The British Petroleum Oil Spill Disaster

The British Petroleum Oil Spill Disaster
Letter of Transmittal

October 8, 2012

British Petroleum Board of Directors
124 Success Road
Fullerton, CA 92340

Ladies and Gentlemen of the Board,

After an in-depth analysis of the Oil Spill of April 2010 we have prepared for you a communication strategy analysis containing the background facts, current situation and future recommendations for further action.

It has been a pleasure to serve you in your consulting needs; please do not hesitate to contact us should you have any concerns or questions pertaining to this report.

Cordially,

Consultants

Table of Contents

LETTER OF TRANSMITAL…………………………………………………….ii
LIST OF FIGURES………………………………………………………………iv
ABSTRACT………………………………………………………………………v

Introduction………………………………………………………………….….....6
Background…………………………………………………………………..…….7
Short Term Goals……………………………………………………….….………7-8
Long Term Goals………………………………………………………..………….9-10
Decision Criteria…………………………………………………………………..10-11
Recommendations…………………………………………………………………12

List of Figures

Abstract
The effects and aftermath of the British Petroleum (BP) Oil Spill in the Gulf of Mexico continue to be felt strongly among the residents and businesses in the Gulf region. We have presented a case analysis on this disaster which identifies the cost-cutting decisions that led to the oil spill and the fallout with the general public that followed.
We have concluded that although BP has taken several recent steps towards fixing the multitude of issues created by the oil spill they still have a very long way to go in recovering the public’s trust. BP has adopted measures to achieve this goal in the future but will most likely face several years of additional contributions before the recovery process is felt.

Introduction
On April 20, 2010 there was an explosion on the Deep Water Horizon drilling rig belonging to BP which resulted in the largest marine oil spill in the history of the petroleum industry (5). The oil spilled into the Gulf of Mexico for over three months before the well was capped. In total over 4.9 million barrels of crude oil leaked from the well. Through the use of surveys, academic business journals and articles this case analysis identifies and examines the cost-cutting decisions that led to the oil spill, the fallout with the general public that followed, and what steps BP could take to improve their corporate image.
Beginning immediately BP must establish higher quality control standards for their drilling operations to prevent future spills from occurring, implement a focused public relations campaign that focuses on what BP is doing to repair the damage done, and comply to environmental conditions mandated by government agencies.

Background
On April 20, 2010 there was an explosion on the Deepwater Horizon oil rig in the Gulf of Mexico. The explosion resulted in the death of 11 crewmen and caused the uncapped oil well to leak oil for more than three months.
BP’s then-CEO, Tony Hayward, originally downplayed the company’s responsibility for the oil spill and made several poorly-worded comments that invoked further ire from the public and media.
The economic impact of the oil spill displaced thousands of residents in the Gulf region from their fishing-related jobs, caused tremendous damage to the wildlife in the area, and will take years to clean up the oil that was displaced. Short-term goals
1. Identify all causes of the Deepwater Horizon explosion and leaked oil well.
2. Commission a thorough inspection of all BP oil rigs to ensure worker safety and that the equipment is functioning correctly.
3. Implement any repairs or upgrades necessary to prevent such an accident from occurring again.
4. Begin a concentrated public relations campaign outline BP’s response to the oil spill.
5. Target the Gulf residents who were directly affected and establish a recovery fund to aid in the rebuilding of the