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Crisis in the Gulf

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by

Michelle Duncombe

on 28 July 2014

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Transcript of Crisis in the Gulf

Time Line of Events
Communication Missteps
Communication Missteps
BP underestimated the scale of the problem, and wasted time arguing with scientists whose findings contradicted their estimates. 
Not understanding that there were two disasters – one in DC and one in the Gulf.
Apparent lack of empathy
Focusing on science rather than people.

Best Practices Moving Forward
BP Management Team
Michelle Duncombe
Jordan Fleming
Tom Halpin
Levi Hunter
Crispin May

Crisis in the Gulf
What Took Place
May 2010
June 2010
September 2010
July 2010
April 20-30 2010
First 10 Days
Efforts to Stop Oil Flow
President makes first visit to Gulf, on the same day work begins on relief wells with a targeted completion date of August
Endangered species of animals start to wash ashore
Containment Dome attempted but fails
BP Executives first meetings with Congress
Successful insertion of tube to gather some oil begins on May 16th
"Top Kill" and " Junk Shot" methods unsuccessful in stopping flow oil
May 27 2010-scientists make statement that this is the worst spill in U.S. History
BP's Accountability
Crisis affecting company performance-stock price begins to plummet 15% in US after failed methods, price falls in total to nearly 40%(75 billon in shareholder value)
Successful use of robots to sever rise pipe to allow for attempt to place containment cap
President Obama's third visit, oil reaches Florida coast, meaning four out of five Gulf States have been impacted
Damage Fund started and CEO Tony Howard testifies in front of House Committee
Mr Howard advises committee that BP is not the only one to blame
Steep Cost
Cost to BP sits at 3.2 Billion in filed claims
Oil found in Texas, meaning all five Gulf States have been impacted
Successfully install Capping Stack, temporary solution as relief wells are built
July 15-announce that leak has stopped
Announce Tony Hayward will step down as CEO October 1 2010
Crisis Contained but Not Over
National Incident Commander announces that oil well is "dead" and poses not further threat to the Gulf
Reports of oil slicks continue in for months afterward
Lawsuits and settlements are anticipated to continued for years to come
Environmental impact by September 2010 difficult to project
April 20, 2010-Deepwater Horizon Rig Explodes. 11 of 126 workers on rig, are unaccounted
Rig collapse and unprecedented amounts of oil start to leak
Many efforts to stop flow are unsuccessful
White House and Feds launch investigation
Engineering Efforts to Stop Oil
First and Second
Third and Fourth
Five and Six
7&8
9&10
Engineering Final Solution-Relief Well
Relief Well Construction
Insiders say BP didn't have a public relations strategy
“BP's handling of the spill from a crisis management perspective will go down in history as one of the great examples of how to make a situation worse by bad communications," said Michael Gordon 
Failure to immediately accept responsibility.
Failure to utilize modern communication mediums
Tony Hayward
Glenn DaGian: “The only time Tony Hayward opens his mouth was to change feet”
Exercise Visible Leadership from the Highest Executives.

Uphold Accountability & Integrity

Identify Stakeholders, Develop Strategies Accordingly.

Identify Stakeholders, Develop Strategies Accordingly.

Exercise Visible Leadership from the Highest Executives.

“Out of the loop”
Decisions and Processes on the rig were overlooked by BP management.
This SPILL was not our fault
Not responsible for the spill itself, only the clean-up.
Frequent Progress Reports
What course of action are you taking – Is it working?
EMPATHY!!
“I want my life back”  “Your lives are our concern”







Uphold Accountability & Integrity

What Should Have Happened?

Best Practices

• What happened
• Timeline review
• Technical review
• Communication Missteps review\
• Best practices review/What could’ve been done better

Summary
BAD
GOOD!
Full transcript