Drilling into Disaster BP in the Gulf of Mexico


Drillinginto Disaster: BP in the Gulf of Mexico


1.Against the backdrop of the Macondo well oil spill, I do not reckonBP CEO, Tony Hayward behaved appropriately. This is because he seemedinsensitive about the company’s magnitude of disaster to the publicwhile he should have come out and begged for forgiveness. Instead,the CEO was quick to utter that he wanted his life back despitecoming in as a BP CEO in the backdrop of safety and reliabilitycampaign when he replaced the former CEO in 2007.

2.Thechairman of the board, Carl-HenricSvanberg and the CEO, Tony Haywardshould be equal be held responsible for the Gulf oil disaster at theMacondo well. This is because they were both responsible forguaranteeing the safety and security of the oil wells and theneighboring community who depended on the ocean waters for fishing.However, this was not the case BP seemed to have its eyes drillingoil despite the safety concerns that arose during the drillingprocess.

3.TheCompany’s CEO, Carl-HenricSvanberg did not act ethically. This isbecause the company presented misrepresented information about theextent of the oil spill. BP lied about the oil leaks at the Macondowell to be about 1,000 barrels a day. Only for the U.S government toestablish that the rate was between 12,000 to 19,000 barrels a day.

4.Whileit is no doubt that BP had a comprehensive code of conduct andwhistle blower policy, BP was never committed in implementing thecode of conduct. This is evident from the report where BP employeeswould be intimidate and threatened by the corporate office in theevent any employee would raise an issue as attested by Stuart Sneed.BP was never concerned about the safety of its employees and itsenvironment in the first place as it had its focus on makingprofits(Mardell,2011).In order to ensure that such cases do not happen again, BP shouldhave an independent arm that checks and ensures that all environmentstandards and procedures are followed to the letter.

5.BP’s remuneration policies played a crucial role in the Macondowell disaster. This is because BP’s director’s remuneration was170% of their basic salary. From the 170%, 15% was assigned to safetywhile 70% of the bonus was dependent on BP’s financial andoperating performance. The only way BP would have enjoyed betterperformance is through more oil drilling expeditions. The greed formoney was the contributing factor.

6.The former CEO’s package was not reasonable at all especially afterthe disaster that occurred. It actually seemed like a slap in thewrist to Tony Hayward who got another managerial role at BP with ajoint venture. Companies should a well laid out policy on deterrenceand punishing bad managers in the occurrence of such events.

7.No. Mr. Hayward should not have left penniless but he should havebeen slapped with a fine tantamount to the damaged he caused theenvironment while at the helm. The pros of leaving leaders pennilesswould cause fear on corporate leaders but at the same time it willdeter them from being irresponsible.

8.BP was not transparent to its shareholders on the onset of thedisaster. Further revelation showed that BP did not provide adequateinformation on issues of short and long term toxicity and otherissues such as claims and efforts to revive the Gulf coast economy.

9.Inmy opinion, BP should get a new board of members who are committed toimplementing the safety and safety standards of oil drilling. Inaddition, the company should have a policy on how to deal withmanagers and leaders who do not adhere to the company’s rules andregulations.

10.The board should work hand in hand with agencies that ensure thesafety standards in oil exploration are checked, such as the Bureauof Ocean Energy Management, Regulation and Enforcement. In addition,they need to listen to their workers who raise issues on safetyconcerns to the corporate office.


Mardell,M. (2011, January 6). USoil spill: `Bad management` led to BP disaster.Retrieved February 19, 2015, from BBC:http://www.bbc.co.uk/news/world-us-canada-12124830

Related Posts

© All Right Reserved