The Dark Side of Oil, BP 30 Billion Blowout

One of the most devastating occurrences in business and oil history, and questions the definition of business ethics and an accident. BP $30 billion blow out and cause high number of workers injured and 11 of the workers died. A tragic story that created the movie Deep Water Horizon, a master piece on real world events where people are working in dangerous areas and place. I watch a full documentary regarding the BP incident which devastated one of the biggest oil company and questioning the corporate governance for all company’s employment safety, hence high number of citizens provide dispute to the company and Barack Obama stands and provide consequences to BP insufficient management.

What happen was, in the oil rig, there was a machine malfunction based on the kick which creates an oil spill and with high amount of pressure the oil will create flames and with that so much oil it destroyed the oil plant and a blowout. This incident caused the headline of business news making BP share price decrease 50% and a £12 million loss per minute. Obviously, this was based on an accident, however, the media and people see it as an ethical problem where the company does not provide sufficient workers protection based on Integrity, Viability and Safety hazards. High amount of pressure groups and boycotts revolve around BP, making the company as a sinking ship that could not be helped. Some news media questions and presents the case of BP and questioning the investment ethics and operations to be inefficient, which influence investors reputation on BP to have moral dilemmas in the eyes of the public.

However, we still buy oil, don’t we? Because Oil is what makes the world go round right? 

Oil is the most important natural resources to run our daily lifestyle for our vehicle, for cooking and other activities. The shift of demand in an unethical company or a company with insufficient corporate governance still stay the same because such as in BP case, we still buy their oil regardless of the company cases. However, the focused topic is how to improve a company’s corporate governance and employment safety in dangerous environment such as BP’s case where the workers working in an oil plant in the middle of sea.

It is inevitable and impossible to know what will happen in a plant or company’s factory with dangerous or hazardous machines, equipment’s and resources. But obviously it is important to provide uncertainty avoidance! Such as improving the oil rig machinery to prevent oil spill or on each oil plant supposed to be monitored and supported by security; preparing an evacuation situation where emergency ships are near the plant able gather all workers and transport them to nearby port in the situation of oil rig burst. With never ending technology development, in each oil rig supposed to provide an automatic extinguisher nearby the oil rig, which in a kick and fire occurrence, it can be extinguish easily and using a drainage in the oil rig where there is spills the oil should automatically goes down the plant and back to the sea.

Imagine as the workers of BP it would be scary working there and they must be persuaded and always thinking that a crisis will not happen because it is rarely to occur. In the documentary, Barack Obama state that, an oil rig will not cause spill, it is an advance technology without any defects or defaults in its extracting process. This is misleading because, regardless on how technology is developed and advance there always a defect and error in the system which we all suppose to be cautious.

It is a nightmare for the business and CEO because in every tragedy of the business it will pressurize the CEO and directors because they are in charge to make sure corporate governance is perform well and safety is provided.

So what is a substitute or a better natural resource than oil? You might be thinking electricity as the new pure resources that will enhance our daily living. You might be right, because since technology is developing with creation of electric cars, signalling possibility in the near future we will not use oil anymore for cars, but electricity, since nowadays our houses is run by electricity, portable gadgets such as phones and laptops is run by electricity, and Tesla Roadster a sport electric car to be the fastest in the world and its cheap consider as a complex electric sports vehicle can be revolutionary of our digital age to be more accessible.

Something is telling me that the future where technology take over is near. But do not be fooled, electricity production is still dangerous, hence company’s and directors must improve their management and corporate governance to be more effective in all aspects.

In summary and personally, business ethics and corporate governance is highly important to increase the business reputation and having high support, because if a business is ethical consumers may support the company on buying its products and having a close relationship with the business. However, in the case of BP is not the problem of ethics, but ensuring corporate governance run down through the company, because in the business it states that the company is highly focused and always concern with workers safety, and with advance machines it will not cause an oil spill nor a blowout in the oil rig, however tragedy happened.

So, what do you think? Is electricity better than oil? Obviously, oil will be the story of the past and electricity is the story of the future, will we have a similar story as BP based on the electricity industry? How can we make sure ethics runs down in the company?