The BP Deepwater Horizon Oil Spill: Effect On Business

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.

Many seafood companies prices fluctuate because a whole number of reasons. Have you ever thought why though? They even have to take some foods completely off their menus. A lot of the time this is because of an oil spill that kills so much of the environment that a lot of the sea animals die or even become endangered. The BP Deepwater Horizon spill in 2010 is a great example of this. It spilled 200 million gallons of crude oil into the Gulf of Mexico in 87 days. The area of the spill alone had over 8,000 species, which already had 39 endangered species and added 14 new species to the endangered list. Not only did we lose animals but “Eleven people died as a result of the accident and 17 others were injured”(BP Staff).

This paper includes information regarding the BP Oil spill. References are listed at the bottom.

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 biggest industry that was affected because of the 2010 BP oil spill was the seafood industry. The gulf coast is where majority of the U.S seafood comes from, and the oil from the

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

As the National Commission report put it: “The immediate causes of the Macondo well blowout can be

Since the ocean affected by the spill, the cockroaches from the sea became unhealthy/ill and the number of fishes decreased each day. Many businesses started to go down which made employees lose their job.

A wealthy British gentleman by the name of William D’Arcy is the founder of the world famous gas station BP. D’Arcy had a thrill over oil and decided to invest all of his savings in the quest for oil in the Middle East. Experts and scientists helped encourage D’Arcy to pursue the venture. But years started to pass and funds starting to run low, William was starting to feel as if this was the wrong investment. Throughout the years BP has gone through a plethora of ups and downs. From bankruptcy, to not being able to transport oil to desired location, and also having more oil than they could sell and not having a demand for it. Also BP has had disasters related to social responsibility, and before the major oil spill in 2010,

Everyday, we emit harmful gases into the atmosphere and are slowly, but surely, damaging the earth. Being the only known planet with the ability to sustain life, you would think we would take greater care in protecting our home. In my life and career, I want to collaborate with others towards creating more environmentally friendly fuels to power our society; during this time, I want to work towards finding more effective techniques of extracting oil, in comparison to current methods such as fracking. I believe these goals to be very achievable by obtaining a degree in petroleum engineering, then continuing on to graduate school. The Deepwater Horizon oil spill, and a 2013 study that turned algae into oil in under an hour, are the two dominant reasons I have been drawn to the petroleum field.

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.

The effect of oil spill is usually calculated in terms of damage on the environment, aftermath on marine species, and effect on the tourism and fishery industries. The impact on human health is less known relatively. The financial costs associated with oil spills are also a factor. Arguably, it is a less serious consequence of an Oil Spill, however the financial costs have the potential to bankrupt an organization. BP suffered major financial loss as a result of the Oil Spill in the Gulf of Mexico. They have paid up to $1.5 billion in an effort to settle various claims and compensation. (BP, n.d)

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).

On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a result, a huge loss of money and life was caused and affected serious environmental damage to wild animals and water pollution. BP was accused of their irresponsibility that it took 87 days before the well was closed and sealed. BP’s shares

Deepwater Horizon oil Spill: BP’s drilling platform in the Gulf of Mexico had an explosion in April 2010, causing the “largest oil spill catastrophe in the petroleum industry history”. It caused the death of 11 men and injury to several others. “More than 150,000 barrels of crude oil gushed into the sea, every day, for almost 5 months and up to 68,000 square miles of the Gulf 's surface were covered” (1).