Rafique Sheikh. MGMT 518: Legal & Ethical Env. of Business
BP’s ethical conduct concerning the Deep Horizon blowout
Background:
The Deepwater Horizon oil spill or the BP oil spill refers to the oil spill in the Gulf of Mexico which flowed for three months in 2010. The spill was a result of the explosion of Deepwater Horizon, which drilled on the BP-operated Macondo Prospect. The explosion killed 11 men working on the platform and injured 17 others (Summarized from Wikipedia article on: “Deepwater Horizon oil spill” http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill )
In the following text we will analyze the Deep Water Horizon Oil Spill from some of the well-known ethical perspectives.
From the Perspective of the
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When we look at the effect of the deepwater oil spill on other stakeholders, we see that they were impacted more negatively. There were 11 people killed and 17 were injured. Although the number of people in this group is small, losses of life and health weigh heavily on the scale as we assess the consequences of BP’s decision to forego the back-up switch.
Many have described the post-spill Gulf as a gigantic chemical experiment, with as yet unknown effect on its delicate ecosystem. By July 2010, one third of the Gulf’s fishing area—more than 80,000 square miles—had been closed, affecting the livelihood of thousands in coastal Louisiana and Mississippi.
Applying the theory of Utilitarianism to the Deep Water Horizon Oil Spill we see that BP’s decisions in this case don’t appear clearly ethical. The harms to human and environmental stability caused by the spill seem to weigh heavily against the benefits to the local and U.S. economy of deepwater drilling itself.
From the Deontology Perspective:
The Deontological ethics is marked by steadfastness to universal principles—for example, respect for life, fairness, telling the truth, keeping promises—no matter what the consequences (Halbert, Law & Ethics in the Business Environment. pg. 17).
In Deontological terms, the fact that BP withheld accurate and important information, combined with its superior access to it, violated the categorical imperative.
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
In 2010, BP’s Deepwater Horizon rig exploded, causing millions of barrels of crude oil to be leaked out into the Gulf of Mexico. The extensive oil spill created a lot of pollution and far-reaching effects on the tourism industry. The resultant damage to marine wildlife such as fish will continue to be felt for many years to come. Weeks after the event, and while it was still in progress, the Deep Water Horizon oil spill was being discussed as a disaster that will impact global economies, markets, and mining policies. The potential consequences included structural shifts in energy policy, insurance marketplaces and risk assessment, and financial liabilities to be incurred by BP. The law that affected the operation of BP’s business was the Clean Water Act, which regulates the discharge of pollutants in US’s waters (EPA, 2008). Following the oil spill, regulations have been put in place to regulate oil drilling operations. The Obama administration proposed new regulations on offshore oil and gas drilling. The regulation focused on oil and gas drilling companies to use stronger blowout Preventers that have the capability to close an offshore well in case a drilling breach occurred accidentally.
In an article posted by CNN, it is revealed that "BP was ruled responsible for the release of 3.1 million barrels" (Griffin et al). The process of removing the oil is in progress, but there is still a magnitude of oil to be cleaned up. This disaster did not only affect the environment, but it also affected the workers involved. It is also mentioned in the article that eleven workers died. The disaster affected the lives of many people other than the oil rig workers, however. There have been some concerns about the quality of seafood being produced from the area, along with the health effects it had on the community. The New England Journal of Medicine mentions in their article that " Louisiana reported 415 self-identified health problems believed to be related to the Gulf oil spill" (Goldstein et al). The oil spill has had a profound effect on the gulf coast community and will continue to for many years to come. Hopefully, this horrible event can be a lesson for the future, so that more precautions are taken to benefit nature and
The explosion on the Deepwater Horizon oil rig that started it all killed 11 people and injured 17. On April 20, 2010, a
The Deepwater Horizon Oil Spill occurred on April 20, 2010 in the Gulf of Mexico. This oil spill was the largest spill in history in front of the Exxon Valdez oil spill of 1989. This oil spill released about 4.9 million barrels of oil into the ocean. This spill not only wreck havoc on the marine life but also the economic players that depended on ocean such as fisherman, tourism, and offshore drilling located along the gulf coast. Along will the spill the oil rig which was named Deepwater Horizon also went up in flames. This proved that the issue went far beyond just an oil rig that blew a line. Since this oil spill had drastic impacts all along the coast, BP which was the most liable for this incident faced criminal charges based on what happened. BP which knew the risks of deep ocean drilling failed to take the necessary safety procedures to reduce the risks of such incident occurring, thus was the reasoning behind placing most of the fault on them and not the other companies. The lack of regulatory oversight led to the issues and cost-cutting procedures opened the rig up to possible malfunctions like the one that occurred. During the spill into the gulf, BP sealed the well with cement which seemed to stop a majority of the oil from escaping the well. BP also recognized that the well was “dead” which was proven wrong when scientists still could conclude was leaking minor amounts of oil into the ocean. This spill not only proved to be harmful to the environment but also
King, Rawle O. 2013. Deepwater Horizon Oil Spill Disaster. 1st ed. [Place of publication not identified]: Bibliogov.
On the Deepwater Horizon oil rig the largest marine oil spill occurred all caused by an explosion. The oil spill caused a “Colossal” damage to its surrounding environment. Spreading to the coasts of many states in the Gulf of Mexico, such as Louisiana, Mississippi, Alabama, and part of Florida's. The people living in these coast are stakeholders of the Deepwater Horizon oil spill. Said it is “The oil well over which it was positioned was located on the seabed 4,993 feet below the surface and extended approximately 18,000 feet into the rock,” (Pallardy, 2016). Still collapsed erupting into and
The structure of business ethics is voluntary, legal, and core practices. BP and Exxon had an obligation to act ethically in all three areas. Exxon’s 3rd mate was not license to pilot through Prince William Sound. The captain was drunk and asleep and when he was awake and in charge he ignored the Coast Guard’s recommendations. Exxon knew the captain had issues with alcohol. The company hired to do the clean-up was ill-prepared, had damaged equipment, and they also did not have enough equipment to handle the spill. By all appearance BP presented an image
The catastrophe with the Deepwater Horizon was horrible. Eleven people lost their lives that day, and marine wildlife was affected along with other economic issues for anglers and tourism industries. The Deepwater Horizon oil spill had devastating effects on the local environment and on the public perception of offshore oil drilling. Five million barrels of oil over a three-month period flooded the Gulf of Mexico. The Macondo oil spill, which is what it became called, had an overwhelming impact on the environment. Moreover, oil was scattered over 1300 miles of shoreline from Texas to Florida. In an attempt to clean up the spill, there was incalculable damage was done to fish and other wildlife, marshes, and estuaries. As bad as the Macondo
There were a number of causes for the Deepwater Horizon oil spill, most of which had more to do with the human element that with any technology itself. The four biggest ways that humans contributed to the disaster, as explained by journalist David Coburn, was the fact that British Petroleum’s (BP) past success built a sense of complacency, the shifting the burden of proof, the normalization of deviance and the fact that promoters for an industry also serve as that industry’s regulatory enforcers.
The complete analysis of stakeholders who are impacted by this situation are too broad, some stakeholders include shareholders and investors of BP; employees and managers working in BP; customers who purchase oil from BP; local communities; victims of the oil spillage; local and
These social responsibilities and many other ethical issues were realized by many people when on April 20, 2010 British Petroleum had a major oil spill in the Gulf of Mexico. Also, known as the Deepwater Horizon Oil Spill, the BP Oil Disaster, the Gulf of Mexico Oil Spill, or the Macondo Blowout. BP was mostly at fault, but Transocean, the rig operator, and Halliburton, the contractor,
With the huge impact of the oil spill on marine life and coastal regions, fishing and tourism industries of the places affected in the Gulf Coast severely declined. In the fishing industry, the incident led to an approximate $2.5 billion loss, while tourist industries experienced a loss of a predicted $23 billion (Jarvis, 2010). In addition, the moratorium placed on deep water drilling left 58,000 workers unemployed (ibid).
The BP Oil Spill An Introductory Background - One of the most controversial ecological disasters in recent history focused on multinational British Petroleum and their Gulf of Mexico Operations. The Deepwater Oil Disaster began on April 20, 2010 with an explosion on the Deepwater Horizon Oil platform, killing 11, injuring 17. It was not until July 15th, however, that the leak was stopped by capping the wellhead, after releasing almost 5 million barrels (206 million gallons) of crude oil, or 53,000 barrels per day into the Gulf of Mexico. It was not until September 19th that the relief well process was complete and the U.S. Government, EPA, and Coast Guard agencies declared the well breach effectively stopped (Cavnar, 2010).
BP, formerly known as British Petroleum, is the third largest oil and gas producer in the world, producing almost 3.8 million barrels per day. BP was founded in 1908 by William Knox D’Arcy in London, United Kingdom. The company operates worldwide in several sectors of the oil and gas industry such as generating low carbon energy, moving oil and gas, and off and onshore oil and gas extraction (BP, 2014). However, the offshore Deepwater Horizon oil spill that happened on April 20th, 2010 in the Gulf of Mexico was one of the greatest oil spills that took place in history. The disaster caused the loss of the lives of 11 workers, severely injuring 17 workers, and the aftermath had a great impact on the environment in the Gulf of Mexico.