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It took several weeks and months for the oil cleanup team to contain the disaster caused on the marine waters. BP accepted the criminal responsibility hence paying 4.5 billion dollar in damages. Today, the oil company faces its biggest court challenges. The American government said that the company was grossly negligence (Freudenburg & Gramling 2011, p. 173). The paper will provide a comprehensive knowledge of the legal issues and how the case would affect future operations of the company. It will also identify some of the Human Resource issues involved.
After the Gulf of Mexico oil spill, both the American government and the company started their investigations to establish what exactly led to the disaster. They were also required to provide adequate solutions that could prevent future oils spills. Some of the organizations given the authority by the American government to carry out investigations included National Academy of Engineering, Mineral Management Service, and the National Oil Spill Commission (Slorach, Embley, Goodchild & Shephard, 2013, p. 349). This led to many hearings being carried out by the American House Committee on Energy. Consequently, it was discovered that the machine which was used to prevent the rig from blowing had experienced a hydraulic leak and its battery also stopped working. This machine was constructed by the Cameron International Corporation. A number of investigative reports did not only put the blame on BP Oil Company, but also on Transocean. The supervisors misinterpreted the pressure information and ordered the rig operators to substitute the drilling fluid with seawater. This could not prevent the already leaking gas from moving up the rig leading to a huge explosion. Report released by the Oil Spill Commission indicated that the spillage was caused by poor management decisions. The other possible cause was that the well was hurriedly
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Due to the development in the field of science and technology, the world nations are less concerned about preservation of nature. On the other side, conservation leads to unrestricted exploitation of renewable and non-renewable natural resources. The Environmental disaster in Gulf of Mexico is one of the greatest manmade disasters.
The research uses secondary data collection methods to develop a literature review of the oil industry, environmental impact and legal framework for the oil industry, and a case study method for evaluating BP on its vision, organizational structure, products, commitment to environment and its actual performance.
The groups that were affected by the BP Oil spill disaster in the Gulf of Mexico
It has impacted all walks of life, has prompted thought provoking questions in the mind of concerned as well as unconcerned parties. The BP Oil Spill can serve as a warning to all organizations who are careless on safety measures on the smallest issues; showing even the smallest carelessness can lead to such a big catastrophe that can haunt organizations and the concerned parties in the long run.
The Gulf of Mexico is one of the regions where such activity is highly developed. The specific region has a significant advantage compared to other areas where similar activities are in progress: the prospects for new finds in the future are high, an issue highlighted in the study of Foster, Cicin-Sain and Knecht.
This can be attributed to the fact in 2007 the western and central Mexican gulf gave contributed to 14% of the United State’s natural gas and 25% of the country’s oil in federal leases. Ever since the industry was started in the 1940s, it has grown steadily as more capitalists have invested and developed it.
Exhibit 3 of the case gives us three parties: BP, Halliburton and Transocean (Roberto 19). However, the regulators too are culpable. Nevertheless, one thing stands out. The entire off-shore drilling process is complex, as is reflected by the US$ 1 million per day cost of leasing the Deepwater Horizon rig (Roberto 8).
The company has until now focused solely on shareholder wealth maximization at the cost of other stakeholders of the company.
The corporate level strategy of BP should focus on having all kinds of oil &
BP Oil disaster in the Gulf of Mexico case involves an oil spill in the deep underwater well. The disaster coincidentally struck just as a time when BP Oil Company had been shortlisted with other two oil companies for the US Government’s Safety Award for Excellence, which was to be presented at the Offshore Technology Conference.
leadership crisis leaders have the responsibility to understand the magnitude of the crisis and help the organization to come out of it by exercising his management abilities. Effective crisis management does not comprise following the rules set by others, it requires robust
The goal of the company is to be focused oil and Gas Company that offers value over volume. The goal is pursued through clear strategies and employment of distinctive capabilities. The company operates in over 80 countries, having its head office in London,
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