BP Oil Spill: Group Members

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BP OIL SPILL

Group Members:
CHEN SIJING
TANG HUAN
SUN YITONG
Timeline of the oil spill

 20 April 2010
Explosion and fire on the BP-licensed
Transocean drilling rig Deepwater Horizon in
the Gulf of Mexico. 17 people are reported
missing ,17 injured. A blowout preventer,
intended to prevent release of crude oil,
failed to activate.
 24 April
Oil is found to be leaking from the well.
 25 April
US coast guard remote underwater cameras
report the well is leaking 1,000 barrels of crude
oil per day (bpd)
 28 April
The coast guard says the flow of oil is 5,000bpd,
five times greater than first estimated, after a
third leak is discovered.
 5 May
BP successfully attaches a valve to the end of the broken
drilling pipe at the Macondo well.
 May 11/12 – Executives from BP, Transocean and
Halliburton blame each other.
 July 15 – BP says it has stopped the leak — at least during
testing — with the new tight-sealing containment cap.
August 2 – U.S. government data shows 4.9-million
barrels of oil leaked before the well was capped in mid-
July, suggesting the company had underestimated the
cost by at least US$1-billion.
Case background

 On 20th April, explosion of the Macondo Well


on Deepwater Horizon platform
 11 casualties on the spot
 Resulting massive oil spill
- sea water and beaches polluted
- massive killing of marine life
- local economy devastated
 BP faces criticism of the public
Human Errors and Ethical
problems
 Mechanical failure
 Questionable human judgment
 Mistakes in engineering design
 Operational implementation
 Team interfaces
 Lack of communication
 Weak leadership
Contractor Companies’
Misconducts
o Halliburton : Flawed Engineering Design,

Inadequate Risk Assessments


 the cement slurry at the bottom of the Macondo
well failed to contain hydrocarbons within the
reservoir.
 shoddy cementing job
Contractor Companies’
Misconducts
o Transocean: Training-less Operations and

a Faulty System
 the results of the negative pressure test
were incorrectly accepted
 they did not realize the hydroncarbons
influx until it had passed through the BOP
(blowout preventer).
 a flawed system that reacted inaccurately
and confused operators, e.g. BOP
Lack of Management
Communication
o Multiple indicators, less communication
 The earliest indicator ------ even 5 hours before the
explosion, when an unexpected loss of fluid was
observed in the riser pipe.
 The latest ------ 18 minutes before the accident
when abnormal pressure is observed and the pump
was suddenly shut down.
Long Records of Legal and Ethical
Violations , “Mostly Work” Approach

 2005, Texas City case: 15


workers are dead, 180 people
were injured and thousands of
nearby residents were forced
to remain sheltered in their
homes
 Long records of fines with
ignorance of public’s safety.
A Waiver by U.S. MMS of safety
regulations for oil industry
 MMS = Minerals Management Service
 waiving necessary documents of safety rules in
case of accidents like spills, blowouts, etc, along
coasts of Louisiana, Mississippi and Alabama in
which Gulf of Mexico is included.
The world is oily bleeding!

 62,000 barrels
crude oil release per
day to the Gulf of
Mexico, 11 platform
workers’ deaths, 17
others’ injury, and
unpredictable
consequences on
ecology……
Shirking responsibility of
the BP Company

1. Lack of social
responsibility.
2. Irresponsibility,
Materialism,
Malthusianism.
Concealing The Truth

 BP led the nation into a never-ending string


of lies and deceit.
 BP bought terms such as "oil spill" from
search engine providers
 BP knowingly issued a statement that the oil
geyser was spewing 1,000 barrels a day
during the first week.
Lack of timely action of the
US government
 The Federal did  too slow to send the
nothing at all until equipments needed
BP finally acted and too bureaucratic
under the public to quickly approve
pressure on April
26th.
Environmental Impacts

 135 miles of coastal shore sullied by heavy oil


 206 million gallons = 780 million liters
oil spewing from the well
 Sea water and
beaches
pollution
 Killing marine
life
An overall view of massive fish killing reported
in Louisiana, US
Outgoing BP CEO is
questioned
 Tony Hayward endured onslaught criticism
Because:
 Have little knowledge about the project
 Excuse himself that he is not involved in the
decision-making process
 Could not provide detailed explanation
Failure as a leader; ethical violation
Local Economy Affected

 Beach and water no longer clean


 Tourism industry affected
 Massive fish killing
fishermen holding back from fishing
no income
standard of living affected
Financial Problems Faced by
BP
 Overwhelming clean-up costs, penalties, and
lawsuits
 Total amount to cover the accident
= $ 32.3 billion
including $17.6 billion of fines
$ 8 billion to contain the disaster
Delay of Payment to Victims

 The victims ought to be compensated


 However have wait for years to get
reimbursed
 Unnecessary documents, delayed processes,
 Inquiries not answered
 Low reliability of adjusters and officers
 company and government’s
responsibility to take care of the victims
Conclusion

 Government and BP passing the buck

 By minimizing human error and improve


ethical value, the catastrophe can be avoided

 Both BP and government should bare the


responsibility
The End

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