advance accounting

Deepwater Horizon Oil Spill 1
Deepwater Horizon Oil Spill
Deepwater Horizon Oil Spill 2
Deepwater Horizon Oil Spill
Introduction:
BP is one of the major players in the oil industry, which is headquartered at Oil industry. The
company was majorly affected by the tragic event of 2010, this event severely impacted the trust
and the competitive position of the company.
The deepwater oil spill happened on 20
th
April’ 2010 and it lasted on 15
th
July’ 2010, this was
one of the biggest tragic event that hampered the brand, competitive position and the financials
of the company.
The Deepwater Horizon was the oil spill in the Gulf of Mexico that flowed for three months in
2010. It is considered as the largest oil spill at sea in the history of the oil industry. Oil spill came
from a seabed springs, which led the April 20, 2010, the explosion of the Deepwater Horizon,
drilled Macondo Prospect operated by BP. The explosion killed 11 men working on the platform
and injuring 17 others. An estimated 53,000 barrels per day (8,400 m³ / d) escaped from the well
just before it was limited. It is estimated that the daily flow has diminished over time, starting at
around 62,000 barrels per day (9,900 m³ / d) and decreases as the oil supply tank springs finally
been exhausted. Emissions caused serious damage to marine and wildlife habitats in the Gulf and
in the tourism and fishing.
Skimmer boats, floating containment booms, barriers rooted, sand-filled barricades along the
coast, and dispersants were used to try to protect hundreds of miles of beaches, wetlands and
estuaries to spread oil.
Accountability:
The company i.e. British petroleum was held accountable and responsible for the tragedy which
took place. The U.S. government alleged BP as a responsible person, and authorities of British
Petroleum have pledged to keep the company responsible for all cleanup costs and other
damages. Following its internal investigation, BP admitted he made mistakes that led to the Gulf
of Mexico oil spill. Thus, the main accountability of this tragedy rested on British petroleum and
its officials.
Deepwater Horizon Oil Spill 3
Externalities:
The loss incurred with this incident was quite huge which has greatly affected the life of people
as well as wildlife extensively. The incident highly affected the life near the gulf coast as well as...