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

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Presentation on theme: "Deepwater Horizon Oil Spill Team 5: Alex Scalera, Chau Tran, Kevin Blackburn, Marium Jawed."— Presentation transcript:

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

2 Responsibility Matrix TaskAlexKevinMariumChau Research Project Background RRRR Research Project Time R Research Project Cost R Research Project Scope R Research Project Issues RRRR Compile/Edit Case Report RSSS Compile PowerPoint RSSS Create Case Report RSSS Create PowerPoint RSSS 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 ConstrainEnhanceAccept Time X Scope X Cost X

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 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 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 )

10 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 31 st, 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


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