BP Global Oil Spill in Gulf of Mexico and Its Affect on Local Businesses - Research Paper Example

Gulf of Mexico has been a home for as many as 36 Marine Protected Areas (MPA) accounting for 13 % of total MPAs throughout the nation in addition to the MPAs of the bordering states of Alabama, Florida, Louisiana, Mississippi, and Texas waters totaling 75 not included in the national mainstream MPAs. Florida Keys National Marine Sanctuary and Flower Garden Sanctuary have been threatened by the oil spill which could implicate British Petroleum under National Marine Sanctuaries Act. 

The Act makes it liable for damaging any living or nonliving resource of national marine sanctuary affecting its conservation, recreational, ecological, historical, educational, cultural, scientific, or aesthetic value. The Act provides for the imposition of civil penalties as high as $ 100,000 on any person and each day of violation constituting a separate violation. Apart from civil penalties, response costs, damages due to destruction, loss, or injury plus interest are leviable under the Act. There are also other Acts such as the federal Endangered Species Act, Marine Mammal Protection Act which can make BP liable for deaths of dolphins and sea turtles as a result.

The above said blowout occurred at the BP’s Macondo well in the Gulf of Mexico resulting in the deaths of 11 workers who were on Transocean’s Deepwater Horizon Drilling rig. An estimated 4.9 million barrels of oil were spilled in the process. The wellhead was 1,500 m down below the seawater. The United States declared a moratorium on deepwater drilling until October 12, 2010. It is widely believed that the blowout could have been prevented but for the poor quality of equipment meant to prevent blowout.

Known as the last line of defense, the blind shear ram on the blowout preventer fixed on a wellhead on the ocean floor would have crushed the drill pipe thus preventing a blowout. The blind shear ram is believed to have failed for want of checks as simple as verifying whether the batteries had been sufficiently charged. BP’s investigation team is reported to have held that the well had been poorly designed.