Bp Deep Water Horizontal Explosion - 3148 Words

INTRODUCTION BP originated from a British petroleum company founded in 1909. After experiencing crises during the 1980s-1990s, the company started to have a cost cutting culture. During mid-1990s, with an aggressive growth strategy, BP started to grow and reposition. After BP merged with Amoco in 1998, John Browne started to serve as chief executive until May 2007. Browne repositioned BP as a â€Å"green† oil company after he took over and practiced the model of organizational decision-making strategy, known as â€Å"asset federation.† Under this new strategy, onsite asset managers had the authority to make decisions, and employees’ compensation was directly tied to asset performance (Ingersoll et. al, 4). Many decisions made by John Browne were†¦show more content†¦Mark Hafle, one of BP’s drilling engineers even claimed the cement job was working fine at court (Ingersoll et. al, 16). The drilling engineers of the Macondo project were warned about potential risks, but they willfully ignored the warnings and insisted everything would work fine. Such bias and rationalized behavior of drilling engineers just added another warning sign to the explosion of Deepwater Horizon. Secondly, BP’s business relationships are complex, and the legitimate priorities often conflict (Crews). BP’s failure to prevent the explosion was due in part to complex partnership. BP held the rights to drill using the rig and operation services leased from Transocean. As a result, â€Å"of the 126 people aboard the Deepwater Horizon, 79 were from Transocean, seven were from BP, and the rest were from other firms† (Ingersoll et. al, 1). People serving on Deepwater Horizon came from different organizations. A decision making process involved many authorities, which decreased the efficiency and effectiveness of decision-making. Even though BP maintained main operational authority, only six percent of people aboard the Deepwater Horizon rig were from BP. As an important business partner of BP, Transocean provided the equipment and performed the majority of the work, and thereafter it had some authority over operations and maintenance. The complex business partnership caused seriousShow MoreRelatedOffshore Oil Drilling and the Deepwater Horizon Spill of the Gulf of Mexico1591 Words   |  7 Pagesand pushed the exploration of oil away from shores (CITE). With its historical background, offshore oil drilling is one of the most important aspects of today’s economy although we are faced with its risks and consequences, such as the BP Deepwater Horizon explosion of the Gulf of Mexico. Offshore oil drilling is known as a power-driven process where a wellbore is penetrated through the seabed to extract petroleum oil hydrocarbons that â€Å"lie in rock formations beneath the seabed† (CITE). 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