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DEEPWATER HORIZON WELL EXPLOSION AND OIL SPILL
Team B1 Final Presentation Leonardo Ang, John Carter, Maria de Amezola, Timothy Go, Semion Lipner Julio Pascual, Mayra Pieraliisi, Miguel Santodomingo

com  . Early years focused on developing assets in the Middle East. Employs over 80. Privatised between 1979 and 1987.bp. Renamed the British Petroleum Company in 1954.About British Petroleum 2      Founded in 1909 as the Anglo-Persian oil company.     It is the third-largest energy company in the world. Merged with Amoco in the late 1990’s.000 people and operating in over 80 countries and six continents Revenues in 2010 of $298B Structured in 3 business segments:    Upstream Marketing and refinieries Alternative energies  Source: http://ww. steadling expanding to other countries and locations.

m a te ri l i n ve a a n d re a lso l ti n s to m e e t th e w o rl ' n e e d s fo r m o re u o d s a n d se cu re .Mission and Vision 3 “ W e h e l th e w o rl m e e t i g ro w i g n e e d fo r h e a t.” ro “ W e a re a t th e fo re fro n t o f d e l ve ri g d i rse . A n d w e stri to d o th a t b y p ro d u ci g l ty ve n e n e rg y th a t i a ffo rd a b l . cost and capital efficiency Downstream turnaround.com & BP Strategy presentation to shareholders March 2010 . l g h t p d ts n i a n d m o b i i . cl a n e r a n d a ffo rd a b l e n e rg y ” ‘ B e yo n d e e p e tro l u m ’ e CORPORATE STRATEGY     Upstream profit growth. se cu re a n d d o e sn ’ t d a m a g e s e th e e n vi n m e n t.bp. cost efficiency Alternative Energy focused and disciplined Corporate efficiency Source: http://ww.

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BP is the United States' hundredth largest donor to political campaigns Source: Wikipedia .Significant Events in History 5 Environmental  Safety Political 2007 : Propane price manipulation – fine of $303 million  to the US government 1993 – 1995 : Hazardous 2005 : Texas City substance dumping Refinery explosion Illegal dumping of . people and forcing thousands of nearby residents to remain sheltered 2006 – 2007 : Prudhoe Bay 2008 : Oil price manipulation - Spilled over one million liters of oil in Alaska's North Slope 2010 : Texas City chemical leak 2006 – 2010 : Refinery fatalities and safety violations – 3 deaths and 97 % of safety violations *by oil refiners between 06/2007 and 02/ 2010 1.2 million for abusing antitrust legislation and setting artificially high oil products prices over 530. injuring 180 hazardous wastes on the Alaskan North Slope.5 deaths.1 billion Ruble fine $35.000 lbs of chemicals into the air of Texas City and surrounding areas 2009 : North Sea helicopter accident – 16 deaths Contributions to political campaigns .

900. BP in Source: Wikipedia   Major Causes    Cement Leakage Lack of a Blowout Preventer Replacement of Drilling mud with Water  .The Deepwater Horizon Spill 6 20 April 2010 to 15 July 2010  Largest marine oil spill in the history of the petroleum industry (4. Transocean and Halliburton at fault of incident.000M bbls)  Explosion with 11 men working on the platform killed and others 17 injured  Severe economic and health consequences for the local community  Study finds BP.

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Stakeholder Analysis 8 CUSTOMERS ENVIRONMENTAL AGENCIES / NGOs / MEDIA GOVERNMENT bp COMMUNITY COMPANY SHAREHOLDERS OIL AND GAS COMPANIES SERVICE CONTRACTORS AND SUPPLIERS .

Stakeholder Analysis 9 COMPANY SHAREHOLDERS GOVERNMENT SERVICE CONTRACTORS AND SUPPLIERS OIL AND GAS COMPANIES COMMUNITY CUSTOMERS ENVIRONMENTAL AGENCIES / NGOs / MEDIA INFLUENCE OF STAKEHOLDER IMPACT TO STAKEHOLDER .

EFFECTS Changes to regulations by American Petroleum Institute. EFFECTS No major changes cited in research. Alaska (remote) CAUSE : oil tanker crash SIZE : 260. Exxon cleans up spill.000 bbls ACTIONS : Exxon assumes full responsibility. BP made changes to its refinery standards and modified facilities.000. Exxon Valdez Oil Spill  WHEN : 24 March 1989 WHERE : Prince William Sound. negligence ACTIONS : BP fined $50M by local courts. Texas CAUSE : explosion.Ixtoc 1 Oil Spill WHEN : 3 June 1979 WHERE : Gulf of Mexico CAUSE : loss circulation . spending $2B for cleanup and $1B to settle civil and criminal charges Hired scientists to assess damage and study the spill EFFECTS Changes in regulations due to results of investigations Improvement in safety and BP Texas City Refinary WHEN : 25 March 2005 WHERE : Texas City.6B in compensation to victims of the incident. No long-term effects to coastline and continental shelf.Past Oil Industry Accidents 10 Pemex . BP paid $1. OSHA fines BP $87M for negligence.000 – 750.000 bbls ACTIONS : Pemex spends $100M to clean up the spill. Source: Wikipedia . Claimed sovereign immunity as a state-run company. blowout SIZE : 3.

steeper fines. (risk analysis and decision management) Pay for all damages. Enforce better. Create system of checks and balances that must be adhered to. take full    Create stricter regulations. . Develop better. Empower all stakeholders in each project to address unsafe conditions. Allow for public disclosure. safer procedures.Next Steps? 11  For British Petroleum For the Oil and Gas Industry     Change company culture – focus on SAFETY above all else.

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