...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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...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 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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...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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...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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...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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...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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...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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...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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...The BP oil spill and its impact will be felt in the Gulf of Mexico region for years, if not decades. In the months after the Deepwater Horizon drilling rig exploded off the coast of Louisiana in April 2010, it's estimated that almost five million barrels of oil gushed from the seabed and into the Gulf, making it the worst oil spill in history. Now that the flow of oil has stopped, the scope of the catastrophe is coming into focus, and attention is turning to how things will play out in the court system. This article looks at some of the legal issues raised by the BP oil spill, including legal options for businesses and individuals looking to get back on their financial feet after the oil spill. (For in-depth information on filing a claim with BP's $20 billion compensation fund, see Nolo's article BP Oil Spill: Filing a Claim With BP's Compensation Fund.) The BP Oil Spill: Types of Lawsuits The BP oil spill has already prompted the filing of thousands of lawsuits. Businesses and workers have seen their livelihoods suffer or even disappear in Louisiana, Mississippi, Alabama, Florida, and Texas. Families and individuals in the Gulf region worry about the health hazards posed by the chemicals used to disperse and clean up the oil. And, with its dubious distinction as the largest environmental disaster in U.S. history, the BP oil spill has inflicted immeasurable devastation on the Gulf's coastline, wetlands, wildlife, and ecosystems. Here's a look at the different kinds of lawsuits...
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...British Petroleum Communication Problems inside BP Submitted by: Date: December 4, 2014 Memo 12/4/14 Jeff Lewis Metropolitan State University of Denver 890 Auraria Parkway Denver, CO 80204 Dear Jeff: Enclosed is my report on British Petroleum and the Deepwater Horizon oil spill in the Gulf of Mexico. This report shows how BP cut corners to expedite construction and save millions of dollars. As a result, the biggest oil spill in United States occurred. Due to the reckless conduct of BP, the corners cut by the people in charge ended up costing them billions of dollars as well as endangering the habitat and wildlife in the area. After reading this report you will realize BP’s CEO Tony Hayward, all the way down to the engineers in charge of everyday operations were to blame for the worse oil tragedy in our history. Sincerely, Executive Summary This is a report on how British Petroleum has failed in many areas of business communications. It’s going to include 3 main points that will explain in detail on how British Petroleum had bad communication and how it ended up creating history’s biggest oil spill in the United States in the Gulf of Mexico. The 3 main points include: 1. Pre-Event Planning a. Anticipate, Prepare, Practice b. “Safety” Not a Core Value c. Responsibility of Employees 2. Expressing Concern and Wrongful Focus a. Slow in Expressing Concern b. Lack of Sympathy to...
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...GULF OIL SPILL On April 20, 2010, we can all remember the vivid images when the news reported an explosion of an oil rig that killed 11 workers. The company responsible was British Petroleum, which owned the Deepwater Horizon drilling unit. The event was in the news continually, because it was regarded as the worst environmental disaster in the history of the United States. It took 85 days to cap the well. This catastrophe killed wildlife and threatened the livelihoods of fishermen, restaurants, and oil industry workers resulting in massive job losses. According to Wikipedia, an oil spill is the release of a liquid petroleum hydrocarbon into the environment, especially marine areas, due to human activity, and is a form of pollution. Oil spills may be due to releases of crude oil from tankers, offshore platforms, drilling rigs, and wells. Although oil spills can be controlled by chemical dispersion and/or absorption, this is not something easily to recover from. Spills may take weeks, months or even years to clean up. The cost of the oil spill clean-up is reported to be in the billions of dollars. BP had workers on the doomed Deepwater Horizon rig that could have prevented the missteps that led to the massive Gulf of Mexico oil spill according to the White House oil spill commission. The crew onboard the rig misread the pressure test and decided to move ahead which resulted in the rig exploding. What caused the oil spill to happen on the deep water horizon...
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...OF MEXICO OIL SPILL Presented to Board of Directors Oil and Energy Company, BP Prepared by John Molson School of Business Representative Bachelor of Commerce, Accounting Major March 23, 2011 MEMORANDUM DATE: March 23, 2011 TO: Board of Directors, Oil and Energy Company, BP FROM:, , Bachelor of Commerce, Accounting Major SUBJECT: SOLVING BP’S PROBLEMS REGARDING THE GULF OF MEXICO OIL SPILL Here is the report regarding the oil spill catastrophe that resulted from the explosion of Deepwater Horizon, which took place on April 20th 2010. The damages caused by this mishap are assessed and analyzed in this report. This report also includes recommendations made by experts in the specified fields relating to solving the issues brought fourth by this aforementioned spill. Despite the horrific consequences that have affected the global environment, BP’s reputation and BP’s financial assets due to this oil spill, certain efforts must be made on PB’s part in order to maintain a healthy environment for all living organisms on this planet. The information gathered in this report explores the methods at which BP could engage in this restoration process. Different methods that can be used to clean up the oil spill will be investigated in order to derive the best possible solution for BP. I am grateful towards BP’s board of directors for accepting responsibility of this oil spill by admitting...
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...Gulf Oil Spill Grand Canyon University: Economics for Public Administrators ADM-614 September 10, 2014 Gulf Oil Spill The National Oceanic and Atmospheric Administration (NOAA) estimated that 4.9 million barrels of oil spilled into the Gulf of Mexico over a span of 87 days. This catastrophic environmental disaster is known as the Gulf Oil Spill occurred on April 20, 2010 about 50 miles off the coast of Louisiana. An oil drilling rig (Deepwater Horizon) leased by British Petroleum (BP) ignited and exploded spewing 42,000 gallons of oil a day into the Gulf. Two days later the rig sank increasing the spill rate to 210,000 gallons of oil a day. Analysis – Government intervention The U.S. Government named BP as the responsible party in the incident; BP was found negligent in communication and safety practices, the company was held accountable for all cleanup costs resulting from the oil spill. Individuals and businesses that incurred damages as a result of the oil spill were able to submit claims for cleanup cost, property damages, loss of earnings or profits, and for physical injuries or death. The private industry and public sector both sectors failed in many aspects: inspection measures were not properly in place, safety updates and recommendations were not followed and sufficient resources were not provided to enforce safety guidelines and inspection requirements. Randall Holcombe’s book Public Sector affirms that government has a role to play in the market economy;...
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...largest oil and gas company which has its headquarter in London, England. The initial name of BP is the Anglo-Persian Oil Company in 1909; in 1954 it changed to its present name British Petroleum. It is combined and reconstructed by the former British Petroleum, Amoco and ARCO (Atlantic Richfield Company). BP’s business has spread to many fields including oil and natural gas, alternative fuels, the production of petroleum based product, aviation fuels and its business about the solar electric power generation is also growing very fast. Since 1981, BP has set up 12 branch companies successively in many fields such as mineral, food, ship, international finance, international detergent with its business spread to more than a hundred countries all over the world. BP has nearly 110,000 employees work all over the world. In 2003, BP is ranked on the FORTUNE as the first five global top 500 companies. Deepwater horizon oil spill and deepwater horizon explosion On 20th April, 2010, the Gulf of Mexico suffered a lot from a great catastrophe of oil spill. The drilling platform of the British Petroleum Corporation exploded in the deepwater horizon in the Gulf of Mexico which led to 11 workers death and very severe environment pollution. This event is regarded as the most severe oil spill incident in the history of America.。 Many people are curious about this catastrophe and people did not know what cause it and what actions would BP take. According to the inspection report BP made on...
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