Depleting reserves, high oil prices and spectacular offshore discoveries concentrated a global attention to deep water (National Geographic, p.3). Joel and Bourne (2010) claim “the Gulf of Mexico now accounts for 30 percent of U.S. production, with half of that coming from deep water (1,000 to 4,999 feet)”. The U.S. government roughly calculated that the deep Gulf might contain 45 billion barrels of oil (NG, p.44). Hence, this fact gave new reasons for oil companies to drill oil wells in that region. The Minerals Management Service (MMS), the national agency that administrated offshore drilling, used to claim that the possibilities of blowout were less than one percent, and that if one did happen, it would not release much oil (National Geographic, Joel.K, Bourne, JR. The deep dilemma, October,2010, vol.218., no4, p.42). But an explosive blowout of the Maconda well that occurred in late April contradicts MMS’s statement. Since Deepwater Horizon rig explosion caused the most serious accidental marine oil spill in history and instantly acquired major political, environmental and economic importance (Robertson and Krauss 2010). According to Deepwater Horizon Accident Investigation Report, a well control incident allowed hydrocarbons to escape from the Macondo well onto Deepwater Horizon oil rig, causing explosions and fire on the rig. The fire proceeded for thirty-six hours until the rig sank (Deepwater Horizon Accident Investigation Report). For approximately three months, hydrocarbons escaped from the container through the blowout preventers and the wellbore, resulting in a spill of national significance (Deepwater Horizon Accident Investigation Report). Worse still, eleven workers died, 205.8 million gallons of oil gushed into th... ... middle of paper ... ...ng years of failed efforts to recover from past destruction. To accomplish its restoration is the most principal challenge now encountering Gulf despite years of unsuccessful approaches to recover from previous damages. According to Cohen’s (1986) oil spillage damage statistics, the environmental impact from the 5 million barrels of oil spilled by the Deepwater Horizon is to exceed $1.5 billion, nevertheless according to Helton and Penn (1999) is to be approximately $13.6 billion (Cohen 2011). Mentioned statistics exclude clean up costs or compensation to private parties that have incurred economic losses (Cohen 2011). Applying the ExxonValdez per gallon estimates to the Deepwater Horizon oil spill would provide an impact estimate varying in value from $105 billion to $239 billion—a figure that includes both environmental impact and economic impact (Cohen 2011).
This paper will discuss the effects of Keystone XL Pipeline project and how the findings of the research might be beneficial to the United States. The first point of argument will be the negative impact of the Keystone Pipeline to America’s economy and the environment. The second point of view will be the positive impact of Keystone Pipeline to America’s economy. Keystone XL Pipeline is TransCanada’s tar-sand transportation project. The pipeline is supposed to cut across America to be linked with Canada’s tar-sand mines. It is aimed at increasing energy security in America. However, the project has received a lot of criticism from both the citizens and environmentalists for climate reasons (Mendelsohn and Dinar 154). To understand the implications of Keystone XL Pipeline, it is important to look at its environmental and economic impacts to the United States.
The BP oil spill began with the explosion of the mobile offshore drilling unit known as the Deepwater Horizon, then operating in the Macondo Prospect Oil Field some 60 kilometers off the coast of the U.S. state of Louisiana, on April 29, 2010. The leak was capped on July 15, 2010, with a repair to the underwater wellhead ruptured by the Deepwater Horizon explosion. Thus, the BP oil spill lasted for about three months. During this time, roughly 5 million barrels of crude oil leaked from the wellhead into the Gulf of Mexico. The flow rate was not uniform, beginning...
Ethical issues in this case are the impact on tourism industry of Gulf of Mexico and its beaches, unemployment around area because of closure of business, wildlife and the environment destruction and concerned with human health and post incident trauma. It has been almost year but world is still recovering from the devastation of disastrous oil spill. It destroyed the environment and wildlife all over the place and its total impact is still unknown. Environmental impacts may be noticeable for years to come.
In the Macondo blowout case, (Deepwater Horizon Oil Spill), leaders within Transocean and British Petroleum (BP) processed a “by any means necessary” mentality as well. The company cultures promoted doing whatever was possible to enhance profits. This oil leak and explosion, resulted in the loss of 11 lives, destroyed beaches and wetlands, and killed multiple wildlife species. The most telling piece of information throughout this case is that the oil spill and explosion could ...
Smith Jr., Lawrence C., L. Murphy Smith, and Paul A. Ashcroft. "Analysis Of Environmental And Economic Damages From British Petroleum's Deepwater Horizon Oil Spill." Albany Law Review 74.1 (2011): 563-585.Academic Search Complete. Web. 17 Feb. 2014.
The Ocean Ranger The Ocean Ranger was an offshore exploration oil drilling platform that sank in Canadian waters 315 kilometres southeast from St. John's Newfoundland, on the Grand Banks of Newfoundland on February 15, 1982, with 84 crewmembers onboard. The Ocean Ranger was the largest semi-submersible, offshore exploration, oil drilling platform of the day. Built in 1976 by Japan's Mitsubishi Heavy Industries, it operated off the coasts of Alaska, New Jersey, Ireland, and in November 1980 moved to the Grand Banks. Since it was so big, it was considered to have the ability to drill in areas too dangerous for other rigs.
On March 24 1989, the tanker Exxon Valdez runs aground in Prince Williams sound, Alaska. This was a tragic accident that the company deeply regrets. It all began when the Valdez was traveling towards California when it hit a coral reef. As a result, of this accident, significant quantities of oil began to seep into the waters. According to most, the action to contain the spill was slow. As a result, the media blamed Exxon for not responding fast enough to the crises. Many of the wildlife including birds, fish and other mammals were kill...
Many businesses that sell seafood had to cut back on it for the past few months. It has been since April that businesses are now selling shellfish back on the menu for a somewhat reasonable price. A major incident occurred just two days before Earth Day. The incident is well known as the Deepwater Horizon oil spill, or as many others call it, the Gulf of Mexico oil spill. The Deepwater Horizon drilling rig along the Gulf of Mexico is an oil-spill that resulted from an explosion that is under contract with BP, leading up to over million barrels of oil spilling into the Gulf of Mexico. This incident has led to many controversies. Arguments in discussion are whether or not we should continue to drill offshore, what exactly went wrong, and why none of the safeties were unable to activate.
Most people believe that one man-made natural disaster would teach us to be better, but we have learned that history repeats itself. The Exxon Valdez oil spill (in 1989) and the Deepwater Horizon oil spill, or BP oil spill, (in 2010) were both devastating oil spills that shocked the nation. The Exxon Valdez oil spill occurred due to a tanker grounding. The BP oil spill was caused by an explosion on the Deepwater Horizon oil platform. These two oil spills were both disasters and had greater effects in certain categories. In this essay, I will be comparing the cause of both oil spills, the damage/effect of both oil spills, and the cleanup of each oil spill.
Nelson, A.N. 1971. Effects of oil on marine plants and animals. London: Institute of Petroleum.
On April 20, 2010, the Deepwater Horizon oil rig, located in the Gulf of Mexico exploded killing 11 workers and injuring 17. The oil rig sank a day-and-a-half later. The spill was referred to as the Deepwater Horizon oil spill, BP oil spill, Gulf of Mexico oil spill, and BP oil disaster. It was first said that little oil had actually leaked into the ocean but a little over a month later the estimate was 12,000-19,000 barrels of crude oil being leaked per day. Many attempts were made to stop the leak but all failed until they capped the leak on July 15, 2010, and on September 19 the federal government declared the well “effectively dead.” In the three months that it took to finally put a stop the leak, 4.9 million barrels of oil were released into the ocean. The spill caused considerable damage to marine and wildlife habitats and the Gulf’s fishing and tourism industries. The White House energy advisor, Carol Browner, goes as far to say that the Deepwater oil spill is the “worst environmental disaster the US has faced.”
Winston A, 2010, Five Lessons from the BP Oil Spill, Harvard Business Review, accessed 1 April 2014,
On a Monday afternoon, A couple of friends and I drove about forty-five minutes to El Dorado to see a movie. A movie in which we didn’t know anything about. None of us had even seen the trailer. I sent my friend a link to the movies that were showing at the cinema in El Dorado, and she had chosen Deepwater Horizon solely on the fact she liked the actors that had been cast for the movie. A few of these actors included Mark Wahlberg and Kate Hudson. Deepwater Horizon, as I came to find out on the car ride there, is about the most devastating oil spill in United States history. Since this event occurred only roughly six years ago, I recognized it after my friend called it the BP oil spill. Growing up in south Arkansas, I know many people that work on oil rigs so the spill was something that came close to home. The movie portrays the events leading up to the rig explosion and the aftermath concerning the people aboard the rig.
The worst imaginable environmental catastrophe that could occur in Maryland has just become a reality. The lifeblood of Southern Maryland's Watermen has been forever affected. The ecosystems of the Patuxtent River and Chesapeake Bay have been irreversibly contaminated. The Three Mile Island and Chernobyl Nuclear Accidents have affected the world ecosystems; but the Chalk Point oil spill has reached us here in Southern Maryland. The ethical considerations with generating electricity from fossil fuels, specifically oil, has a profound impact on us all. We all use electricity to make our lives easier and more productive. By using this electricity have we given our permission for the oil companies free reign in order to provide us with the service we demand?? Are we just as responsible for the oil spill as the corporate leaders who run the companies? As citizens we are in a position to develop and enforce regulations to protect ourselves. Do we also protect the environment; or is the environment just something for us to use? These and many other moral dilemmas exist for modern man.
The BP Deepwater Horizon oil spill accident of April 20th 2010 that caused a gas release followed by the explosion that took place causing hydro carbons to leak into the Gulf of Mexico posed a lot of strategic implications in the competence, capabilities, internal resources and Corporate Social Responsibility of BP. The implications of the Oil Spill underscores the Icarus paradox, which holds that the very capabilities that give an organization its source of competitive advantage can become constraining with changes to the external context. Teece (2009) emphasised that dynamic capabilities revolve around three generic types namely: Sensing (ability to scan, search and explore the external