BRITISH PETROLEUM Environmental Audit

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Environmental Audit, March 2017

Prepared by:
Purugganan, Romie Jon B.
Wackisan, Honorato M.
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The Company
Name of Company: British Petroleum (BP) Inc.

Issue: Gulf of Mexico Oil Spill

Site Location: Gulf of Mexico near Mississippi River Delta, United States

Cause: Wellhead Blowout

Casualties: 11 Killed

17 Injured

Operator: Transocean under contract for BP

Volume: 4.9 million barrels (210,000,000 U.S. gallons; 780,000 cubic meters)

Area: 2,500 to 68,000 sq mi (6,500 to 176,100 sq km)

Background
Why is oil found in the Gulf of Mexico?

The Gulf is a sedimentary basin formed during Jurassic and Cretaceous periods of rising and lowering sea level which
buried organic material and formed natural gas.

Why drill here?

Oil-rich states surround the Gulf of Mexico. These states are Florida, Mississippi, Alabama, Texas and Louisiana.

Environmental Laws Violated


 Summary of Criminal Prosecutions

 1. PRINCIPAL DEFENDANT: Transocean, LTD


E.D. Louisiana 13-001

 2. DEFENDANT: BP, PLC


E.D. Louisiana 2:12-CR-00292-DEK

Clean Water Act and Migratory Bird Treaty Act

- BP PLC was charged with 11 counts of felony manslaughter, one count of felony obstruction of
Congress, a violation of 18 U.S.C. 1505 and violations of the Clean Water {33 U.S.C. 1319(c)(1)(A) and Migratory Bird
Treaty Acts {16 U.S.C. 703}.

Clean Air Act

- Transocean LTD was charged with violating the CWA {33 U.S.C. 1319(c)(1)(A)}.

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What caused the explosion?
 Abnormal pressure caused a methane bubble

 Methane gas escaped from the well and ignited

 The explosion was sudden, it took less than five minutes for the rig to ignite on fire.

Pre-explosion Problems

 There had been several small fires and spills at Deepwater Horizon

 The metal casing was known to have issues in 2009 and BP was warned that it could collapse under high
pressure.

 BP officials rejected a safety proposal to install casing liner and casing stabilizers which cost $7 million and 10+
hour of labour.

In an email BP engineer Brian Morel called Deepwater a "nightmare rig" due to these cavalier safety risks.

Red Flags and Warnings


 They often switched from a drilling rig to a production rig, and vice versa. In order to do so, the bottom of the
hole needed to be sealed with a cement plug, called a shoe.

 To shut down the well a series of “casing integrity tests” was done. This ensures that there is no pressure
leaking.

 When the crew tried to fit a top plug, it did not sit properly. This clearly indicated that the bottom cement seal
could be leaking pressure into the well.

 A failed “Negative Pressure Test”, indicated that there was pressure build up

 In a final stage of shutting down the well, the rig crew replaced the heavy drilling mud with sea water. However
the mud flowed out faster than the water, which was not normal.

The Ethical Issue


◦ Knowing that the Deepwater Horizon had problems, BP did not take any action

◦ The rig continued to run under risk. Putting profit over the safety of workers.

◦ The management of BP ignored the “Red Flags” from their procedural tests.

Effects of Oil Spilled into the Gulf


What is the effect of oil
on marine birds?

 Illness may prevent breeding

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 Number of eggs laid or thickness of egg is reduced

 Insulation and

water-proofing of

feathers destroyed

 Unable to fly or dive

 Hypothermia

 Dehydration

 Starvation

 Ulcers (if oil is ingested)

 Damage to adrenal

systems affecting blood

pressure and fluid

 Stress

Marine Mammals, Reptiles and Birds

May experience respiratory problems from breathing fumes from oil or droplets of dispersed oil, causing
damage to the airways and lungs – congestion, pneumonia, emphysema and even death

Causes contamination of eggs, adult turtles and newly hatched turtles

Punishments/Charges Imposed to the Company

Clean Water Act and Migratory Bird Treaty Act

BP Exploration and Production Inc. (BP) has agreed to plead guilty to felony manslaughter, environmental crimes
and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010
Deepwater Horizon disaster.

Clean Water Act

Transocean to Pay Record $18 Billion in Civil Penalties and $400 Million Criminal Fines.

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