The Damaging Effects of Bps Oil Spill Essay Example

in the US contribute significant amounts of money to fund election campaigns with the objective of seeking benefits such as higher subsidies,influence over energy-related legislation,tax breaks,and fewer environmental regulations. Numerous instances of energy lobbying have influenced various reforms; during the Bush administration,the government even sought advice from a leading oil company regarding the Kyoto protocol and its implications.

BP has also provided substantial financial support to authorities led by Obama over the past two decades amounting to nearly $3-5 million. According to American tax code,the oil production industry inthe US receives substantial subsidies.Therefore,BP must continue exerting influence onthe current government to ensure its future business successinthe US.After the oil spill incident, deep offshore drilling was banned. However, this ban on offshore drilling and oil was lifted prematurely under pressure from the Obama administration. This decision demonstrates the US government and its people's interest in the industry. The lifting of the ban can be attributed to factors such as lobbying efforts by energy companies and job losses resulting from the moratorium. As a result of the suspension of drilling, there was a 20% decrease in oil rig jobs and a total loss of 12,000 jobs in the Gulf of Mexico. In addition, there has been a significant financial loss for the government in terms of royalties.

Despite lifting the ban, new safety regulations and stricter criteria have been established that BP must adhere to. Furthermore, BP is obligated by the government to take responsibility for cleaning up both sea and environment. They are also required to settle all claims filed by individuals as well as those made by governmental entities in order to restore trust from both parties

for future business endeavors.

The Economical Factor examines how economic factors affect consumer purchasing power, including changes in taxes, economic growth, inflation, and exchange rates. Regarding BP's potential business in the US, we will discuss the country's heavy reliance on oil and its economy. The US currently consumes 21 million barrels of oil per day but only produces 6 million domestically. This means there is a significant dependence on imports for oil supply from foreign countries. However, both the government and industry are eager to reduce this dependency by increasing domestic production. To achieve this goal, the Obama administration has allowed offshore drilling. The Atlantic and Pacific coasts have untapped oil reserves that present great opportunities for oil and gas companies to conduct drilling operations within the US. Additionally, the demand for oil in the US continues to rise daily along with increasing prices for oil and gas. Projections from the Energy Information Administration indicate that US oil demand is expected to reach 23 million barrels by 2030 while global consumption is estimated to exceed 18 million barrels. Due to offshore drilling activities by these companies, the US government collects around $8 billion annually in royalties while also creating employment opportunities for many individuals.From a business perspective, the current situation offers an optimistic opportunity for BP. Despite the significant costs associated with cleaning up and resolving legal matters related to the oil spill, BP is required to cover these expenses. To ensure future growth and maintain its presence in the US market, BP has dedicated $20 billion to a relief fund for those impacted by the spill. This incident stands as BP's largest loss ever, but

it is crucial for them to actively pursue additional oil drilling opportunities while fulfilling their obligations. These duties encompass beach cleanup, compensating victims, creating more jobs for Americans, and adhering to new safety regulations and policies in order to secure a prosperous future.

Social Factors: Social factors encompass the societal elements that influence a company's ability to obtain resources and offer its goods and services to the public. These factors include customs, lifestyles, beliefs, demographics, literacy levels, norms and values, as well as attitudes towards social responsibilities.

In the United States, the population's customs and lifestyles generate a considerable demand for energy. This presents advantageous conditions for energy companies such as BP. With oil prices on the rise, offshore drilling has become economically viable, granting BP ample resources for exploration and workforce.

BP has also taken steps to address cultural and social responsibilities by rebranding itself as "beyond crude oil" while investing in alternative energy sources. However, their reputation as an environmentally conscious brand suffered greatly due to the devastating oil spill crisis. This event not only caused significant harm to the environment but also eroded public trust in BP.

Recognizing their obligations towards society, BP announced its intention to donate proceeds from the recovered oil of the mc252 spill to the National Fish and Wildlife Foundation (NFWF). Furthermore, they have already contributed $5 million to NFWF for wildlife restoration efforts across America.

Additionally, in response to claims resulting from the oil spill incident, BP provided $104 million in financial aid to Gulf shore residents. Demonstrating their commitment towards corporate social responsibility further, BP is extending financial assistance to fishermen, shrimpers,and condo owners who endured financial losses due to this

disaster.To address the numerous claims, BP has a dedicated team of 1,000 individuals working tirelessly across 33 offices. To rebuild trust, it is crucial for BP to resolve all claims and provide compensation to both directly and indirectly affected individuals. The fishing industry in the Gulf has been particularly hard hit, experiencing a significant decline in seafood consumption. Additionally, the tourism sector has suffered as visitors are hesitant to book hotels or visit Gulf beaches due to concerns about oil contamination and safety issues.

Technology is a crucial consideration for companies when creating strategic plans. The ever-changing technology landscape can bring both opportunities and threats to a company's survival, as it can lead to the development of innovative products and services that benefit customers while reducing costs and improving quality. An example demonstrating the importance of investing in US technology advancement for future business is the explosion and oil spill suffered by BP, caused by a technology failure known as the blowout preventer. Therefore, it is imperative for BP to prioritize the development of clean and safe technologies for future offshore drilling to avoid similar accidents.

Alongside technological factors, environmental factors also play a significant role in shaping companies' strategies. Weather patterns and climate change can have varying impacts on businesses depending on their nature, such as farming, travel industry, oil exploration, gasoline production, and perishable products in the biotech sector. As global warming continues to intensify each day, companies must establish policies that protect the environment and minimize risky effects on the population.Due to increased awareness of global warming and a growing preference for recycled products, many companies have experienced higher costs for clean-up efforts and

waste treatment. The Gulf of Mexico oil spill is considered one of the worst environmental disasters in the US, with various factors causing damage to the environment such as petroleum toxicity, oxygen depletion, and the use of chemical dispersants. As a result, there has been a significant impact on wildlife, with 2,614 deceased animals collected so far including 6,104 birds, 609 sea turtles, 100 mahi-mahi fish, and other mammals. Fish populations have been directly affected by the spill while the use of bugs for cleaning up has led to decreased oxygen levels. Moreover, methane gas released from deep water contaminated by the spill is causing fatalities among marine life. Additionally, seafood in the affected area is now unsafe for human consumption which has severe consequences for fish and shrimp populations.

Both the fishing industry and tourism industry have been greatly affected by these factors. The oil spill has resulted in a prohibition on offshore drilling, which BP must address to ensure future business in the US. To accomplish this, they must prioritize environmental cleanup efforts, specifically along the Gulf coastline. In response to environmental contamination, the US government has enforced measures to raise liability limits for corporations.

BP needs to prioritize the exploration of safe and effective methods for deep offshore drilling because it poses a significant threat to the environment. Despite claims from the industry about environmental safety, incidents like the Katrina spill and the Gulf of Mexico spill indicate otherwise. Therefore, BP should concentrate on developing cleaner technology and ensuring that safety equipment functions properly in case of a spill.

Environmental Concerns

The harm caused by oil spills to wildlife is due to physical contact, consumption, inhalation,

and absorption. Floating oil has resulted in considerable damage to plankton species such as algae, fish, and invertebrate larvae.

The oiled birds experience diminished flying and grasping abilities, as well as oil consumption during self-cleaning. Additionally, marine birds are affected by oil when they consume polluted fish and wildlife. These birds can suffer from immune system suppression, organ damage, ulcers, and potentially fatal consequences due to the ingestion of oil. To ensure a sustainable future for the United States, BP must seek out alternative energy sources with minimal carbon emissions.

BP has already demonstrated a strong commitment to advancing alternative energy sources, such as solar energy and biofuel. In fact, BP has been actively involved in the development of solar energy technologies. To further explore low-carbon alternative energy sources, BP has made a substantial investment of $500 million over 10 years to establish the Energy Life Sciences Institute.

Legal Factors

Ensuring compliance with legal regulations and statutes is crucial for BP because these laws are determined by the government of the country in which BP operates. These laws impact various aspects of the company's operations, including labor laws, age discrimination laws, and regulations related to working hours.

Following the oil spill, new laws and stricter regulations for deep offshore drilling have been implemented by US authorities. These measures include increased liability costs and cleanup costs under the oil pollution control act. BP has taken full responsibility for the cleanup costs and other damages caused by the spill and has committed to a $20 billion spill response fund. Currently, there are approximately 300 cases filed against BP and its partner, which will be handled by a commission established by BP to

reduce the number of cases, including criminal charges. It is estimated that resolving all these cases will take around 20 years.

To recover from this catastrophe and restore public confidence:

It is crucial for the company to adopt a more customer-centric marketing plan in order to rebuild its brand value. The response of British Petroleum to the environmental issue has been considered inadequate; therefore, it is necessary to explore alternative solutions for addressing the environmental concerns faced by the company.

Expressing concerns:

The Chief Executives of British Petroleum have frequently appeared in media not only to demonstrate personal concern but also to convey that the company is actively addressing these environmental issues. This approach aims at presenting BP as being more responsive towards environmental concerns.

The company recognizes the impact of unfortunate events on clients and emphasizes its dedication to helping those affected. It has provided support to affected families, including financial aid for individuals who lost their jobs due to the disaster. Additionally, the company actively promotes the implementation of enhanced safety measures and policies in the industry to prevent similar incidents. BP should also generate more job opportunities to assist local residents who relied on marine resources for their livelihood.

Restoring the loss

British Petroleum should collaborate with NFWF (National Fish and Wild Life Foundation) to provide assistance in replenishing the species greatly affected by the oil spill in the deepwater incident. Due to this incident, certain species such as shore birds, waterfowl, fen birds, sea turtles, and other marine creatures living in this part of the ocean have become extinct. Considering this, it is essential for British Petroleum to establish connections with

marine and wildlife conservation organizations to restore the lost population of these marine species. In addition, the company should acknowledge and value the contributions of external entities and volunteers who wish to participate in this Restoration program.

Combined Attempt

BP should take measures to make customers aware of the company's environmental restoration efforts through their retail stores. They should also encourage customers to provide feedback for developing new safety procedures or to promote the willing customers to contribute their ideas in expediting the restoration process.

Online Measures

An online discussion on this matter will enable people from around the world to share their opinions.

While seeking valuable suggestions for an online weblog or community on this issue, it would undoubtedly receive substantial feedback from people in this field and the general public. When the public becomes aware that BP is politely asking for suggestions, even from a common individual, there is a great opportunity to regain the trust of the general population.

Establishing a Research Foundation

BP could utilize this situation to attract more industrial support and collaborate with other organizations and the government to develop custom-made solutions that meet the specific needs of the situation. BP could establish a research foundation primarily focused on preventing future incidents like the one in the Gulf of Mexico. The best solutions can be shared with government authorities and environmental regulators to implement new safety standards in the near future.

Recovery Strategy

British Petroleum is currently facing a critical situation where it is losing both its brand value in terms of market share and public support.

It has had a severe impact on its macro environment, so it

must address all economic, societal, political, and technological failures. Therefore, a single solution cannot address all these issues, and an open strategy should be adopted that provides customized solutions to every aspect of its macro environment. Thus, it should be an integrated approach that enhances its value at each stage of the recovery effort. Here are some recovery methodologies that the British Petroleum could implement:

Safety measures: BP needs to develop improved safety techniques to prevent future incidents like this. They could allocate more funds to secure high-quality equipment and ensure proper equipment maintenance. They could also establish better communication by creating a responsive team trained to quickly react to any future crises, mitigating the impact of a major event like the one that occurred in the Gulf of Mexico.

Eco friendly Drilling Techniques and waste disposal

BP needs to conduct research on developing Eco Friendly Drilling Methods (EFDM) that include:

• Reducing the impact of drilling activities
• Using lighter driller rigs with low carbon emission systems
• Implementing on-spot waste disposal techniques

The main goal of this initiative is to identify, develop, and demonstrate innovative technologies that can mitigate the negative environmental impacts of oil and gas operations, especially in environmentally sensitive areas. BP aims to establish global partnerships to facilitate technology transfer and develop new initiatives to address environmental concerns.

Highly trained and qualified professionals

BP should recruit highly trained and skilled professionals capable of effectively and efficiently managing adverse situations. Utilizing well-trained professionals can help identify problem-prone areas early on, enabling the implementation of preventive measures.

Charitable initiatives

The company needs to take immediate action to rebuild the

goodwill that has been destroyed by the oil spill in order to prevent further losses. It should focus on engaging in more social campaigns that will help maintain a positive image with the public. It is crucial to prioritize charitable initiatives in order to address the concerns of disgruntled groups who oppose and disrupt the company's efforts to recover.

Celebrity endorsements and advertising campaigns

The company can also leverage the media by obtaining celebrity endorsements and implementing creative advertising campaigns in order to keep the customers' attention on the quality of the final product. Emphasizing product differentiation and placement is also essential.

Tourism and Seafood Promotion

Oil spill has negatively affected both the local fisherman community and regional tourism. Therefore, it is the company's responsibility to restore everything back to its original state. They should either make necessary arrangements to compensate for the losses or provide provisions to boost morale and collaborate with the locals in returning things to normal. The company can also initiate adventure sports activities or organize an international seafood festival, featuring high-quality, tested seafood.