BIBAL, PEARL JOY E.

AC1142

Corporate Social Responsibility

BRITISH PETROLEUM:
DEEPWATER HORIZON OIL SPILL

NAME OF THE COMPANY

1908 Anglo-Persian Oil Company
1935 Anglo-Iranian Oil Company
1954 British Petroleum
1998 BP Amoco plc
2000 BP plc (current name of the company)

COMPANY PROFILE
BP plc, also referred to by its former name British Petroleum, is one of the
world's
six
"super
major" oil and gas
companies.
It
is
a
British multinational company,
headquartered
in London, England,
whose
performance in 2012 made it the world's sixth-largest oil and gas company, the
sixth-largest energy company by market capitalization and the company with the
world's fifth-largest revenue (turnover). It is a vertically integrated company
operating in all areas of the oil and gas industry, including exploration and
production, refining, distribution and marketing, petrochemicals, power generation
and trading. It also has renewable energy interests in biofuels and wind power. BP's
businesses are organized to deliver the energy products and services people around
the world need right now. It is one of the world's largest oil and gas companies in
terms of production capacity and revenue. BP explores for oil and natural gas in
approximately 30 countries and possesses proved reserves of 18.1 billion barrels of
oil equivalent. It is founded as Anglo-Persian Oil Company in 1908, consequently
known as British Petroleum in 1954. It has the largest Division in America and the
second largest oil producer in the US. It operates in more than 80 Countries,
produces around 3.2 million barrels per day and approximately has 86 employees.
In Russia BP owns a 19.75% stake in Rosneft, the world's largest publicly
traded oil and gas company by hydrocarbon reserves and production. BP has a
primary listing on the London Stock Exchange and is a constituent of the FTSE 100
Index; it had a market capitalization of 85.2 billion as of April 2013, the fourthlargest of any company listed on the exchange. It has secondary listings on the
Frankfurt Stock Exchange and the New York Stock Exchange.

BIBAL, PEARL JOY E.

AC1142

Corporate Social Responsibility

SCANDAL DETAILS
Past environmental events and safety incidents before the scandal
In 2005, Texas City Refinery explosion, which caused the death of 15 workers
and resulted in a record-setting OSHA fine; Britain's largest oil spill, the wreck
of Torrey Canyon;
In 2006 Prudhoe Bay oil spill, the largest oil spill on Alaska's North Slope, which
resulted in a US$25 million civil penalty, the largest per-barrel penalty at that time
for an oil spill
THE SCANDAL
LARGEST OIL SPILL IN HISTORY
The 2010 Deepwater Horizon oil spill, the largest accidental release of oil into
marine waters in history, resulted in severe environmental, health and economic
consequences, and serious legal and public relations repercussions for BP. Onepoint-eight million gallons of Corexit oil dispersant were used in the cleanup
response, becoming the largest application of such chemicals in US history. The
company plead guilty to 11 counts of felony manslaughter, two misdemeanors, and
one felony count of lying to Congress, and agreed to pay more than $4.5 billion in
fines and penalties, the largest criminal resolution in US history.
In September 2014, the judge ruled in the first phase of the case that BP was
"reckless" and committed "gross negligence," in a "worst case" ruling that could
cost BP $18 billion in additional penalties above the $28 billion already expended on
the spill by that time. BP is appealing the ruling, which raised concerns about BP's
future.

DEEPWATER HORIZON OIL SPILL: TIMELINE