BP's Continuing Safety Problems: The Gulf of Mexico Crisis

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Case Details:

Case Code : BECG116
Case Length : 19 Pages
Period : 2005-2010
Organization : BP
Pub Date : 2010
Teaching Note : Not Available
Countries : India
Industry : Petroleum

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Putting Profits Ahead of Safety?

Critics, judges, and members of Congress criticized BP, alleging that the company had once again put profits ahead of safety. Analysts said that BP had not yet overcome the culture practiced by the company's former CEO Browne...

Consequences

Under the US federal law, BP, as the lead project operator, was responsible for all the clean-up costs associated with the spill. As per the laws, BP, a major stakeholder in the Macondo oil well project, would be responsible for the economic and other damages relating to the oil spill disaster...

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Outlook

The company took several initiatives to contain the spill. It appointed an Independent Mediator to review and assist in the claims process for the spill and agreed to pay legitimate claims for loss and damage caused by the spill. On May 25, 2010, BP launched four state-specific websites to provide information related to the oil spill to communities affected by the spill...

Exhibits

Exhibit I: BP-Key Facts and Figures
Exhibit II: BP: Income Statement
Exhibit III: Timeline of the Oil Spill in Gulf of Mexico (As of May 11, 2010)
Exhibit IV: Stock Price Chart of BP
Exhibit V: BP: Quarterly Profits

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