Case Analysis - Bp America, Inc. Essay

1567 Words Sep 6th, 2013 7 Pages
Case Analysis – BP America, Inc.:

The Prudhoe Bay Oil Spill and a Commitment to “Being Green”

Michelle L. Staton

Case Summary The Angelo-Persian Oil Company was formed in 1909 by a wealthy Englishman named William Knox D’Arcy. It did not operate under the British Petroleum (BP) name until 1954. In early 1959, BP discovered hydrocarbons under the North Sea and Alaska, and found the West Sole gas field in 1965 which was the first oil exploration success in British waters. In 1969, BP discovered major oil deposits in Prudhoe Bay on the North Slope of Alaska. The refining and marketing of the Prudhoe Bay oil fields was handled by Standard Oil Company of Ohio, which also took over BP’s leases at Prudhoe Bay in exchange for
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Several citizen and environmental groups expressed concern about the dangers associated with the corrosion or deterioration of the aging pipeline, as well as the connection to an even larger, system-wide problem with the oil fields in the northern Alaska region.
Discussion – Corporate Image Issues, Stakeholders, and
Public Relations Damage Control Even though the cause of the leak is unknown, BP’s corporate image has definitely been impacted. After the leak was detected, the Environmental Protection Agency (EPA) began an investigation into the incident, and was present at the leak site during clean-up efforts. BP did not formally announce EPA’s investigation at this point, which may lead to the misconception that the company was denying any wrong-doing. Soon after, the US House Committee on Energy and Commerce also began investigating the pipeline leak incident by focusing on the causes of the corrosion of the pipeline. US Congress does not have prosecutorial powers, but would turn any evidence obtained during their investigation over to the US Department of Justice for prosecution. BP later announced that the company was launching an internal investigation with the cooperation of state government regulators from Alaska who could impose state fines of more than $2 million against BP as a result. The Office of Pipeline Safety required BP to complete a thorough assessment of and make necessary repairs to the pipeline where the leak occurred. BP

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