Summative Assessment Deepwater Horizon 2022

Summative Assessment
Contextual Survey: Deepwater Horizon
In this contextual survey, Board and Management, Responsibility, Corporate Obligations, Board
Exposure, Compensation Practices, and Partners.
Introduction
The Deepwater Horizontal Rig is requested and serviced by Transocean, one of the largest
providers of government infiltrating maritime agreements. At the time of the oil spill, British
Petroleum, the subject of this contextual analysis, kept most of its rent to 65%. Anadarko (25%)
and MOEX (10%) were different residents.
The purpose of this contextual investigation is to investigate topics such as board and executive
responsibilities, company obligations, board risk, compensation practices, and partners.
Before completing this contextual investigation, actually do the following:
Clarify the meaning of morality and expert judgment. The represents an important management
and management system, reminiscent of a global perspective on company management and the
tasks of various partners. And a description of the nature, role, and importance of corporate
social responsibility.
Overview

On April 20, 2010, a flood of flammable gas struck a large center that was expected to block the
wells of the Deepwater Horizon drilling rig. Seal was introduced by Halliburton, a project
worker hired by BP to play off the rig's wells. What was the transaction?
After gaseous gasoline rose through the riser pipe of the device and reached the stage, the
gasoline took off and exploded. The explosion killed 11 experts and injured another 17. Seals the
bore hole when the drill pipe is clogged. Two days after the explosion, the device crashed and
sank. When it fell, the riser burst and crude oil began to be released into the sea.
The Deepwater Horizontal Rig is requested and serviced by Transocean, one of the largest
providers of government infiltrating maritime agreements. At the time of the oil spill, British
Petroleum, the subject of this contextual analysis, kept most of its rent to 65%. Anadarko (25%)
and MOEX (10%) were different residents.
According to the US Environmental Protection Agency, 4,000,000 barrels of crude oil filled the
sea for over 87 days. It was briefly picked up while signing the year contract on July 15, 2010
and was completely resolved on September 19. The EPA stated that Deepwater Horizon oil spills
are the largest of all marine oil infiltration missions present.
On December 15, 2010, the United States sued BP and its roommates Anadarko and MOEX,
and the owner of Deepwater Horizon, Transocean, for one of the most horrific environmental
disasters in American history.
2005
A series of explosions in a hydrocarbon isomerization unit in BP’s Texas
City refinery killed 15 workers and injured another 180.
The CSB found, in its final report on the incident, that BP had used ‘inadequate
methods to measure safety conditions’, had cost-cut and failed to invest (along with
former owner Amoco) during the 1990s, and ‘did not take effective steps to stem the
growing risk of a catastrophic event’.
2005

The day after Hurricane Dennis hit the Gulf of Mexico, BP’s massive Thunder
Horse oil platform started sinking into the sea. The Chicago Tribune reported that a
wrongly plumbed pipe had allowed water to flow through the ballast and bilge tanks
forcing open valves and flooding into two of the four giant legs of the oil platform.
2006
The Alaska Department of Environmental Conservation reported an oil spill of
up to 267 000 gallons of crude oil over 1.93 hectares in Prudhoe Bay. The
cause was identified as a quarter-inch hole in an above ground pipeline due to
corrosion. (Kasztelnik,,2020)
2010
The Deepwater Horizon oil rig explosion and spill.
Deepwater Horizon: a PR disaster
As Deepwater Horizon was leaking millions of barrels of oil into the Gulf of
Mexico BP CEO Tony Hayward (pictured below) told Sky News that
‘Everything we can see at the moment suggests that the overall environmental
impact of this will be very, very modest.’In June 2010, The New York Times
reported on Hayward’s appearance before the US Congress, where he said that
he ‘had no prior knowledge of the drilling of this well, none whatsoever’.
When accused of ‘stonewalling’ by Congressman Henry Waxman, Hayward
responded ‘I’m not stonewalling, I simply wasn’t involved in the decision-
making’.After several high-profile blunders, BP commenced an extensive
advertising campaign on national television and in major US newspapers where
full-page advertisements featured Hayward declaring he was ‘deeply sorry’ to
those affected by the disaster.
President Obama blasted BP for launching a multi-million dollar advertising
campaign to improve its image as oil continued to spew into the ocean.

BP announced in July 2010 that Hayward would be stepping down as its CEO.
➤ Reflective Question 1
Responsibilities of executive management
Do you believe former BP CEO Tony Hayward and the BP Board practiced
responsible decision- making with regard to the Deepwater Horizon oil rig
disaster?
Ø A responsible Board would be expected to ensure that management has
appropriate policies in place and makes appropriate decisions to ensure:
• financial and commercial priorities do not override workplace and
public (social and environmental) safety standards;
• effective monitoring of the implementation of these standards; and
• An understanding and respect for the various stakeholders including
employees, the wider community and the natural environment.
In this context, responsible decision-making balances governance, ethics and
accountability—on behalf of not only the proprietors of the company, and also
all the stakeholders. Staying ‘in touch’ with the concerns and wellbeing of others
is a central responsibility.
Although the Board delegates responsibility for management to the Executive
management it still has overall responsibility for ensuring that the day to day
management practices of the organization are appropriate.
You may wish to review the ‘Responsible decision-making’ section in Module 1,
as well as the following sections in Module 2—‘Impact of ethical or unethical
decisions’, ‘Factors influencing decision-making’ and ‘Ethical decision-making
models’.
➤ Reflective Question 2
The best interests of stakeholders