THE CURRENT CHALLENGES FACING (BP) IS UNPARALLELED.THAT IS AN ETHICAL CRISIS IS UNCHALLENGING.BUT IS IT REALLY A CASE OF THE OIL INDUSTRY? BEING AT FAULT? IS IT REALLY A REGULATORY ISSUE?
BRIEF INTRODUCTION OF BRITISH PETROLEUM (BP) is one of the largest oil companies in the world. It is one of the leading oil companies on the basis of market capitalisation and proven reserves. Its Oil Company has transformed growing from local oil company to a global energy group. It was established in 1908 with oil found in a rugged part of Persia after a long difficult search. Their businesses include exploration and production, refining and marketing, chemicals. It is also one of the largest energy companies that provide its customers with fuel for transportation and the manufacturing and marketing of petrochemicals with a growing presence in gas and in solar power generations. As an oil company, it is directly linked with the use of fossil fuel linked with major environmental challenges on a global scale. In addition, the company has a solar energy business which is one of the world’s largest manufacturers of photovoltaic modules and systems. In recent record of BP in 2005 an explosion in a Bp refinery in Texas killed is workers. In 2006 over 250,000 gallon of oil spill through corroded sections of the BP pipeline in Alaska across the North slope. In both instance, it was alleged that cost cutting measures instituted by BP executives had led to poor maintenance and now the 2010 spill is the worst in history.
THE OIL SPILL AND ITS EFFECT TO THE ENVIRONMENT The Problem faced with BP is unparallel i.e.it the recent oil spill is worse than ever, BP is responsible for the largest environmental disaster ever in the United States. On the 21st of April an oil rig off the coast of Louisiana exploded, killing 11 workers and which resulted to massive oil leak that has been a treat to the ecosystem and marine life throughout the Gulf coast. The oil spill that began after the explosion, has been on for about 65days now in the Gulf of Mexico i.e. Louisiana and has spread up till now .BP did not confirmed how much oil is spilling out every day, but there were estimate of 5,000 barrels of oil per day, later an expert in measuring oil flow put it at about 20,000 barrels, and right now it is estimated up to 70,000 barrels of oil spill per day. The measurable results are clearly there: the dollars lost in oil spilling into the ocean, the extra costs in cleanup and repair and the lost asset of this rig caused from an explosion.
BP has spent over three billion in response to the spill. It has affected all the Gulf States beaches. First of the drilling exercise of the oil well fell below mandatory requirement and this as put a lot of life’s in danger. Many people whose livelihood rotates round the water are now out of work namely the fisherman and Bp compensation has been (Abysmal).For the management of Bp there has been more question than answers from all that has been going on. This shows that Bp was not prepared for this kind of disaster and neither is any oil company even though on paper they say otherwise. The Gulf water is already affected by fertiliser wash down and the southern US farmland, resulting in a dead zone. The Atlantic blue fin tuna is another possible victim. Over the next six weeks, the western population of this heavily depleted species will spawn...
Please join StudyMode to read the full document