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Ethical issues in the Deepwater Horizon oil spill
Theory of accident causation dom
British Petroleum Oil Spill
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Introduction
The purpose of this paper is to examine one of the largest offshore oil spills in U.S. history, BP’s Deepwater Horizon explosion in 2010. This paper seeks to investigate closely the system and the reasons of failure, to answer the questions behind numerous studies on this accident, Is Deepwater Horizon explosion inevitable? and What can we do to avoid such accidents?
Within the scope of Perrow’s normal accident theory, this paper aims to draw conclusions to the above questions and set forth recommendations to be considered in other similar oil drilling systems.
Case background
On April 20, 2010, BP-operated Deepwater Horizon oil rig exploded, claiming the lives of eleven people and injuring 17 others. The fire continued for 36 hours until the rig sank. Following the sinking, a sea-floor oil gusher flowed for 87 days, causing a spill of national significance (BP, 2010).
Numerous investigations explored the causes of the explosion and record-setting spill. Reports, including that from the U.S. government, pointed to defective cement on the well, faulting mostly BP, but also rig operator Transocean and contractor Halliburton (BP, 2010; Hogue, 2010). In 2011, a White House commission blamed BP and its partners for a series of cost-cutting decisions and an insufficient safety system, but also concluded that the spill resulted from “systemic” root causes and failure to create and apply in both industry practices and government policies (Broder, 2011).
Until now, BP is still struggling with the repercussions. Legal proceedings regarding this case are ongoing, with settlements and payments have cost BP more than 40 billion dollars (Fontevecchia, 2013).
Literature review
BP’s accident will be examined under Perrow (1984)’...
... middle of paper ...
...cy; thus accidents can be controlled better.
Conclusion
By evaluating BP’s attributes before the accident, the paper shows that the system controlling Deepwater Horizon was a normal accident. Many factors signal that the complexity and tight coupling found in BP’s system can be widespread in other systems, which heightened the probability to have an accident escalate at not only Deepwater Horizon but also in the future.
The paper recommends that in order to prevent such accident to happen, every party needs to get involved. Designers, developers, operators, and most importantly, regulators must know and understand the potential risks are real and how to conduct accordingly.
Conclusively, since accidents in oil drilling industry are most likely inevitable, there should be regulations to keep all parties together, together working on a failure-free operation goal.
At the end I come to conclusion that BP was not properly prepared for any disaster like that there risk assessment related to project is very limited and even not considered seriously about it for their own progress and putting live of public and employees in danger by not following the standard SOP of particular project. Even after incident happened they try to close their eyes on reality. The company should take this incident as alarm and should implement proper risk assessment for future and also compensate damages on ethical ground and if they counter this situation in good way their loss of bad reputation will be lesser as it predicted to be they should considered their responsibility towards society as well by doing this they not only making other people lives better but also earning good will to their company.
One major business incident happened in April 2010 shocked the world and caused an “earthquake” of British Petroleum (BP)’s brand image. The Deepwater Horizon oil rig owned by BP in the Golf of Mexico exploded, leading to a disastrous oil spill in this marine area. The maritime disaster caused by the explosion became the largest one in the history of the U.S. and brought huge financial and reputations losses to BP. What is worse, sealing the oil well took over five months. From the explosion of the completion of the sealing (announced by BP), over 780 million gallons of crude oil spilled into the sea, causing irreversible pollution and damage to the bio-system in this area and the world (Lofgren 2013). BP’s response, however, is considered as a crisis communication failure (Heller 2012) by some people and others believe BP’s response was effective (Mejri & de Wolf 2013).
On April 20th, 2010, BP was operating an offshore exploratory rig named “Deep Horizon” and there was a massive explosion that killed 11 people and injured 16 others. The oil rig sank into the Gulf and continued to dump oil into the waters until July 15th, 2010. This oil spill was the largest oil spill in history, dumping nearly 5 million barrels of oil into the Gulf of Mexico. The damage to the United States coast was extensive and impacted the environment and the economy. BP is structured as a corporation and as such, was treated as its own legal entity.
The Deepwater Horizon was a dynamically positioned drilling rig which owned by Transocean and it was chartered to BP from 2008. On April 20, 2010, the offshore oil rig exploded, the explosion was the largest accidental marine oil spill in the history of the petroleum industry as the oil leaked 205.8 million gallons of crude oil into Mexico Gulf Coast and BP spent 86 days to cap the well, stopping the oil flow into Mexico Gulf for the first time. This report covered some facts about the BP oil spill scandal and its influence to stakeholders. The article also includes the analysis of oil spill from accounting, legal, ethical and corporate governance aspects. Furthermore, a comparison between The BP oil spill and Enron scandal is for analyze the similarities and differences of these two cases, and explore any improvement and change on legislation, accounting standards, code of conduct etc. The purpose of this report is reveal to directors what did BP do wrong in the past and what aspect the firm could do better in the future.
The disaster that took place on the Ocean Ranger had a very large effect on the way Newfoundlander's feel about the gas and oil industry. The government examined the safety issues that led to this disaster and has implemented numerous changes to enhance the safety of the offshore workforce. The Newfoundland and Canadian government set up a combined royal commission to investigate the disaster of the Ocean Ranger and to provide recommendations to improve safety. Two years after the disaster, the royal commission on the Ocean Ranger disaster concluded that the deaths resulted not only from the storm and flaws in the rig's design, but also from a lack of human knowledge.
British Petroleum (“BP”) is the company that is being blamed for the incident. Employing 80,000 people, BP is an international oil company that puts different technology to use for finding oil and gas under the Earth’s surface. One of the oilrigs, Deepwater Horizon has drilled 35,000 ft. making it to be the deepest drilling of oil and gas (Walsh). Deepwater Horizon was drilling in the Gulf of Mexico about 52 miles southeast of Venice on Louisiana's tip. After the explosion, helicopters searched for 11 crewmembers that reported missing. 17 people were injured (BP Internal Investigation Team). A day later, the rig was found upside down (BP Oil Spill Timeline). The cost to clean up the damage is approximately $760 million (Walsh).
One of the primary goals of PR is to bridge the gap between the needs of the public and needs of a company or organization. Knowing that the very idea of drilling on the Continental shelf was a hot button issue, BP should have approached the endeavor with diligence. The findings in the National Commission on the BP Deepwater Horizon Oil spill and Offshore Drilling report could prove damaging tot he companies image because if reveals step by step the mistakes and agenda of the companies management. Halliburton and BP chose to use a form of cement known as “nitrogen foam cement” to address the instability they faced in placement of the pump on the fragile formation at Macondo. They ignored test that showed that cement would fail in the field. They abandoned the project removing its riser and blow out preventer for the well head. During this process there were several mistakes and issues that if monitored correctly could have been prevented .e pressure test that evaluates among other things the ability of the casing in the well to hold in pressure. They replaced mud with seawater below the mud line with seawater.
In April 2010, a gas release and consequent explosion occurred on the Deepwater Horizon oil rig located in the Gulf of Mexico, which BP was leasing from Transocean, a Swiss company. The explosion killed 11 workers, injured 17 others, and dumped
“On March 23, 2005, at 1:20 pm, the BP Texas City Refinery suffered one of the worst industrial disasters in recent U.S. history. Explosions and fires killed 15 people and injured another 180, alarmed the community, and resulted in financial losses exceeding $1.5 billion.” (U.S. Chemical Safety and Hazard Investigation Board, 2007) There are many small and big decisions and oversights that led to the incident. Underneath all the specific actions or inaction is a blatant disregard for addressing safety violations and procedures that had been pointed out to BP even years before this event. The use of outdated equipment and budget cuts also contributed to the circumstances that allowed this accident to happen.
On April 20, 2010, the Gulf of Mexico experienced a disaster unprecedented in scale and environmental impact. Fifty miles off the coast of Louisiana in the deep waters of the Gulf of Mexico, a BP drilling rig suffered an explosion that claimed eleven lives and caused the rig to sink over 5000 ft. to the sea bed floor. This was the beginning of the BP oil spill which spanned over eighty seven days, releasing an approximate 2.3 million barrels of crude oil into the Gulf of Mexico. Although the flow of oil into the Gulf was contained July 15, 2010, the lasting effects of the oil spill on the environment continue to be devastating and widespread. (Kirkwood 1)
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.
These cumulative issues in turn allowed for oil to gather within the oil rig deck thus ultimately setting the rig aflame.Furthermore, Newman later admitted to knowing that Transocean recorded a dilemma in assuring safety with a track record exemplifying a total of four workers being killed in previous 2009 rig accidents. Thomas Roth, a senior Halliburton executive in charge of cementing operations during the period of the spill, confirmed that well design alongside other external factors resulted in “the cement placement to be a job that would have a low probability of success” (Krauss,Meier). Even with conducted stability tests on cement samples and proceeding investigations clearing indicating that the cement was not stable, BP accused Halliburton of destroying evidence of its cement testing in order to continue through with cement placement despite the risks.Finally, under the Clean Water Act, fines could range from $1,100 for every barrel spilled through simple negligence to as much as $4,300 a barrel if gross negligence is
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.”
On the summer of 2010, the petroleum industry was shaken by one of the largest disasters in history known as the BP Deepwater Horizon Oil Spill. This resulted in the killing of eleven people, injuring of seventeen and an immeasurable damage to the ocean and the surrounding communities. BP had to immediately respond to the crisis and handle their financial and reputational risks.
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.