The paper "Deep Water Horizon Oil Spill" is an outstanding example of business coursework. The deepwater horizon oil rig was designed and built by Hyundai Heavy Machinery and cost an estimated $560 million. The rig was a transportable rig meaning that it could be towed and moved to a location to engage in drilling operations where needed. The rig itself was completed by Hyundai Heavy Machinery in 2001 and delivered to the first contract holders soon thereafter. Although the rig itself was extraordinarily expensive and represented some of the most cutting-edge drilling technology of that time, it nonetheless experienced one of the worst oil disasters in history.
As a function of understanding this particular disaster, this brief analysis will examine the lead-ups and causes that affected the disaster as well as examining six BETs (Business Ethical Truisms). On April the 20th at 9:45 PM the Macondo oil rig experienced a blowout that resulted from a jet of seawater being ejected from the riser accompanied by a slushy of mud and oil followed by jets of methane. This mixture, especially the methane, ignited and caused a series of explosions that served to cripple the well and eventually took the lives of 11 personnel.
At the time the explosion occurred, the Deepwater Horizon rig was drilling at a depth of around 5000 feet into what experts have described as the Macondo Prospect which is located approximately 40 miles from the coast of Louisiana (Koenig et al 300). Although the ownership of Deepwater Horizon has remained unclear to a host of individuals, the fact of the matter was that BP did not operate the rig solely under its own direction.
Rather, BP was the owner of the rig itself but only held a 65% share of ownership with relation to the Mississippi Canyon drilling expedition that resulted in the disaster of Deepwater Horizon. Additionally, the remaining 35% of interest in the rig was split between Anadarko Petroleum Corporation, aka Halliburton Corporation, (which held a 25% share) and MOEX Offshore 2007 (which held a 10% share). After the explosion took place, the Macondo Blow-Out began to gush crude oil into the ocean at a rate of around 2.6 million gallons per day.
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Koenig, Thomas H., and Michael L. Rustad. "Reconceptualizing The Bp Oil Spill As Parens Patriae Products Liability." Houston Law Review 49.2 (2012): 291-392. Academic Search Complete. Web. 12 Mar. 2013.
Sole, Shannon L. "BP's Compensation Fund: A Buoy For Both Claimants And BP." Journal Of Corporation Law 37.1 (2011): 245-263. Business Source Premier. Web. 12 Mar. 2013.
Tinsley, Catherine H., Robin L. Dillon, and Peter M. Madsen. "How To Avoid Catastrophe." Harvard Business Review 89.4 (2011): 90-97. Business Source Premier. Web. 12 Mar. 2013.
Webley, Simon, and Andrea Werner. "Corporate Codes Of Ethics: Necessary But Not Sufficient." Business Ethics: A European Review 17.4 (2008): 405-415. Business Source Premier. Web. 12 Mar. 2013.