The paper "The BP Deepwater Oil Spill" is an outstanding example of marketing coursework. BP witnessed one of its catastrophic oil spill event where it agreed to pay 18.7 billion dollars in order to settle all claims arising from federal and state complaints from the Deepwater oil spill that happened in 2010. This facilitated the conclusion of a lengthy legal battle that ensued after the Deepwater oil spill. The Deepwater spill was the largest in US history of the US, killing eleven crew members onboard the rig and spilt a massive amount of oil into the ocean over a period of 87 days (Associated Press, 2012).
BP has spent over 44 billion dollars; the majorities of this amount has been spent on legal costs and clean up after the spill (Schwartz & Krauss, 2012). The current amount to be paid will push the cost of the spill to above the amount of profits the company has earned since 2012 (Gilbert & Kent, 2015). As such, the aim of this retrospect paper seeks to analyze BP’ s deepwater oil spill. While this payoff seems steep, the payments will be stretched over an 18-year period, at about 1.1 billion per year.
This will effectively soften the blow on the cash flow of the company, a fact that many investors are celebrating. Many are welcoming the conclusion of the saga, evidenced by the rise in BP stocks soon after the announcement. The chairman of the company reiterated the feeling, saying the final payment provides a feeling of closure for the Gulf region and BP. It gives the company a sense of resolution in one of its long-running legal battles, providing clarity of payment for everyone involved and clarity of costs for the company.
Even then, some state officials still think the payment is overly generous to BP, especially considering the punishments under the clean water act. Prosecutors had sought 12 billion-dollar fines for the 3.19 billion of oil spilt into the ocean, a claim that BP has appealed over and over with little success until this month (Gilbert & Kent, 2015). 2.0 Lingering Effects Five years on, there are reports of effects of the spill still lingering. While some of the effects are purely anecdotal, there are more questions than answers in the Gulf.
The oil spilt for close to three months, and effects like marine animal deaths, still unusually high, continue to linger in the Gulf (Kaufman, 2012). The effects are more than just physical, though. Many states are still suffering economically after the crash. In the days after the accident, tourist visits to beaches reduced tremendously, which was damaging but understandable considering the oil is washing up ashore. After the clean-up of the shores, an Ad campaign by BP has helped resurrect many of the tourist industries in Mississippi, Alabama, and Florida.
However, many are still a pale shadow of their former selves. Tables are idle in many beach restaurants, and the state economies are still suffering (Elliott, 2015). As expected BP, and the many sections of the scientific community, have disputed these claims. This is mainly because many of the observable effects are largely circumstantial. According to BP executives, there is no doubt that various aspects of marine life were severely affected by the oil spill.
However, there is evidence that they are recovering and bouncing back slowly (Griffin, 2015). The BP theory has not been proven, but more importantly, has not been disproven either. The significant long-term effects will likely take more than five years to manifest. One lingering point of concern is where all the oil went. Oceanographers tracking the oil residue say it has settled in small pockets and layers on the ocean floor. Experts still maintain that it is too early to ascertain the extent of the long-term effects.
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