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Bp Case

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Case Analysis 1 - BP and the Gulf of Mexico Oil Spill Case
Ying – Chen Lee
Hawaii Pacific University
02.12.2013

Case Analysis 1 - BP and the Gulf of Mexico Oil Spill Case
Event Review
Before the event, the Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster or the Macondo blowout), BP was facing a situation where the company was turbulent and needed the new locations and new technology to secure natural resources. The new CEO, Tony Hayward, proposed a variety of measures to boost productivity and profits which included safety improvement. The company tried to improve the financial deficit that was caused by the accident of oil spill and others. In this condition, BP made decisions that were risky and dangerous in the process.
A few months before the accident, related workers, engineers and supervisors expressed their concern about the safety of the work environment because not enough cement was being used to stabilize the drilling platform. After that, methane leaked out in the evening on April 20th, and the drilling rig was soon engulfed in flames. Most of the workers were rescued; however, there were still 11 workers missing even though the Coast Guard searched for them for three days. After 36 hours of burning, the drilling rig sank in the morning on April 22nd. According to the investigation report by the U.S. Coast Guard and Ocean Energy Authority, the cement for reinforcing the oil well was the main reason for this disaster. Also, the Macondo well already had financial problems and the monitoring devices appeared abnormal.
Indeed, the negative growth in the past meant that the company was seeking money badly. Halliburton and possibly BP decided not to wait for cement stability test results and poorly redesigned the cement mixture. The crisis was caused by their decision, because they...

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