Deepwater Horizon Accident

7/30/2019 Deepwater Horizon Accident

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Deepwater Horizon accident

On the evening of April 20, 2010, a gas release and subsequent explosion occurred on

the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the

Gulf of MexicoEleven people died as a result of the accident and others were injured. We deeply regret thisloss of life and recognize the tremendous loss suffered by the families, friends and co-workersof those who died.

The fire burned for 36 hours before the rig sank, and hydrocarbons leaked into the Gulf ofMexico before the well was closed and sealed.

The accident involved a well integrity failure, followed by a loss of hydrostatic control of thewell. This was followed by a failure to control the flow from the well with the blowoutpreventer (BOP) equipment, which allowed the release and subsequent ignition ofhydrocarbons. Ultimately, the BOP emergency functions failed to seal the well after the initialexplosions.We regret the impacts on the environment and livelihoods of those in the communities

affected. We have and continue to put in place measures to help ensure it does not happenagain.

We have acted to take responsibility for the clean-up working under the direction of thefederal government, to respond swiftly to compensate people affected by the impact of theaccident, to look after the health, safety and welfare of the large number of residents andpeople who helped respond to the spill and to support the economic recovery of the GulfCoasts tourism and seafood industries impacted by the spill.As at 31 December 2011, we had spent $14 billion on our response activities. Throughout, wehave sought to work closely with government, local residents, our shareholders, employees,the wider industry and the media.

We are committed to understanding the causes, impacts and implications of the DeepwaterHorizon accident and to learn and act on lessons from it. We have conducted studies withfederal and state natural resource trustees to identify and define the impact of the spill on thenatural resources of the Gulf Coast.

In addition, we have committed long-term funding for independent research to improve ourknowledge of the Gulf of Mexico ecosystem and better understand and mitigate the potentialimpacts of oil spills in the region and elsewhere.

The majority of the oil that reached the shoreline from the Deepwater Horizon accidentimpacted Louisiana, Mississippi, Alabama and Florida


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BP Wants To Blame Workers For Deepwater Horizon

Spill, Says U.S.

by Puck Lo, CorpWatch BlogSeptember 27th, 2012

BP, the British oilcompany, has beenaccused of attemptingto blame "blue collarworkers" in order todivert attention frommanagement failuresof "gross negligence"over the DeepwaterHorizon spill in 2010.The allegations weremade by the federalgovernment ina recent

legal filing by the U.S.Department of Justicethat was initially keptpartly secret.

Deepwater Horizon -jointly owned by BP

and AndarkoPetroleum at the time- was deployed towork on Macondo, amile-deep underwaterwell in the Gulf of

Mexico. In April 2010the rig caught fire,exploded, and sank.Over the following 87days the oil well spewed nearly five million barrels into the ocean 40 miles off theLouisiana coast until the well was successfully capped with cement. Almost70,000 squaremiles of water and over 1,000 miles of coastline were polluted by oil slicks, scientists

say. Coral reefs and dolphins in the area continue to show signs of ill health to this day.

In mid-August BP asked U.S. district judge Carl Barbier to to dismiss a pending lawsuitby the federal government that is currently scheduled to be heard in January 2013.Instead, the company asked the judge to approve a $7.8 billion settlement, reached with125,000 victims of the gulf disaster that includes tourist businesses and fish workers.

The federal government acted swiftly to submit a new federal legal brief to the court inNew Orleans on August 31, according to legal experts, in order toconvince Barbier todeny the company petition and allow the lawsuit to proceed. In their filing thegovernment lawyers made a forceful case against the oil giant.

"BP's management in London purposefully limited the investigation by excluding any ofthe systemic management failures that led to the disaster," the lawyers wrote of an

internal inquiry conducted by Mark Bly, a BP executive.

"This was a decision designed to ensure that the public andlegal lines of accountabilitywould be focused exclusively on blue collar rig workers and other contractor/defendants -but at all cost, not upon BP managementand the inexplicable behaviors that coursedthrough the pages" of the internal BP emails. "The behavior, words, and actions of these

BP executives would not be tolerated in a middling size company manufacturing drygoods for sale in a suburban mall," the government lawyers added.

Photo by Patrick Kelley, U.S. Coast Guard Atlantic Area. Used under Creative

Commons license
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These sentences were blacked out by the government in deference to a "confidentialityclaim" by the company but Barbier ordered them made public.

Cartainly individual BP workers are already being prosecuted. In April, federal

prosecutors filed the first criminal charges against an individual involved in the accident.Former BP engineer,Kurt Mix, was charged with obstruction of justice for allegedly

deleting hundreds of text messages sent between himself and a BP supervisor during thecrisis. Mix pleaded not guilty and awaits trial in February 2013.

BP has claimed that management actions in the Deepwater Horizon spill "did notconstitute gross negligence or willful misconduct" on part of the company itself.

However, a presidential panel that investigated the accident has found otherwise, callingthe catastrophe preventable. The panel determined that the companies involved hadtaken hazardous and time-saving risks. In December 2010 the Justice Department filedalawsuit against BP and eight other companies, including Andarko Petroleum andTransocean. Halliburton, a contractor for the well that blew out, was not named in the

lawsuit.

Experts say that the new filing shows that thegovernment has become increasingly

frustrated with BP's attempts to evade responsibility. Justice Department lawyers tookspecial issue with BP's internal investigation noting that thecompany omitted from itsreport several revealing and embarassing emails between BP top officialsthat "sounded aclarion cry of impending disaster."

"Just as BP attempted to have the public, Congress, and others focus only on whathappened on the rig or in the shoreside offices of its contractors, the BP engineers andexecutives who drafted these and other documents were the people who actuallyexercised the direct authority and control over nearly every aspect of what ultimatelywent wrong on the rig on April 20th," the filing's authors wrote.

David Uhlmann, a University of Michigan professor and former environmental crimesprosecutor told Reuters that the new filing "contains sharper rhetoric and a moreindignant tone than the government has used in the past."

The government lawyers also accused BP management of refusing to learn from a 2005Texas City refinery explosion that killed fifteen people.

"What is most striking," the brief said, "is the utter lack of any semblance ofinvestigation of the systemic management causes deeply implicating the corporatemanagers and leadership who caused and allowed the rig-based mechanical causes tofester and ultimately explode in a fireball of death, personal injury, economiccatastrophe, and environmental devastation."

The Justice Department filing reminded Barbier to rule only on whether the settlementagreement meets legal standards during an upcoming November 8 hearing and cautionsagainst allowing BP to admit evidence or present testimony before the January trial.

The stakes are high. Under the Clean Water Act, violators are fined $1,100 for everybarrel of oil spilled. In cases ofgross negligence, that fine is increased to $4,300 perbarrel. If a federal judge agrees that BP is indeed liable for gross misconduct, the

company would have to pay$21 billion more than the $5.5 billion they planned for,according to Reuters.

BP responded to the news agency with a statement noting that it "believes it was notgrossly negligent and looks forward to presenting evidence on this issue at trial inJanuary."

"In its filing, the U.S. Government made clear that it does not oppose the settlementreached by BP resolving economic loss and property damage claims stemming from theDeepwater Horizon oil spill. Other issues raised by the Government simply illustrate that

disputes about the underlying facts remain," the company said.
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The August 31 legal brief also concluded that "BP did not act alone" and blamesTransocean for its role in the disaster as well. Both the Justice Department and BPareappealing a ruling made by Barbier that let Transocean off the hook for oil thatspilled underwater.

Meanwhile BP told Forbes that it has largely completed clean up from the spill, and the

area has mostly recovered. Environmental experts disagree - Robert Haddad, head of theNational Oceanic and Atmospheric Administration's assessment and restoration effort,and Doug Inkley, a senior scientist with the National Wildlife Federation, told the WallStreet Journal that the region is still suffering from the spill.

The one business that has fully recovered is the oil industry. Following a six-monthfederal moratorium on drilling and a two-year lull after the BP explosion, the Wall StreetJournal reports that over4,000 platforms are now pumping oil and gas from 35,000 wellsvia nearly 30,000 miles of pipelines in the region. BP alone currently has six rigs drillingand is still the largest player operating in the area. Transocean is reportedly negotiatinga partnership that would lead to a contract for four ultra-deepwater drillships similar to

Deepwater Horizon.

"The only thing Macondo did was delay the entry or delivery of some ultra-deepwater

rigs," Leslie Cook, senior research consultant at Quest Offshore, told AOL Energy.

The federal lawsuit is not the only one against BP for managament negligence. Sixinvestment groups that bought shares in BP before and immediately after the

catastrophesued the company in Texas earlier this month stating that they would nothave bought shares "had they known the truth,"the Daily Telegraph reported.

Pomerantz Haudek Grossman & Gross filed the lawsuit on behalf of investment firms likeGAM Fund Management, Skandia Global Funds and the South Yorkshire PensionsAuthority.

"BP paid only lip service to ... (safety) reforms, lacked any tools for dealing with oildisasters such as deep-water spills and continued to operate by sacrificing safety forsavings," the groups filing suit stated. "BP's reform failures led directly to the April 2010disaster."
http://www.chron.com/business/energy/article/Government-BP-appeal-ruling-favoring-Transocean-3882059.phphttp://www.chron.com/business/energy/article/Government-BP-appeal-ruling-favoring-Transocean-3882059.phphttp://www.chron.com/business/energy/article/Government-BP-appeal-ruling-favoring-Transocean-3882059.phphttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.htmlhttp://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.htmlhttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://online.wsj.com/article/SB10000872396390443890304578008573749823206.htmlhttp://www.chron.com/business/energy/article/Government-BP-appeal-ruling-favoring-Transocean-3882059.php


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making a series of cost-cutting decisions and the lack of a system to ensure well safety. Theyalso concluded that the spill was not an isolated incident caused by "rogue industry orgovernment officials", but that "The root causes are systemic and, absent significant reform inboth industry practices and government policies, might well recur".

In June 2010 BP set up a $20 billion fund to compensate victims of the oil spill. To July 2011,the fund has paid $4.7 billion to 198,475 claimants. In all, the fund has nearly 1 millionclaims and continues to receive thousands of claims each week

September 2011, the U.S. government published its final investigative report on theaccident.[37]In essence, that report states that the main cause was the defective cement job,and put most of the fault for the oil spill withBP, also faulting Deepwater HorizonoperatorTransoceanand contractorHalliburton.
http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill#cite_note-37http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill#cite_note-37http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill#cite_note-37http://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/Transoceanhttp://en.wikipedia.org/wiki/Transoceanhttp://en.wikipedia.org/wiki/Transoceanhttp://en.wikipedia.org/wiki/Halliburtonhttp://en.wikipedia.org/wiki/Halliburtonhttp://en.wikipedia.org/wiki/Halliburtonhttp://en.wikipedia.org/wiki/Halliburtonhttp://en.wikipedia.org/wiki/Transoceanhttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill#cite_note-37


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BPs CEO Tony Haywards Indias Power Minister

In handling the crisis CEO was obviouslyunprepared to deal with anaccident. His series of

unfortunate gaffes severelyhurt BPs image and

credibility.

First in 30 May 2010, CEOresponds by state sorrystatement The first thing to

say is Im sorry. Were sorry

for the massive disruption itscaused their lives. Theres no

one who wants this over more

than I do. I would like my lifeback. This statement clearlyshow that he feel very sorryabout this incident.

At 3 June 2012,again CEOstated, Im deeply sorry, wewill make this right.

Media At 3 June 2012, BP decides to go

on the offensive and spends

$50m on a national TV

advertising campaign. It show

BP willing to respond and

provide more information to

media. For example, TV ads,

newspaper (USA Today) and

social media (Twitter, Facebook

Page)

BP didnt have a Pubic Relations

strategy, so they failed tocommunicate the key messages

the public needed to media.

Public BP took steps to safeguard the

health and safety for public by

identifying and managing health

risks, monitoring health and

environment impacts,

environmental sampling and


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monitoring during the response

and also identify the potential

long-term impacts.

1. Outgoing BP exec Tony Hayward, exhibiting slightly better turn of phrase than

the characteristic foot-in-mouth syndrome exhibited while oil was still flowing

into the Gulf, said,

To put it simply, there was a bad cement job and a failure of the shoe track barrier

at the bottom of the well, which let hydrocarbons from the reservoir into the

production casing. The negative pressure test was accepted when it should have

not been; there were failures in well control procedures and in the blow-out

preventer; and the rig's fire and gas system did not prevent ignition.

it's always been BP's contention that responsibility for the disaster was shared betweenBP,In

BP also deployed a team of professional photographers throughout the Gulf Coast to capture images of theresponse to the Deepwater Horizon incident.

Over the course of six months, the photographers produced more than 200,000 images of the response, fromthe effort to stop the leak at the spill site to the massive programme of work to clean up the Gulf and shoreline.In 2011, BPs photographers continued to document clean-up operations as well as capturing images of oneof the busiest tourism seasons in several years along the Gulf Coast.

-BP admitted today its managers on the Deepwater Horizon missed key warningsigns in the hours before the explosion aboard the oil rig, but an internal

investigation put much of the blame on other companies involved in the well.

A 234-page report described eight main causes for the blast, which killed 11 men

and created an environmental disaster. But BP was accused of attempting to

pass on the blame for its conclusion that Transocean, the rig owner, and

Halliburton, which carried out cement work, shared much of the responsibility.

"Yet they were condoned in a corporation engaged in an activity that no less a witness thanformer BP chief executive Tony Hayward himself described as comparable to exploring outerspace."


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Should do Should not

Should understand the risk beforerespond to the crisis.

CEO had slashed BPs public andgovernment relations shop to cutcosts. So, He was listening to outsideconsultants and rookies. It is one of

the mistake he done, he should not doso.

Dont not hide the facts

Should have a PR strategy forcommunicate with media, deeplyconcerned about the harm and caused.To had a plan for what to do.

Documents

Deepwater Horizon Accident