Case Study: BP Deepwater Horizon Disaster
Implications for Corporate Governance
This was the biggest-in-history 87-day 5million-barrel oil spill following the Deepwater Horizon oil rig explosion, sinking, and worker fatalities, in the Mexican Gulf in 2010. BP was convicted of 11 counts of manslaughter and other crimes related to the disaster, including lying to US Congress. Fines exceeding $4bn were continuing to increase at 2013, as were various criminal/civil damages and compensation payments exceeding $40bn. Corporate failures in the disaster itself and the aftermath were utterly catastrophic; for the local eco-system and economy, and for BP, especially in the US.