Prudhoe Bay Oil Spill

BP America: Prudhoe Bay Oil Spill

1. Regardless of the spill’s cause(s), what does this situation do to BP’s corporate image?

There is more than one problem with the BP America, Inc. oil spill in Prudhoe Bay that cause problems for the corporate image. The first issue that I want to focus on is the integrity of corporate leadership. John Devens was the executive director of the Prince William Sound Regional Citizens’ Advisory Council at the time the spill was found. He was quoted as saying, “I think many of us are seriously concerned about the aging and deterioration of the pipeline and the facilities” (O’Rourke 11). The case study continues to inform us that many parties had raised concerns about the pipeline’s corrosion resistance as it aged for so many decades. As this aging kept up, heavier oil was being moved through an already aging pipeline.

The problem with BP’s corporate image is that there was no action by the company. Devens himself acknowledged that there are concerns for the pipeline’s corrosion. It was known by officials and the company that should the corrosion become worse that more problems would arise. The officials had been notified of the problem, but since no punishment was handed down to the company, BP did not take any action. This situation needed to be corrected at the point that the pipeline’s problems had come to both the company and the officials’ attention. To make the situation worse is that the Aleyska Pipeline Service came forward with an announcement regarding the maintenance of the pipeline. This company maintains the Trans-Aleyska Pipeline System. This company has an “annual budget of $300 million for operations and maintenance and an additional $100 million for capital projects” (O’Rourke 12). The maintenance company knew about this problem. BP knew about the oil spill problem. Neither party attempted to correct the issue when it was first discovered.

BP also has issues regarding their internal operations. Their...