Introduction to bp’s disaster
- 1. Introduction to BP’s disaster
- 2. The situationWhat happened?Founded in 1909 as the Anglo-Persian Oil company.The third largest energy company in the world.The biggest corporation in the UK.London Stock Exchange and New York Stock Exchange,constituent of the FTSE 100 Index.
- 3. The situationActive in over 80 countriesHas 16 refineries.22400 service stations Selling about 5.9 million barrels per day.Until mid-eighties BP = British government.After the privatizing in the nineties BP occurred in several scandals.
- 4. The situation1993 till 1995, convicted to pay a 22 million USD fine.2005 explosion in BP’s refinery in Texas, result: 15 deaths and 180 injured.2006 BP shuts down their oil operations in Prudhoe Bay corrosion in the pipelines, caused millions of liters of oil to be spilled.
- 5. The situation20th of April 2010 at 10 o’clock an explosion occurred at the ‘Deepwater Horizon’.The explosion was enormous eleven people killed instantly It kept burning for two days, before it collapsed and sunk,
- 6. The situationRipped apart the pipe system millions of litres of oil started leaking at about thousand meters below the surface.In the history books as one of the biggest oil pollutions.
- 7. The situationHow could it get this far?Privatizing the companies’ culture changed.Profit hungryCEO’s want sales rates as high as possible!Deep-sea drilling a risky businessBP built the ‘Deepwater Horizon’,
- 8. The situationa 32,000 ton colossal. operating in waters up to 2,400m deep.Candrillto a maximum depth of 9,100m.BP had 65% of the shareAnadarko 25%Mitsui10%.
- 9. The situationthe Macondo project wasn’t the rig’s first operation.the inevitablehappened.tempest of speculationsandaccusations.anAssociated Pressinvestigation the Bureau of Ocean Energy, had failed, Mid-August situationunder control the final stages of sealing the well.
- 10. The consequencesHow can we preventthis?Can it be justified that a high level executive cuts corners?management of a company responsible for ignoring standard safety measures ?
- 11. The consequencesMost acts of recklessness don’t result in fatalities.Similarity drunk driving or speeding.to keep the risky behaviour under control Code of conductindependent control unit,
- 12. The consequencesWhat is being done so far? European commission is putting the UK government under pressure to ban drilling in the North Sea;In the US, the House of Representatives legislationthatwill block BP fromgettingfuture drilling permits in the US.BP set aside 32.2bn USD to meet the cost of the clean-up.
- 13. The consequencesCurrently 17bn USD lossBig concerns in the UK crucial part of the pension funds rests on BP dividends.
- 14. The consequencesBP has made a strategic move replaced CEO, Tony Hayward, by an American (Bob Dudley).prevent a ‘cold war’ situation UK vs. USABob DudleyTony Hayward
- 15. The consequencesTens of thousands of people are heading towards bankruptcy.Damage claims against BP rising exponentially.BP willing to pay a lump sum if agreed on not pursuing them in court.
- 16. The consequencesBP is feeling the heat .Started billing their partners, Anadarko and Mitsui, for the clean-up costs.None of them is willing to pay unless investigations.BP reacted offensive willing totake legal actions .
- 17. The consequencesLatest calculations estimate 4.9 million barrels of oil have leaked into the waters of the Gulf. One barrel contains approximately 159 litres.
- 18. The consequencesReports say that 65% of the spill is already been dealt with.With more than one million barrels of oil still left in the sea, the impact on fish and shrimp will strike the local economies.
- 19. Conclusion The BP story shackle in the chain of events leading up to a conclusion we should have made many years ago. Isn’t it dangerous that big multinational companies have more power than an average country?This cannot go on forever!Lessons should be learned,Consequences should be given!
- 20. Thank you for listening.