Management
CO: “Internet Exercise”
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Each student will reflect on the BP oil spill as it relates to the global supply chain – Examine the use of current transportation economic situations such as the 2010 BP oil spill in the Gulf of Mexico in the internet exercise discussion board.
ANSWER
BP Gulf of Mexico Oil Spills
BP Gulf of Mexico Oil Spills
11 Workers were killed and 16 others injured on 20th April 2010 on the oil rig Deep Water Horizon which spilled millions of gallons of crude oil into the Gulf of Mexico for about 90 days (Griggs, 2011). Rig operator Transocean, Contractor Halliburton and BP were responsible for the accident. BP was impacted and lost billions, which also led to a forty percent drop in the stock market within the first month. BP agreed to pay $18B in fines. This has been considered the largest settlement in the United States.
The BP oil disaster has influenced the oyster and fishing industries since it has damaged wildlife and the environment generally. For instance, the natural beauty of gulf can never be the same, while tourism along the gulf coast has been negatively influenced. The economy of the Gulf Coast Region has been affected while the oil spill is going to cause a dramatic effect on the exploration of oil (Griggs, 2011). Therefore, the oil spill disaster has influenced many businesses and lives on the Gulf Coast and other parts of the country. It has impacted tourism, mostly vacationers, who are looking forward to spending time on the Gulf Coast. Transportation was significantly impacted since ships were unable to transport cargo in and out of Port of New Orleans while the trucks were unable to transport goods from the port.
In conclusion, the Deepwater Oil spill has proven to be one of the most devastating environmental accidents in history. The effects of the oil spill will remain for a long time since it has many industries in the region. Industries such as real estate, fishing, tourism, offshore drilling have significantly been affected and have remained unknown if they will ever fully recover. However, some industries benefited from Oil spills. For instance, Environmental Service firms have benefited since the spills have brought new businesses whose revenues have gone to the roof. Many economic lessons have been learned due to the spill and the magnitude of the disaster.
References
Griggs, J. W. (2011). BP Gulf of Mexico oil spill. Energy LJ, 32, 57.
