In 2009 an oil rig controlled by Thai oil giant, PTTEP, exploded off of the northern coast of Western
Australia , billowing thousands of litres of oil into the Timor Sea each day. The leak was active for
74 days, beginning on the 21st of August and continuing till the 3rd of November 2009, effecting an estimated area of 10,000 square meters, proving to be a disaster of both environmental and political proportions. This essay will evaluate the effects of the oil spill on the environment, question the effectiveness of the clean up effort provided by the oil company PTTEP and view the changes made by the Australian government in relation to oil well operations and regulation. In doing so, this essay will also analyse this disaster in relation
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The WFF and the Australian Marine Sciences Association have both expressed views that oil companies should be responsible for all damage it causes to an environment even if that damage is proven many years after the incident has occurred.
- Finally, there is the question of compensation and of responsibility. What happens to those who depend on the environment for their livelihood? How is damage to both the environment and those who depend on it minimised? Those people who rely heavily on the marine life for their livelihood should be able to seek recognition and indeed compensation for damage caused to the environment.
While the PTTEP does accept responsibility for the oil spill it refuses to rectify mistakes made in the long term management of the disaster.
The Australian Government
For the Australian government, the events of the Montara oil spill would prove to be a disaster that would eventually have significant repercussions of both an environmental and political nature.
After the initial events and clean up of the oil spill, the Australian government leapt into action with their priority being heavily focused on a range of proposed changes that were designed to improve the safety and security of both
The leak after it was fixed was the size of Kansas (Friedman 100). There was 47,829 local, state, and federal responders to help clean up the oil (Friedman 100). There was 9,700 vessels that helped clean up the oil spill which were 6,500 government and commercial vessels and 3,200 vessels of opportunity (Friedman 100). 3.8 million feet of hard boom and 9.7 million feet of soft boom was used during the clean up to clean up the oil (Friedman 100). There was 127 surveillance aircraft used to help with the cleanup (Friedman 101). There was 1.4 million barrels of liquid waste collected and 92 ton of solid waste recovered (Friedman 101). They recovered more than 800,000 barrels of oily water from the Ocean and Coastal areas (Friedman 101). The oil spill effected the fish population by a large amount (Brown 18). The largest US oil spill in history is the Deepwater Horizon Oil Spill, which impacted ecosystems and residents of the Gulf Coast (Peres 1208). In 3 months over 200 million gallons of crude oil spilled into the Gulf of Mexico (Peres 1208). The BP controlled burned 1.84 million gallons of chemicals to break up the oil (Peres 1208). The clean-up employed several thousand workers (Peres 1208). The
The oil spill in the Gulf of Mexico occurred because “oil from the well shot up and out of the drill column under high pressure, extended on the drilling rig and exploded (wikipedia)”. The rig set on fire and later sank. BP, Transocean, along with government agency employer, all worked hard to avoid further spread of the oil.
Spills like these cause us to see the bad of oil drilling, especially in the ocean where the oil can spread to marine life in surrounding water. There are many cons with drilling for oil, but there are also many pros. Personally it becomes hard to weigh the pros
All indications are that the Company’s behavior pre oil spill was irresponsible and negligent and was potentially driven primarily by a focus to provide strong returns on their investments while compromising the integrity and internal controls of the operations. Post oil spill, the Company has had to learn from the consequences of a very costly disaster in order to stay in business and thrive. The Organization appears to understand now the need for effective communication, transparency and detailed due-diligence in all their efforts.
The oil spill has been subject to global media coverage. On the 21st of April 2010 news broadcasting companies were broadcasting the news of this oil disaster all over the world. Every day in almost any general newspaper there would be an article based on both the chief executive officer (CEO) of BP and how he planned to solve the disaster or just reporting the disaster again. This is a great example of Globalisation. Due to the improvement of technologies such as the internet/ broadband and other improvements in telecommunications the globe could now receive instant news /coverage about almost anything almost anywhere in the world. Meaning that people are now more aware of what is going on in the world.
On April 20, 2010, the Deepwater Horizon, claimed by Transocean and contracted to BP, encountered a sad and yet powerful blast,ending with the lives of eleven specialists. It additionally uncapped an ocean depths gusher that streamed for 87 days. An expected 210 million gallons of oil hurried into the Atlantic waters, destroying marine natural life and conveying the tourism and fish enterprises
This paper will explain some of the effects of three legal issues and three ethical issues surrounding the London-based British Petroleum Company’s involvement in the explosion of the offshore oil rig Deepwater Horizon and the subsequent oil spill into the Gulf of Mexico. There are many legal issues surrounding this disaster, but the three this paper will focus on are the Oil Pollution Act of 1990, maritime laws, and criminal charges
MEJRI, Mohamed, and Daniel DE WOLF. 2013. "Crisis Management: Lessons Learnt From The BP Deepwater Horizon Spill Oil". Business Management And Strategy 4 (2): 67. doi:10.5296/bms.v4i2.4950.
As Drew Griffin states “The federal government estimated 4.2 million barrels of oil spilled into the Gulf, but BP argued in court that it was much lower. A judge ruled BP was responsible for the release of 3.1 million barrels. (Griffin, 2015) Regardless of the amount look what damage it has done and the many lives that are affected by this disaster. Many say for 87 days in a row due to an uncapped wellhead lead to this disaster. The loss of money, family seafood business, town tourist revenue, were affected by the oil spill. As Allbusiness eidotors states “For Voisin and other fishermen, the spill couldn’t have come at a worse time. “Processing plants are idle and we are in middle of spring larval season,”
Recently, oil spill management has become a serious concern and subsequently, it has become a big issue as it takes a large, specifically trained team effort to solve the devastating problem. It also requires consistent efforts of the workforce. The Oil Spill in the Gulf of Mexico was perhaps another major contributing factor to highlighting the need for Oil Spill Management to be addressed. The director of the US Bureau of Ocean Energy Management Regulation and Enforcement, Michael Bromwich stated that this oil spill proved that oil and gas organizations were not prepared to deal with oil spills. (Merolli, 2010).
The Deepwater Horizon Oil Spill occurred on April 20, 2010 in the Gulf of Mexico. This oil spill was the largest spill in history in front of the Exxon Valdez oil spill of 1989. This oil spill released about 4.9 million barrels of oil into the ocean. This spill not only wreck havoc on the marine life but also the economic players that depended on ocean such as fisherman, tourism, and offshore drilling located along the gulf coast. Along will the spill the oil rig which was named Deepwater Horizon also went up in flames. This proved that the issue went far beyond just an oil rig that blew a line. Since this oil spill had drastic impacts all along the coast, BP which was the most liable for this incident faced criminal charges based on what happened. BP which knew the risks of deep ocean drilling failed to take the necessary safety procedures to reduce the risks of such incident occurring, thus was the reasoning behind placing most of the fault on them and not the other companies. The lack of regulatory oversight led to the issues and cost-cutting procedures opened the rig up to possible malfunctions like the one that occurred. During the spill into the gulf, BP sealed the well with cement which seemed to stop a majority of the oil from escaping the well. BP also recognized that the well was “dead” which was proven wrong when scientists still could conclude was leaking minor amounts of oil into the ocean. This spill not only proved to be harmful to the environment but also
The oil spill undermines the reputation and market position of British Petroleum, thus its stock prices decline dramatically. Even though BP took measures for resolving these problems, its way was not beneficial enough and therefore, it still requires more advantageous resolutions.
Deepwater Horizon oil Spill: BP’s drilling platform in the Gulf of Mexico had an explosion in April 2010, causing the “largest oil spill catastrophe in the petroleum industry history”. It caused the death of 11 men and injury to several others. “More than 150,000 barrels of crude oil gushed into the sea, every day, for almost 5 months and up to 68,000 square miles of the Gulf 's surface were covered” (1).
In 2010, BP’s Deepwater Horizon rig exploded, causing millions of barrels of crude oil to be leaked out into the Gulf of Mexico. The extensive oil spill created a lot of pollution and far-reaching effects on the tourism industry. The resultant damage to marine wildlife such as fish will continue to be felt for many years to come. Weeks after the event, and while it was still in progress, the Deep Water Horizon oil spill was being discussed as a disaster that will impact global economies, markets, and mining policies. The potential consequences included structural shifts in energy policy, insurance marketplaces and risk assessment, and financial liabilities to be incurred by BP. The law that affected the operation of BP’s business was the Clean Water Act, which regulates the discharge of pollutants in US’s waters (EPA, 2008). Following the oil spill, regulations have been put in place to regulate oil drilling operations. The Obama administration proposed new regulations on offshore oil and gas drilling. The regulation focused on oil and gas drilling companies to use stronger blowout Preventers that have the capability to close an offshore well in case a drilling breach occurred accidentally.
The government was also responsible for activating coast guards and the military in its response to the spill. Hence, the role of the US government here is crucial as a “parent” to ensure that BP acts in the welfare of its citizens.