Gulf Oil Leak

Module : Understanding Global Environment

Code : UGB 114

Assessment Element : Individual Essay

Assessment Title : Question No.1

“What impacts will the 2010 Gulf oil leak have on the global business environment?”

Module Leader : Mr. Balu

Student Name : Ooi Yang Shin (Calvin)

Student Number : 109077019

Date of Submission : 20th April 2011

What impacts will the 2010 Gulf oil leak have on the global business environment?

Gulf oil spill incident was occurred in the Gulf of Mexico which is located 52 miles southeast of Venice, La at 20th April, 2010 (Infoplease.com, n.d. & Grier, 2010). 51 minutes before the disaster happened, the Deepwater Horizon’s drilling pump was shut down for a “Sheen Test”. While the pump was stop, the well flow was suppose to stop however it didn’t, the sensor showing there is a pressure rising in the pipeline and fluid kept on spilling out. The evidence crew was summoned immediately to check the problem however they are unable to solve the puzzle and at 10p.m. the well exploded. The explosion kills eleven people and cause injuries to another fifteen people. Finally the fire sank Deepwater Horizon at 24th April 2010 (Infoplease.com, n.d. & Grier, 2010).

According to the news from multiple sources, the companies that were related to the spills were British Petroleum who loan the Deepwater Horizon for drilling oil, Transocean, a Swiss based organization who owned the Deepwater Horizon and the Pipeline contractor, Halliburton (London Evening Standard, 2010). However British Petroleum was the only company that was found responsible for the leak due to negligence of operation as British Petroleum did not use the proper mud to seal up the well with cement plug which cause the explosion (Browning, 2011 & Grier, 2010).

The primary impact was Deepwater Horizon explosion and sank resulting 60,000 barrels of oils per day were leak into the water; creating an environmental risk threatening the water...