BP Company Info3
Deepwater Horizon Oil Spill Event4
Summary of the Deepwater Horizon Event5
Stock price before and after Deepwater Horizon7
Impact on Stakeholders8
BP’s Oil Spills and Corporate Social Responsibility9
Inadequate disclosure on the oil spill event11
Recommendations for BP to get reputation back13
BP Company Info
BP is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured in terms of their revenues and stock prices. It is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power. BP has operations in over 80 countries and produces around 3.8 million barrels of oil per day and has 22,400 service stations worldwide. Its largest division is BP America, which is the biggest producer of oil and gas in the United States and is headquartered in Houston, Texas. As at 31 December 2010 it had total proven commercial reserves of 18.07 billion barrels of oil. The name "BP" derives from the initials of one of the company's former legal names, British Petroleum. BP's track record of corporate social responsibility has been mixed. The company has been involved in a number of major environmental and safety incidents and received criticism for its political influence. However, in 1997, it became the first major oil company to publicly acknowledge the need to take steps against climate change, and in that year established a company-wide target to reduce its emissions of greenhouse gases. BP currently invests over $1 billion per year in the development of renewable energy sources, and has committed to spend $8 billion on renewable in the 2005 to 2015 period.
Deepwater Horizon Oil Spill Event
The Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster) is an oil spill in the Gulf of Mexico which flowed for three months in 2010. It is the largest accidental marine oil spill in the history of the petroleum industry. The spill come out from a sea-floor oil gusher that resulted from the April 20, 2010, 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. On July 15, 2010, the leak was stopped by capping the gushing wellhead, after it had released about 4.9 million barrels of crude oil. An estimated 53,000 barrels per day escaped from the well just before it was capped. It is believed that the daily flow rate diminished over time, starting at about 62,000 barrels per day and decreasing as the reservoir of hydrocarbons feeding the gusher was gradually depleted. On September 19, 2010, the relief well process was successfully completed, and the federal government declared the well sealed. The spill caused extensive damage to marine and wildlife habitats and to the Gulf's fishing and tourism industries.  In late November 2010, 4,200 square miles of the Gulf were re-closed to shrimp-fishing after tar balls were found in shrimpers' nets. The amount of Louisiana shoreline affected by oil grew from 287 km in July to 320 km in late November 2010. In January 2011, an oil spill commissioner reported that tar balls continue to wash up, oil sheen trails are seen in the wake of fishing boats, wetlands marsh grass remains fouled and dying, and that crude oil lies offshore in deep water and in fine silts and sands onshore. A research team found oil on the bottom of the seafloor in late February 2011 that did not seem to be degrading. Skimmer ships, floating containment booms, anchored barriers, sand-filled barricades along...