BP CASE ANALYSIS OF THE GULF OF MEXICO OIL SPILL
The world witnessed the largest oil spill in its history in April 2010 in the Gulf of Mexico. The explosion occurred in an oil well of British Petroleum and it is estimated that almost 4.9 billion barrels of oil was leaked to the Atlantic Ocean during the first three months since the incident. The oil spill had devastating effects of the economy and environment of America and the company had to face severe criticism from across the world community.
Macro-environmental factors affecting BP
Political Environment
British Petroleum has held back its dividend payout to its prime stakeholders as they had been under pressure from the United States government regarding the oil spill that had occurred in the Gulf of Mexico. The company had agreed to sell of 30 billion worth of assets to pay off its clean-up bills. The company will resume its prime stakeholder dividend payout at 7 cents/share. British Petroleum is looking forward to sell two of its key refineries in the United States. nited States have threatened to replace BP from the project to seal the exploded well in the deepwater horizon. Obama acknowledged that the Gulf of Mexico contributes a major of its domestic production; he added that offshore oil drilling can be pursued only with an assurance that devastating incidents like the British Petroleum oil spill will not occur in future.
Economic Environment
British Petroleum oil spill has resulted in huge lose in terms of Share price fall and it is estimated to be around $25 bn. Out of this huge amount almost 15 bn is account under facilitating hygienic water supply for the needy people around. To understand the size of amount brought in it is essential to look at what exactly the global online giant Google makes annually ($20 bn). Apart from this an additional cost is likely to incur, BP will be forced to spend