...British Petrolum 2012 BP Oil Spill Management Dr…………………………………….. Nahla…………………………… , Nuf………………………. QATAR UNIVERSITY Executive Summary This paper examines the oil spill that took place due to an explosion at one of the drilling rig of British Petroleum on 2010 in the Gulf of Mexico and the managerial response to that crisis. Introduction: History of British Petroleum (BP) According to the British Petroleum's website, the company has started in 1908 with oil found in a rugged part of Persia after a long and hard search. Since then, discoveries large and small have participated in our progress. This is the first phase of BP between 1901 and 1908, the period during which the oil discovery was uncertain. The company has started as the Anglo-Persian Oil Company, which would be called one day BP. The next phase of BP's history was from 1909 to 1924, when the Field of Naphtha was 210 rugged kilometers from the mouth of the Persian Gulf. The Anglo-Persian was building a refinery to turn the thick crude oil into a usable product. Despite its name, the British Petroleum brand was originally created by a German firm as a way of marketing its products in Britain. During the I World war, the British government seized the company’s assets, and the Public Trustee sold them to Anglo-Persian in 1917. The Third phase of BP's history was from 1925 to 1945, when cars flooded onto the streets of Europe and the United States in the 1920s and 30s. BP-labeled gasoline pumps...
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...William J. McLeod Dr. Etido Akpan BUS 508: Contemporary Business 10 February 2012 British Petroleum (BP) is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. In its global business, the company has several family brands: BP, ARAL, ARCO, Castrol, am/pm and Wild Bean Café. BP's global business is divided into three distinctive organizations to deliver energy products (Upstream, Refinance and Marketing, and BP Alternative Energy). Global Business: Created in September 2010, Upstream consists of three distinct Divisions – Exploration, Developments and Production. Within the Developments Division there are two Technical Functions the Global Wells Organization and the Global Projects Organization. Within the Production Division there are also two Technical Functions Operations and Subsurface. A Strategy and Integration organization led by a fourth Executive Vice President, (including HR, Finance, IT and Technology) and ensures integration across the Divisions and Functions. The downstream business segment converts crude oil into useful products such as fuels, lubricants and petrochemicals. It also stores and distributes these products to where they are needed, and markets them to customers in more than 70 countries. BP’s Refining and Marketing operations are carried out...
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...Horizon oil rig leased by British Petroleum (BP). This tragedy claimed the lives of 11 BP employees and injured 17 employees. The incident occurred due to BP’s failure to take safety precautions and its focus on keeping costs low. In order to restore its image, BP created a response website titled “Gulf of Mexico Restoration”. This website uses the following three verbal and visual strategies to repair its reputation: a video titled “Committed to the Gulf” to express its commitment to the Gulf and America, a green header titled “Community Development in the Gulf States” to show how BP is restoring the economy, and a slide show of BP’s employees operating in more efficient ways to reveal its dedication to sustainability. BP uses a video of the Gulf, employees, and tourists to express its commitment to the Gulf and America. The video shows BP’s Operations Manager Fred Lemond stating that “BP has paid over 23 billion dollars to help people who were affected by the crisis and also cleanup costs” (BP, 2013). The video also shows “The reopening of the Gulf to tourism and people enjoying the water, which appears to be clean” (BP, 2013). Lemond, also illustrates that “BP is committed to America by creating 250,000 jobs in America and investing more in America than any other country” (BP, 2013). According to Cain Burdeau from The Huffington Post, “BP’s video presents a perspective that is too rosy and some of the areas in the Gulf that BP is claiming are open are actually closed due...
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...On April 20th, 2010, the BP oil rig in the Gulf of Mexico exploded. This lead to 11 crew members died and caused large-scale oil pollution. The economic loss of ecological environment in Gulf of Mexico would up to several hundred billion dollars. As the main person in charge, BP’s CEO, Tony Hayward, did not timely response to this oil spill event. And his inappropriate remarks and performance was even aroused great dissatisfaction among the people and caused a huge loss of profits of BP. “I'm sorry. We're sorry for the massive disruption it's caused their lives. There's no one who wants this over more than I do. I'd like my life back” said by Tony Hayward. And not long after the incident, he was also criticized for having a sunbathe on the beach of Isle of wight in southern England. Under the pressure of public comments, Tony Hayward decided to resign for restoring BP’s reputation. In this case, I think the most important key term is responsibility, both include company’s social responsibility and BP CEO’s responsibility for BP and all relevant people. First of all, I want to mention that this is the most serious oil pollution incident in America. This event not only results in a large area of oil pollution but also caused ecological damage. It caused more than 547 birds died and Animals who live in the Gulf of Mexico will lose their wetland homes. So in this event, Either Hayward or BP, should have considered social responsibility on a daily basis. Here social responsibility...
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...is now known as British Petroleum (BP) was founded in 1909 and is one of the world’s leading international gas and oil companies. The multinational British company’s headquarters is located in London, United Kingdom and is one of the five largest oil companies in the world. The pioneer of the Middle Eastern oil industry, BP discovered oil in Iran before World War I and eventually became involved in all aspects of the oil industry, from exploration to marketing. Offering an array of services that expand from providing fuel for transportation to providing energy for heat and light, BP has become one of the leaders in energy sourcing across the globe. (Company History Index, n.d.) BP is also known for petrochemical products for everyday items and retail services. BP is one of the leaders of the energy industry. The company has high standards and uses the most modern technology in order to deliver long-term value and to meet energy needs. As a global company all activities and interest are held or operated through subsidiaries, associates or joint ventures which are governed by the laws of many jurisdictions. Around the world there are 16,400 BP service stations. (Company History Index, n.d.) Specify the nature, structure and type of products or services of Apple, and Identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale. British Petroleum (BP) is one of the world’s leading international...
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...dilemma facing BP is how to balance profit maximization and at the same time be responsible for the environment and society. Several events have affected BP in recent years but none has challenged the balance between profit and environment responsibility like the Gulf oil spill. This event, recognized as the worst oil spill in the History of the United States, occurred on April 20th of 2010 in the Gulf of Mexico and was characterized by an explosion following an integrity failure of a well and a consequent 87 day spill of oil into the sea (BP, 2010). Eleven people were killed in the explosion and it is estimated that almost 5 million barrels of crude oil dispersed into the Gulf Sea (The Ocean Portal Team, 2010). Tony Hayward, the CEO of BP at the time of the oil spill incident, downplayed the effects of the oil leak in the environment and society, stating, “The Gulf of Mexico is a very big ocean“ (Webb, 2010). Previous events had caused concerns among authorities on the possibility of BP not doing the appropriate maintenance of its old system of wells. In fact, in 2004 the company was fined for $1.2 million by state regulators (Barringer, 2006) and in 2006 for $2.4 million by the labor department also because of unsafe practices (Pulham, Hilaire, & Fenn, 2010). In addition, reports from a longtime employee stated that the company had received repeated warnings on the possible effects of cutbacks in maintenance and inspection routines (Barringer, 2006). It seems like BP had been struggling...
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...Bp also known as British Petroleum “is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.” This establishment has over 80 operations under its umbrella ranging from the United States to Australia. Oil companies such as BP constantly try to find the next best way to dig and find oil underneath the surface of the earth. Not only do they have well educated persons there to help measure, dig, etc., but they also have a great number of technological resources. The resources that are used include: 3D film that Geologists look at in a room called the HIVE (highly immersive visual environment). In this room, all persons that deal with finding oil come together and view this film to help determine where to drill and how successful they will be in doing so (BP). Finding oil is a science, there isn’t much guessing done without tools and maps to find it. Before there were a host of technology-based programs, oil companies had to search for oil by finding natural oil bubbles that came to surface in what is called a seapage (BP). Even then, there were no true promises that if the drilling began that they would strike gold, they just hoped that there was something deep beyond the earth’s surface. According to BP, “drilling is the only sure way to find out whether there is oil or gas down there”. There are also precautions that are...
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...The Unsafe Culture of BP The oil spill in the Gulf of Mexico has been called the worst environmental disaster in U.S. history. The British Petroleum Company (BP) gulf spill started in April of 2010, and was first contained in July of 2010; it took the company 2 months to actually start the process of containing the spill. The Associated Press and The New York Times, reported that a total of 94 to 184 million gallons of oil were unleashed on the shores off the Gulf. This disaster has caused controversial topics to arise as to what the BP company is doing in preventing these disasters or if they are even taking any precaution to that notion. Critics say that BP has had a very bad track record when it comes to safety. It is a risky company that has grown too fast. They have had accidents like the one of BP’s most troubled refineries, which lies, in the State of Texas, which also had its fair share of explosions. BP now faces the largest liabilities in corporate history. All of what BP seems to be doing is shutting their workers mouths with money they cannot refuse but money that has no affect on the company’s profits. BP must change their culture of deadly accidents, disastrous oil spills, and countless safety violations. The Texas BP refinery had an “accident” in 2005 where 15 people died in an explosion and fire, 170 others where injured. Afterwards there were charges that BP management valued profits more than safety. BP acquired the 12,000-acre refinery in 1999 as part of...
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...1. Why are BP’s core values important in building a global brand? Answer) British Petroleum which was the top petroleum in Britain. In 1998 BP has to start to increase its business to an international level. Its step in the process was acquisition of foreign companies. BP started with the acquisition of Amoco and later Arco, Castro, and six more companies. But just acquisitions don’t make this company a global leader in the present market. The BP core values are:- Performance: First and a very important value for any company for its growth, is keep on performing with operations in safe and reliable way with their partners, customers and stake holders. Innovation: Developing new technologies for a better tomorrow. BP also helps the car manufactures in innovating new engine designs. Progressive: In the present global which has different values in different countries, every value has to be taken care. In this diversified world, every employee, every customer is important and safety, responsible of them is very important. Green: Environment is the important factor for any organization, and for petroleum organization it is still more crucial. And they should encourage Green movement and have to take steps to save the nature. 2. How do you think the company’s involvement in the Gulf Coast oil crisis in 2010 affected its global brand and its core values? Answer) 20th April 2010 on this day due to an explosion in Gulf of Mexico has caused the British Petroleum company a...
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...BP From Wikipedia, the free encyclopedia This is the latest accepted revision, accepted on 2 October 2010.Jump to: navigation, search This article is about the energy corporation. For other uses, see BP (disambiguation). For information on the oil spill from the Deepwater Horizon rig, see Deepwater Horizon oil spill. BP p.l.c. Type Public limited company (LSE: BP, NYSE: BP) Industry Oil and natural gas, alternative fuels Founded 1909 (as the Anglo-Persian Oil Company) 1954 (as the British Petroleum Company) 1998 (merger of British Petroleum and Amoco) Headquarters London, United Kingdom Area served Worldwide Key people Carl-Henric Svanberg (Chairman) Tony Hayward (CEO) Bob Dudley (Director, CEO (appointed)) Byron Grote (CFO)[1] Products BP petroleum and derived products BP service stations Air BP Aviation Fuels Castrol motor oil ARCO gas stations am/pm convenience stores Aral service stations solar panels Revenue US $246.1 billion (2009)[2] Operating income US $26.43 billion (2009)[2] Net income US $16.58 billion (2009)[2] Total assets US $236.0 billion (2009) Total equity US $101.6 billion (2009) Employees 80,300 (Dec 2009)[3] Website BP.com A 1922 BP advertisement.BP p.l.c.[4][5] (LSE: BP, NYSE: BP) is a global oil and gas company headquartered in London, United Kingdom. It is the third largest energy company and the fourth largest company in the world measured by revenues and is one of the six oil and gas "supermajors".[6][7] ...
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...On April 20, 2010 the BP licensed Transocean deep water drilling rig exploded, killing 11 people and injuring another 17.Roughly, 4.9 million barrels of oil poured into the Gulf of Mexico for 87 subsequent days. Days after the accident British Petroleum’s stock dropped by 2% due to stockholders worries of cleanup costs and upcoming legal claims. In order to mitigate the damage done to their image BP created a new portion of their website called the “Gulf of Mexico Restoration.” BP wanted to show the public that it was doing everything possible to restore the Gulf of Mexico’s local economy and environment to what it was before the accident. To show its commitment to cleaning up the Gulf, BP uses statistics showing how it is putting full effort into the restoration, favorable wording and a campaign to distance itself as much as possible from taking full responsibility, and powerful images to paint a picture of what kind of efforts it is putting into the Gulf. Without using these strategies, the public and investors alike would see BP in a completely different light. In order to illustrate it cares about and is committed to Gulf restoration BP provides a chart of payments it has made on the main page of the Restoration of the Gulf. In order to do this BP makes sure anyone that accesses this portion of its site will see what efforts were put in by BP. BP has pumped $14 billion into the oil spill response and clean up. This alone shows that BP is doing all that it can to...
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...Petroleum is a public limited company. They suffered a huge downfall from their 2010 Mexican Gulf oil spill, although have rebounded very positively since then with major improvements in the company, both ethically and environmentally. This company markets its products in over 100 countries and, as of December 2011, employs over 83,000 employees. British Petroleum has worked hard to honour their commitments to the people and communities of the Gulf Coast. This company produces the natural resources that the world depends on daily, and produces them in some of the most operative, proficient, and resourceful ways which are possible today. (BP, n.d.). This company proves to be constantly evolving in the world. They are always innovating and coming up with new ways to operate their business as to cause the most minimal effect or damage on the environment. BP has become one of the most environmentally aware companies of the modern age, especially from what they have gone through in the Gulf of Mexico, and the revolutionary technologies they have integrated in their business operations. The vertically integrated company uses three main types of leadership, as well as an operational controlling method to ensure that the organization functions accordingly and remains socially responsible, ethical, and practices corporate social responsibility. By focussing on developing the company’s organizational structure on upstream and downstream tasks, British Petroleum can aim towards innovating and...
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...BP and The Gulf of Mexico Oil Spill Jose Roberto Dominguez Dr. Ken Rossi MGMT 6000 A (CRN: 1535) September 20, 2015 Table of Contents Case Introduction and Background 3 BP or Industry Failure 4 Most Significant Flawed Decisions 5 Did BP lack the appropriate safety culture? 8 References 12 BP and The Gulf of Mexico Oil Spill Case Introduction and Background This particular case study created an abundance of unanswered questions for me to consider and made me realize how poorly we are at regulating industries that continue to deplete our natural resources and yet don’t even prepare for when disasters strikes. The details of this case are alarming for a number of reasons and the most critical point that resonates throughout the entire paper, is that profit margins exceed any other concerns, to the point that even death could not convince them to make the changes to their company culture. The cycle of errors came to a complete pause, on the evening of April 20, 2010 when a “serious of explosions rocked the Deepwater Horizon, a mobile offshore drilling rig operated by BP in the Gulf of Mexico” according to (Roberto Pg.1) and one that saw a serious of catastrophically events, that would change the lives of many. That fateful night under the cover of darkness, eleven people died and several other encountered injuries that required medical attention and rescue. This occurred as direct fault of equipment, when the blowout preventer failed. The device is designed...
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...BUSINESS RESEARCH PROJECT BRP BP Business Research Report Content I. Corporate Profile …………………………..…1 II. Management…………………………………..2 III. Financial Statement Analysis……….……3 IV. Marking Strategy ……………………………..8 V. Cross-cultural Issues………………………..10 VI. International Business……………………11 VII. Human Resources Issues………………..12 VIII. Gulf of Mexico Oil spill…………………..16 IX. Conclusion……………………………………..18 X. Appendix ..………………………………………..20 1 BP Business Research Report I. Corporate profile BP, a public limited company in the industry of oil, natural gas and alternative fuels, runs its business in the exploration, production, refining, trading and distribution of energy. The products are mainly BP petroleum and derived products serving an area worldwide. BP was founded in 1909 as the Anglo-Persian Oil Company and renamed as British Petroleum Company in 1954. A merger of British Petroleum and Amoco in 1998 modeled the greatest petroleum company all over the world---BP. Headquartered in London, UK, BP launched its new green, white and yellow logo in 2000 which is designed to show the company's commitment to the environment and solar power. Bob Dudley performs BP’s CEO since Oct. 2010 and Carl -Henric Svanberg is chairman of the group. BP’s vision “A force for good” underlines all its activities worldwide. All BP’s 79,700 employees live under its corporate culture Slogan—Different people, common goals. BP ranked 4th in Fortune Global 500 in...
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...BP and accident waiting to happen: * Alwin Landry, the 41-year-old Cajun captain of the Damon B. Bankston. Oil transport ship. Using a big hose to load crude oil, uses a crane to move the hose. * Big fire at the oil rig. * Curt Kuchta, the 34-year-old captain of the Horizon. Other ship at the incident. * Anthony Gervasio, the Bankston’s engineer, was in the engine room when he heard what sounded like a “blown tire, times 100,” * Second larger explosion. * Captain Landry was still in the wheelhouse. He had just given the order to disconnect the hose, but now he wasn’t sure he could wait. Once he saw the crew giving thumbs up, he left. * Horizon crew members were abandoning ship — leaping from the main deck, plummeting 70 feet into the sea. * At 10:04 p.m., Landry banged out an e-mail to the BP control room in Houston * The giant rig would burn for two days, listing more and more until finally it tipped and sank. * Some 206 million gallons of oil would pour into the gulf before BP finally stanched the flow * Today the Macondo well, named for a cursed town in a Gabriel García Márquez novel, is sealed and abandoned. It’s a graveyard for 11 men, a dump for what remains of the Deepwater Horizon, and a haunting symbol of excessive faith in the safety of deep water drilling. It’s also an enduring mystery. * It’s not easy to blow up a rig. Too many mistakes both big and small have to be made. * Experts will debate the precise cause...
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