Bp Deep Water Horizontal Explosion
INTRODUCTION BP originated from a British petroleum company founded in 1909. After experiencing crises during the 1980s-1990s, the company started to have a cost cutting culture. During mid-1990s, with an aggressive growth strategy, BP started to grow and reposition. After BP merged with Amoco in 1998, John Browne started to serve as chief executive until May 2007. Browne repositioned BP as a “green” oil company after he took over and practiced the model of organizational decision-making strategy, known as “asset federation.” Under this new strategy, onsite asset managers had the authority to make decisions, and employees’ compensation was directly tied to asset performance (Ingersoll et. al, 4). Many decisions made by John Browne were directly related to the Deepwater Horizon explosion. In 2007, Tony Hayward replaced John Browne and became the new chief executive. Tony Hayward slightly adjusted BP’s organizational structure and decided to pay more attention to BP’s safety issues and risk averse culture. However, the Deepwater Horizon explosion happened when Tony Hayward was in charge.
The BP Deepwater Horizon oil explosion occurred in the Gulf of Mexico on April 20, 2010, which is considered as the largest accidental marine oil spill in the history of the petroleum industry. The Deepwater Horizon oil spill caused tremendous damages to the surrounding environment and enormous losses to shareholders. BP acquired the right of operating the Macondo Well Project from the U.S. Minerals Management Service in 2009, and then BP leased the Deepwater Horizon rig from Transocean who provides offshore drilling equipment and personnel operation. Both BP and Transocean operated the Deepwater Horizon when the disaster happened.
The Deepwater Horizon explosion resulted in major damages and losses. When the explosion occurred, workers abandoned ship and jumped into the burning ocean. Among the 126 workers on board the Deepwater Horizon, 17 were injured and 11 died.
The BP Deepwater Horizon oil explosion occurred in the Gulf of Mexico on April 20, 2010, which is considered as the largest accidental marine oil spill in the history of the petroleum industry. The Deepwater Horizon oil spill caused tremendous damages to the surrounding environment and enormous losses to shareholders. BP acquired the right of operating the Macondo Well Project from the U.S. Minerals Management Service in 2009, and then BP leased the Deepwater Horizon rig from Transocean who provides offshore drilling equipment and personnel operation. Both BP and Transocean operated the Deepwater Horizon when the disaster happened.
The Deepwater Horizon explosion resulted in major damages and losses. When the explosion occurred, workers abandoned ship and jumped into the burning ocean. Among the 126 workers on board the Deepwater Horizon, 17 were injured and 11 died.
Cited: Elkind, Peter, David Whitford, and Doris Burke. “An Accident Waiting to Happen.” Fortune. February 7, 2011. Fodor, Andy and John Stowe. “Financial Market Reactions to a Company Disaster: The BP Case.” Journal of Applied Finance. Issue 1, 2012. Helman, Christopher. “BP Is Booming (Shhh!).” Forbes. May 7, 2012.