Deepwater Horizon Oil Spill

1. Deepwater Horizon Oil Spill Team 5: Alex Scalera, Chau Tran, Kevin Blackburn, Marium Jawed

2. Responsibility Matrix R= Responsibility S= Support/Assist

3. 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

4. Priority Rule

5. 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

6. 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

7. 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

8. 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

9. Estimated Project Cost Estimated costs from BP (As of June, 2010)

10. Project Claims Cost BP’s total payments (As of October 31st, 2013)

11. 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

12. 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

13. 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