Case Study: BP Oil Spill - Operational Risk and Incident Management

This case study examines the BP oil spill, focusing on operational risk and incident management failures. It provides an overview of the incident, including the Deepwater Horizon explosion and the subsequent environmental disaster. The report delves into the relevant protocols within the oil and gas industry, covering industrial health and safety, community health, environmental guidelines, and global atmosphere protection. It analyzes the protocols applied by BP and offers recommendations for procedural and legislative changes to prevent future incidents. The analysis highlights the significance of risk precautions, safety measures, and the need for continuous improvement in offshore safety management. The study emphasizes the critical role of process safety management, emergency planning, and community involvement in mitigating hazards. The report concludes by underscoring the importance of adhering to established protocols and implementing robust safety measures to minimize the risk of similar catastrophic events in the future.

Operational Risk and Incident Management for Oil and Gas
CASE STUDY OF BP OIL SPILL
[Pick the date]
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME

P a g e | 2
Table of Contents
1. INTRODUCTION.....................................................................................................................3
2. OVERVIEW OF THE INCIDENT............................................................................................4
3. PROTOCOLS RELATED TO OIL AND GAS INDUSTRY....................................................6
3.1. Industrial health and safety procedures..............................................................................7
3.2. Health and safety of community........................................................................................9
3.3. Environmental guidelines:.................................................................................................9
3.4. Global atmosphere protection..........................................................................................10
3.5. Industrial protocols:.........................................................................................................11
4. PROTOCOLS APPLIED BY BP............................................................................................12
5. RECOMENDATIONS............................................................................................................13
6. CONCLUSION.......................................................................................................................14
REFERENCES................................................................................................................................15

P a g e | 3
1. INTRODUCTION
Presence of combustible hydrocarbons is one of the intrinsic dangers in oil and gas
industry in the locations where oil and gas refineries are situated. Whether the product is
stored or transported, health and safety related issues have always been doubtful for oil and
gas industry. Activities involved in such industries include seismic and drilling, construction,
facility operations, road and marine transport, etc. Although, in recent years many
organisations have been able to understand the needs of implementing health and safety
procedures in their work premises still, monitoring failures have been identified that results
unexpected fatal incidents. Oil and gas industries as compared to other industries have been
seen more prone to hazardous incidents which can be made out from figure 1 in this report.
Every year millions of people die due to work related issue and occupational accidents
(MEYERS, 2016). Deaths relating to oil and gas industry has heavy toll in developing
countries where larger number of people are involved in hazardous activities such as
construction, mining and oil and gas refineries. Therefore to identify health and safety
protocols and procedures becomes significant so that preventing and managing such fatal
accidents becomes uncomplicated for the management. Conveying company’s structure,
practices and responsibilities for implementing health and safety include various processes
after performance and work procedures are identified. Health and environmental management
can be integrated in oil and gas industries management systems to ensure health and safety of
people and environment or else future of this industry can see more undesirable effects. This
report will investigate one of the most hazardous events recorded in history of oil and gas
industry that took place in April 20, 2010 in Deepwater Horizon at Gulf of Mexico, US. By
identifying health and safety protocols and principles this report will make recommendations

P a g e | 4
to BP for procedures and legislative changes in its operations so that failure in safety and
health or operational breakdown can be avoided in future course of business.
Figure 1: Number of injuries and deaths in oil and gas industry (Mason, 2015)
2. OVERVIEW OF THE INCIDENT
The Deepwater Horizon drilling unit exploded on 20th April, 2010 in which the unit
caught fire and eventually sank in the ocean resulting in huge release of hazardous
substances, gasses and oil from BP’s well in Gulf of Mexico region. All the initial efforts to
minimise the risks after the explosion took place were unsuccessful. After 87 days from this
incident, the well exploded natural gases and oil uncontrollably and continuously into the
Northern Gulf in Mexican region. The U.S. district court reported that approximately 3.19
million barrel of oil were unconfined into the ocean. This incident has been reported as one of
the most fatal accidents in the U.S. history where the combined volume of release oil were
about 12 times larger than Exxon Valdez spill in 1989 (Raunek, 2017).

P a g e | 5
Figure: Major accidents related to oil and gas industry (BBC News, 2011)
The accident took place in the evening when fire broke out in the drilling rig where the crew
members were engaged in their regular work. The well is dig to a depth of 2.5 miles that is
approximately 13,000ft below the ocean floor. The entire accident can be the result of human
blunder and technical failure that tragically killed 11 people while injuring 17 of the crew
members. Shattering the marine riser, the rig sank after two days of explosion. The pipeline
that was connected with the rig, measuring approximately 1 mile, was a blowout preventer on
the sea floor of the rig. According to the prevention made, the blowout should have
automatically triggered the explosion but due to improper maintenance, it did not functioned
at the time and failed to activate itself. Along with it, other subsequent efforts to control the
blowout preventer with other vehicles on operating area also failed in preventing the blowout.
After one week, BP boarded an effort to develop repression option for blowouts in deepwater.
Many techniques were adopted including cofferdam, forcing mud into the well from its top,
rising insertion tube instrument and capping the heap. But all went in vain. Oil travelled up

P a g e | 6
through approximately about a mile and formed thick surface slicks. Until 19th June 2010, oil
covered in around 15,300 square miles of the ocean. Winds and currents carried the oil slicks
to the Gulf States stinking more than 1,300 miles of shoreline including beaches, estuaries,
bays, and marshes of Texas to Florida Panhandle (SINCLAIR, 2017). Lighter oil compounds
that evaporated from the slicks were exposed in the breathing air of organisms like sea turtles,
marine mammals and many other creatures. Many attempts were taken by the company to
collect and disperse oil and other chemicals to reduce wildlife and human exposure. Physical
removal of oil substances along with burning of floating oil on surface of the water were also
undertaken near sea shore area. Along with it, fresh water was released in the sea shore areas
to keep beach and other fishery closures and livestock remain less affected from sea water.
3. PROTOCOLS RELATED TO OIL AND GAS INDUSTRY
Many researchers and research councils have provided with several regulations and
protocols that are required to be followed by oil and gas industries. Joint investigation teams
investigate with compilation of government regulations that whether the oil refinery plants
have sufficient maintenance to safeguard workers health and environment. The main purpose
behind revolution of offshore oil and gas industry’s relating health and safety protocols is to
reduce risks related to offshore accidents (Robinson, 2010). While establishing safe work
environment, strengthening offshore safety management and minimising accidents across the
industry requires continuous improvement endeavour. BP oil spill incident was due to human
error and mechanical dysfunction that establishes the need of risk precautions and safety
measures in its operations.

P a g e | 7
Source: (Energy Central, 2018)
Since US demands for more energy as shown in the above figure, exploration of oil and
gasses and its production process are likely to prolong despite current downturn in prices of
crude oil. Therefore, enabling safety and health related precautions to avoid major
catastrophes becomes essential. Showing concern while enabling protocol and regulations in
operations of oil and gas industry will sustain safe work atmosphere for workers along with
safeguarding the environment.
3.1. Industrial health and safety procedures
The industrial health and safety problems can occur during the decommissioning and
production of petroleum refining process. Health and safety related issues shall be identified
on the basis of work safety or risk assessment related to particular work. Health and safety
management can adopt structured and systematic management planning to prevent and
control hazards related to physical and mental health of workers. There are various
operational phases in which workers have to face health and safety dangers that include
deficiency in oxygen in atmosphere, process safety, fire and explosions and chemical hazards
(International Finance Corporation, 2007).
Process safety: Due to characteristics of oil and gas industry, this program can be
implemented in its operations to include safeguarding from chemical reactions and counter

P a g e | 8
effects of hazardous materials. Process safety management includes actions like physical
testing of dangerous materials and their reactions, reviewing the process of chemistry and
engineering run through by analysis’s research. Such analysis may include kinetics and
thermodynamics. Assessment of preventive maintenance must become mandatory while
integrating utilities and process equipment. Along with it, training and educating employees
while giving those instructions relating emergency response recovery shall be applied
(Candreva et al., 2013).
Deficiency of oxygen in atmosphere: The release of gases like nitrogen and hydrocarbons
results in creation of suffocating atmosphere due to disarticulation of oxygen. Therefore
preventative methods shall be implemented for such conditions. Designing placement of
ventilators to ventilate hazardous gases shall be made according to industrial standards.
Automatic shutdown systems after detecting uncontrollable situations can be initiated to force
ventilation and reduce the time for releases.
Chemical hazards: Releasing hazardous chemicals like hydrofluoric acid, methanol,
hydrogen sulphide, etc. can result in occupational exposure dangers. Such harmful releases
can injure severely while providing long term effects. These hazards shall be managed on the
grounds of job safety analysis along with hygiene surveys. Measures to protect workers
including training, information about personal protective equipment and work permit systems
can be undertaken by oil and gas industry’s management system. Alarms can be installed to
detect level of releases in gases so that responsible teams are reported at once (OSHA
Publications, n.d.).
Fire and Explosions: These kinds of hazards are generated by process manoeuvre in which
release of flammable gases takes place. Release of refinery gases results in jet fires and can
even give rise to vapour that explodes in clouds in the form of flash lights and fire balls.

P a g e | 9
Flammable liquids that are spread all over the refineries may cause pool fires, and explosions
under such conditions become fatal. To prevent such hazards, designing and construction of
oil refineries can be made according to international standards that can prevent fire and
explosions. Detection of fire and smoke in early stages can also enable prevention steps.
Evaluating accumulated vapour in storage tanks can even implement control and preventive
techniques (Borthwick et al., 1997).
3.2. Health and safety of community:
During decommissioning and constructing gases and oils, health and safety impacts
to the communities are common. During the operational process, community health and
safety is also risked especially during the times of explosions and fatal accidents.
Releases of hazardous gases and chemicals in atmosphere has affected to people living
around oil refineries. Handling and transportation of oil and gases shall be done in
scientific manner so that accidents can be prevented. By implementing programs related
to Process Safety management, major hazards can be avoided provided those programs
includes special guidelines and protocols. Maintaining mechanical veracity and other
critical aspects of process safety can include transportation guidelines for raw and semi
processed materials. Emergency planning shall also be applied while preparing
Emergency management plans in which local authorities, that are potentially affected, can
also participate (Clark et al., 2013).
3.3. Environmental guidelines:
Protocol value for effluents and emissions in oil and gas sector are indication of
sound industrial policies of countries so that they can be documented with regulatory

P a g e | 10
construction. Through prevention and control of spreading effluents and emissions in
environment, the guidelines can be assumed achieved during the operational course.
Conditions and work regulations need to be designed according to this framework so that
pollution and waste is reduced as much as possible. Protocols related to steam and power
generation commotion are also mentioned in Combustion source emissions rules and
Thermal power guidelines in which the capacity to which it can be generated must be not
more than 50 mega watt. These kinds of guidelines are applicable where direct discharge
of indulgent effluents to water surface is done for general purpose. For site specific
discharge, levels can be established according to the surroundings and available discharge
conditions of collection and handling. While discharging effluents from factory sites, the
level must be monitored and must be according to Environmental monitoring guidelines.
All actions during normal operations related to environment shall be monitored regularly
so that any significant impact is identified in its early stage (Borthwick et al., 1997).
3.4. Global atmosphere protection:
The emissions and discharge often results in polluting air and atmosphere due to
which many problems have arise in relation to green house. There are many international
treaties that deals with such issues related to oil and gas industry. General principle of
Earth’s protection and precautionary measurements are laid that can be adopted to
minimise climatic disorder along with mitigating adverse affects. Implementing national
programs to apply precautionary techniques in atmospheric emissions can be introduced
by implementing taxes to curb the use of unnecessary energy and emission of oil to the
surface of water. Regional level protection can be dealt by enabling protocols for
controlling damages to human health and safety by reducing air pollutants and harmful

P a g e | 11
emissions like sulphur, ammonia and VOCs. Persistent organic protocol is focussed on
substances that are prone to risk criteria and main reason behind such protocols is to
eliminate discharges of some products that can cause disruptions in future. There are
many legal protocols applied related to petroleum sector in context to Gas emissions that
results in gas flaring (International Labour Office, 2015).
3.5. Industrial protocols:
Standard laws and environmental principles are applicable to O&G sector under
which all the countries have to practice environment protection acts. Thus, legal
foundations will provide more specific legislation to deal with matters relating planning,
quality of air, protection of water and air. Protection of wildlife and marine creatures
along with conservation of biodiversity is also mentioned in Protection acts. These acts
without any doubt are directly related to O&G sector and shall be imposed without delay
to meet requirements in protecting nature. Although petroleum acts does not contains all
the required environmental standards but, provisions laid in them can give basis for
secondary normative regulations. The common feature of O&G industry protocols is that
they details operational requirements for several activities in work place of oil refineries.
The oil and gas industry has been growing under the legal and regulatory pressures to
address environment protection and getting improved in its activity. By installing legal
frameworks like Environment Protection act, Wildlife Protection Act, Biodiversity acts,
Flora and Fauna Act etc. oil and gas industries can gain future prominence. (Vinogradov,
n.d.)

P a g e | 12
4. PROTOCOLS APPLIED BY BP
After the incident many steps were taken by the management of BP after it was
given a request from health hazard evaluation team. The BP management team showed their
concern relating health and safety after the accident of oil release. Affected fishermen were
hospitalised along with those workers who were injured in the rig. This shows their response
towards health after accidents. Safety and health administrators of the company made a quick
survey of environmental health by monitoring the level in which the gasses had spread in the
air. Bp even requested to install health and hygiene checkups in offshore activity areas that
included beach tourism industry, fishermen, transport services, etc. (Awesome Stories, 2016)
Oil skimming and booming conducted by workers including vessel dispersant release were
ordered for oil burning so that recovery of oil at shore and offshore could be removed as
quick as possible. Although this activity was against air pollution acts, still in regards to
human health it proved beneficial. Industry hygienists and other medical officers were
conducted on site locations and other Gulf regions to collect data on potential worker
exposures, work practice and heath symptoms. Wildlife cleanup along with beach cleanup
and waste management activities were conducted in Alabama, Louisiana and Florida.
Onshore and offshore activities were monitored by qualified professional judgements to
identify any special symptoms relating health and safety in surrounding regions by
monitoring activities over there. In case of oil dispersant release incident, evaluations were
made to verify level in which air was toxic and what measure could be taken to reduce them.
Clean water along with oxygen was dispersed in the site to minimise the effects and protect
the living organisms over there (Gibbins, 2011).

P a g e | 13
5. RECOMENDATIONS
Health and safety are those factors that need to be considered significantly by all
industries. To bring change in work cultures, sustainable commitment is required for which
the managements of the company needs to identify the importance of safe work practice.
Safety of health and environment does not need much cost investment but, little consideration
and enabling precautionary measures are all it needs. This report will make few
recommendations to the management of BP in Mexico so that they can adopt necessary
changes in its procedures and legislations to ensure avoidance of such fatal accidents in
future. The company needs to make a collective engagement so that participation of
employees in setting standard and exchange of information is done in profound way. Each
and every employee must be aware of health and safety protocols so that mistakes are
minimised (Clark et al., 2013). Bureau of Safety and Environment Enforcement and
Petroleum Institute of America along with International Association of Drilling Contractors
and other regulatory bodies can take part in making decisions on work processes. It can help
the company become independent to focus on other administrative work while ensuring
safety in work place (Greenpeace.org, n.d.). Regulators can provide experts to lead and
provide guidance to coach workers in sites. By introducing programs relating health and
safety, employees can be educated about them and ways through which accidents can be
prevented. The regulatory policies and frameworks along with legal considerations shall be
modified to inhibit flow of information between contractors and operators. It will help to
improve safety culture and protection of individual, environment and workplace
(Transportation Research Board, 2016).

P a g e | 14
6. CONCLUSION
The rapid expansion of environmental regulations has made challenging for oil and gas
industry to survive without maintaining safety measures in their work culture. The
international norms and protocols have affected the O&G activities by modifying their
operations in mandate way. The industry has also been seen making legal considerations
along with environmental imperative to enhance its operations in continuous fashion.
Introduction of health and safety procedures have also made this industry more recognisable
in business context. From the above case study it can be made out that investing money is not
sufficient in any industry and that all businesses require potential identification of hazards
related to their operations. If BP would have installed its precautionary tools in effective
manner, avoiding such fatal incident could have been possible. Also, the evaluation teams
needed more quick attention than given so that damages made to human, wildlife and
atmosphere could have reduced somehow. On concluding note it can be said that
consideration of health and environment after corporate structure shall be made mandatory so
that all the industries, especially oil and gas, are bound to make consideration related to them.

P a g e | 15
REFERENCES
Awesome Stories, 2016. Deepwater Horizon: Disaster in the Gulf - SUMMARY of the
DEEPWATER HORIZON DISASTER. [Online] Available at:
https://www.awesomestories.com/asset/view/SUMMARY-of-the-DEEPWATER-
HORIZON-DISASTER-Deepwater-Horizon-Disaster-in-the-Gulf [Accessed 28 April 2018].
BBC News, 2011. BP oil spill: The environmental impact one year on. [Online] Available at:
http://www.bbc.co.uk/news/science-environment-13123036 [Accessed 28 April 2018].
Borthwick, I., Balkau, F., Read, T. & Monopolies, J., 1997. Environmental management in
oil and gas exploration and production. [Online] Available at:
http://www.programmeofficers.co.uk/Cuadrilla/CoreDocuments/CD15/CD15.3.PDF
[Accessed 28 April 2018].
Candreva, F. et al., 2013. Safety Guidelines and Good Industry Practices for Oil Terminals.
[Online] Available at:
https://www.unece.org/fileadmin/DAM/env/documents/2013/TEIA/SG_for_OT_as_of_20_D
ec_2013_-_clean.pdf [Accessed 28 April 2018].
Clark, A., Verity, R., Wheeler, S. & Landau, R., 2013. Safety and environmental
management in the oil and gas industry. [Online] Available at:
https://www.strategyand.pwc.com/media/file/Strategyand_Safety-and-Environmental-
Management-in-the-Oil-and-Gas-Industry.pdf [Accessed 28 April 2018].

P a g e | 16
Energy Central, 2018. Global Crude Oil Balances Expected to Tighten Through 2018.
[Online] Available at: http://www.theenergycollective.com/todayinenergy/2397126/global-
crude-oil-balances-expected-to-tighten-through-2018 [Accessed 28 April 2018].
Gibbins, B.S.K.a.o.D., 2011. Health Hazard Evaluation of Deepwater Horizon Response
Workers. [Online] Available at: t
http://www.cdc.gov/niosh/topics/oilspillresponse/gulfspillhhe.html. [Accessed 28 April
2018].
Greenpeace.org, n.d. OFFSHORE DISASTER: Gulf Oil Spill Factsheet. [Online] Available
at: https://www.greenpeace.org/usa/wp-content/uploads/legacy/Global/usa/planet3/
publications/gwe/2010/Gulf%20oil%20spill%20factsheet.pdf [Accessed 28 April 2018].
International Finance Corporation, 2007. Environmental, Health, and Safety Guidelines for
Petroleum Refining. [Online] Available at:
https://www.ifc.org/wps/wcm/connect/f73fca004e7bd2ce97b1bffce4951bf6/2013+Working+
Doc_Petroleum+Refining.pdf?MOD=AJPERES [Accessed 28 April 2018].
International Labour Office, 2015. Occupational safety and health and skills in the oil and
gas industry operating in polar and subarctic climate zones of the northern hemisphere.
[Online] Available at:
http://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---sector/documents/publication/
wcms_438074.pdf [Accessed 28 April 2018].
Mason, K.L., 2015. Occupational Fatalities During the Oil and Gas Boom — United States,
2003–2013. [Online] Available at:
https://www.cdc.gov/Mmwr/preview/mmwrhtml/mm6420a4.htm [Accessed 28 April 2018].

P a g e | 17
MEYERS, K., 2016. 7 SAFETY INCIDENTS YOU SHOULD LOOK OUT FOR IN THE OIL
& GAS INDUSTRY. [Online] Available at: https://www.blacklinesafety.com/7-employee-
safety-incidents-you-shouldnt-overlook-in-the-oil-gas-industry/ [Accessed 28 April 2018].
OSHA Publications, n.d. Safety Hazards Associated with Oil and Gas Extraction Activities.
[Online] Available at: https://www.osha.gov/SLTC/oilgaswelldrilling/safetyhazards.html
[Accessed 28 April 2018].
Raunek, 2017. The Gulf of Mexico Oil Spill: The Complete Story. [Online] Available at:
https://www.marineinsight.com/environment/the-gulf-of-mexico-oil-spill-the-complete-story/
[Accessed 27 April 2018].
Robinson, R.A., 2010. The Gulf of Mexico oil disaster: A case study on the projected
economic impact on tourism among the Gulf States of Louisiana, Mississippi, Alabama, and
Florida. [Online] Available at: https://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?
referer=https://www.google.co.in/&httpsredir=1&article=1567&context=thesesdissertations
[Accessed 28 April 2018].
SINCLAIR, H., 2017. OIL SPILL IN U.S. GULF OF MEXICO COULD BE BIGGEST
SINCE DEEPWATER HORIZON DISASTER. [Online] Available at:
http://www.newsweek.com/oil-spill-us-gulf-mexico-could-be-biggest-deepwater-horizon-
disaster-687119 [Accessed 28 April 2018].
Transportation Research Board, 2016. Strengthening the Safety Culture of the Offshore Oil
and Gas Industry. [Online] Available at:
https://homeport.uscg.mil/Lists/Content/Attachments/741/TRP%20Safety%20Report.pdf
[Accessed 28 April 2018].

P a g e | 18
Vinogradov, S., n.d. Environmental protection in the petroleum industry. [Online] Available
at: http://www.treccani.it/export/sites/default/Portale/sito/altre_aree/
Tecnologia_e_Scienze_applicate/enciclopedia/inglese/inglese_vol_4/507-
524_x10.3x_ing.pdf [Accessed 28 April 2018].