There are several factors that caused the explosion that destroyed the Deepwater Horizon drilling rig in the Gulf of Mexico. The event lead to the death of 11 people and was one of the biggest oil leaks in history. According to BP, the accident was caused by failure of different safety systems meant to prevent such kind of accident (Steffy, 2010). The cause of the spill included valve failure, dodgy cement, pressure test misinterpreted, lack of gas alarm, and delay in spotting the leak. The various documents by the federal investigators showed that one faulty piece of equipment is what allowed the uncontrolled gas and crude to blow out and destroyed the Deepwater Horizon rig; thus, causing the worst oil spill. Based on the causes of the deepwater spills, it is clear that there are some solutions that can be applied so as to help resolve the problem (Steffy, 2010). One thing is that a culture of tight safety and experienced regulators would have helped in preventing the BP Deepwater Horizon leak. There is a need for equipment modifications and new technologies that will help to minimize the risk of such oil leaks. A solution involves pushing the …show more content…
The spill wiped out half of the company’s value, and the company’s share price dropped from 653 pence per share to 303 per share by June (Bryant, 2011). However, the recovery for the company has been steady. BP survived the disaster because it took responsibility for what had happened. After the incident, the goal of BP was to clean up the spill as fast as possible, restore the environment and the economy, and also restore its image. The company has the objective of admitting to the Americans that it was responsible for the explosion and it was held accountable for the crisis (Steffy, 2010). After understanding the impact of the disaster, BP decided to set up a $20 billion fund to cover the costs of the claims by residents who were affected by the