...Crisis Panel BP Gulf of Mexico Oil Spill British Petroleum is a multinational company headquartered in London, United Kingdom. BP dedicates to find, extract, transport, and commercialize oil and gas. BP is the fourth largest global energy company in the world and it is the largest producer of oil and gas in the United States with headquarters in Houston Texas. Since BP started operating in United States has been involved in many environmental and safety scandals. The most recent incident is the Deepwater Horizon oil spill in the Gulf of Mexico near the Louisiana coast. It is the largest accidental marine oil spill in the history of the petroleum industry and it has created a huge damage in the environment. In the morning of April 20, 2010 the Deepwater Horizon exploded; there were 126 members on the platform when fire engulfed the platform, although most of the workers escaped the rig by lifeboat and were subsequently evacuated by boat or airlifted by helicopter for medical treatment; however, eleven workers were never found despite a three-day Coast Guard search operation, and are presumed to have died in the explosion. The fire on the platform lasted for 36 hours and ended by the Deepwater Horizon sank. Two days later after the explosion a large oil slick was discovered at the former side of the platform, it was confirmed that a damaged wellhead was leaking. BP estimated the worst case flow at 162,000 barrels per day. Initial estimates by Coast Guard and BP officials...
Words: 1240 - Pages: 5
...is BP and the Gulf of Mexico Oil Spill which caused so much damage to the environment and also huge economic losses within a short period of time among other damages. Meanwhile, the CEO, Tony Hayward’s response especially about a comment he made on air causes a stir and the fact that BP has got quite a poor safety record, heightened the reaction of the political and public to BP’s involvement in the spill. In short, I’m discussing the communication problem, its causes and symptoms and the application of the communication model. The main communication problem facing BP is their CEO’s choice of words to the public through the media about how no one wanted the problem over than he did and how he wanted his life back which was beyond inconsiderate, insensitive and out of touch by choosing words like that. The problem is affecting BP’s reputation and major implications for the organization of BP forcing them to implement strategies for the unanticipated environmental changes. It will also affect BP’s relationship with the government as the President is already under significant pressure to be tough with BP. The causes include the failure to learn their lesson from previous crisis concerning their number of highly visible US safety issues to implement strategies before the unanticipated event occurred. This would be fair to the concerns of the U.S. Congress to ask Mr. Hayward about whether BP had deliberately traded off safety measures to save costs prior to the spill. The symptoms...
Words: 765 - Pages: 4
...Gulf of Mexico Oil Spill Seven years ago, 2010. The BP oil well deep in the Gulf of Mexico exploded at the Deepwater Horizon drilling rig and left 11 workers dead. The explosion set off the worst offshore oil spill near the Mississippi River Delta and the coasts of Louisiana state. Because of the oil leaking many marine species such as fishes, dolphins, and plants died. Oil spill was noticed on the 4/22/2010, when the BP found a large oil spots began to spread around the Deepwater Horizon. However, the Flow Rate Technical Group estimated the initial flow rate was 5,000 barrels per day, making it the world’s largest accidental spill. (Deepwater Horizon oil spill). The BP company had many attempts to stop the flow of oil. First, they tried to...
Words: 345 - Pages: 2
...During April 2010, BP was involved in the largest oil spill in the history of the petroleum industry. The spill brought about plenty of pollution to the marine wildlife and destroyed Gulf’s fishing and tourism industries. Accordingly, the government established a panel to look into the accident. The investigation result indicated that the accident was unavoidable because of serious of blunders involved in drilling the well. In this essay, I will examine the communication problem that occurred and explore key causes and symptoms related to the problem. Bad management and communication breakdown by BP and its partners are partly to blame for the oil disaster. However, it was BP who was the main culprit for failing to ensure its cost cutting measures did not further increase risks in a dangerous environment. All involved companies were struggling with poor communication between each other, as they failed to share important information. One of the major questions being asked was who was in charge of the command portion of the operations. Some assumed it was BP and its partners while others concluded it to be the government. This confusion lead to all parties pointing the finger at each other rather than finding a plan to control the situation. One of the causes for the oil spill was an engineering one, as many equipments were failed to be inspected on schedule. Poor communication was another cause, as no one had a big picture of what was going on. No structure or plan was put in...
Words: 560 - Pages: 3
...Gulf of Mexico Oil Spill and BP Environmental Clean-Up Deb Schoenwether MGMT 312 Creativity & Innovation December 8, 2010 Submitted By: Joe Panayiotou Angela Merryfield Sonya Meggs Lisa Parker Kristi Mathews Introduction: (Lisa Parker) On April 20, 2010, an explosion occurred on an offshore drilling rig in the Gulf of Mexico, killing 28 people. It was later found that the wellhead was damaged and was leaking oil from the British Petroleum (BP) Oil Refinery into the Gulf of Mexico. In a report on the incident issued by BP on September 8, the company admitted that there were weaknesses in the cement design and testing. It is the largest accidental marine oil spill in the history of the petroleum industry. BP is the third largest energy company and the fourth largest company in the world. BP is headquartered in London, United Kingdom. Its largest division is BP America, which is the biggest producer of oil and gas in the United States and is headquartered in Houston, Texas. (Wikipedia, 2010) This significant oil spill poses a serious threat to people, industries, businesses, wildlife and beaches along the coastal areas of Louisiana, Mississippi, Alabama, and Florida. The spill continues to cause extensive damage to marine and wildlife habitats as well as the Gulf's fishing and tourism industries. BP states that they will recruit a series of teams to clean-up the shorelines and workers will receive safety training before clean-up takes place...
Words: 5245 - Pages: 21
...1. Introduction This report will identify a crisis facing BP company, the Gulf of Mexico spill, and investigate how the organization response to the society. In this report, it will use Legitimacy theory to explain BP’s response to this event. Legitimacy theory can be treated as a explanation for voluntary corporate disclosures in annual report. As (Dowling&Pfeffer, 1975) says a corporation must act in congruence with norms and society value. First of all, Legitimacy theory is based on the concept of substantive rationality and replies upon the notion of a social contract. This theory asserts that organizations seek to ensure that they operate within the bounds and norms of their respective societies (Ramon Mullerat, 2010) .It aims to conform to norms and value of society. As a company, it always use annual report to legitimize the ongoing operation, however, in common situations, it often discloses good news, but its actual behaviors decline which is called legitimacy gap. 2. The case 2.1 Context In April 20, 2010, a semi-submersible drilling platform belongs to BP occurred explosion in American Mexico gulf. It caused 11people die and 17 people injured after 36 hours (CBC News, 2010). BP Company announced that it wills to response for this event. The Gulf of Mexico spill has become the worst environmental crisis in America. Except the direct cost, it will also attack people’s life, such as air and water safe. At the same time, it is a huge disaster for seaside...
Words: 1322 - Pages: 6
...On July 27, 2010 oil began leaking from a well off the coast of New Mexico. This spill, classified as an accidental spill, will greatly affect worldwide business and business practices. Before the conclusion of the oil spill, 4.4 million barrels of oil will have leaked into the Gulf of Mexico. This catastrophic event will have a clear negative effect on international business that will in turn people living and working throughout the world. The primary business that was affected by the oil spill was the seafood market. Many worldwide seafood distributers and restaurants rely on this region for the products that make their business successful. According to Jaquetta White, the spill has decreased the number of crabs, lobsters, and other types of ocean fish produced around the world. The area that was affected by the spill was extremely rich in crabs which were exported to the many worldwide businesses that needed them. According to Scott O'Connell, the other type of crustacean that was affected was shrimp. The Gulf region has an abundant population of shrimp that are exported all around the world but especially to Mexico. In addition to negative seafood sales across the world, was the impact to fishermen and their crews when they could not continue to capture their product from the oily waters. The economic interdependence of these businesses was greatly compromised from the fishermen at the ocean level to the worldwide businesses that did not receive their product (nola.com)...
Words: 1466 - Pages: 6
...The Gulf of Mexico oil spill The Gulf of Mexico oil spill is the biggest environmental disaster in the United States. The British Petroleum oil spill is caused by a broken drill ring pipe line and it led to a huge oil spill in the ocean of the Gulf of Mexico. There were about 4.9 million barrels of oil floating in the Gulf of Mexico which caused extensive damage to the marines. The Gulf of Mexico oil spill has threated many of people live and it also has a big effect on wildlife, tourism and the economy. The Gulf of Mexico spill has affected the wildlife in the ocean. The thickness of the oil had killed many of the wildlife such as fishes, dolphins, sharks, eels and turtles; it also killed birds, ducks and mammals. It is really stressful situation knowing that the Gulf of Mexico oil spill had killed all these wildlife that cannot be replaced. The Gulf of Mexico oil spill has affected tourism in many ways. The state had lost millions of dollars from tourism due to the oil spill. The oil spill had polluted many of the coast beaches which caused tourist to cancel their vacation. The Gulf of Mexico oil spill has a big impact on tourism industry in the west coast. The Gulf of Mexico oil spill has huge effect of the economy. The Gulf of Mexico has affected many of the business, seafood industry supplies, employees and top provider of shrimp, oysters, crab and crawfish But the ban affects hundreds of thousands of commercial and recreational fishermen...
Words: 350 - Pages: 2
...Oil Spill The disaster that occurred in the Gulf of Mexico on April 20, 2010 was a huge deal to our nation. I'm sure that everyone old enough to understand heard about the oil spill. The spill was very bad, but I believe we got lucky because it could have been even worse than it ended up to be. The oil flowed into the open ocean for over three months, but it was originally thought that it was going to take even longer to stop. A oil spill of that magnitude could severely damage any environment that it was spilt into. The corporation BP took much heat from the government, along with everyone around the country for causing the leak, and not fixing it quick enough. The fact is, once the leak started as it did, it was a very hard problem for them to stop. My paper will cover three elements of this horrible disaster: First, the ecological impact on life in the gulf after the spill, Second, the current economic life of the local communities, and lastly, what is being done to mitigate future consequences. First, obviously the oil spill in the Gulf of Mexico left an ecological impact on life in the gulf, and surrounding areas. On July 15, the leak was stopped by capping the gushing wellhead, after it had released about 4.9 million barrels,^ or 205.8 million gallons of crude oil. That is a whole lot of oil being released, so the impact that it had on the environment was a big one. Actually, it was the largest accidental marine oil spill in history. Obviously the marine...
Words: 1250 - Pages: 5
...The Gulf oil spill is recognized as the worst disaster in U.S. history.(Worse than not graduating high school) Within days of the April 20, 2010 explosion and sinking of the Deepwater Horizon oil rig in the Gulf of Mexico that killed 11 people, underwater cameras revealed the BP pipe was leaking oil and gas on the ocean floor about 42 miles off the coast of Louisiana. By the time the well was capped on July 15, 2010 (87 days later), an estimated 4.9 million barrels of oil had leaked into the Gulf. The well was located over 5,000 feet beneath the water’s surface in the vast frontier of the deep sea—a permanently dark environment, marked by constantly cold temperatures just above freezing and extremely high pressures. Scientists divide the ocean into at least three zones, and the deep ocean accounts for about three-quarters of Earth’s total ocean volume. Immediately after the explosion, workers from BP and Transocean (owner of the Deepwater Horizon rig), and many government agencies tried to control the spread of the oil to beaches and other coastal ecosystems using floating booms to contain surface oil and chemical oil dispersants to break it down underwater. Additionally, numerous scientists and researchers descended upon the Gulf region to gather data. Researchers are still trying to understand the spill and its impact on marine life, the Gulf coast, and human communities. Over the course of 87 days, the damaged Macondo wellhead, located around 5,000 feet beneath the ocean's...
Words: 2714 - Pages: 11
...THE GULF 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...
Words: 3037 - Pages: 13
...Stephanie Angulo AC1408307 SC260.2.1 Introduction to Ecology Assignment 8: Ecological Crisis of the BP Oil Spill April 25th 2015 On April 20th, 2010, a massive offshore drilling rig, formal known as the Deepwater Horizon, exploded and set fire. The explosion caused oil pipes to burst and spill thousands of barrels of oil into the Golf of Mexico. According to Do Something, an environmental website, have reported the death and injury of 28, more than 8,000 animals dead within six months, and 16,000 miles of coastline pollution (11 facts about BP oil spill). The BP oil spill has since became one of the worst ecological disaster in America's history. People living near the coast line has been affected due to polluted air and water. Many children had been sick and they had problem breathing fresh air. There were several issues with this oil spill: professional issues, ethics and new technology issues, legal, regulatory and political, safety issues, and environmental issues. If BP would have taken care of all these issues there had been no oil spill. The oil spill is the result of a series of events that eventually led to tens of thousands of barrels of petroleum to be leaked into the gulf. In September, BP released a report that analyzed the events leading up to the incident. The report shows that the fire was caused by a release of hydrocarbons from the well, and them onto the oil rig (BP internal investgation team) The Deepwater horizon was equipped with fail-safe mechanisms in...
Words: 855 - Pages: 4
...of the BP Oil Spill The rest of the world has long forgotten the disaster that tore through the states along the Gulf of Mexico. Its lingering effects can still be felt three years later. The Deepwater Horizon oil spill in 2010, otherwise known as the BP oil spill, has left the states of Florida, Alabama, Mississippi, and Louisiana in recovery mode. The oil spill not only affected the ecology of these states, but also the economy. This tragic disaster claimed the lives of eleven men. It also disrupted the way of life for the numerous people employed by the seafood industry, and its consumers. The shrimping industry located in these states in the year 2006 accounted for “83% of the total US shrimp landings”, according to John Tunnell (2011). Based on the results of the survey I conducted in Biloxi, MS, along with research I have done, I have found that locally both consumers and businesses are more willing to support the local shrimp industry than they are to purchase imported shrimp. However, on a global scale consumers are still wary of eating shrimp caught anywhere on or near the Gulf Coast. The people residing on the Gulf Coast of the United States of America are a resilient group. They have endured three consecutive extraordinary catastrophes: Hurricane Katrina, the BP Oil Spill, and the Mississippi River Floods, and still somehow have continued to strive and continue their way of life. However, the shrimp industry took a huge hit after the BP Oil spill. According...
Words: 2464 - Pages: 10
...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...
Words: 2786 - Pages: 12
...Beijing No. 55 High School BP Deepwater Horizon Oil Spill Investigation Subject: Geography Level: High (HL) Name: Stephanie Chinese: 姜智旻 Homeroom: 10-5 Word count: 1088 Student number: 4192 Supervisor: Craig Hamilton On 20th of August 2010, the oil drilling rig Deepwater Horizon, operating in the Gulf of Mexico exploded then sunk resulting to 11 deaths. During the 87 days, about 4.9 billion barrels of oil had already spread. An estimation of 42,000 gallon of oil is oozing from underwater. From then 75,000km2 was not allowed for fishing. Apparently, the blowout preventer device had bad managements and operations, and failed. Investigators said, “The problems with this blowout preventer were worse than we understood.” (Seth, 2014) In addition, investigators have stated that the cause of this explosion was because of the screw ups with cement, drilling mud, fluid pressure, mismanaged tests, and poor decisions. Therefore, this device should be improved so it doesn’t happen again. They have discovered that it has been the device operator’s fault in view of the fact that the blowout preventer hasn’t been tested accurately, there were problems in the wiring and dead batteries. In order to clean the oil excess, they used powerful chemicals, which they don’t know the effects of on the environment. It was from 1.6km down to the bottom. After this cause, the British Petroleum (BP) went into investigation, negotiating with more than 50 expertise from within BP and industry....
Words: 1281 - Pages: 6
