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Stress Defined by an Environmental Catastrophe
Deepwater Horizon and
BP Oil Disaster
Candice RhodesMBA 630
Defining Stress
● Stress - How we react to stressors
● Stressors
○ Challenge Stressors
○ Hindrance
● Strain - Effects of stressors
“Stressors are environmental stimuli that
place demands on individuals.”
What Happened?
April 20, 2010 -
● Well erupted in Gulf of Mexico destroying
Deepwater Horizon Oil Rig
● 11 men killed
● 80 miles long oil spill
○ 35,000-60,000 barrels of oil per day
flowed into ocean following incident
Livelihoods and Lives of Coastal Peoples Ruined
Marine Life and Environment Destroyed
Extensive Fines and New Oil Regulations
Was the one of the most
devastating oil spills in
history due to
STRESS?
Industry Stressors
● 24-Hour Shifts
● Undertrained
● Limited workforce
● “Learn on the job”
mentality
Company Stressors
(BP)
● Behind on Schedule
● Over Budget
● No Manpower
● Faulty Equipment
● No Real Leadership
○ Especially
Amidst Crisis
The Community
Lost Livelihoods
● BP paid out $11.6 billion (as of 2015) for lost
income and still has more cases to review
● In fishing industry:
○ estimated $8.7 billion and 22,000 jobs lost
by 2020
● In Tourism Industry:
○ estimated to lose $22.7 billion by 2013
● Difficult to account for secondary economic effects
○ Example: fishermen not purchasing bait or
eating at local restaurants
The Fallout
Ruined spaces
● Some beaches closed for over 3 years
● Contaminated 1,100 miles of shore, at least
1,200 square miles of ocean floor, and
68,000 square miles of water
● Millions of dead mammals, reptiles, and
birds
Shared Strain
Long Term Effects on Community
Health:
● 3.6x more likely to have
anxiety disorders
● 2.9x more likely to have
post-traumatic stress
disorder
● 2.1x more likely to be
high on depression index
The Fallout
The Environment
● Depleted vegetation made shores
vulnerable to erosion
● Lost marine life (plankton, fish) had a
cascading affect up the food chain
● Animals (ex: dolphins, flounder, crab) die
at a higher rate due to complications from
exposure
● Decline in coral condition
● Loss of diversity among sediment
creatures
The Fallout
The Industry
Job creation and investment in oil industry.
● Create competitive incentive packages
● Attract qualified applicants that have proper training
● Temporary halts to drilling operations
● Increased costs of operations (safety mechanisms,
insurance)
Increased government regulations.
● Increased pressure on government
● More surprise inspections for rigs
● More stringent safety requirements
● Environmental Impact Studies
● Crisis Protocol required for all oil companies
Lasting distrust in big oil companies

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Deepwater Horizon and BP Oil Disaster, Stress Defined by an Environmental Catastrophe

  • 1. Stress Defined by an Environmental Catastrophe Deepwater Horizon and BP Oil Disaster Candice RhodesMBA 630
  • 2. Defining Stress ● Stress - How we react to stressors ● Stressors ○ Challenge Stressors ○ Hindrance ● Strain - Effects of stressors “Stressors are environmental stimuli that place demands on individuals.”
  • 3. What Happened? April 20, 2010 - ● Well erupted in Gulf of Mexico destroying Deepwater Horizon Oil Rig ● 11 men killed ● 80 miles long oil spill ○ 35,000-60,000 barrels of oil per day flowed into ocean following incident Livelihoods and Lives of Coastal Peoples Ruined Marine Life and Environment Destroyed Extensive Fines and New Oil Regulations
  • 4. Was the one of the most devastating oil spills in history due to STRESS?
  • 5. Industry Stressors ● 24-Hour Shifts ● Undertrained ● Limited workforce ● “Learn on the job” mentality Company Stressors (BP) ● Behind on Schedule ● Over Budget ● No Manpower ● Faulty Equipment ● No Real Leadership ○ Especially Amidst Crisis
  • 6. The Community Lost Livelihoods ● BP paid out $11.6 billion (as of 2015) for lost income and still has more cases to review ● In fishing industry: ○ estimated $8.7 billion and 22,000 jobs lost by 2020 ● In Tourism Industry: ○ estimated to lose $22.7 billion by 2013 ● Difficult to account for secondary economic effects ○ Example: fishermen not purchasing bait or eating at local restaurants The Fallout Ruined spaces ● Some beaches closed for over 3 years ● Contaminated 1,100 miles of shore, at least 1,200 square miles of ocean floor, and 68,000 square miles of water ● Millions of dead mammals, reptiles, and birds
  • 7. Shared Strain Long Term Effects on Community Health: ● 3.6x more likely to have anxiety disorders ● 2.9x more likely to have post-traumatic stress disorder ● 2.1x more likely to be high on depression index
  • 8. The Fallout The Environment ● Depleted vegetation made shores vulnerable to erosion ● Lost marine life (plankton, fish) had a cascading affect up the food chain ● Animals (ex: dolphins, flounder, crab) die at a higher rate due to complications from exposure ● Decline in coral condition ● Loss of diversity among sediment creatures
  • 9. The Fallout The Industry Job creation and investment in oil industry. ● Create competitive incentive packages ● Attract qualified applicants that have proper training ● Temporary halts to drilling operations ● Increased costs of operations (safety mechanisms, insurance) Increased government regulations. ● Increased pressure on government ● More surprise inspections for rigs ● More stringent safety requirements ● Environmental Impact Studies ● Crisis Protocol required for all oil companies Lasting distrust in big oil companies