British Petroleum

Powerful Essays
ESC Rennes School of Business

Essay:
BRITISH PETROLEUM OIL SPILL AND CRISIS MANAGMENT

MEDINA Anna
Master of Science in International Finance
Corporate Governance
Tess Taubler
November 22, 2010

BRITISH PETROLEUM OIL SPILL AND CRISIS MANAGMENT
Introduction
Over the time, we had seen a lot of enterprises growing, disappearing, changing and managing different situations and the way that they can handle any problem could be result in a successful history, they can learn about it or otherwise could be a problem and bring the end of the firm. There is a lot of factors that affect the way that one firm can solve their crisis in a good or in a bad way, but the main question is what happen when the issue is related with one of the most controversial and needed products around the world, the oil, a non-renewable energy that according to Richard Adams (1991, Changing Corporate Values) the price of oil reflects its scarcity: the more people want, the more people pay. This situation become more complicated for an enterprise which operations are focuses in oil and gas production and exploration and is one of the biggest in the world, British Petroleum.
On April 20, 2010 British Petroleum (BP) suffered one of the major and worst accident that a company can faced because involved and affected all it related parts: investors and its obligations with stakeholders, enterprise, authority, customers, environment, board of directors and even the economy of one country. On April 20, 2010 following the timeline of BBC news (September 2010, Timeline: BP oil spill) there was an explosion and fire on the BP Transocean drilling rig Deepwater Horizon in the Gulf of México, killing 11 workers and causing an oil spill that became the worst environmental disaster in US history. The consequences of this disaster are multiples, Julie Gerstein (June 2010, The Gulf of Mexico oil spill in numbers) from Daily Green shows us the different losses around this unfortunately accident, 5



References: British Petroleum (2010), www.bp.com; (reviewed on November 13, 2010). Yahoo Finance (2010); http://uk.finance.yahoo.com/q?s=BP.L ¸(reviewed on November 14, 2010). Burke Jill, Alaska Dispatch (May 17,2010); http://alaskadispatch.com/dispatches/energy/5369-bp-still-fighting-fines-stemming-from-06-oil-spills-at-prudhoe-bay (reviewed on November 13, 2010). Greenpeace;(2010) What behind BP Logo; http://www.greenpeace.org.uk/files/tarsands/tar-sands.html (reviewed on November 13, 2010). Guardian.co.uk; (November 12, 2010) BP oil spill timeline; http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon (reviewed on November 13, 2010). Korsec Kirsten, bnet.com (May 7,2010); BP´s History of Oil spills and accidents; http://www.bnet.com/blog/clean-energy/bp-8217s-history-of-oil-spills-and-accidents-same-strategy-different-day/1768 (reviewed on November 13, 2010). News Inferno (October 27, 2010); Halliburton Cement Work Faulted in BP Oil Spill; http://www.newsinferno.com/oil-spills/halliburton-cement-work-faulted-in-bp-oil-spill/ (reviewed on November12, 2010). Federaljacktube2 (May 5, 2010); BP CEO says Oil spill isn´t their fault; http://www.youtube.com/watch?v=yS508iNYPqs&feature=related (reviewed on November 14, 2010). BPplc (May 13, 2010); Tony Hayward PTC, http://www.youtube.com/watch?v=zN8pOcLTl8E&NR=1 (reviewed on November 14, 2010). BPplc (May 28, 2010); Tony Hayward in ABC News Good Morning America; http://www.youtube.com/watch?v=GeJM3ZWrlu4&feature=channel (reviewed on November 14, 2010). BPplc (May 28,2010);Tony Hayward on CBS News, The early show; http://www.youtube.com/watch?v=mIpGunLy4DM&NR=1 (reviewed on November 14, 2010). Climatebrad (May 30,2010); I´d like my life back; http://www.youtube.com/watch?v=MTdKa9eWNFw (reviewed on November 14, 2010). BPplc (June 3, 2010); A message from Tony Hayward; http://www.youtube.com/watch?v=KKcrDaiGE2s&NR=1 (reviewed on November 14, 2010).

You May Also Find These Documents Helpful

  • Good Essays

    Unit37 D1

    • 747 Words
    • 3 Pages

    The BP oil rig explosion was the second worst disaster in the U.S history, it resulted in the death of 11 employees and seriously injured 16 others, this resulted in one of the largest oil spills in the history of the world, this resulted in the Gulf of Mexico waters being covered in oil which killed thousands of animal life in the area and had a huge affect on the animal life and the eco system in the area. BP lost billions and the ongoing fight to repair the damage done to the environment is still going on. This is a great example of how operations ethically and unethically can affect a business and the environment around them, this disaster should be learnt from and should never be allowed to happen, BP suffered hugely due to this as their public image was destroyed and their relations with the communities living in the area where the explosion happened were extremely bad.…

    • 747 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bp Oil Spill Analysis

    • 6376 Words
    • 26 Pages

    Our research focused mainly on four aspects of the BP oil spill, the aspects of environment, economy, politics and policy, and the internal BP crisis. At first, we went over the background of BP and its oil spill to identify the issues. Secondly, we analyzed problems and issues of four main categories. We addressed impacts on: marine ecology and human health risk as an environmental issue, economic loss and compensation problems as an economic issue, offshore drilling policy issue as a political issue, and BP’s internal management crisis.…

    • 6376 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    Bp Oil Spill

    • 2831 Words
    • 12 Pages

    “Thank God men cannot fly and lay waste to sky, as well as the earth,” said Henry David Thoreau on environmental damage. The BP, or British Petroleum, Gulf oil spill has been widely referred to as the biggest environmental disaster that the United States has ever faced, with over four million gallons of oil pouring into the waters off the Mexican Gulf Coast. The BP oil spill occurred in April of 2010. It was, and still is, the biggest oil spill in all of U.S. history. The massive spill wreaked havoc on Gulf Coast inhabitants, including animals, plants, and humans, in late April. Most of the sea life in the Gulf Coast waters perished, drowning in the oil that has monopolized the waters. The BP oil spill has been rated one of the biggest environmental disasters of this century. To examine what contributed to this title, and to stop another disaster like this from happening again, the public must look at how it happened and why, the economic and environmental impact, and the cost of cleaning it up.…

    • 2831 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Ethics Paper MGT/498

    • 852 Words
    • 4 Pages

    “BP Leak the World’s Worst Accidental Oil Spill”, The Telegraph, August 3, 2010. Retrieved from…

    • 852 Words
    • 4 Pages
    Good Essays
  • Good Essays

    BP wrote safety documents that ensured government officials that they had the technology in place should a mechanical failure occur in American waters. The loss of 11 workers and the destruction of an ecosystem has forced the government and the American public to realize that BP and other companies have no qualms about ensuring that no regulation will stand in the way of their profit margins. In response to this fact, the government has tried to ensure the welfare of Gulf citizens by compelling BP to create a twenty-billion fund to help citizens affected by the spill ensure that they can survive while BP attempts to clean up this mess. Notice that BP did not offer to create this fund until approached by the President of the United States. This is because companies realize that it is not cost-effective to ensure that their practices do not harm those not involved with the company.…

    • 312 Words
    • 2 Pages
    Good Essays
  • Better Essays

    The BP Oil Spill which happened on April 20, 2010, was the largest offshore oil spill in U.S. history releasing approximately 185 million gallons of crude oil into the gulf. This event was the result of a wellhead on the Deepwater Horizon oil drilling platform blowing out in the Gulf of Mexico approximately 40 miles southeast offs the Louisiana coastline. Eleven men working on the oil rig platform were killed and 17 others were injured. People livelihood and the environment were devastated by this event.…

    • 1236 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    This paper will explain some of the effects of three legal issues and three ethical issues surrounding the London-based British Petroleum Company’s involvement in the explosion of the offshore oil rig Deepwater Horizon and the subsequent oil spill into the Gulf of Mexico. There are many legal issues surrounding this disaster, but the three this paper will focus on are the Oil Pollution Act of 1990, maritime laws, and criminal charges that may be brought against BP executives. The ethical issues explored will be who is responsible for deaths due to the Deepwater Horizon explosion, who is responsible for the oil cleanup, and who is required to compensate the people whose livelihood has been put in jeopardy.…

    • 1526 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Deepwater Case Study

    • 708 Words
    • 3 Pages

    On April 20, 2010 a catastrophic explosion on the Deepwater Horizon off shore drilling platform caused the largest single release to the environment due to oil drilling. This explosion killed 11 workers and injured 17. This oil spill is very controversial because it can be questioned if this spill could have been prevented and what exactly went wrong. There is much debate on who is to blame, what could have been done to prevent it and who is going to pay for all the damage. Many are not happy with the settlement BP is signing that will keep them from further criminal prosecution if they agree to pay the settlement amount. Paying retribution is fine, but what about the future damaging effects that we have no way of even knowing about now. Who will take care of that? These are some of the basic questions people are asking about this case and my responses.…

    • 708 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Concerning the Deepwater Horizon rig explosion on April 20, 2010, which escalated into a massive amount of oil spillage from the well reservoir as the oilrig sunk killing eleven crewmembers on board. The key players related to the rig explosion are British Petroleum (BP), Transocean, rig owner, and Halliburton. BP is one of the world 's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. (“BP at a glance,” 2010) Transocean, the world’s largest offshore drilling contractor and the owner of Deepwater Horizon rig, provides the most versatile fleet of mobile offshore drilling units to help clients find and develop oil and natural gas reserves. (“A Next Generation Driller is INNOVATIVE,” 2010) Halliburton, founded in 1919, is one of the world’s largest providers of products and services to the energy industry. With over 50,000 employees in approximately 70 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production…

    • 1476 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Smith, K., G. Smith, J. Olian, H. Sims Jr., D. O 'Bannon, and J. Scully. 1994. Top management…

    • 1624 Words
    • 7 Pages
    Best Essays
  • Better Essays

    Waldroop, J., & Butler, T. (Retrieved 2013, February 11). The Executive as Coach. Harvard Business Review.…

    • 3015 Words
    • 13 Pages
    Better Essays
  • Powerful Essays

    Bp Pestle Analysis

    • 3155 Words
    • 13 Pages

    The report also covers BP’s market power with the profitability in its products. The report looks at society and our addiction to oil and the technical advances that BP has made. Finally the report covers the Failures of BP on an environmental level which has tarnished BP’s reputation as a MNE.…

    • 3155 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    In April 20th, 2010 one of the worst environmental natural disasters that were brought on by a men happened. We are talking about the British petroleum Oil spill on the Golf Coast. The disaster not only affected the plants, animals and people living in the area but also the image of the company. British Petroleum has been successful on creating a powerful brand image, being authentic to the core values of its business and building the goodwill of their customers, now BP is trying to save what is left after the disaster. The disaster leads to many angry people, including environmentalists, shareholders and the general public to create campaigns to bring down the company reputation. BP has been accused of 11 workers dead and 17, injured. The extent of the spill is about the size of Rhode Island, running across the northern Gulf of Mexico between the mouth of the Mississippi River and Florida. The spill runs wide, threatening the coastlines, and deep, traveling beneath about 5,000 feet of water and 13,000 feet under the seabed. The Deepwater Horizon well is leaking 5,000 barrels per day, shutting down fishing across the affected areas, damaging fragile habitats and putting animals in peril. BP was also accused of trying to silence the scientists that were studying the effects of the oil spill, not allowing publishing researches done for the company; this clause was expressed in their contacts. The entire situation has position BP with a bad corporate image in the entire world leading to customer to refuse buying its products. This crisis has result in a negative publicity, threatening the image of the company and having effects on people perception of the company and its products. BP has responded to the event, trying to diminish the severity of the contamination, in a desperate effort not to lose its social legitimacy and…

    • 2530 Words
    • 11 Pages
    Better Essays
  • Powerful Essays

    The crisis of Deepwater Horizon was the changing catalyst or trigger at BP and their safety regulations and crisis communication. During the beginning of the crisis Tony Hayward was guilty of having a callous and uncaring appeal to the victims affected by the oil spill. Due to his behavior and BP’s lack to remove him from the situation fast enough many were witnesses to a CEO that seemed more overwhelmed by his own suffering from the crisis that he could not connect with the actual process of getting it fixed. BP…

    • 1943 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    Bp Horizon Oil Spill

    • 3008 Words
    • 13 Pages

    Back in the '40s and '50s I believe that companies stood behind their products. In later decades I don 't think it was as common and there were a lot of lies, double books, and skimming going around. In this current age how many companies can you honestly say you would invest in their products for the rest of your life? BP is just one of thousands of companies that work by the bottom line and only by the bottom line, usually bypassing safety and employees. BP just got caught because of their ineptness to control the leak and non-consideration of such an event occurring. Unfortunately, like the Exxon Valdez 21 years ago which is still impacting the waters and peoples of Alaska, this oil spill will continue to decimate species and continually damage what restorations are put into place for estuaries and beaches and marine and coastal species. Sadly, this spill in its short time has already surpassed the Exxon Valdez.…

    • 3008 Words
    • 13 Pages
    Best Essays