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Paper On Article Discussing Financial Effects

   

Added on  2020-04-01

7 Pages1762 Words35 Views
Running head: ASSIGNMENT 2 – GROUP ASSIGNMENT Assignment 2 - Group AssignmentNameInstitution Affiliation

ASSIGNMENT 2 – GROUP ASSIGNMENT 2Summary This paper will focus on an article discussing the financial effects the manner in which BP responded to the Deepwater horizon spill or the Gulf of Mexico Oil Spill which is the biggestmarine oil spill in the history on the United States. The Gulf of Mexico Oil Spill occurred in 2010 at approximately 50 miles of thesoutheast of the Mississippi River delta, April 20 and was the result of an explosion on the Deepwater Horizon offshore oil platform. This article will emphasize on the importance of imposing more dependable environment accounting and reporting as a way to make regulations for global oil and gas activities more strict. This article also features the difficulties involving measuring ecological and socio-economic damages of the Deepwater Horizon oil spill. In analyzing this article, the paper will discuss the interest theory and the role that regulators play as well as my personal opinion on the issues that the article is discussing.

ASSIGNMENT 2 – GROUP ASSIGNMENT 3Introduction The Deepwater Horizon spill is a very controversial topic and although in the beginning the general public put full responsibility on BP for what they perceived to be negligence and disregard for the environment on the company’s part that caused the manmade disaster, the blame quickly shifted on the American’s government because its response was not deemed strict and impactful enough given the serious nature of the situation. The Gulf of Mexico Oil Spill out more than twenty categories of important and profitable ecosystem services in the Gulf of Mexico as well as around it, some of it generating at least US$12-47 billion per year as it is the case for ecosystem services for the Mississippi River Delta. The Deepwater Horizon spill almost caused the extinction of the Louisiana commercial fishery which would have been a hard hit to the economy of the state as it generates US$2.5 billion per year (Houdet, & Germaneau, 2011). To understand the full magnitude of the situation as well as the appropriate responses the involved parties need to have had it is important to look at the public interest theory as well as the role of regulators meaning politicians. Interest theory and role of regulators.According to the interest theory, regulations are policies that are determined by market forces, supply and demand but in this case, it is between the government who is the supply component and other interests groups who make the demand component (Uno and Bartelmus, 2013). The interest theory states that regulations are not developed by politicians but by industries, and the main purpose of these regulations is to create advantages for every player operating in those industries. So it is understandable why the general public felt that the government was being too lenient when setting sanctions for BP as the Oil and gas industry is one that designed the regulations that govern the market including lenient penalties for oil

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