Case Analysis #1
For the first case analysis I chose to take the BP Deepwater Horizon situation. Not only because my team and I went over it in our presentation but I figure that it is a good topic to cover as it the United States largest oil spill to date and it involves many major players that ultimately destroyed BP’s reputation and integrity at the time. Background
On April 20th 2010, the Deepwater Horizon operated under Transocean exploded causing an accumulated amount of 4.9 million barrels of oil to spill into the Gulf of Mexico (US Coast Guard). In the explosion itself only 11 were killed and 17 were injured but the overall damage resulted in the ecosystem declining; killing many species of animals, and the decline in health in the
…show more content…
BP being the source of the disaster did not make any attempts to repair the equipment on the drilling rig as it would cost them time and money to take care of it. First of all being on a drilling rig even one that well maintained will have some risk involved whether it be equipment failing and causing injury or something else, but knowing that your rig needs 390 major repairs and not doing anything about it is a huge negligence for both the crew on the rig and the surrounding environment. However this is not the first time BP has violated regulations like this. Back in the late 90’s and into the early 2000’s BP has violated air regulations that has totaled $319 million, they have dumped hazardous waste in their Alaskan exploration, and right before the oil spill they were sued in Colombia over the Ocensa Pipeline as they took advantage of the farmers there and caused severe damage to their land and livestock (Slocum). Then in the cementing process, due to poor judgement on BP and Halliburton, they figured that 6 centralizers that was specified for the job originally would work even though the simulation stressed that 21 should have been used. In this matter I would say that both companies are liable for this decision. Knowing that from the simulation it would not bond correctly with 6, Halliburton should not have let BP continue. BP knowing too that their rig was in dire need of repair should not have let this been done at the get go as the critical part of the drilling process might have failed due to something
The Keystone XL Pipeline is a proposed pipeline project, by TransCanada Pipelines Limited, involving the transportation of up to 830,000 barrels of oil per day from Alberta, Canada to the Gulf of Mexico area in Texas. “The United States portion of the pipeline would begin near Morgan, Montana, at the international border of the United States and extend to delivery points in Nederland and Moore Junction, Texas. There would also be a delivery point at Cushing, Oklahoma” (Environmental 5). The delivery points would grant access to multiple other pipelines and refineries located all around the United States. “The Keystone XL pipeline would consist of approximately 1,711 miles of new 36-inch-diameter pipeline, with approximately 327 miles of pipeline
April 20, 2010, a tragic disaster struck the Gulf Coast. British Petroleum deepwater Horizon oil rig cracked from three places and raw oil leaking into the sea. .it was considered that over 60,000 barrels of oil a day are mixing with Gulf water and Oil spread over 70 miles to 130 miles into the sea and can be seen from space.
There never was a leader(s) to help guide the two companies to success within their oilrig maintenance. If the company had an appointed liaison or leader to communicate between the blue-collar workers and the companies, there would have been more dialogue to create feasible solutions. Additionally, there seemed to not be a focused, educated, and organized group of leaders between Transocean and BP to build working relationships between the two companies while seeking the best for employees and business. If these positions were already in place, the appointed leader(s) did not do a good job in sustaining relationships with either companies or the workers of the rig. The lack of leadership within the two companies raises a flag and opens up the opportunity for wrong doing within the
On April 20, 2010, an explosion occurred in the Gulf of Mexico, on the Deep water Horizon oil drilling rig which rented by BP. There were 126 workers on board at the time of the explosion. Fifteen of them were injured, and eleven died. Two days later the oil drilling rig sank, the leaving oil spewing into the Gulf. This was the largest marine oil spill in the history of the petroleum industry, the oil had been leaking for almost three months.
...the action of drilling is going on because so that if the same incident ever happen again, their will be more men to take the first aid action in trying to stop the leak. Also maybe the company should change the type of pipe they are using to engage in transferring the drilled oil because it might be the material used to make the pipe that is weaken and ended up causing the oil company billions of dollars.
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).
Royal Dutch Shell also known as Shell, completed its acquisition of BG Group on 15 Feb 2016 with end up negotiation with $70 billion to take over BG Group. The defenses raid start since year 2015. Many people think that Shell act to take over BG is not a good trend because the BG is getting bigger and bigger, many others oil company like Chevron Corporation, ExxonMobil Corporation which is one of the biggest and famous oil company are give up to take over BG, because BG is very expensive, even BG got great resource and nice potential to make their company roses. In long term investing, Merger arbitrage and trading isn’t usually the bad way but by buying into the BG-Shell deal, not only do investors stand to profit from the merger, they’ll
“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.
The BP oil spill began on 20 April 2010 in the Gulf of Mexico on the BP-operated Macondo Prospect. On April 20, 2010, 126 workers on the mobile offshore drilling unit Deepwater Horizon were in the process of temporarily closing the exploratory Macondo oil well. That evening, an explosion abroad the drilling unit set off a chain of events that eventually led to the sinking of the Deepwater Horizon. Eleven crewmembers lost their lives and others were seriously injured, as fire engulfed and ultimately destroyed the rig.
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.
Before I start making the assignment, I have read the case to get and understanding the big picture or the situation in the case study. After that, I analyse the case first by understanding the content in the case study and think creatively the relation between the case and the topic. Then, I read the case again and actively take notes or underline passages. After that, I discussed with my team to identify the key issues in this case, to know the problem that are related with this case study. After I identify the issues in this case, I and my team member generate possible solutions, think about consequences of various paths of action, and weight the advantages and limitations of solutions.
Organize information first – A huge takeaway from the case studies and the Foster Competition was the idea of organizing the information before doing anything else. Similar to outlining an essay, the frameworks were essential to breaking down the material in the case and obtain a better grasp of the situation. In my opinion the SWOT analysis and the root cause analysis were the most beneficial. The SWOT analysis gave me a great understanding of the current position of the company, while the root cause analysis expose their core issue. Going forward both will be a great tool when making strategic decision in my career.
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.
The BP Deepwater Horizon oil spill accident of April 20th 2010 that caused a gas release followed by the explosion that took place causing hydro carbons to leak into the Gulf of Mexico posed a lot of strategic implications in the competence, capabilities, internal resources and Corporate Social Responsibility of BP. The implications of the Oil Spill underscores the Icarus paradox, which holds that the very capabilities that give an organization its source of competitive advantage can become constraining with changes to the external context. Teece (2009) emphasised that dynamic capabilities revolve around three generic types namely: Sensing (ability to scan, search and explore the external