Financially, in one month after the burst of this incident, stock shares of BP went down from $60 per share to $27 per share. In other words, about $100 billion in shareholder value “vaporised”. In addition, to make the remedy to the financial damage caused by the oil spill, BP had to establish a fund worth $20 billion. This incident was widely criticised by the media, communities, the public and other stakeholders. It undermined the reputation of BP significantly.
In fact, the oil flowed from the drilling site for 87 days, making the cleanup significantly complicated. Certainly, the public was furious about the blunder, leading to criticism and protest against BP. Furthermore, it wasn’t until April 2014 that BP declared the cleanup substantially complete, proving the exhaustive endeavours involved in removal process. Thus, the BP oil crisis was one that invoked anger upon society, due to the environmental, economic, and health consequences involved in the oil
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. Because of BP oil spill all business around coastal beaches suffers a lot which are only depend on tourism and fishing. This destruction not only cause health problem, but also be responsible for millions of dollars in lost revenue.
The incident subsequently became known as the largest marine oil spill since the Exxon Valdez oil spill in Alaska in 1989. Media and Public Perception in the Wake of the Spill While media outlets initially picked up on the direct casualties of the explosion, attention quickly turned to the insurmountable environmental, economic and health consequences caused by the oil spill. Although Transocean owned the oilrig, it was contracted to British Petroleum, which quickly came under fire due to its history of bypassing safety measures and violating environmental laws. British Petroleum’s reputation took a huge hit, and it’s stock fell by 52% in 50 days. A month after the incident, British Petroleum marked a US$60 billion loss in value.
“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. Progression of Events that led up to the Incident “On February 21, 2005, the Splitter was shut down for a planned temporary outage… Prior to start-up (on March 22), the ... ... middle of paper ... ...eved August 8, 2010, from BP Public Website: http://www.bp.com BP corporate document.
Over the next few days, more than eight thousand people would die from gas exposure and for the next two decades hundreds of thousands would be exposed to the contaminated soil and ground water. Union Carbide Corporation left a huge mess in India, and Dow believed they could be the ones to clean up the mess and compensate the victims of the disaster. Dow Jones Chemical taking responsibility for the Bhopal disaster is the perfect example of Image Crisis. Image Crisis is the way a company perceives itself and how the public views the company. The image of Union Carbide Corporation was ruined not only from the Bhopal d... ... middle of paper ... ...ferent view points.
...In 2010 one of the worlds largest and most devastating oil spills took place on the Gulf on Mexico. How did BP actually start the oil spill, what steps did BP take in order to stop the oil spill, and the devastating affects the oil spill left on our communities from physical damages to communication damages. BP is still a company today that has many people angry about what had happened and has lost thousands of customers forever. Though the effects of the oil spill were devastating and some are still being repaired today, our communities came together to help each other out in a time of need. Works Cited Crooks, E. (2013).
The negligence of these companies can be shown in different fields. There have been many incidents in the oil field industry dating back to January 28 1969, in Santa Barbara. This may have been a long time ago but this was a disaster this country has never seen. On the 28 a well burst on the Santa Barbara Channel. It "raged for ten days and killed 3 crewmen".
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. 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.
In addition to that, others estimated that 8,000 people died after two weeks because of gas diseases. The cause of the Bhopal disaster was found to be the "Corporate Negligence". The firm didn't have a good safety system in the working environment. They were filling the methyl isocyanate (MIC) tanks more than the level it required or needed, allowing safety systems that are unfit to use because of poor maintenance, and turning-off the system of safety in-order to save money. At June 2010 and after investigating about all what happened, it found that the chairman of UCIL and Seven employees were convicted to the Bhopal disaster.