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The oil spill shook the U.S when it occurred on the twentieth of April 2010. Never had such a magnitude of oil spill witnessed. Oil prices have been affected, surging day by day with more spilling recorded in the gulf. Problems are also mounting with the weather condition in the gulf, storms have been witnessed and this is threatening to expand into a hurricane (Welch and Joyner 1). The gulf has been a production site for oil in the U.S and the effects are wide and large. Several environmental effects associated with the spill have been witnessed, and the company is trying all its mitigation measures as well as the federal government with little progress. This disaster has greatly affected the company and the country’s economy. BP rates as one of the largest multinational firms in the world; these effects are therefore deemed to affect the economy, for instance, the surge in oil prices and the fall in market capitalization. This paper will investigate problems associated with the spill, clients, and stakeholders in BP.
The problem of oil spill started in the Gulf of Mexico, which is also referred to as deep-water horizon, on the twentieth of April, 2010. This has continued since, causing a massive loss of oil in millions of Gallons. The rig at the station exploded and this killed 11 employees as well as injured another 17. It has since continued causing massive damages and losses (BP p.l.c. 1). This oil came from below the surface of the ocean and is continually raising fears over its potential impacts on the environment. Fishing industries, as well as tourism, wildlife, and marine habitats, have been critically affected, BP has been blamed by the federal government for the disaster and has been held up to cover the costs associated with cleanup being done. Other impacts that have risen include effects on the ecological system, litigation, health, ocean drilling policies, among others. Besides, its stock valuation has gone down tremendously to almost half its capitalization (Welch and Joyner 1).
Clients of BP
Clients of BP are feeling the heat as their customers continue to dwindle due to the massive effects brought about by the oil spill. Most people are now opting for other competitors because they are concerned about the rig disaster, its effects on the environment, and aquatic life. This has affected most of the clients as is explained by Haltenholf, a dealer who manages a BP station at Kirkwood in Manchester. This in turn lowers the profitability of the company and has resulted in the fall in the market share value (Corrigan 1).
Stakeholders form an integral part of any company’s success. BP, like any other firm, has stakeholders and it must communicate effectively with them. This has not happened as was required, given their way of handling the spill. Communications with the main stakeholders have been poor and the company should improve on that if such consequences are to be reduced. The community is important and should be given prior communication if safer methods are to be implemented (Clark 1).
The BP oil spill has been the worst of all other spills witnessed all over the world. The amount of Damage to the economies and environment, added to the casualties, has worsened the situation. Its expected impacts on the environment, especially around the gulf are unbelievable. As the disaster mitigation measures continue, it is important to note that such incidences should be avoided in the future. Stakeholders should also be involved fully in the process.
- BP p.l.c. Gulf of Mexico response. BP global. 2010.
- Clark, Terrence. Who are my stakeholders and should I care? CA Community. 2010.
- Corrigan, Don. Area BP stations Fell Consumer Heat over Gulf Oil Spill Disaster. Southcountytimes.2010.
- Welch, William and Joyner, Chris. Memorial Services Honors 11 Dead oil Rig Workers. USAToday. 2010. Web.