Type: Response Essays
Sample donated: Roberta Stone
Last updated: September 25, 2019
CSRBP have been involved in many incidents regarding theiroperations and the impact it opposes on the environment. The most notoriousenvironmental disaster cause by BP is the Deepwater Horizon oil spill; theeffects of the oil spill are still being felt today.On the 20th of April 2010, 200 million gallons ofoil was spilt into the Gulf of Mexico and BP were held accountable; as thedisaster killed 11 people and injured another 17, it is considered as the worstenvironmental disaster of human history. The oil spill covered up to 68,000square miles and could even be seen from space, the impact the oil spillimposed on marine wildlife was atrocious. The Gulf of Mexico was estimated tobe the residency of 8,332 species of marine wildlife; the most severelyaffected were birds, sea turtles, fish, invertebrates, plants, mice, dolphinsand whales.
To make the situation even worse, BP decided to spray 2 milliongallons of toxic dispersants into the oil spill radius. Unfortunately, thedispersants did not reduce any of the oil left in the Gulf; instead theparticles broke down into smaller pieces making the oil more toxic for wildlifeand easier to enter the food chain. BP were able to clean up 25% of the oilspilt into the Gulf of Mexico however, after numerous attempts to contain theflow of oil, the oil well was declared as sealed on the 15th of July2010. Oil had been seeping into the waters of the Gulf continuously for 85 daysand 16 hours before the well was sealed; however, it was reported that oilcontinued to leak from the site in 2012.BP is still being fined today for the oil spill thatoccurred 8 years ago. As of January 2018, BP’s total compensation pay-out isequal to $65 billion.
BP hold the record for the largest corporate settlementin all of US history when they were prompted to pay $18.7 billion in finesaround July 2015. Around 384,000 business and individuals filled claims againstBP for the oil spill in the Gulf of Mexico. When taken to court regarding aninvestigation into the oil spill, BP were prompted to pay another $28 billionin clean-up costs and damages claims.
BP were prosecuted in court under felonycharges for the 11 individuals who died in the oil rig explosion, BP pleadguilty to the felony charges and were prompted to pay a further $4 billion. BPalso paid $12.6 billion to settle a variety of lawsuits stacked against them.On the 16th of January 2018, BP agreed to paying a further $1.7billion in compensation costs.BP have made drastic changes to their outlook on ethicalsourcing and sustainability. In BP’s 2010 sustainability report, they mentionedthat “In response (to their environmental snafu), we are developing andimplementing a comprehensive programme to strengthen safety, risk managementand compliance across BP.
” They announced many changes to their methods of identifying,assessing, controlling and evaluating risks in their 2010 sustainabilityreport. Following the Deepwater Horizon accident, BP reconstructed andreinforced their scope of operation and accountabilities regarding health andsafety and hazards. They announced the implementation of a Safety andOperational Risk (S&OR) function used to combat and exterminate risks andhazards from their business operations. The function’s objectives are tostrengthen mandatory safety-related standards and processes, includingoperational risk management and to assess and enhance the competency andcapability of their workforce in matters related to safety and operations. BPhave integrated S specialists within all reaches of their company; inaddition to this, BP also allocated a member of their most senior executiveteam to be the head of the S division.
The Operating Management Systemor OSM provides BP a company-wide framework for which they can drive a rigorousand systematic approach to safety, risk management and operational integritywithin the company.