British Petroleum and The Delay of Maintenance Case Analysis

Better Essays
Assignment 3 – British Petroleum and the Delay of Maintenance

By Avaninder Gill

Review the Main Features of the Case British Petroleum, now known as simply BP, is a multinational oil and gas company that is headquartered in London, England. On March 23, 2005, a series of massive explosions devastated one of the largest British Petroleum refineries located in Texas City. The blast rattled windows in downtown Galveston, 20 miles away and was even felt in Houston, 35 miles distant. Reports indicated that 15 people had been killed and well over 150 were injured, many of those seriously burned. A BP spokesperson addressed the media by explaining how the explosion had occurred while an “isomerization unit of the plant was being brought back on stream to full production after having been shut down for annual inspection and repair” (Hosmer, 49). As the families of those killed in the explosion mourned their losses, BP pledged to a “long and intensive investigation to determine the cause of the explosion” (Hosmer, 49). These promises were cut short when accounts of prior problems at BP refineries began to present themselves. Reports revealed that a year ago from the day of the most recent explosion, a blast occurred at the same processing unit of the Texas refinery. No deaths or injuries resulted, but a U.S Occupational Safety and Health Administration (OSHA) investigation indicated violations of 14 standard operating procedures. Furthermore, merely a week prior to the Texas City explosion, BP was reported to have settled a large lawsuit claiming that their company had failed to; properly maintain huge storage tanks and improperly falsify the maintenance records of those very storage tanks. A far more condemning report in the September of 2005 found hundreds of safety violations related to a venting system at the isomerization unit, seen to not have been working properly. As a result, the OSHA imposed a probationary period, in



Bibliography: 1. Hosmer, Larue T. The Ethics of Management: A Multidisciplinary Approach. 7th ed. New York: McGraw-Hill, 2011. 1-2. Print. 2. 2. Carroll, A.B., and A.K. Buchholtz. "The Stakeholder Approach to Business, Society, and Ethics." Trans. Array Ethics, Social Responsibility and Sustainability in Business.1st ed. Toronto: Nelson Education Ltd., 2012. 102-27. Print. 3. Wolf, Vicki. "BP Texas City Fatal Explosion: Another Look at How It Could Have Been Prevented." BP Texas City Fatal Explosion: Another Look at How It Could Have Been Prevented. N.p., n.d. Web. 08 Dec. 2013. . 4. "Workplace Safety & Health." U.S. Department of Labor. N.p., n.d. Web. 07 Dec. 2013. . 5. "CSB Public Meeting to Vote on Key Safety Recommendations and Initiate "Most Wanted" Program." BP America Refinery Explosion. N.p., n.d. Web. 07 Dec. 2013. .

You May Also Find These Documents Helpful

  • Good Essays

    From the BP management employer aspects, they are not follow some mechanical level, safety procedure over and ignored which required by Act (e.g. Clean Air Act) over 8 year for their production. At the end the huge explosion occurred in March 2005. Because of the hydrocarbon liquid leakage and vapor, the ignition explosion result of the accident. They failed to give the safeguards protection tools to protect employees, this accident killing employees and injured people in Texas oil refinery. And the other issue of the Alaskan oil pipelines leaked; their culture also reflect the safety negligence in their operation and management. Not check the pipelines by routine maintenance. BP management did not doing any corrective action on the contract worker discovered the first pipeline leak in March of 2006, (e.g. whole stop the pipelines operation for checking details), still waiting the leakage happen on August 2006. And in October 2007 another spill in Prudhoe Bay, once again showing that BP was ignored the maintenance equipment and the safety level of the production. In 2010, violations again at BP facilities (at Ohio factory), the Occupational Safety and Health Administration (OSHA) found that workers might be exposed to injury or death should explosive or flammable chemicals be released at an Ohio factory. The BP working environment have the characteristic that is resistance to change, lack of trust and motivation; unclear expectations about supervisory and management behaviors, led to rules not being followed consistently and no initiating improvements. Management did not set or consistently reinforce process safety, operations performance and systematic to reduce the risk. e.g. neglected the safety…

    • 774 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Bp Case Study

    • 931 Words
    • 4 Pages

    When a person thinks of BP they image a green gas station and gas pumps. But BP has over 100 years of history behind it. BP was formally known as British Petroleum and the Anglo-Persian Oil Company. It was founded in 1908 by William D’Arcy, a rich British man who invested all his savings in his quest for oil in the Middle East. At the time BP was committed to protect the environment and took necessary steps to research areas where they would likely be drilling for oil to minimize habitat disruption and protect the area. But as competition in the area heightened, and shares of the company were sold, and mergers started to occur, their promise and commitment to their shareholders would come under question. BP’s reputation suffered because of their lack of performance, ethical problems, and their lack of innovation and sustainability. While BP has taken steps in the right direction to fix its reputation it is far from being done. This paper will show that to fix the company’s reputation they will need to enforce their new ethics policy from the top down and build shareholder trust again. They will need to invest more in their sustainability by creating new innovative ideas, committing more money for research and current programs, as well as the creation of new policies and procedures so the mistakes of the past will not also become their future.…

    • 931 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    CORPORATE STRATEGY

    • 3869 Words
    • 17 Pages

    Explosion of BP refinery in Texas that caused 100 injuries and 15 deaths in 2005;…

    • 3869 Words
    • 17 Pages
    Satisfactory Essays
  • Better Essays

    Gulf Refinery Fire

    • 1382 Words
    • 6 Pages

    In the early hours of August 17, 1975, a tragic disaster occurred on the Gulf Oil refinery in Philadelphia, Pennsylvania. This horrific disaster took the lives of eight firefighters, and potentially could have taken more lives if it wasn’t for the help of many surrounding fire stations. The cause of the fire was the overfilling of Tank 231. While no crude oil escaped from the tank as a result of being overfilled, large quantities of hydrocarbon vapors were trapped above the surface of the tank’s crude oil. As the quantity of crude oil increased, these hydrocarbon vapors were forced out of the tank’s vents and into the area of the No.4 Boiler House where the initial flash occurred. The overfilling of the tank resulted from a failure of the tanker’s personnel to properly monitor the quantity of crude oil being pumped to the tank. This whole disaster could have been avoided by just double checking the amount of crude oil in Tank 231.…

    • 1382 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Due to today’s new technology that is continuously updated the new drilling rigs have considerably reduced the risk of potential accidents. In the most recent situations that have occurred due to oil rigs BP being one and the Exxon Valdez accident in 1989 off the coast of Alaska being another. Researchers were able to discover that there were several factors that stacked up in order for these accidents to occur. Once of the main causes involved highly negligent practices such as strained workers, unfulfilled promises of advanced technology equipment and several safety regulation violations. BP has been known to have an appalling track record concerning safety and has been fined 760 times in comparison to one of our leading oil drilling companies ExxonMobil, who has been only fined once and has had no incidents.…

    • 580 Words
    • 3 Pages
    Good Essays
  • Good Essays

    On (secondary source) I found that Federal Regulators had already been working on new safety rules before this April 20 incident. They claim that most of these incidents are human errors and are rarely due to equipment failure. So far the Louisiana off-shore explosion is unknown to why this happened. They are still…

    • 798 Words
    • 4 Pages
    Good Essays
  • Good Essays

    6 The oil and gas ‘vented directly on to the rig’. This made an explosion was inevitable…

    • 483 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Bhopal Incident

    • 844 Words
    • 3 Pages

    The tragedy on December 3, 1984 began when tank 610 containing over forty tons of methyl isocyanate (MIC) became contaminated with water, causing a violent reaction that increased the gas pressure, resulting in a leak. Around 11 pm: the operator in the control room noticed pressure gauge connected to tank 610 had risen from 2 psi to 10 psi. An operator also noticed a MIC leak near the scrubber but was unable to locate its origin (Fischer, 1996). The pressure in the MIC tank had increased 55 psi. When the tank became overheated the operators tried to reduce the temperature with water not realizing that they made the situation worse. The operators also tried to use the vent gas scrubber, which was considered the main line of defense, but it also failed. At approximately 12 a.m., the relief valve of the tank gave away and large quantities of MIC gas leaked into the atmosphere (Fischer, 1996).…

    • 844 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    British Petroleum is also identified as BP. BP is the fifth largest company in the world in terms of revenue. BP has locations in the Americas, Europe, Asia Pacific, Africa and the Middle East. In 1901, Mr. William D’Arcy, a businessman from England, took the risk of investing in the search for oil in Persia with investments also contributed by Burmah Oil Company. BP operates in more than forty-five different countries within four continents, so the products and services do vary in these locations ("Products and Services", 2013). Though BP have dealt with a financial crisis and low approval rating from the public due to the oil spill in the Gulf of Mexico, British Petroleum still stands as number four on the Fortune 500 listing ("Global 500", 2013).…

    • 2031 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    On April 23, 2004, the Formosa Plastics Corporation located in Illiopolis, Illinois, suffered a disastrous fire and explosion that resulted in 5 deaths and 3 seriously injured employees. The incident took place in the polyvinyl chloride (PVC) manufacturing facility which took out almost all of the reactor facility and warehouse storage of PVC resins. These resins were ignited after the initial explosion and began to produce large amounts of thick, dark smoke that began to disperse over an adjacent community. As a result, a mandatory evacuation of the community was ordered and lasted for 2 days.…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Hira HRM

    • 522 Words
    • 2 Pages

    Ans 3: Since there were apparently at least three deaths in the year prior to the major explosion, and an average of about one employee death per 16 months for the previous 10 years, but OSHA inspections missed these glaring sources of potential catastrophic events because such problems was not just started but also it already prevailed there. It also says that BP was taking steps to deal with them. Also, it was not evident that anyone intentionally taking actions to put their employees at risk.…

    • 522 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Goodyear Tyre

    • 2793 Words
    • 12 Pages

    This case study examines a heat exchanger rupture and ammonia release at The Goodyear Tire and Rubber Company plant in Houston, Texas. The rupture and release injured six employees. Hours after plant responders declared the emergency over; the body of an employee was discovered in the debris next to the heat exchanger.…

    • 2793 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    First and foremost, British Petroleum oil company as well as” Deepwater Horizon Oil Spill”. It is one of the most terrible disaster that happened to humanity history. This is due the harm that it had in regards to humanity, environment and economy. The time line of the Deepwater horizon oil spill it was documented as the foulest oil spill in the US antiquity. On 20th April ,2010 the blast and the decrease of the Deepwater horizon oil rig at the Gulf of Mexico that has murdered 11 folks and 17 other was critically injured, underwater cameras observable the British petroleum pipe was dripping oil and gas to the ocean inner face about 42 miles off the coast.…

    • 670 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bp Pestle Analysis

    • 3155 Words
    • 13 Pages

    On 14th April 2009, BP celebrated its 100th anniversary of its company. Throughout these years BP has developed into a multinational oil company and is currently the third largest private sector energy corporations in the world, and one of the six “super majors” (Appendix 1).…

    • 3155 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    407 Homework 1

    • 973 Words
    • 4 Pages

    procedures at its Texas City refinery, where an explosion in 2005 killed 15 and injured 170. The U.S.…

    • 973 Words
    • 4 Pages
    Satisfactory Essays