there is no real way to say who is in charge when a disaster happens. Concerning the oil spill with British Petroleum (BP) symptoms for the situation was that there was a delayed response, the impact on the environment and the citizens, federal regulations were lax, and the recovery efforts were not adequate. According to Griggs (2011), OPA 90 is a federal statute that holds all the responsible parties in containment, clean-up...
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...BP Deepwater Horizon Accident Part 1(week 4) A Study of Strategic Implications of the Recent BP Deepwater Horizon Accident Date: Submitted by: Mohamed Ahmed Mohamed Student ID Number: H00032634 Chapter 1 Introduction History of British Petroleum (BP) Company British Petroleum is one of the oldest companies in the oil industry. According to BP Global (2010b), the company was founded in the year 1909 in the UK under the name Anglo-Persian Company. Later, in the year 1954, the company changed its name to British Petroleum (BP). Being in the gas and oil industry, BP conducts various operations including exploration and refining of oil among others. According to BP Global (2010), Bp is the largest energy company globally with presence in over 100 countries. Overview of the Deepwater Horizon Accident In the year 2010, BP experienced a Deepwater Horizon oil spill disaster which involved gas release and subsequent explosion in the Gulf of Mexico. According to Webb (2010), the fire lasted for 36 hours and this was followed by leaking of hydrocarbon into the Gulf for eighty-seven days. BP admitted responsibility explaining that the accident occurred following loss of control related to pressure within the well blowouts in which a special type of is designed to keep constant pressure. Impacts of the Deepwater Horizon accident This tragedy impacted immensely on various BP stakeholders i.e. local communities, global customers...
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...Name Public Relations PR Response Analysis to BP Oil Spill Instructor May 1, 2015 PR Response Analysis to BP Oil Spill This is an analysis of BP’s PR responses to several public audiences and industries after the BP Oil Spill disaster that occurred in the Gulf of Mexico. This disaster is also known as the Deepwater Horizon oil spill. The spill began on April 20th, 2010 on the BP-owned Transocean operated Macondo Prospect. The catastrophe stemmed from a gas release and ensuing explosion on the oil rig. According to BP’s website, “We acted to take responsibility for the clean-up, working under the direction of the federal government to respond swiftly to compensate people affected by the impact of the accident, to look after the health, safety and welfare of the large number of residents and people who helped respond to the spill, and to support the economic recovery of the Gulf Coast’s tourism and seafood industries impacted by the spill. We have conducted studies with federal and state natural resource trustees to identify and define the injury to natural resources in the Gulf of Mexico”. BP allowed their use of social media to expose their corporation’s lack of professionalism and customer service. By addressing important topics from this disaster through social media channels they compromised their integrity immediately. It also was perceived as hiding behind a forum that was less than ideal to use for this particular situation. Society and certain industries can instantly...
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...10-110 Rev. April 3, 2012 BP and the Deepwater Horizon Disaster of 2010 Christina Ingersoll, Richard M. Locke, Cate Reavis When he woke up on Tuesday, April 20, 2010, Mike Williams already knew the standard procedure for jumping from a 33,000 ton oil rig: “Reach your hand around your life jacket, grab your ear, take one step off, look straight ahead, and fall.”1 This would prove to be important knowledge later that night when an emergency announcement was issued over the rig’s PA system. Williams was the chief electronics technician for Transocean, a U.S.-owned, Switzerland-based oil industry support company that specialized in deep water drilling equipment. The company’s $560 million Deepwater Horizon rig was in the Gulf of Mexico working on the Macondo well. British Petroleum (BP) held the rights to explore the well and had leased the rig, along with its crew, from Transocean. Of the 126 people aboard the Deepwater Horizon, 79 were from Transocean, seven were from BP, and the rest were from other firms including Anadarko, Halliburton, and M-1 Swaco, a subsidiary of Schlumberger. Managing electronics on the Deepwater Horizon had inured Williams to emergency alarms. Gas levels had been running high enough to prohibit any “hot” work such as welding or wiring that could cause sparks. Normally, the alarm system would have gone off with gas levels as high as they were. However, the alarms had been disabled in order to prevent false alarms from waking people in the middle of...
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...The BP oil rig explosion was the second worst disaster in the U.S history, it resulted in the death of 11 employees and seriously injured 16 others, this resulted in one of the largest oil spills in the history of the world, this resulted in the Gulf of Mexico waters being covered in oil which killed thousands of animal life in the area and had a huge affect on the animal life and the eco system in the area. BP lost billions and the ongoing fight to repair the damage done to the environment is still going on. This is a great example of how operations ethically and unethically can affect a business and the environment around them, this disaster should be learnt from and should never be allowed to happen, BP suffered hugely due to this as their public image was destroyed and their relations with the communities living in the area where the explosion happened were extremely bad. D1:2 Impacts on BP BP has paid out due to this disaster up to $5billion to the people who have lost money and have been effected by the oil rig explosion this is not including the money they have lost form the tones of oil that they have lost and also the cleanup operation that they are heading. A disaster like this will have a very long and negative impact on BP as their reputation has been completely destroyed by this disaster and a large amount of the public both investors, customers and just other people in the communities have now pulled away from BP and look at them in an unethical manner due...
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...There are many key takeaways that are derived from the Deepwater Horizon Disaster. The behaviors and attitudes of leaders were disappointing at best, and irresponsible at worst. It appears that BP presided over an organizational culture that sanctioned extreme risk-taking, ignored expert advice, overlooked warnings about safety issues, and hid facts (Morgan, Whitehead, Huth, Martin, and Sjolander, 2016). Their failure to respond to the disaster with sufficient speed and attention, was a direct consequence of the flawed culture. On April 20, 2010 there was an explosion and fire on the BP-licensed drilling rig Deepwater Horizon in the Gulf of Mexico. While the Deepwater Horizon Rig sunk two days later, the seafloor oil gusher that resulted...
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