Submitted By:

Pulkit Gupta (1701063)

Rohit Kumar (1701074)
Sanya Jain (1701078)
Shaista Khan (1701086)
 Key Highlights

March 2005, Texas explosion

1. 15 employees killed & 170 people injured
2. Violated Clean Air Act
3. BP admitted of ignoring several procedures between
1999 until the explosion in 2005
4. Criminal fine imposed - $50 million

Cause:
Immediate cause –
Excess gasoline spilled into vent system which led to explosion after ignition

Sequence of events leading to immediate cause:

1. Lack of proper training of the workforce
2. Step up supervisor didn’t complete all the checks
3. Liquid over flow from the stack
4. Improper communication to top officials
 March 2005, Texas explosion
Initiatives Taken:
1. Changed the name from British Petroleum to BP to
Beyond petroleum to signal the stakeholders that it
was focussed on sustainability
2. Increased their alternative energy offerings in
product mix
3. $4 billion investment done in alternative energy.
4. Launched “Alternative Energy Business” in 2005.
5. Invested in multiple projects & Partnered with
major players in Wind, Solar, Bio fuels energy
extractions
6. BP researched Carbon Sequestration & storage
since 2000
7. Opened the Salah Gas Field in Nigeria, stores up to
1 Million tons of CO2 per year, equivalent to
removing 25000 cars from road
8. Questions remain on long term effectiveness of CSS
9. BP education service started, Carbon footprint tool
being provided in school
The code of Conduct, “Our commitment to Integrity”:
1. Ethics & Compliance team organised creation,
publication and distribution
2. Cross functional team, challenges faced: how to agree
upon and communicate consistent standards for all BP
employees regardless of location, culture and language.
3. Held awareness meetings for employees
Drawbacks:
1. Not sufficient to prevent a man made environmental
disaster
2. No legal staff was called to ensure that the code
correctly assesses key areas of risk
3. Not designed keeping in mind the day to day legal and
ethical issues that employees might encounter
4. Did not adequately enforced it
5. Carbon footprint tool being provided in school
 Key Highlights

March & August 2006, Alaskan Oil

pipelines leakage: Largest oil spill
1. 267000 Gallons of crude oil were spilled over
1.9 acres
2. 1st leak occurred in March 2006, another spill
though small, occurred in August 2006
3. Price of crude oil increased from $2.22 to $77
4. Penalties & Criminal fines imposed - $45
million
Cause: 5. Oil production was shut down until BP
1. Failed to respond to numerous red flags guaranteed that pipes were fit for use
2. One of the red flags corresponded to the
corrosion in the transit pipes, left unchecked for
decades
3. Regular routine cleaning of the pipes was not
done
4. Ineffective leak detection systems
5. No replacement of deficient system
 Key Highlights
October 2007, Prudhoe Bay oil spill :
1. 2000 Gallons of toxic methanol
2. Spilled onto Tundra region killing many plants and
animals
October 2007, Manipulated the TET Propane market price:
1. BP charged with conspiring to violate the Commodity Exchange Act
2. Committed mail fraud and wire fraud
3. Purchased more than the available supply of TET propane and sold it at inflated price in the market
4. Criminal fines and penalties imposed: $303 Million

Early 2010, Manipulated the TET Propane market price:

1. US regulators fined BP with $3 Million for safety problems at Ohio factory.
2. OSHA fined BP with $87 million for not correcting safety problems identified after 2005
explosion.
• British Petroleum is the third largest energy company & the fourth largest
company in the world, and one of the six gas super major measured by 2011
measured revenue.
• Operates over in over 80 countries and has 21,800 service stations worldwide.
• Production is about 3.4 million barrels/day.
• Works in the field of exploration , production, refining, distribution,
marketing petrochemical, power generation and trading.
 Worst Oil Spill in US History - Deep Water Horizon Blow Out
Deep Water Horizon Accident:
• Fifth generation ultra-deep water, semisubmersible mobile drilling
unit
• Commissioned in Mexican Gulf in 2010 & operated by
Transocean
• On 20th April 2010, explosion in BP operated deep water horizon
• After 36 hours, it sank leaving the well unprotected
• Largest accidental marine oil spill of history
• Casualties: 11 & Injuries: 26
• From April to June 21, 143 oil spill exposure cases were
reported to the Louisiana Department of Health and
Hospitals
• Projected loss to Gulf tourism - $22 billion
• Loss of income to dependent people
• By May 26 of 2010, over 130 lawsuits filed Environment
• Cost of spill as of June 14, 2010 - $1.6 billion • 8,332 species were affected, including 400 endangered
• 798000 gallons/day crude oil fusing species
• Per day loss: $430000 ($86/Barrel) • As of November 2, 2010, 6,814 animals were dead
• 6,104 birds, 609 Sea Turtles and 100 Dolphins dead
 Worst Oil Spill in US History - Deep Water Horizon Blow Out
Reasons for the Blow Out: Financial Loss:
• Short procedures and quality testing of pipe & used less • Under Oil Pollution Act of
costly well design 1990, liable to pay $75 m in
• Additional valves deep inside the well failed to prevent oil economic damages
and gas from flowing up the steel pipe (casing) • $40 b Clean up Charges
• Engineers misinterpreted the CBL VDL tests • $20b Escrow Fund
• Willful Negligence- BOP was leaking a week before • $20 m Marketing & Seafood
explosion Inspection in Florida
• Rig crew failed to recognize gas flow up the well until it • $62 b Overall
had passed BOP
• Blow out preventer failed to shut down the well
Ethical Issues:
• Rig did not have a remote control shutoff switch (not
• If BP did not ignore some red
breaking rules)
signals, the accident might not
• Technical fault in design of the gas venting system which
had happened
allows a cloud of explosive gas to envelop the rig
• BP did not take any action
• System meant to avoid ignition of gases failed
towards proactive maintenance
• 3 out of 4 incidents that caused investigations into safety
• Rig continued to run under risk
on deep sea drilling rigs in Gulf of Mexico were on rigs
• Putting profit over the safety of
owned by Transocean
workers