The Exploration Of British Petroleum

The key takeaways from this case are the importance of having a decision making process in place, as well as not relying on bias to fix a situation. There should have been policies and procedures in place so that when disaster strikes there are guidelines to follow. The model for rational decision making could have been followed. The problem should have been identified, general alternative solutions should have been discussed, evaluate alternatives and select a solutions, and then finally implement and evaluate the solution that was chosen. Had BP and Transocean had effective communication the oil rig may not have caused such a disaster (Kreitner & Kinicki, 2013).

who will ultimately be held responsible and will they adequately compensate the families of the victims, BP who leased the rig, Transocean who owned the rig, Hyundai Heavy Industries who built the rig or MMS who conducted the inspections on the rig.

The BP Gulf of Mexico oil spill tells the tragic story of what happened on the Deepwater Horizon drilling rig back in April 2010. The rig, leased from another vendor, was digging a well on the Macondo slope in the Gulf when it exploded and fatally killed eleven employees and injured seventeen others (Crandall, Parnell, & Spillan, 2014). Not to mention, five million barrels of oil spilled into the sea causing an environmental issue that lasted more than ninety days.

BP focuses their technology investment in areas that will make the greatest impact on their

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

Part 1 - Ethical Dilemmas- The accident elicited many feelings anger, disillusionment, disgust, and even employees feeling like they were let down because BP had not backed up its values promised to

BP has had a long history of ethical and legal violations because BP chose to put profits above all else. In the past twenty years, BP subsidiaries were convicted of environmental crimes in Texas and Alaska. In addition, BP received the biggest fine in US history regarding safety violations. Although BP accepted responsibility, their record showed questionable and illegal behavior for twenty years. One of BP's major issues happened in a Texas refinery close to Galveston in 2005 (Jennings, 2009). This explosion took the lives of fifteen workers and injured five hundred people and caused residents nearby to become sheltered in their homes (Jennings, 2009). The US Chemical Safety and Hazard Investigation board concluded that BP had

BP had rented the rig from Transocean for $500,000 per day. Transocean had been recognized by the U.S. government for its safety record. Can companies distance themselves from liability and responsibility through the use of contractors?

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

Currently, the conventional approach is to aggressively explore and develop new fields. This has led to a growth in drilling deeper wells and looking to ‘off-shore’ sites for new production of ‘light’ crude. However, as recent events in the Gulf of Mexico demonstrate with the British Petroleum incident and the resulting clean-up costs and loss of credibility, this approach has risks. It

The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. This reputation is even more critical when a business has is known globally with holdings and operations around the world. Such is the case with British Petroleum (BP) as it actively explores for oil in 26 countries around the world. BP is renowned as an industry leader in oil production and the refinement of oil related products such as gasoline, kerosene and motor oil products. In 1999, BP acquired American Oil Company, also

The oil spill in the Gulf of Mexico in 2010 resulted in considerable damage to the environment, economy and human livelihoods. While BP, as one of the parties involved in the operation of the oil drilling on Deepwater Horizon rig, suffered huge financial loss and reputation loss, it was found to be the one to be mostly blamed due to its lack of risk management. As poor risk management can lead to an astonishing disaster like this, it appears to be necessary for every business to learn from BP’s mistakes and try the best to prevent such disaster from happening again. This report studies this case, focusing on two issues identified in BP’s risk management practices, namely its sloppy preparation for risks and its inappropriate communication strategy after the crisis happened. No evidence showed that BP had a sufficient emergency plan for the worst-case deep-water oil spill although the depth of the oil drilling was one of the deepest. BP’s unseriousness towards safety was also indicated in their attempt to shift blames to its contractors and the unaccountability shown by the words of BP’s executives during interviews. Based on the examination of BP’s deficiency in risk management, the lessons that can be learned from it are discussed. In brief, firstly, accurate risk assessment and appropriate emergency plan should be available before the operation is started. Secondly, post-crisis communication should show the world that the company cares and is accountable

Although the accident was caused by a mechanical failure, it spiralled out of control because of an insufficient safety system. BP acted inefficiently and their carelessness cost the lives of people and damaged the environment, nevertheless this does not mean they acted in an unethical way as

“The production manager should control the manufacturing processes so as to eliminate any defective items, identify any weakness that become apparent during production.”(Manuel 2006). BP failed to follow safety regulations as a matter of fact. Right after the spill happened, BP’s diplomat has claimed that there was no one to blame, even the people who worked in the pipe line, their jobs were normally done. If you look for mistakes, you will find some. It was just a freak accident that was not expected from the situation. However, as the investigation went further, more and more evidence has been shown that it was not an accident but negligence. They didn’t do proper testing, for example, BP halted tests on the well lining five days before the explosion and kept oilfield testing firm Schlumberger on standby, according to NOLA. It had no plans to conduct a cement bond log test, which uses Sonics to identify weaknesses in the cement, known as a gold standard test. Also, Oil rig worker Mike Mason told Huffington Post he observed cheating on blowout preventer tests at least 100 times, including on wells owned by BP. In many cases, Mason says, BP employees were present while subcontractors faked the tests. Obviously, the systems failed and failed badly. BP violated the duty of exercising adequate quality controls over high-tech materials which caused the leaking happened. In addition, BP continually disregards safety and morality for profits. They are

BP tends to make bets that others don’t which is most likely why the disastrous deep water horizon oil spill occurred in the Gulf of Mexico five years ago. The fire burned for 36 hours while hydrocarbons leaked into the gulf before the well was sealed, unfortunately eleven individuals died. It has been difficult for BP to be the best company right now since this falling and they have been in reparation mode since this catastrophe. However, BP is now incorporating high safety and showed everyone that they are very reliable on the recovery of this hardship of BP trying to mix oil with water. BP came together to control the situation, cleanup, and diminish as much contamination as possible into the gulf. In addition, they are devoted long term to improve the Gulf of Mexico’s bionetwork and promise to be more careful so this will not happen again.