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Bp Deepwater Horizon Accident

In: Business and Management

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BP Deepwater Horizon Accident

Part 1(week 4)

A Study of Strategic Implications of the Recent BP Deepwater Horizon Accident

Date:

Submitted by: Mohamed Ahmed Mohamed

Student ID Number: H00032634

Chapter 1

Introduction

History of British Petroleum (BP) Company

British Petroleum is one of the oldest companies in the oil industry. According to BP Global (2010b), the company was founded in the year 1909 in the UK under the name Anglo-Persian Company. Later, in the year 1954, the company changed its name to British Petroleum (BP). Being in the gas and oil industry, BP conducts various operations including exploration and refining of oil among others. According to BP Global (2010), Bp is the largest energy company globally with presence in over 100 countries.

Overview of the Deepwater Horizon Accident

In the year 2010, BP experienced a Deepwater Horizon oil spill disaster which involved gas release and subsequent explosion in the Gulf of Mexico. According to Webb (2010), the fire lasted for 36 hours and this was followed by leaking of hydrocarbon into the Gulf for eighty-seven days. BP admitted responsibility explaining that the accident occurred following loss of control related to pressure within the well blowouts in which a special type of is designed to keep constant pressure.

Impacts of the Deepwater Horizon accident

This tragedy impacted immensely on various BP stakeholders i.e. local communities, global customers and the company’s stakeholders among others. According to Harlow and Brantley (2011), one of the major impacts of the disaster was that it caused damage to the brand image. This was as a result of public criticism of BP following its inability to contain the tragedy effectively. The disaster led to environmental pollution and had effects on the economy. The company also suffered huge losses...

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