British Petroleum is one of the largest and most significant global oil and gas corporations throughout the world. It is among the ten largest companies in the market and has headquarters located in London, England. The company is actively producing, refining, and distributing the various products and services it provides. Included in this are: gas and petrol stations, Liquefied Petroleum Gas (LPG), motor oil and lubricants, and solar powered energy.
Prior to 2010, BP had maintained a level of continuous operations with new drilling and extraction projects occurring. In February 2010 BP, through Transocean, was operating an offshore semi-submersible drill, the Deepwater Horizon, in the Macondo region of the Gulf of Mexico. Located off the coast of Louisiana and in United States territory, the rig was operating under the Marshalese flag of convenience.
On April 20, 2010 an explosion occurred on the Deepwater Horizon at approximately 10:00PM. Of the 126 crew members on board from BP, Transocean, and other companies working on the project, 11 were killed and 17 injured. The explosion was reported to have occurred due to an increase in pressure inside the marine riser, which ultimately ignited. Following the explosion a fire occurred, which lasted for a day before the rig sank on April 22, 2010. Also occurring on that date, US coast guard officials and BP operators discovered a leak from the vessel of crude oil at approximately 8,000 barrels (340,000 gallons) per day. After many failed attempts at containing the leak and approximately 5 million barrels of oil leaked the well was temporarily plugged and established as a major oil spill.
Following the Deepwater Horizon oil spill many accusations were raised against BP and the operations the company conducted. BP was charged with failure to install proper warning equipment on the rig as well as establishing a blowout plan, which would have eliminated the potential for an explosion and what to do if one did occur. The use of a Blowout Preventer (BOP) and activation required Dead Man’s Switch were in place, however decreased regulations in the region did not require procedures in place for decreased risk. BP is currently charged with a civil lawsuit from the Department of Justice and is charged with removal costs, environmental damages, and economic claims of those affected. Ongoing investigations occur regarding the fault of the incident and the level of restitution required of the company. If convicted, BP could face debarment of the region and several of its operating platforms, however this is unlikely due to government dependence.
After the occurrence of the BP oil spill greater attention and regulation has been placed on offshore drilling and the laws regarding it. Linked to ethical issues, lacking oversight, and inappropriate management of money, regulatory agencies will be given greater pressure to manage the industry properly. Under the Obama administration the bureau was reorganized as the Bureau of Ocean Energy and divided in three sections each targeted towards different aspects of operations. Also following the incident greater attention has been given to various environmental agencies and wildlife foundations for the area affected.
Resources:
“Preventing More BP-Type Oil Disasters | Earthjustice.” Earthjustice: Environmental Law: Because the Earth Needs a Good Lawyer | Earthjustice. Web. 30 Jan. 2011. <http://earthjustice.org/features/preventing-more-bp-type-oil-disasters?gclid=CNG77N-V46YCFcqC5Qodum1Z2A>.
Wang, Marian. “ISS – The BP Oil Spill Saga: Where Things Stand Now.” ISS – Institute for Southern Studies. 3 Jan. 2011. Web. 30 Jan. 2011. <http://www.southernstudies.org/2011/01/the-bp-oil-spill-saga-where-things-stand-now.html>.
BP Global | BP. Web. 30 Jan. 2011. <http://www.bp.com>.
25, April. “Deepwater Horizon Oil Spill.” Wikipedia, the Free Encyclopedia. Web. 30 Jan. 2011. <http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill>.
20, April. “Deepwater Horizon Explosion.” Wikipedia, the Free Encyclopedia. Web. 30 Jan. 2011. <http://en.wikipedia.org/wiki/Deepwater_Horizon_explosion>.