Transcript BP Project After Oil Spill

Deepwater Horizon Oil Spill
Team 5:
Alex Scalera, Chau Tran, Kevin Blackburn, Marium Jawed
Responsibility Matrix
Task
Alex
Research Project
Background
Kevin
R
Marium
R
Research Project
Time
R
Chau
R
R
Research Project
Cost
R
Research Project
Scope
R
Research Project
Issues
R
R
R
R
Compile/Edit Case
Report
R
S
S
S
Compile
PowerPoint
R
S
S
S
Create Case
Report
R
S
S
S
Create PowerPoint
R
S
S
S
R= Responsibility
S= Support/Assist
Project Background

On April 20, 2010, the BP-licensed Transocean drilling rig, Deepwater Horizon, explodes of the
Coast of Mexico

By April 22, 2010, the Deepwater Horizon had sunk 5,000 feet, leaving an oil slick of more
than 5 miles

The Deepwater Horizon project started as a $500 million oil exploration project; Hundreds of
different projects costing more than $100 billion

Effects on the economy:

58,000 Louisiana oil workers were unemployed for 6 months due to moratorium on off
shore drilling

Estimated $800 million due to the loss of tourism

Estimated $962 million lost in the fishing industry
Priority Rule
Constrain
Time
X
Scope
X
Cost
Enhance
Accept
X
Project Scope

Over 16,000 miles of coastline were affected by the oil spill, stretching from
Texas to Florida

The oil spill covered roughly 29,000 square miles, or around the size of South
Carolina

Over 55,000 people/employees were involved in the clean-up of the oil spill


The U.S Navy and Coast Guard used 4500 boats

Tens of thousand of volunteers helped with wildlife clean up
BP Oil Spill
Project Scope

Effects on the economy:

58,000 Louisiana oil workers were unemployed for 6 months due to moratorium on
off shore drilling

Estimated $800 million due to the loss of tourism

Estimated $962 million lost in the fishing industry

BP has created many projects to help support the oil spill clean-up and the
surrounding community

BP is still working with the EPA to restore all oil drilling production in the Gulf
Coast region
Project Time

BP had planned to test cement bond logging, but canceled it

The cancelation save BP a days worth of work and a little over $100,000

The cancelation would be costly, however, and the Deepwater oil spill and
explosion was a result

The explosion killed 19 people and injured 17 others; 11 people were never
found

Stopping the leak and plugging the hole is easier said than done, especially at
5000ft below sea level
Project Time

BP still has projects ongoing, which makes the overall project time
unpredictable

A lot of local business and communities around the Gulf Coast have suffered
tremendous losses

As the project time continues to be unknown, those losses will continue to
grow
Estimated Project Cost
Estimated cost ( billion)
Confirmed cost of the Gulf oil spill
$1.6
Cleanup costs and Fines
$ 40
Government-mandated cap on oil company liability
$0.075
Insurance Claims
$1.5
Proposed settlement
$ 7.8
Total estimated costs
$ 50.975
Estimated costs from BP (As of June, 2010)
Project Claims Cost
Amount Paid
Individual and Business Claims
$10,942,903,742
Government
$1,463,593,511
Tourism, Seafood Marketing and Testing, Behavioral Health and 2010
Contributions
Total Payments
BP’s total payments (As of October 31st, 2013)
$328,255,384
$12,734,752,637
Lessons Learned

Cost is least important

Time and scope are priority in order to keep damage at a minimum and keep
a positive public image

Other companies can learn as well

Preventive measures so ensure that this type of spill doesn’t happen again

Plans in place in case it does happen again
References

BP. (2013). Claims Information. Retrieved November 26, 2013, from BP: Gulf of Mexico Restoration:
http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/claims-information.html

BP Oil. (2013, November 18). US legal proceedings. Retrieved from BP Oil-Gulf of Mexico
restoration: http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/investigationsand-legal-proceedings/US-legal-proceedings.html

BP Oil. (2013, November 18). Wildlife rescue and rehabilitation. Retrieved from Gulf of Mexico
restoration: http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/deepwaterhorizon-accident-and-response/wildlife-rescue-and-rehabilitation.html

BP.com. (2013, October 31). Claims information. Retrieved from BP.com:
http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/claims-information.html

Cleveland, C. J. (2013, February 22). Deepwater Horizon Oil Spill. Retrieved from The Encyclopedia
of Earth: http://www.eoearth.org/view/article/161185/

Gerstein, J. (2010, June 14). The Gulf of Mexico Oil Spill by the Numbers. Retrieved from The Daily
Green: http://www.thedailygreen.com/environmental-news/latest/gulf-of-mexico-oil-spill-facts

Greenpeace. (2011, March 10). Offshore Disaster. Retrieved from US Climate Network:
http://www.usclimatenetwork.org/resource-database/offshore-disaster-economic-impacts-of-thebp-deepwater-horizon-oil-spill
References

Guardian Research. (2010, July 22). BP Oil Spill Timeline. Retrieved from Theguardian.com:
http://www.theguardian.com/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon

Hargerty, J. L. (2013). Deeperwater Horizon Oil Spill: recent activities and ongoing developments.
Congressional Research Service.

Hargerty, J. L. (2013). Deepwater Horizon Oil Spill: Recent activities and ongoing developments.
Congressional Research Service.

HOCH, M. (2010, August 2). New Estimate Puts Gulf Oil Leak at 205 Million Gallons. Retrieved from
PBS News Hour: http://www.pbs.org/newshour/rundown/2010/08/new-estimate-puts-oil-leak-at49-million-barrels.html

Team, T. O. (2011, February 15). Gulf Oil Spill. Retrieved from Ocean Portal:
http://ocean.si.edu/gulf-oil-spill?gclid=CIX1oa7X77oCFasRMwodyXAAiw

The Independent. (2010, September 14). BP oil spill: Disaster by numbers. Retrieved from The
Independent UK-Environment: http://www.independent.co.uk/environment/bp-oil-spill-disaster-bynumbers-2078396.html

whitehouse.gov. (2010, August 14). Deepwater BP Oil Spill. Retrieved from whitehouse.gov:
http://www.whitehouse.gov/deepwater-bp-oil-spill