...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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...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 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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...Compare and contrast the way Transocean and BP describe the incident chronology of the actual events leading up to and immediately following the blow out and explosions on the Deepwater Horizon. Answer: My first thoughts after I read both incident chronology’s, to compare and contrast the way Transocean and BP describe the incidents, is that BP or Transocean do not take ownership of the incident nor do either want to not acknowledge wrongdoing of any aspect of event. Transocean points the finger at BP and BP’s chronology seems to minimize their part. Transocean chronology begins on 4/14/2013, and ends 4/20/2013, while BP’s chronology begins on 10/6/2009, and ends 5/5/2013. The obvious differences in the incident chronologies are the BP incident chronology is longer, but does not have as much finger pointing and is not as interesting as Transocean’s. BP makes up for this in their “Accident Analysis” sections, but their chronology sticks to logs and facts compared to Transocean’s more narrative approach. BP uses bullet points at the beginning of their chronology and a dressed up spreadsheet with short descriptions of each timeline event. Transocean chronology is more descriptive and colorful. They use their incident chronology as a sounding board for all of BP’s shortcomings during the entire project. The use this section to minimize their involvement in the project. They use the chronology express “BP’s direction” and “BP’s poor decisions” during their involvement...
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...Final Report on the Investigation of the Macondo Well Blowout Deepwater Horizon Study Group March 1, 2011 The Deepwater Horizon Study Group (DHSG) was formed by members of the Center for Catastrophic Risk Management (CCRM) in May 2010 in response to the blowout of the Macondo well on April 20, 2010. A fundamental premise in the DHSG work is: we look back to understand the why‘s and how‘s of this disaster so we can better understand how best to go forward. The goal of the DHSG work is defining how to best move forward – assessing what major steps are needed to develop our national oil and gas resources in a reliable, responsible, and accountable manner. Deepwater Horizon Study Group Investigation of the Macondo Well Blowout Disaster This Page Intentionally Left Blank Deepwater Horizon Study Group Investigation of the Macondo Well Blowout Disaster In Memoriam Jason Anderson Senior tool pusher Dewey Revette Driller Stephen Curtis Assistant driller Donald Clark Assistant driller Dale Burkeen Crane operator Karl Kleppinger Roughneck Adam Weise Roughneck Shane Roshto Roughneck Wyatt Kemp Derrick man Gordon Jones Mud engineer Blair Manuel Mud engineer 1 Deepwater Horizon Study Group Investigation of the Macondo Well Blowout Disaster In Memoriam The Environment 2 Deepwater Horizon Study Group Investigation of the Macondo Well Blowout Disaster Table of Contents In Memoriam....................................................................
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...contrast the way Transocean and BP describe the incidents, is that BP or Transocean do not take ownership of the incident nor do either want to not acknowledge wrongdoing of any aspect of event. Transocean points the finger at BP and BP’s chronology seems to minimize their part. Transocean chronology begins on 4/14/2013, and ends 4/20/2013, while BP’s chronology begins on 10/6/2009, and ends 5/5/2013. The obvious differences in the incident chronologies are the BP incident chronology is longer, but does not have as much finger pointing and is not as interesting as Transocean’s. BP makes up for this in their “Accident Analysis” sections, but their chronology sticks to logs and facts compared to Transocean’s more narrative approach. BP uses bullet points at the beginning of their chronology and a dressed up spreadsheet with short descriptions of each timeline event. Transocean chronology is more descriptive and colorful. They use their incident chronology as a sounding board for all of BP’s shortcomings during the entire project. The use this section to minimize their involvement in the project. They use the chronology express “BP’s direction” and “BP’s poor decisions” during their involvement with them during the project. The Deepwater Horizon, which was owned and operated by Transocean and had been under contract to BP, proves they were in this together, yet both want to distance themselves from the catastrophe. BP’s Deepwater Horizon Accident Report seems to get...
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...Ethics Case Analysis BP BP Struggles to Resolve Sustainability Disaster Case Summary: The BP oil spill in the Gulf of Mexico in April 2010 is the worst oil spill in US history. Initial claims on the scope of the spill, as released by BP, was that 5,000 barrels per day were being released into the water, although they stated they had no way of precisely measuring the spill. Outside analysts have stated that between 54,000 and 84,000 barrels per day were leaking into the area. This estimate has been largely supported and accepted. The spill lasted for 87 days before workers finally sealed the leak, but by that time, more than 4 million barrels of oil had been released into the gulf. The BP oilrig, owned by Transocean, Deepwater Horizon had been in operation in the Gulf of Mexico since February 2001. The rig was valued at more than $560 million dollars and worked on many different wells in the gulf. The last well it operated on was the Macondo well. It was this well that the oil spill came from and was brought about by several preventable errors on the part of BP and Transocean management and employees. The Deepwater Horizon vessel was an exploratory rig assigned the duty of finding oil, reporting it, and capping the well for another extracting type rig to come in and harvest the oil. While drilling the well, the rig encountered pockets of natural gas buildups where it was drilling. A week prior to the fatal explosion, Horizon encountered one of these pockets and the natural...
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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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...BP’s Deepwater Horizon Gulf of Mexico Oil Spill: What Went Wrong Elizabeth D. Jones Southern New Hampshire University Student: 0811981 Abstract On April 20th 2010 the Deepwater Horizon rig, operated by BP, exploded unleashing millions of barrels of oil into the Gulf of Mexico resulting in the largest marine oil spill in history. What makes this spill so significant is the fact that the spill continued unabated for three months causing the declaration of a state of emergency across several states (Bozeman, 2011). The purpose of this study is to highlight the significant issues of management and leadership within BP and point out how the poor decisions surrounding the spill deeply hindered their corporate reputation. Additionally, the paper will offer ways in which BP and those involved could have possibly prevented this disaster or have better mitigated the impact had the catastrophe still occurred. Managing risks, monitoring safety, effective communication and ownership of faults are all solutions that if implemented can help BP restore their reputation and prevent misfortunes like this from happening in the future. BP’s Deepwater Horizon Gulf of Mexico Oil Spill: What Went Wrong British Petroleum (BP), In the early evening of April 20th, 2010 uncontrolled hydrocarbons escaped causing an explosion on the oil-drilling platform Deepwater Horizon resulting in one of the worst environmental disasters in world history. Within 36 hours the massive oil rig, approximately...
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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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...BP Paper Rough Draft 11/23/2012 April 20, 2012 British Petroleums drilling vessel Deepwater Horizon suffered an explosion, and then began expelling enormous amounts of crude oil into the Gulf of Mexico. Although many different individuals and organizations attempted to help BP fix their spewing well, it wasn’t until July 15 that the vent was cut off. Through our research we have developed an analysis that examines the cause of the cause of the disaster, the event itself and its aftermath. We would also like to offer our recommendations on the subject. British Petroleum is an international oil company base in London and is one the nations leading oil and gas producer (History of oil spill). In spite of BP’s market share, as a company they have an unfortunate history of safety breeches including a 2005 explosion at oil refinery in Texas (Deep Water dDrilling). These accidents seem to be a cause of weak corporate safety culture and cost leadership (On average, fifty percent of management bonuses were awarded on the basis of cost cutting). The lack of proper safety practice and absence of oversight has ultimately resulted in infrastructure and architectural failure (Deep Water Drilling). As with any disaster, each party involves attempts to prove their innocence and are all too quick to point a finger at a party that must be guiltier than they and the Deepwater Horizon spill is no different. Although BP owned the oil, other companies had considerable interaction with Horizon;...
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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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...Responsibility, Course 2016 FE1 EDHEC Nice Tutorial 3 BP, Deepwater and Sustainability Reporting The Deepwater Horizon oil rig fire and explosion on April 20, 2010, killed 11 men and caused one of the largest marine oil spills in history. The leak from the undersea well flowed for 87 days and polluted an estimated 68,000 square miles of the Gulf of Mexico waters and nearly 500 miles of coastline from Louisiana to Florida. At the moment of the accident BP was the leaseholder and operator of the Maconda well located off the coast of Louisiana. The company was ultimately responsible for conducting operations there safely and in respect of the environment. BP hired Transocean Ltd (the owner of the drilling rig Deepwater Horizon) to provide the vessel and drilling crew to implement BP’s operations of the Maconda well. 1 Investigations established that bad management on the Deepwater Horizon resulted in poor safety on the rig. The US chemical safety board concludes that a last-ditch safety device on the underwater well had multiple failures and wasn't tested properly. It found that the cause of the initial explosion involved multiple screw-ups with cement, drilling mud, fluid pressure, botched tests, management problems and poor decisions. The blowout preventer sealed the well temporarily, but then it failed and that caused the massive spill. 1 For a description of BP’s implication in the Deepwater Horizon accident you can also read Cherry and Sneirson (2011)...
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...British Petroleum Deepwater Horizon Felicia Kuse Abstract The following paper will describe recent events that occurred with a British Petroleum owned offshore oilrig known as “Deepwater Horizon”. In addition the paper will also discuss various safety issues, concerns, and repeated violations that have occurred resulting in an 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...
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...The Deepwater Horizon oil spill, also known as BP oil spill, started on April 20, 2010. It was caused by an explosion and the sinking of the Deepwater Horizon oil rig. The spill lasted 87 days, until it was caped on July 15, 2010. The BP oil spill is one of the largest accidental release of oil into marine waters. Five million barrels of oil have poured from BP’s well and only 800, 000 barrels were recovered by containment efforts. The Exxon Valdez spill in 1989 was a significant instigator of stronger legislation in public awareness. The resulting legislation was the Oil Pollution Act of 1990 which was passed by the Congress. This act clarified and increased the authority that the federal government had over the prevention and response to...
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