History of Bp Oil Spill
BP 's Management Crisis
The Frontline report, “The Spill”, which focused on British Petroleum 's problematic management culture and its catastrophic effects, aired on October 26, 2010. Around then, the oil giant BP had suffered a crisis with its latest off-shore oil rig, the Deepwater Horizon. However, this was just the latest in accidents concerning its oil operations. In the years before the Deepwater Horizon accident, BP had also suffered major accidents in its oil production fields in Texas and Alaska. Its CEO, Lord John Browne, had greatly expanded the company by buying off other oil companies and cutting costs. Unfortunately, Frontline’s report suggests the company 's sole focus on expansion and cost reduction was what caused the fatalities of BP’s workers.
BP started out as a small joint British Persian oil company in the 1970s. However, a revolution in Iran had cut off BP’s oil supply, cutting stock values and ultimately crippling the company. The 1980s and early 1990s were no better for the company, for it did not gain any new oil fields. It was then that a small board of managers attempted to revive the company. One of the new managers was John Browne. Young and energetic, Browne was a zealous cost cutter. His management style helped to partly revive the company and so, in 1995, Browne was elected CEO of BP by the management board. Now that the company was stabilizing, Browne focused on the company 's growth. He needed to increase the stock value of his company, but his company lacked the assets to do so. By acquiring several major oil corporations, including Amoco and Arco, and incorporating their oil assets into BP, Browne had quadrupled the value of BP’s stocks. By the early twenty-first century, it seemed that Browne 's aggressive cost-cutting and acquisition methods had saved and expanded BP.
However, Browne’s management methods did not come without a heavy price. The first of a series of disasters happened on March 23, 2005, as a section of BP 's
The Frontline report, “The Spill”, which focused on British Petroleum 's problematic management culture and its catastrophic effects, aired on October 26, 2010. Around then, the oil giant BP had suffered a crisis with its latest off-shore oil rig, the Deepwater Horizon. However, this was just the latest in accidents concerning its oil operations. In the years before the Deepwater Horizon accident, BP had also suffered major accidents in its oil production fields in Texas and Alaska. Its CEO, Lord John Browne, had greatly expanded the company by buying off other oil companies and cutting costs. Unfortunately, Frontline’s report suggests the company 's sole focus on expansion and cost reduction was what caused the fatalities of BP’s workers.
BP started out as a small joint British Persian oil company in the 1970s. However, a revolution in Iran had cut off BP’s oil supply, cutting stock values and ultimately crippling the company. The 1980s and early 1990s were no better for the company, for it did not gain any new oil fields. It was then that a small board of managers attempted to revive the company. One of the new managers was John Browne. Young and energetic, Browne was a zealous cost cutter. His management style helped to partly revive the company and so, in 1995, Browne was elected CEO of BP by the management board. Now that the company was stabilizing, Browne focused on the company 's growth. He needed to increase the stock value of his company, but his company lacked the assets to do so. By acquiring several major oil corporations, including Amoco and Arco, and incorporating their oil assets into BP, Browne had quadrupled the value of BP’s stocks. By the early twenty-first century, it seemed that Browne 's aggressive cost-cutting and acquisition methods had saved and expanded BP.
However, Browne’s management methods did not come without a heavy price. The first of a series of disasters happened on March 23, 2005, as a section of BP 's
Cited: Borenstein, Seth . "Panel outlines cause of Gulf oil spill."Topeka Capital Journal 9 Nov.2010, ProQuest Newsstand, ProQuest. Web. 6 Dec. 2010. Lustgarten, Abrahm. "With eyes on Gulf, BP Alaska pipes remain at risk."The Washington Post 3 Nov.2010,Washington Post, ProQuest. Web. 1 Dec. 2010.