Strategic Corporate Social Responsibilities and Law

BP is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured in terms of their revenues and stock prices. It is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power. BP has operations in over 80 countries and produces around 3.

8 million barrels of oil per day and has 22,400 service stations worldwide. Its largest division is BP America, which is the biggest producer of oil and gas in the United States and is headquartered in Houston, Texas. As at 31 December 2010 it had total proven commercial reserves of 18. 07 billion barrels of oil. [1] The name “BP” derives from the initials of one of the company’s former legal names, British Petroleum. [2] BP’s track record of corporate social responsibility has been mixed.

The company has been involved in a number of major environmental and safety incidents and received criticism for its political influence. However, in 1997, it became the first major oil company to publicly acknowledge the need to take steps against climate change, and in that year established a company-wide target to reduce its emissions of greenhouse gases. BP currently invests over $1 billion per year in the development of renewable energy sources, and has committed to spend $8 billion on renewable in the 2005 to 2015 period. Deepwater Horizon Oil Spill Event

The Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster)[1] is an oil spill in the Gulf of Mexico which flowed for three months in 2010. It is the largest accidental marine oil spill in the history of the petroleum industry. [2] The spill come out from a sea-floor oil gusher that resulted from the April 20, 2010, explosion of Deepwater Horizon, which drilled on the BP-operated Macondo Prospect. The explosion killed 11 men working on the platform and injured 17 others.

[3] On July 15, 2010, the leak was stopped by capping the gushing wellhead, after it had released about 4. 9 million barrels of crude oil. [3] An estimated 53,000 barrels per day escaped from the well just before it was capped. It is believed that the daily flow rate diminished over time, starting at about 62,000 barrels per day and decreasing as the reservoir of hydrocarbons feeding the gusher was gradually depleted. [1] On September 19, 2010, the relief well process was successfully completed, and the federal government declared the well sealed.

[3] The spill caused extensive damage to marine and wildlife habitats and to the Gulf’s fishing and tourism industries. [4] In late November 2010, 4,200 square miles of the Gulf were re-closed to shrimp-fishing after tar balls were found in shrimpers’ nets. The amount of Louisiana shoreline affected by oil grew from 287 km in July to 320 km in late November 2010. In January 2011, an oil spill commissioner reported that tar balls continue to wash up, oil sheen trails are seen in the wake of fishing boats, wetlands marsh grass remains fouled and dying, and that crude oil lies offshore in deep water and in fine silts and sands onshore.

[18] A research team found oil on the bottom of the seafloor in late February 2011 that did not seem to be degrading. Skimmer ships, floating containment booms, anchored barriers, sand-filled barricades along shorelines, and dispersants were used in an attempt to protect hundreds of miles of beaches, wetlands, and estuaries from the spreading oil. Scientists have also reported immense underwater plumes of dissolved oil not visible at the surface as well as an 8 km? “kill zone” surrounding the blown well. [1] The U. S.

Government has named BP as the responsible party, and officials have committed to holding the company accountable for all cleanup costs and other damage. [2] After its own internal probe, BP admitted that it made mistakes which led to the Gulf of Mexico oil spill. Summary of the Deepwater Horizon Event February 15, 2010 – Deepwater Horizon drilling rig, owned by Transocean, begins drilling on the Macondo Prospect. [6] The planned well was to be drilled to 18,000 feet (5,500 m) below sea level, and was to be plugged and suspended for subsequent completion as a subsea producer.

April 6, 2010– The Department of the Interior exempted BP’s Gulf of Mexico drilling operation from a detailed environmental impact study after concluding that a massive oil spill was unlikely. March 17, 2010 – BP Chief Tony Hayward sells one third of his BP stock (223,288 shares). [6] Closing BP price on March 17 on the New York Stock Exchange is 58. 15. April 17, 2010 – Deepwater Horizon completes its drilling and the well is being prepared to be cemented so that another rig will retrieve the oil. The blowout preventer is tested and found to be “functional.

“[8] Gagliano now reports that using only 6 centralizers “would likely produce channeling and a failure of the cement job. April 20, 2010 7 am – BP cancels a recommended cement bond log test. Conducting the test would have taken 9–12 hours and $128,000. By canceling the cement test BP paid only $10,000. Crew leaves on 11:15 am flight. BP officials gather on the platform to celebrate seven years without an injury on the rig. The planned moving of the Deepwater Horizon to another location was 43 days past due and the delay had cost BP $21 million.

9:45 p. m. CDT – Gas, oil and concrete from the Deepwater Horizon explode up the wellbore onto the deck and then catches fire. The explosion kills 11 platform workers and injures 17 others; another 98 people survive without serious physical injury. April 22 10:21 am – Rig sinks. April 27, 2010 – Slick grows to 160 km across and 32 km from Louisiana coast. June 6, 2010 – BP abandons plans to close three remaining vents on the containment cap noting that with one vent it is capturing as much oil as it can handle.

July 24, 2010 – BP says an internal investigation has cleared itself of gross negligence in the spill and will publish the findings in the next month. August 4, 2010 – BP reports that the well achieved “static condition” shortly after midnight after drilling mud is said to now fill the well. September 29, 2010 – Andy Inglis, who headed deepwater drilling operations in the Gulf of Mexico at the time of the spill, steps down as head of the upstream business. October 1, 2010 – Thad W.

Allen, the retired Coast Guard admiral leading the federal response to the BP oil spill, stepped down. December 15, 2010 – According to a feature Associated Press story on the homepage of Time Magazine, the U. S. federal government is suing BP Exploration and Production, Inc. , and eight other corporations, for unlimited liability, in an effort to have them pay for the massive expenses involved in the cleanup and environmental recovery from the spill, including damages to natural resources; it also seeks civil penalties under the Clean Water Act.