...Offshore Drilling – To Drill or Not to Drill The Effects of Drilling on the Environment and Business Lydia M. Wityk Strayer University Abstract This paper will explore the business of oil companies drilling off the coast line of the United States. It will explore the benefits from the business of oil companies to the detrimental effects of the oil spills from the offshore drilling. Should we continue to drill for oil off the coast with the possibility of additional spillage into the oceans. We know that oil spills damage the environment, and the social and economic welfare of the residents in the area. At the same time the oil companies can positively affect the economy and the United State’s welfare. In comparing both sides of the argument I will look at the past and current oil companies to determine if they acted morally in their everyday business practice. At this post-BP disaster era, the United States is questioning whether we should continue to drill and expand our drilling. I will utilize the consequentialist theory to determine what would be the best next step for the U.S. to take. Using the current information gathered on BP’s business practice and the effects of the oil spill, I will weigh the ratio of good to bad to determine my opinion on whether to drill or not to drill. Off Shore Drilling – To Drill or Not to Drill The Effects of Drilling on the Environment and Business The United States has been offshore drilling for oil since...
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...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 the research will show...
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...Natural Resources and Energy Paper People, Science, and the Environment SCI 256 “Earth provides enough to satisfy every man’s need, but not every man’s greed.” (Gandhi, 2011) Did Gandhi have foresight into the destructive ways of humans? Earth seemed to have endless amenities that would take humans a lifetime to consume. With the abundance of these amenities, have humans failed to conserve and nurture nature’s gifts in the name of greed? In this paper, the subject to identify and discuss will be the effects that a growing human population may have on the marine ecosystem’s resources, including loss or harm to population of wild species; discuss one management practice of sustainability and conservation of natural resources in the marine ecosystem. Finally, the paper will identify is the risks and benefits of extracting or using one type of nonrenewable and one type of renewable energy resource from the marine ecosystem. From a distance in space humans look at this planet called Earth. Earth covers the massive blue oceans of life. Planet Earth humans call home consist of numerous types of land and marine species from the deepest part of the ocean to the clear shallow water of sandy beaches that lie within an ecosystem. The marine ecosystem is so complex but at the same time it is not complicated. Humans cannot see creatures with the naked eye but can spot a massive blue whale from a distance;...
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...Proposition Paper Drilling off Shore in the U.S. Introduction There is a lot of conflict today about the United States drilling for oil off shore. Oil is a huge commodity of the entire world and is hugely demanded. However, off shore drilling is hazardous to both the economy and the environment and could potentially get worse. Oil spills are a largely known negative externality that is related with offshore development. There will always be pros and cons about drilling for oil. The big question is: should we or should we not drill off shore? Literature Review One reason we should not drill for oil in the United States is because it is dangerous and could be disastrous to the environment. The recent BP spill in 2010 killed 11 workers and caused months of leakage into the ocean. Per Katherine Goldstein “This oil spill has obtained the dubious distinction of being the worst oil spill in US history.” This spill was caused by an explosion while drilling off shore in the Gulf of Mexico. This caused leaking of about 5,000 barrels of oil a day. To try to stop the leaking, several attempts were made which included controlled burning and plugging the leak, both unsuccessful. This has a huge impact on our ecosystems even though it can take months or possibly years to surface. Louisiana was most impacted by this spill. They are the closest to the leaking well and over 100 miles of the coast had been polluted. Per David Adam “State officials have reported sheets of oil soiling...
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...ABSTRACT In this paper, I will analyze Marathon’s product processes; I will determine which part of those processes is open to the greatest number of efficiency improvements, and I will explain further. In addition, I will discuss the relationship between the retail price of gasoline and the world demand for crude oil. I will try to discuss how Marathon could keep the price at the pump the same without losing any profits – even if global crude production has decreased by 10%. Finally, I will discuss President Obama’s June 2010 deep-water drilling moratorium. It was originally for six months; I will try to determine the impact of a continued moratorium on deep-water drilling for retail gas prices in the U.S. WHICH OF MARATHON’S PROCESSES CAN BE IMPROVED THE MOST? A business needs to be at least as efficient as its main competitors, in order to be able to compete and survive in the long-term. A more efficient business will produce goods at a lower cost than competitors can supply. A more efficient business can generate more profit, possibly at lower prices. (Tutu2u.net) In analyzing Marathon’s product processes, there are areas that are open to a large number of efficiency improvements. Particularly, the world will run out of oil sometime in the distant or near future. Both Marathon as a company (and the United States in general) has to explore and find oil more efficiently so that the use of oil as a resource can be optimized. Therefore, that is the area of the oil production...
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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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...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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...Nathan Green December 2, 2010 Finance 573 Dr. John Settle Rick Watson Contents Executive Summary 4 Company Overview 5 Sale Thesis 6 Energy Industry Overview (Oil and Gas Focus) 7 The “Upstream” Oil and Gas Sub-Sector Overview (Offshore Focus) 8 Macro-Level Trends in the Oil & Gas Industry 11 Industry Attractiveness Using Porters Five Forces 13 Bargaining Power of Suppliers: Low 13 Bargaining Power of Customers: Medium 13 Threat of New Entrants: Low 13 Threat of Substitute Products: High 14 Government Action: Medium 14 Competitive Rivalry: Medium 14 Five Forces Summary 14 Ensco’s Operations & SWOT Analysis 15 Strengths & Weaknesses 15 Opportunities & Threats 16 Financial Performance 17 Revenue, Cost of Sales, Net Income, & Margins 17 Capital Expenditures 18 Return on Assets 18 Relative Valuations 19 Financial Forecast 21 Discounted Cash Flow Valuation 22 Conclusion and Recommendation 23 Table of Figures Figure 1) World-Wide Energy Consumption Growth since 1965. 7 Figure 2) Example Photograph and Diagram of "Jackup" Oil Rigs 9 Figure 3) Example Photograph and Diagram of "Semisubmersible" Oil Rigs 9 Figure 4) Comparison of the Average Size of 2009 Oil Field Discoveries: Offshore vs. Onshore 10 Figure 5) Historical WTI Oil Prices 11 Figure 6) Historical and Projected Jackup Rig Demand 12 Figure 7) EIA Projected Global Demand for Energy through 2035. 12 Figure 8) Jackup Utilization Comparison...
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...Underbalanced Drilling Methods as an Effective Solution for Drilling Issues Rodrigo H. Ruschel Bridging Course Centre for English Language Teaching, University of Western Australia Semester 1, 2013 Introduction The Oil and Gas industry is looking for new methods of exploration and production. Currently, the oil and gas reservoirs are becoming more difficult to access because the operators are required to deal with complex and depleted reservoirs, such as low pressure zones, sub salt formations and tar zones. This is a challenge for both the on onshore and the offshore environment. These complications are directly related to drilling engineering because these professionals have to deal with complex situations involved in risks and pressure in order to keep operations under control. In order to avoid problems during drilling operations might causing financial and environmental issues, underbalanced drilling (UBD) methods have been implemented. These methods are based in which both hydrostatic and dynamic pressures in the circulating down-hole fluid system are intentionally kept below or the same as the pressure of the formation being drilled UBD methods have been used in order to defeat issues such as avoid formation damage, lost circulation, differential sticking and reduction of non-productive time. Also, it might improve productivity, reduce drilling time, bit life and also indicate reservoir zone productivity. UBD methods are appearing as an effective solution...
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...Offshore Employment Handbook The Time-Saving “Getting Started” Guide for Finding Offshore Oil, Gas & Energy Jobs WE STRONGLY RECOMMEND TO SAVE THIS DOCUMENT ONTO YOUR HARD DISC NOW!!! Offshore Employment Kit…2 How to Avoid Offshore Oil Job Scams..................................................................... 5 Living the Offshore Life ......................................................................................... 10 Glossary of oilfield terms ....................................................................................... 12 Frequently asked questions about the offshore industries ........................................ 14 Nature of the oil industry ....................................................................................... 16 working conditions ................................................................................................ 19 Employment .......................................................................................................... 20 Occupations in the Industry.................................................................................... 20 Training and Advancement..................................................................................... 22 Earnings ................................................................................................................ 23 Outlook ......................................................................................................
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...Drilling For Oil In ANWR, Is It Worth It? Alexander Payne - Engineering Student, University of West Florida Abstract - This report will take an objective look at the possibilities of drilling for oil in Alaska. We will take a look at all of the possible benefits and good that could come out of this, as well as all of the drawbacks and negative effects that can come from drilling in the Arctic National Wildlife Refuge. This report will also take a look at some possible alternatives to drilling for oil in ANWR that could possibly reap the same benefits, if not more. Index Terms – Arctic National Wildlife Refuge, Porcupine Caribou, Mineral Rights, Surface Rights, Aleuts, Eskimos, Tlingits, Crude Oil, Fossil Fuels, Solar Energy, Wind Energy, Cellulosic Ethanol, oil rig, oil spill. Introduction: Oil and its uses 1 What is Oil? There many things referred to as “oil”, but in our case, oil is a liquid substance derived from petroleum that is used as a fuel source in hundreds of different applications, and it is also used as a lubricant. Oil is considered to be one of three main fossil fuels, the other two being coal and natural gas. As you probably know, fossil fuels are nonrenewable because it takes far too many years for nature to reproduce what we are taking away from it. 2 Uses Of Oil Just about anything you can think of that runs off of an engine more than likely uses oil. Just to name off some other uses, oil can...
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...A StateCorporate Environmental Crime Analysis of the 2010 Gulf of Mexico Oil Spill Elizabeth A. Bradshaw Western Michigan University, brads2ea@cmich.edu Follow this and additional works at: http://scholarworks.wmich.edu/dissertations Recommended Citation Bradshaw, Elizabeth A., "Deepwater, Deep Ties, Deep Trouble: A State-Corporate Environmental Crime Analysis of the 2010 Gulf of Mexico Oil Spill" (2012). Dissertations. Paper 53. This Dissertation-Open Access is brought to you for free and open access by the Graduate College at ScholarWorks at WMU. It has been accepted for inclusion in Dissertations by an authorized administrator of ScholarWorks at WMU. For more information, please contact maira.bundza@wmich.edu. DEEPWATER, DEEP TIES, DEEP TROUBLE: A STATE-CORPORATE ENVIRONMENTAL CRIME ANALYSIS OF THE 2010 GULF OF MEXICO OIL SPILL by Elizabeth A. Bradshaw A Dissertation Submitted to the Faculty of The Graduate College in partial fulfillment of the requirements for the Degree of Doctor of Philosophy Department of Sociology Advisor: Ronald C. Kramer, Ph.D. Western Michigan University Kalamazoo, Michigan August 2012 THE GRADUATE COLLEGE WESTERN MICHIGAN UNIVERSITY KALAMAZOO, MICHIGAN June 29, 2012 Date WE HEREBY APPROVE THE DISSERTATION SUBMITTED BY Elizabeth A. Bradshaw ENTITLED Deepwater, Deep Ties, Deep Trouble: A State-Corporate Environmental Crime Analysis of the 2010 Gulf of Mexico Oil Spill AS PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Doctor...
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...BP OIL SPILL Under the Deepwater Horizon, an offshore drilling ring of British Petroleum (BP) caused an oil spill in the Gulf of Mexico. The incident occurred on April 20th 2010, where equipment failed and caused the explosion sinking the ring, and causing the death of 11 workers and more than 17 workers injured. The British based energy company also faced other problems at the site of the oil spill. More than 40 million gallons (estimated data) of oil spewed into the Gulf of Mexico. Oil spill in the Gulf of Mexico is a very serious threat for the wildlife as it causes water pollution. The oil spill effected many coastal areas in the US, like the Louisiana, Alabama, Mississippi and Florida. The oil spill disaster strongly damaged wildlife cycle in the Gulf of Mexico, and many species were thrown into extinction. Similarly, thousands of businesses were thrown into extinction. Many people has questioned the ethical decisions and core value system that BP used to cut corners with the accident; namely, the race to maximize profits at all costs. We are all aware that one of the main causes that let to the disaster were the result of bad decisions, in which a less expensive option (whether to run a test or use a particular kind casing pipe, for example) would save lives. There has been “zero dollars spent on research concerning how to handle oil spills for off-shore drilling by BP despite the company's NET profits - above and beyond all salaries, bonuses, or overhead costs- of...
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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 gas...
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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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