Introduction
In the context of the advancement of the green economy and energy industries inclining toward alternative energy sources, the disruption in the operations of conventional oil and gas companies triggers negative public and governmental reactions. Indeed, the scope of environmental damage caused by oil spills, for example, is global and impacts the ecosystem and wildlife of the whole planet. The notorious BP oil spill in the Gulf of Mexico that happened in 2010 was an incident that demonstrated how a large company was shifting the blame on contractors to avoid responsibility, monetary, and reputational losses. From this perspective, the opposition between environmental benefits and economic gains of large corporations triggers a more generalizable discussion that necessitates a critical analysis of the response of BP to the oil spill.
BP’s Handling of the Spill
In 2010, had its drilling rig Deepwater Horizon operating in the waters of the Gulf of Mexico. In April, it exploded and sank, causing ten deaths and a large spill of oil from its tank into the ocean, which caused many problems to the wildlife and the communities living near. Many industries, including tourism, real estate, agriculture, and others, encountered significant monetary losses due to the pollution caused by the spill.
However, the most disturbing issue was the way BP responded to the incident. Overall, the business model initiated by the company years before was particularly aimed at rebranding the organization toward the green economy. The strategy named Beyond Petroleum claimed to be a change in the company’s operations, which would lead to more sustainable and environment-friendly drilling and product-management processes (Barrage et al., 2020). However, when handling the Deepwater Horizon, the company did not take responsibility for the spill, blaming the contractors for the explosion.
Ultimately, since the company failed to respond quickly and with full responsibility for the damage, it led to a more prolonged clearing procedure that caused even more damage. Indeed, the oil on the water surface was dissolved using chemicals which was a disruptive and long-term process (Barrage et al., 2020). Therefore, the company should have reacted faster and with more decisive methods, engaging more people, eliminating the aftermath of the disaster, and addressing the deaths of the workers.
Environmental Perspective
From an environmental point of view, the spill had a far-reaching and multifaceted negative impact on the ocean and the ecosystems from a long-term perspective. In the context of the overall business shift toward a green economy and a more intensive tendency to implement sustainable energy production methods and sources, the operations of conventional oil and gas companies are particularly controversial. Although BP tried to advance its environmental stewardship through advertising and marketing, it was still difficult for the company to maintain its status as a concerned business (Barrage et al., 2020). Indeed, on the one hand, the 2010 spill polluted the water and caused damage to the wildlife; on the other hand, the environmental damage was far more influential since the overall performance of oil companies was in jeopardy.
Governmental Reaction and Policies
Consequently, since so much damage had been caused and oil spills happened repeatedly, numerous governmental initiatives were introduced to regulate drilling operations and mitigate similar risks in the future. Overall, both federal and state authorities worked to attract attention to the environmental concerns triggered by oil spills advancing the regulations of drilling safety. Moreover, the economic value of oil spills was increased to ensure that similar incidents are properly addressed in lawsuits and adequate fines are paid to restore the damage. In particular, in the course of the case against BP, “the Consent Decree called for total payments of $20.8 billion, $8.8 billion of which was for natural resource damages” (Bishop et al., 2017, p. 253). The spill was identified as the largest one in the history of the United States.
Public Opinion about the Disaster
Given such an inappropriate handling, numerous deaths resulting from the explosion, and environmental damage, the public reacted negatively to the situation. The company’s reputation was hindered due to the blame-shifting and irresponsible damage management activities. Moreover, the public was particularly concerned with the quality of the environment after the oil spill. Indeed, the fish in the polluted waters was considered poor quality, which diminished the likelihood of people to fish and consume seafood in the region (Barrage et al., 2020). The real estate prices in the area also dropped, causing a significant decline in the overall economy. In addition, the perception of BP and the oil industry, in general, shifted toward a more negative attitude since their anti-environmental operations were disruptive to the environment.
Conclusion
To summarize the discussion, one might state that the BP oil spill in the Gulf of Mexico in 2010 was a large-scale man-made environmental disaster that had a disruptive impact on wildlife and ecosystems. In the aftermath of the incident, a number of sea-related industries bore adverse outcomes, as well as the overall oil industry, faced a new wave of criticism and induced environment protection regulations. As a result, governments generated stricter regulations and punishment for damage. Moreover, the public expressed its negative attitude toward neglecting the drilling operations of oil companies and their poor quality of incident handling.
References
Barrage, L., Chyn, E., & Hastings, J. (2020). Advertising and environmental stewardship: Evidence from the BP oil spill. American Economic Journal: Economic Policy, 12(1), 33-61.
Bishop, R. C., Boyle, K. J., Carson, R. T., Chapman, D., Hanemann, W. M., Kanninen, B., Kopp, R. J., Krosnick, J. A., List, J., Meade, N., Paterson, R., Presser, S., Smith, V. K., Tourangeau, R., Welsh, M., Wooldridge, J. M., DeBell, M., Donovan, C., Konopka, M., & Scherer, N. (2017). Putting a value on injuries to natural assets: The BP oil spill. Science, 356(6335), 253-254.