BP is a major global energy company founded in 1909 that has grown to operate in over 80 countries. In 2010, an explosion on BP's Deepwater Horizon oil rig in the Gulf of Mexico killed 11 people and caused millions of barrels of oil to leak over months. The disaster was blamed on BP's profit-driven priorities and lax safety standards. It cost BP billions in cleanup costs and legal damages. The spill devastated local economies and wildlife. There are calls for stronger regulations on offshore drilling to prevent future such catastrophes caused by corporate negligence.

1. INTRODUCTION TO BP’S
DISASTER

2. THE SITUATION
• What happened?
• Founded in 1909 as the Anglo-Persian Oil company.
• The third largest energy company in the world.
• The biggest corporation in the UK.
• London Stock Exchange and New York Stock Exchange,
• constituent of the FTSE 100 Index.

3. THE SITUATION
• Active in over 80 countries
• Has 16 refineries.
• 22400 service stations
• Selling about 5.9 million barrels per day.
• Until mid-eighties  BP = British government.
• After the privatizing in the nineties  BP occurred in several scandals.

4. THE SITUATION
• 1993 till 1995, convicted to pay a 22 million USD fine.
• 2005  explosion in BP’s refinery in Texas, result: 15 deaths and 180 injured.
• 2006  BP shuts down their oil operations in Prudhoe Bay 
• corrosion in the pipelines, caused millions of liters of oil to be spilled.

5. THE SITUATION
• 20th of April 2010 at 10 o’clock an explosion occurred at the ‘Deepwater Horizon’.
• The explosion was enormous  eleven people killed instantly
• It kept burning for two days, before it collapsed and sunk,

6. THE SITUATION
• Ripped apart the pipe system  millions of litres of oil started leaking
• at about thousand meters below the surface.
• In the history books as one of the biggest oil pollutions.

7. THE SITUATION
• How could it get this far?
• Privatizing  the companies’ culture changed.
• Profit hungry CEO’s want sales rates as high as possible!
• Deep-sea drilling  a risky business
• BP built the ‘Deepwater Horizon’,

8. THE SITUATION
• a 32,000 ton colossal.
• operating in waters up to 2,400m deep .
• Can drill to a maximum depth of 9,100m.
• BP had 65% of the share
• Anadarko 25%
• Mitsui 10%.

9. THE SITUATION
• the Macondo project wasn’t the rig’s first operation.
• the inevitable happened.
• tempest of speculations and accusations.
• an Associated Press investigation  the Bureau of Ocean Energy, had failed,
• Mid-August  situation under control  the final stages of sealing the well.

10. THE CONSEQUENCES
• How can we prevent this?
• Can it be justified that a high level executive cuts corners?
• management of a company responsible for ignoring standard safety measures ?

11. THE CONSEQUENCES
• Most acts of recklessness don’t result in fatalities.
• Similarity drunk driving or speeding.
• to keep the risky behaviour under control 
• Code of conduct
• independent control unit,

12. THE CONSEQUENCES
• What is being done so far?
• European commission is putting the UK government under pressure to ban drilling in the
North Sea;
• In the US, the House of Representatives  legislation that will block BP from getting future
drilling permits in the US.
• BP set aside 32.2bn USD to meet the cost of the clean-up.

13. THE CONSEQUENCES
• Currently  17bn USD loss
• Big concerns in the UK  crucial part of the pension funds rests on BP dividends.

14. THE CONSEQUENCES
• BP has made a strategic move  replaced CEO, Tony Hayward, by an American (Bob
Dudley).
• prevent a ‘cold war’ situation UK vs. USA
Tony Hayward Bob Dudley

15. THE CONSEQUENCES
• Tens of thousands of people are heading towards bankruptcy.
• Damage claims against BP  rising exponentially.
• BP willing to pay a lump sum if agreed on not pursuing them in court.

16. THE CONSEQUENCES
• BP is feeling the heat .
• Started billing their partners, Anadarko and Mitsui, for the clean-up costs.
• None of them is willing to pay unless investigations.
• BP reacted offensive  willing to take legal actions .

17. THE CONSEQUENCES
• Latest calculations estimate  4.9 million barrels of oil have leaked into the waters of the
Gulf.
• One barrel contains approximately 159 litres.

18. THE CONSEQUENCES
• Reports say that 65% of the spill is already been dealt with.
• With more than one million barrels of oil still left in the sea,
• the impact on fish and shrimp will strike the local economies.

19. CONCLUSION
• The BP story  shackle in the chain of events leading up to a conclusion we should have
made many years ago.
• Isn’t it dangerous that big multinational companies have more
power than an average country?
• This cannot go on forever!
• Lessons should be learned,
• Consequences should be given!

20. Thank you for listening.