Deepwater Horizon Oil Spill

Team 5:

Alex Scalera, Chau Tran, Kevin Blackburn, Marium Jawed

Responsibility MatrixTask Alex Kevin Marium ChauResearch Project Background

R R R R

Research Project Time

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Research Project Cost

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Research Project Scope

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Research Project Issues

R R R R

Compile/Edit Case Report

R S S S

Compile PowerPoint

R S S S

Create Case Report

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Create PowerPoint

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R= ResponsibilityS= 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 Enhance Accept

Time X

Scope X

Cost 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

$328,255,384

 Total Payments

 $12,734,752,637

BP’s total payments (As of October 31st, 2013)

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/investigations-and-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/deepwater-horizon-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-the-bp-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-at-49-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-by-numbers-2078396.html

whitehouse.gov. (2010, August 14). Deepwater BP Oil Spill. Retrieved from whitehouse.gov: http://www.whitehouse.gov/deepwater-bp-oil-spill