Preview

Business Ethics Case Study: BP Oil Spill

Good Essays
Open Document
Open Document
459 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Ethics Case Study: BP Oil Spill
The mineral rights to drill for oil at the Macondo well, were purchased by BP at the Minerals Management Service's (MMS) Lease Sale No. 206, held in New Orleans.
June 22 – Mark E. Hafle, a senior drilling engineer from BP, warns that the metal casing for the blowout preventer might collapse under high pressure
Deepwater Horizon drilling rig company, owned by Transocean, begins drilling on the Macondo Prospect. The planned well was to be drilled to 18,000 feet below sea level, and was to be plugged and suspended for subsequent completion as a subsea producer.
Target date for the completion of the well which had been budgeted to cost $96 million
An accident damages a gasket on the blowout preventer on the rig.
Halliburton employee Marvin Volek warns that BP's use of cement "was against our best practices."
…show more content…
Brett Cocales, BP's Operations Drilling Engineer, emails drilling engineer Brian Morel confirming the 6 centralizer approach, saying six should be adequate to obtain a proper cement seal in the well. “Who cares, it’s done, end of story, will probably be fine and we’ll get a good cement job,” he wrote, according to a copy of the e-mail cited in court papers.
Deepwater Horizon completes its drilling and the well is being prepared to be cemented so that another rig will retrieve the oil. The blowout preventer is tested and found to be "functional." Gagliano now reports that using only 6 centralizers "would likely produce channeling and a failure of the cement job."
Gagliano's report says "well is considered to have a severe gas flow problem." Schlumberger flies a crew to conduct a cement bond log to determine whether the cement has bonded to the casing and surrounding formations. It is required in rules.
Halliburton completes cementing of the final production casing

You May Also Find These Documents Helpful

  • Good Essays

    Step 4: The cement and casing are then pressure tested to ensure hydrocarbons and other fluids don’t seep out.…

    • 724 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Oil well blowouts occur when there is an imbalance in pressure, whether that be from underneath the ground with an occurrence of shifting pressures or above the ground caused by drilling pressure. When this balance of pressure occurs, fluids reach the surface and flow out like a geyser. When this does happen, oil riggers…

    • 424 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Bp Oil Spill

    • 711 Words
    • 3 Pages

    British Petroleum’s public image was damaged immensely by the Deepwater Horizon oil spill and its poor public relations management during the weeks that followed. BP created the “Gulf of Mexico Restoration” website to inform the public about its efforts in cleaning up the spill and to help restore public trust in the company again. BP’s “Gulf of Mexico Restoration” website uses these three strategies to try to repair its reputation: a section highlighting technological advancements for safer drilling, colorful graphics of bolded statistics that state the amount of money BP has spent on various efforts, and a collection of videos that explain what BP has done to repair the Gulf of Mexico and the states affected.…

    • 711 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The recent explosion, deaths, and environmental impact of the deepwater Horizon oil drilling platform in the Gulf of Mexico brought the question of drilling platform safety to the forefront of the news, continuing to do so over two years later. The disaster is one of the more recent events and “is the largest marine oil spill in history” (Cleveland, 2013).…

    • 619 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Overview: Transamerica conducts global oil and gas exploration, development, and production. Lynes, a subsidiary of Baker International, provides the world’s oil and gas industry with products and services for drilling and production. Lynes/Baker advertised its production injection packer product in a trade journal as being suitable for permanent use in open holes even though most production injection packers were only employed for temporary use. Subsequently, Harold Brown, President of Transamerica, spoke with a Lynes/Baker sales representative and district manager, both of…

    • 1693 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    The company that actually owned the rig was Transocean, who then rented out the vessel to BP for drilling use on the Macondo well in the Gulf of Mexico. The rig itself was designed and built in 2000 to Reading and Bates Falcon RBS-8D design specifications. The dynamically positioned semisubmersible was also referred to as a Mobile Offshore Drilling Unit or MODU. Water-rated to 10,000 feet and well-depth rated to 30,000 feet, the Deepwater Horizon was not surpassing its capacity in 2010 when it was drilling at water depth of only 5,000 feet and a well depth that never reached 20,000…

    • 621 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    There are various ethical issues, which BP needs to consider in its operations. These are as follow…

    • 3247 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Due to today’s new technology that is continuously updated the new drilling rigs have considerably reduced the risk of potential accidents. In the most recent situations that have occurred due to oil rigs BP being one and the Exxon Valdez accident in 1989 off the coast of Alaska being another. Researchers were able to discover that there were several factors that stacked up in order for these accidents to occur. Once of the main causes involved highly negligent practices such as strained workers, unfulfilled promises of advanced technology equipment and several safety regulation violations. BP has been known to have an appalling track record concerning safety and has been fined 760 times in comparison to one of our leading oil drilling companies ExxonMobil, who has been only fined once and has had no incidents.…

    • 580 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Fracking, when not carried out safely has been known to contaminate our groundwater due to leakages of the chemicals used in the procedure. Fracking has also been linked to cause small earthquakes in nearby areas where fracking is taking place. Some people also fear fracking because of the BP incident that happened back in April of 2010 where millions of barrels of oil were spilled into the Gulf of Mexico. In his chapter, “Ghost Ridin’ Grandpa,” Gold explains what the problem was for BP and how it could have been avoided The BP oil spill was the result of not performing the tests needed to make sure that the cement used for the well formed a solid seal. The cement did not form the proper barrier that was needed and as a result when BP’s drill bit arrived at the targeted site, combustible natural gas mixed with petroleum, and they ignited as they pushed up to the surface causing the well to spill an uncontrollable amount into the Gulf of Mexico. This accident could have been totally avoidable had the proper tests been taken and the proper tools for the well had been used. It is at this point when Dr. Claude E. Cooke Jr., otherwise known as a legend of hydraulic fracturing, invented a new tool for oil wells that will make drilling for oil safer. Cooke’s tool functions as a thermometer as it takes measurement of temperatures within a well and by looking at these temperatures companies can make sure that their wells are in a…

    • 1615 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Hydraulic Fracking

    • 15749 Words
    • 63 Pages

    Beckwith, R. (2010). Hydraulic Fracturing: The Fuss, The Facts, The Future. Journal of Petroleum Technology. December 2010, pp. 34-41.…

    • 15749 Words
    • 63 Pages
    Good Essays
  • Good Essays

    Government statistics still can't confirm what happened to the majority of the millions of gallons of oil that leaked from the well, and even more importantly how much damage it’s causing underwater. The Gulf Coast economy is suffering, and endangered sea turtles, dolphins and many other marine creatures have been affected.. Drilling for natural gas offshore, in some instances hundreds of miles away from the nearest landmass, poses a number of different challenges over drilling onshore. The actual drilling mechanism used to delve into the sea floor is much the same as can be found on an onshore rig. However, with drilling at sea, the sea floor can sometimes be thousands of feet below sea level. Therefore, while with onshore drilling the ground provides a platform from which to drill, at sea an artificial drilling platform must be constructed. Drilling offshore dates back as early as 1869, when one of the first patents was granted to T.F. Rowland for his offshore drilling rig design. This rig was designed to operate in very shallow water, but the anchored four legged tower bears much resemblance to modern offshore rigs. It wasn't until after World War II that the first offshore well, completely out of sight from land, was drilled in the Gulf of Mexico in…

    • 553 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Gulf Oil Spill

    • 1344 Words
    • 6 Pages

    Figure 1. This is how the BP is burning up the oil which is flowing on the sea. now all holes are blocked but 560millions of oil already spilled out (Bourne).…

    • 1344 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Benefits Of Fracking

    • 1870 Words
    • 8 Pages

    In the fracking process it is important to create a reliable buffer between the water table, earth and the wells, however using cement or steel has proven to be difficult. Over time the cement can shrink, crack and erode releasing gas into the water tables or air. The steel casings erode from exposure of the different acids being used and can cause leaky connection sites. In 2009 Cabot Oil and Gas drilled 68 new wells in Dimock, PA that the PA DEP determined caused the groundwater contamination which resulted in the sickening of dozens of people and animals. Cabot oil and Gas was cited seven times for not reporting defective, insufficient or improperly cemented casings. When the casings are not sufficient they can crack or even collapse letting the gas release into the groundwater. Currently the EPA relies on self-reporting from the fracking companies when it comes to collecting data. Dr. Anthony Ingraffea, distinguished professor of engineering from Cornell University, has said 6.2% of all well casings fail initially, 60% fail after 20 years and all casings fail over time. In PA there are over 150,000 abandoned wells that are decades or even a century old. A recent investigation into a methane geyser in Union Township, PA suggest that a 70 year old well with deteriorating concrete and pipes may have been the methane pathways causing the problem. If fracking companies were held to higher regulations and were required to maintain all…

    • 1870 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    The two corporations colliding that day, BP and Transocean, underestimated the calamity occurring right before them. Twenty anomalies occurring simultaneously did not cause significant alarm to make a drastic and immediate decision to prevent the explosion. The team minimized the probability that the rig would explode.…

    • 277 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Up to half of oil wells dug turn up dry, so this technology will help oil companies know more about what they are getting into before punching holes in the ground.…

    • 309 Words
    • 2 Pages
    Satisfactory Essays