report on the oil spill in the gulf of mexico - bp

8/6/2019 Report on the Oil Spill in the Gulf of Mexico - BP

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Imperial Institute of Higher Education

REPORT ON

BRITISH PETROLIUM

OIL SPIL IN THE GULF OF MEXICO

2011



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Acknowledgements

I Wish to Extend my Sincere Appreciation to;

� Mr. Trevor Mendis, my International Business lecturer,for being my guiding light

and providing me with necessary support and for inspiring me to carry out this

assignment.

� All individuals who volunteered to contribute their opinions and thoughts to the

project.

� Administration staff of IIHE for rending their support.

� To all my friends who contributed in numerous ways in helping me throughout my

assignment.



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To : Director General ± United Nations

From : Chief Executive Officer ± Environmental Authority

Subject: Oil Spill in the Gulf of Mexico

Date : 22nd

May 2011

After years of drilling the earliest oil wells are in shallow waters near the coast, drilling had

made the wells more depleted instigating Multi National¶s (MNC¶s) to drill in deeper waters.

However the consequences of drilling into deep water are very much detrimental onecological terms. The challenges are such that it could increase the pressure eventually

increasing the temperature thus could result in the metals to be stressed out.

The oil industry is craftingstate of the art technologically in terms of advanced equipment to

tackle these issues, but the fact that comes to light is such that it is practically impossible to

equip with an answerfor every new problem that may arise through simulations.

Detail research and findings have shown various opinions on ³what really happened?´ which

can be argued in many ways. But the findings derived showedthat the Transocean, under

contract with British Petroleum (BP), was attempting to drill a new well, not too far from

existing wells in a deep water area of the Gulf of Mexico. Thewell was almost completed;

the oil well gave the impression that it was out of danger for a possible blow out since the

casing were well protected by cement and the arrangements were also made to get the pipe

line installed.

Seemingly, a pressure heavehad taken placethat could not be controlled.Thegearhad included

all kinds of alarms and controls, and a massive 475 ton device named a blowout preventer,still for all it was not possible to control the hydrocarbon flow. It should also be stated that at

such high pressures, the natural gas had separated the oil inside the hydrocarbon stream and

had triggered it to an explosion. Some of the experts suggest that the strength of the pipes (to



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withstand the underwater pressure) might have made it impossible for the shear rams in the

blowout preventer to slam shut and cut off the pipe, as they were intended to do.

While others perhaps think that metallurgical failure at such great depths may havecontributed to the accident. It is possible that there was some element of human error as well.

Without a thorough investigation, it is impossible to know exactly what happened, and even

then, there are likely to be gaps in our knowledge.

In common oil is said to be a scarce resource, and the industry is running short of places that

are considered to be good and inexpensive to drill, but due to poor management and unethical

practices such wells are becoming fewer and fewer and the world is left with is well which

are expensive hard to extract oil.

Oil Spill effect in the Gulf of Mexico has had an adverse impact on the natural balance and

the lively hood of the people.Wild life has been seen a devastation in terms of the blow out,

hence the oil penetrates into the feathers of the birds thus reducing the protecting

ability.Apart from reducing the protectiveness it reduces the flexibility in the water. Oil

covered feathers causes¶ kidney damage, malfunction of liver and digestive system. It was

shocking to see more than 6500 animals were collected off shore whilst many were birds, sea

turtles, dolphins and mammals

It should also be note that certain types of toxic effects can cause skin damages to some of the

vital organs results the animal to be vulnerable. Indirect effects include reduced growth rates,

higher mortality rates. Experts argue that this was of the worst oil spill in U.S. and it is the

largest of all. The reaction to the blowout was so massive in terms of volume. And it was

unknown in terms of how it much of an impact it can cause.

Furthermore, critics argue that researchers should have well in advance looked into spills and

blowouts and could have suggestions to prevent such disasters occurring beneath 6000 feet.

Apart from the animals being killed the blow out took the life of eleven men and injuring

more than fifteen within a matter of minutes.



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The world oil supplies deplete. We will really have to fight to avoid this natural

rearrangement, and even then, we may not likely to be very successful.

British Petroleum (BP), bases its location in London renowned for its energy has its owndownfalls in relation to environmental hazards, from Exxon Valdez to modern day gulf spill

BP has been in trouble.BP has found themselves in a number of unethical practices and

decisions that has resulted in their reputation to fall. Today organizations areto make profits

for their stakeholders. However, unethical practices do not hold back profits by damaging the

company¶s reputation and should not cause an adverse impact on society.

British Petroleum throughout the years had the history of unethical practices. BP faced its

worst disaster in 2005, when one of their oil refineries situated in, Texas, blasted killing more

than ten individualsand injuring more than one hundred individuals and forced thousands of

residents to take up shelter.

Several Investigationsconcluded, ³organizational and safety deficiencies at all levels of the

BP corporation.´ BPwas pleaded guilty to that violated the Clean Air Act and was fined fifty

million while receiving a three year probation sentence.The Health and Safety

Administration issued the largest fine in history amounting to, $87 million, to BP after

conducting their investigation and also discovered over 250 violations that had been

previously cited. 270 Ethical problems can be seen which were ignored and not solved by BP.

Apart from the above in 2006, BP had to pay 20 $million and was found guilty to a federal

offense in criminal penalties.It was estimated that more than two hundred thousand gallonsof

oil had leaked into Alaska. By ignoring the warnings and red flags BP has started to show

ethical problems that could have been stopped.

Refineries are considered to be the largest polluters and problems for BP arise due to such

refineries where crude oil is refined such refineries and from states like Canada. An

expansion in oil refinery had resulted 50 % more ammonia and 40 % more mud in 2007.

Such ammonia can kill fish and activate beach closings. And the aforesaid mud contains

nickel and lead metals. BP continues its ways and means to generate ethical problems in all

forms of environmental issues.



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Looking at the history of BP even after three years of unethical practices and decisions

conducted by BP, we are looking forward to see some form of change in the ethical

behaviour drop in its practices. These findings and expert opinionsillustrate the unethical

behavior of conducted by BP. In addition critics argue that company¶s poor safety culture

could be on of the vital reasons, they vehemently neglected human performances, long shifts

fatigue and company¶s safety culture.

Disciplinary actions throughout the years have proclaimed the value or the essence of safety

in relation to their global operation. Interestingly being Multinational British petroleum

revised its goal aiming to achieve ³No Accidents, No Harm to People, andno damage to the

environment´.

It must be stated it is a good move by the company to revise their sustainability review.

And meaningfully to overcome issues that were mentioned above BP uses various

mechanisms that include ongoing training programs, risk management programs and culture

on kaizan (continuous improvement) by doing so would allow the firm to be consistent in its

management process. Moreover in an industry like such creating an environmentally friendly

and healthy workspace is of utmost importance. Necessary steps are being taken to improve

on the process safety not merely focusing upon occupational safety.

Safety Culture

BP is looking to adopt a safety culture in its working environment, a safety culture is about

the individual and group values, competencies, perceptions and attitudes which determines a

firms health and safety management. In simple terms safety culture is doing the right thing

even when no one is watching. BP currently looks at both occupational safety and process

safety.

Transformation into a good corporate citizen ship can be seen as strategy that is been used by

BP which allows them to gain shareholder confidence, they had launched projects by helping

those who have affected by the oil spill crisis. Building a good rapport with the community

would surely go in handy in terms if protection and expansion. A collaborated effort was

made to settle of all the claims.



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The fossil fuel technology is considered to be dangerous for businesses, species and society

BP should focus its attention in investing in better measures rather not investing on carbon

emitting fuel.

British Petroleum being a multinational should behave more ethically and socially

responsible

The key idea behind an MNC should have a clear focus towards the people and planet, not

merely focusing on profits, in simple terms it should be green, and performance driven.

policies do play a pivotal role in it is advisable that BP should not stand apart from the people

hence societies play a vital role in building positive relationships, the activities that are

directed towards the society should be carefully drafted hence a small hitch could bedetrimental to its reputation. A company¶s reputation is looked upon by assessing the benefits

that it provides to the community. It might be surprising to note that sometimes there can be

damaging consequences even if the intentions are good. Policy makers are quite often

surprised by the judgments.

A high level of integrity should be maintained at all possible levels including customers,

suppliers and the public. By doing so would certainly build a good rapport.

Conclusion

Multi Nationals (MNC¶s) today are becoming a powerful source of competition for most of

the domestic players; MNC¶s do have its own share of benefits that they offer to the host

country whilst its limitations are such that it could have an adverse impact on the culture.

Hence its crucial to know the aims and objectives of such firms in order to safe guard both

people and the planet. Hence most MNC¶s motives are directed towards profits.

In the above scenario even in the case of British Petroleum, sheer negligence and lack of

control mechanisms had led to a scenario which caused a natural imbalance. Even today wild

life and ecology are facing the repercussions of the oil spill.

MNC¶s like British Petroleum should be ethical and ecofriendly since the industry that they

are working is sensitive and could cause substantial damage to the People and the planet if

not managed effectively.



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References

1. Gillis, Justin (2010-05-18). "Giant Plumes of Oil Forming Under the Gulf". The New

York Times (The New York Times Company). Retrieved 2011-05-22.

2. Gutman, Matt; Netter, Sarah (2010-12-03). "Submarine Dive Finds Oil, Dead Sea

Life at Bottom of Gulf of Mexico". ABS News. Retrieved 2011-05-26.

3. Staff (2010-05-01). "Guard mobilized, BP will foot bill". P olitico Blog (Capitol News

Company LLC). Retrieved 2010-05-26.

4. Daniel Bates (30 August 2010). "BP accepts blame for Gulf of Mexico spill after

leaked memo reveals engineer misread pressure reading". Dailymail.co.uk. Retrieved

2011-05-30.

5. "Transocean Deepwater Horizon specifications".Transocean. Retrieved 2011-05-30..

6. Deepwater Horizon Sinks Offshore Louisiana". RIGZO NE Indu stry News, S tories, Analysis and E d itorial . 2011-05-30..

7. Reddall, Braden (2010-04-22). "Transocean rig loss's financial impact

mulled". Reuters. Retrieved 2011-05-26.

8. Jervis, Rick (2010-04-21). "At least 11 workers missing after La. oil rig

explosion". U SA Toda y. Associated Press. Retrieved 2011-05-27..

9. BP (April 21, 2010). "BP confirms that Transocean Ltd issued the following

statement today". Press release. Retrieved May 27, 2011.

10. Macondo Prospect, Gulf of Mexico, USA". offshore-technology.com. Net Resources

International. 2005-10-20. Retrieved May 31, 2011.

11. Brenner, Noah; Guegel, Anthony; HweeHwee, Tan; Pitt, Anthea (2010-04-

22). "Coast Guard confirms Horizon sinks". Up stream Online (NHST Media Group).

Retrieved 2011-05-22.

12. Leo King (12 November 2010). "Deepwater Horizon modelling software showed

BP cement conditions unstable". Computerworld UK. Retrieved 30May 2011.

13. "Offshore Field Development Projects: Macondo". Subsea.Org. Retrieved 2010-05-

18.

14. "Central Gulf of Mexico Planning Area Lease Sale 206 Information". US Minerals

Management Service. 2008-08-08. Retrieved 2011-06-01.

15. Schwartz, Naoki; Weber, Harry R. (2010-05-01). "Bubble of methane triggered rig

blast". Associated Press. Southern California Public Radio. Retrieved 2011-06-01.



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Annexure - 1

Source: Oxford Economics study for U.S. Travel AssoicationGraphic: Judy Treible @ 2010



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Annexure - 2



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Annexure 03



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Annexure 04

report on the oil spill in the gulf of mexico - bp

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