Unlike other organizations, BP was also changing with the dynamics of today’s business environment and was adopting new business strategies and management practices (BP and Verenium announce pivotal biofuels agreement, 2010). With this changing environment, the company faced an accident in the Gulf of Mexico situated in United States of America where 11 workers were dead. This is one of the biggest failures in the history of modern era, which cost near about 43 billion dollar and is continuing. Due to this disaster, company has to pay huge amount of fine to various authorities. This essay discusses about the situations of the company and tries to reveal what are the reasons are responsible for this failure.
According to the investigation report by the U.S. Coast Guard and Ocean Energy Authority, the cement for reinforcing the oil well was the main reason for this disaster. Also, the Macondo well already had financial problems and the monitoring devices appeared abnormal. Indeed, the negative growth in the past meant that the company was seeking money badly. Halliburton and possibly BP decided not to wait for cement stability test results and poorly redesigned the cement mixture. The crisis was caused by their decision, because they underestimated the risk that they might have.
Written by Ash Mathew. The BP oil spill, or also referred to as the BP oil disaster, is a historical oil spill that occurred in the Gulf of Mexico on April 20th 2010. An oilrig, Deepwater Horizon, owned by Transocean and leased out to BP had burst into flames because of a gas. The explosion killed 11 men on the rig and severely injured several more. Month of April Deepwater Horizon was a 9-year old drilling unit that was owned by Transocean, a drilling contractor.
The ships captain had a drinking problem and on the night of the incident he was unfit to be in charge of the tanker and so left an unqualified crewmember in control. This inexperienced crewmember wouldn’t have collided with Bligh Reef if the ships RAYCAS radar had not been broken and disabled for more than a year before the disaster. The incorrect crewmember being in charge of the tanker (the third mate instead of Captain Joseph Hazelwood) and broken equipment played a huge role in the collision. Environmental Impacts Marine creatures were affected greatly by the spill as the toxic oil disrupted the food chain; the oil massively destroyed plankton numbers as it prevented sunlight from getting through the water (Plankton need to sunlight to grow, reproduce and ultimately end up as food for fish). Recent scientific studies have found that the fish developed gross deformities such as extra fins, or suffered from retarded development.
While BP is based in London, and Exxon in the US. Both are accused of oil spills. Exxon is remembered for a damning oil spill in 1989, while BP is held responsible for a disaster in the Gulf of Mexico as recently as April 2010. The value of shares of BP plummeted by as much as 13% in the aftermath of the tragedy, which is much more than a fall of 4% that stocks of Exxon experienced after the environmental tragedy that shook the world in 1989. Exxon easily managed to recover, while BP is still reeling under the effects of the mishap that cause reverberations
These are the causes to this catastrophic accident. The master of the tanker Exxon-Valdez, poor choices had directly influenced the tanker’s grounding, which caused the oil spill. The master’s first mistake was leaving the bridge when the Exxon-Valdez had taken a detour out off the proper trade lanes to avoid ice. According to the National Safety Board of Transportation’s report, “the master was the only officer on board who possessed the required Federal pilotage endorsement, he was required by Federal law and regulations to be on the bridge” (NTSB 116). The master knew that he was suppose to be on the bridge while travelling the Valdez Narrows even if the risky detour was not taken.
President Pena Nieto believes that the reform is the answer to many of Mexico’s oil industry’s problems. Mexico’s oil company, Pemex, has been experiencing a consistent drop in oil production over the past decade. Many of their oil sites are drying up and Pemex has few resources to devote to research and technology that could help them tap into their vast, untouched oil supplies. President Pena Nieto’s privatization proposal comes with its own set of obstacles, first of which is modification of Articles 27 and 28 of the Mexican Constitution. The modification would allow contracts between the Mexican government and private companies to share profits from the extradition of oil and gas throughout the country, as well as, the deep-water sites located in the Gulf of Mexico (Krauze, 2013).
Where’s Our Fifth presents BP Gulf of Mexico Oil Spill Analysis Where’ Our Fifth BP Gulf of Mexico Oil Spill Analysis Table of Contents Page Section I: Introduction 3 Section II: Collecting Data 6 Section III: Texas City Explosion 8 Section IV: Gulf of Mexico Spill 14 Section V: Description and Analysis of the Initiative 22 Section VI: Evaluation of the Initiative 28 Section VII: Conclusion 30 Appendix I 32 References I. Introduction On April 20th, 2010, the BP-operated Deepwater Horizon Drilling Rig exploded, causing the deaths of 11 workers and the largest oil spill in United States history. The explosion was the latest in a series of costly and damaging blunders that has plagued the rapidly growing company. Environmentalists are still not sure how many years it will take to clean up the entire mess and the effect that so much oil will have on the Gulf of Mexico and coastal ecosystems. Executive orders along with legislation are a response to the event.
The Impact of Japan Earthquake on Japan’s Macroeconomy The Impact of Japan Earthquake on Japan’s Macroeconomy Since the Bubble Economy was collapsed, Japan gradually recovered. However, the 8.9-magnitude earthquake imposed a big blow on Japan. It not only dramatically affected Japan’s macroeconomy, but also caused neighbor countries’ and even global economic and political changes. On March 11 2011, Japan was rattled by the powerful earthquake and tsunami which claimed close to 20, 000 lives across swathes of the eastern coast (Demetriou, 2011). Fukushima, the nuclear power plants center, had been one of the world’s worst nuclear disasters regions.
This pollution has since affected their health and has resulted into more cancer deaths, miscarriages, defects in births, dying of livestock and the sick fish. The attempts to solve the problem and prosecute those involved have proven futile since the county‘s judicial system is marred by corruption. The company was required to clean up its mess and pay for the damages. The toxic waste dumped in the area is believed to be of an estimate of 18 billion gallons, and its remains are still present to date.The company that took over the ownership from Texaco was later ordered to pay eighteen billion dollars for the damages. This was to act as the reparations for the