British Petroleum Deepwater

Horizon Oil Spill

Tudor Carstoiu 1408558 Lilla David 1542836 Lorena Enache 1542927 Irakli Mikeladze 1542893 Ruxandra Turturean1411222

Public interest

» To protect the environment and wildlife( clean ups), improving industries such as fishing, tourism, seafood to increase increase tourism, improve the economy

» Treat those effected mentally and physically – through funding

» Improve economy, restabilize oil industry-related stocks» Introduce legislations and regulations (ex: Oil pollution

act) to reduce the probability of the same events happening again

» Those who suffered from the events should get compensated as soon as possible

» Make firms working with environmentally hazardous materials keep very strict regulations

» Join together corporations to help create a restoration plan

Public and private responsibilities

1) Responsibility towards Stakeholders (Local communities, Federal States, U.S., Global

community)

Pubic responsibilities: Cleaning the oil spill and restoring the natural equilibrium in the Gulf of Mexico area as well as compensating all the damaged parties ($20bn escrow fund).

2) Responsibility towards Shareholders (B.P. shareholders, Direct and indirect employees,

Contractors)

Private responsibilities: To remain a competitive company keeping it's market value and paying dividends to shareholders.

Interactions between the public and the private sector

» The U.S. Government and BP's representatives decided to create a $20bn escrow fund managed by an independent mediator

» The U.S. Government imposed a 6 months drilling moratorium on all deepwater drilling operations which was ended in October, one month earlier than the deadline. "The risks of deepwater drilling have been reduced sufficiently to allow deepwater drilling to resume," said Michael Bromwich, the director of the Bureau Ocean Energy Management, Regulation and Enforcement

» Government should have acted as coordinator and partner planning the steps for environment protection, which is one of its responsibilities.

The right jurisdictional level to issue regulation and to govern the emergency

Multinational level because:» It affects more than one country's territory» It creates collective action problems» Long run effects can cause even more devastating

consequences

Updates of the current situation in the Gulf of Mexico

1) Natural resources» Creation of the Natural Resource Trustees, evaluating the impact

through the Natural Resource Damage Assessment» Senate Environment and Public Works Committee approved the

legislation that directs 80% of the civil penalties for the recovery of the ecosystem

2) Society» Victims are facing similar choices as in 9/11(years of litigation

vs. quick settlement decide on incomplete information)» Eligibility criteria based on proximity makes intuitive sense, but

many people affected indirectly will not receive any compensation Economy» Summer 2010 profits from tourism were highly affected but,

after aggressive marketing paid for by BP, summer 2011 was highly profitable

» The fishing business still struggles after one year after the oil spill

» Taxable lodging revenues from rentals in Gulf Shores and its neighboring resort town, Orange Beach, fell by more than half last summer.

Mission and activities» Third largest global energy company

(with 80000 employees in 100 countries)» Provides fuel for transportation, retails services,

heating etc.» "progressive, responsible, innovative and

performance drived"» Seeks to perform well financially and have an

acceptable public image» A force for progress

Proposals for the restoration efforts

» Restore the natural environment and compensate all the

damaged parties» Monitoring health and environment effects by hiring

world's top scientists(e.g.: 10year “Gulf of Mexico Research Initiative program with $500-million budget”

» Cutting capital spending budget(e.g.: temporary dividend elimination)and selling assets to create a part of the $20bn response fund

» Working with the Federal Government in order to provide medical assistance to the local people having mental or physical problems cause by the oil spill

Proposals for the restoration efforts cont.

» Use huge brand awareness to change the perception of the public by promoting clean energy alternatives

» Drive up the supply of good quality bio-fuels(e.g.: Buying Out Remaining Shares in Brazil’s Tropical Bioenergia S.A.)

» Start partnerships with small clean energy companies for

developing more efficient machinery for wind and solar

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References» [1] – Wikipedia, „Public Interest”

» [2] - The Washington post, Determining oil spill's environmental damage is difficult . David A. Fahrenthold.Monday, July 5, 2010

» www. washingtonpost.com/wp-dyn/content/article/2010/07/04/AR2010070403990.html

» [3]- Deepwater Horizon Oil Spill .A Group Exercise. Valentina Mele, Stevy Loy , Brian Kateman ,Nancy Degnan .Background.

» [4]Los Angeles Times. BP oil spill: Where's the government?. June 02. 2010.

» www.articles.latimes.com/2010/jun/02/opinion/la-ed-bp-20100602

» [5] Deepwater Horizon Oil Spill .A Group Exercise. Valentina Mele, Stevy Loy , Brian Kateman ,Nancy Degnan .Description. British Pretroleum.

Other sources used:

» www.nytimes.com/interactive/2010/05/01/us/20100501-oil-spill-tracker.html

» http://www.gulfspillrestoration.noaa.gov/assessment/

» http://www.nytimes.com/2011/10/09/opinion/sunday/future-of-the-gulf.html?_r=1&ref=bpplc

» http://www.nytimes.com/2011/10/09/opinion/sunday/future-of-the-gulf.html?_r=1&ref=bpplc

» http://topics.nytimes.com/top/news/business/companies/bp_plc/index.html

» http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7070956

» http://www.bp.com/genericarticle.do?categoryId=98&contentId=7070830

» http://www.guardian.co.uk/environment/2010/oct/13/us-drops-oil-drilling-moratorium)

» http://www.lse.co.uk/ShareChart.asp?sharechart=BP.

» money.cnn.com/2011/04/11/smallbusiness/bp_oil_spill_one_year_later.moneymag/index.htm