BP: GULF OF MEXICO
In this essay we try to document several aspects of the spill occurred in the Gulf of Mexico. Issues such as whether the disaster could have been avoided, if the management of the crisis has been inadequate or if the company’s image has suffered.
To answer these and other issues we have to try to identify the damage caused by the spill inorder to show whether the actions taken by BP have been effective and minimized the damage. We have identified the possible causes of the disaster and analyzed if it could have been avoided. Next, we identify the performance of the company, identifying the risks, the measures taken to control them and once identified, we have proceeded to conduct an analysis of these actions and verify theireffectiveness.
Finally, we have identified a number of expert opinions in corporate image, we have identified the actions taken by the company and assessed it effectiveness.
2. Context. 1
3. Identification of the damage. 1
4. Could the disaster have been avoided? 2
4.1 Possible causes of the spill: 2
4.2 Could the disaster have been avoided? 2
5. Analysis of the company’s actions. 45.1 Identification of the company’s risks: 4
5.2 Strategies to reduce and control the risks: 4
5.2.1. – To minimize and control public opinion’s risk, it is necessary to: 4
5.2.2. - To minimize and control the financial risks it is necessary: 6
5.2.4. - To minimize and control the collateral risks it is necessary: 7
6. How did BP communicate with the press, the locals, theenvironmental organizations, the US government…? 7
7. Analyze of BP’s reaction, agree or disagree? 7
8. What would have been a good crisis management if any? 8
9. My thoughts about BP’s image. 9
Deep-water Horizon is a drilling rig in deep waters belonging to the company’s R&B Falcon, which was working under contract for BP IN THE Gulf of Mexico.
On April 20, 2010, anexplosion took place in the tower, causing a fire; two days after the oil rig sank and a huge oil spill in the Gulf.
On 15 June, was announced that the electromagnetic sensors have detected the actual data of spillage, about 9.5 million liters (60,000 barrels day), which suppose, having spilt during the period of scape,55 days, the amount of approximately 523 million liters. (Jose Vallarino,Soluciones avanzadas) This figure agrees acceptably with the estimates made by the United States government and independent researchers.
3. Identification of the damage.
According to Richard Charter, from the Organization for the Defense of Wildlife, the size of the oil spill “is so large and is expanding so quickly that goes beyond the effectiveness of human response and we are being witness of thepoisoning that will last many decades and that could be in some way avoided.”
Although there is disparity in figures concerning the volume of the spillage, the most trustable figure is approximately 60,000 barrels per day (Jose Vallarino, soluciones avanzadas; Elena Sanz, muy interesante) and this sea dumping causes:
1. Ecological damage :( According to the ecological Organization WWF Adenaand ecoesfera) :
a. Plants, fish and birds are poisoned transmitting from one animal to another through the food chain, affecting the feed human supply.
b. 8 parks in The United States and 26 million animal species are threatened and more than 12.000 animals were found dead.
2. Economic damage:
a. Economies bordering the Gulf of Mexico are going to be deeply affected, speciallythe fishing industry, public resources, private investments and tourism, leaving thousands of unemployed people, having a ripple effect on local economies.(Jose Luis Salgado Airas).
b. Require institutions and administrations to make a great economic effort to help with cleaning and disaster restoration.
c. It involves big losses for the company responsible of the spillage such as expenses...