Deep Water Horizon - Oil Spill Case Study

Key Facts

• April 20th 2010
• 4.2 million gallons of oil released over 87 days
• Gulf of Mexico
• Sealed on July 15th 2010

Causes

• Defective cement used to seal pipes prior to the explosion
• Valve failure
• Gas alarm failure
• No emergency battery for blow-out preventer

Environmental

• By November 2010 >8600 animals were reported dead
• Spill area contained 8,300 species
• 17% of dolphins not expected to survive
• Since the spill, 500 turtles are stranded annually
• Reefs 7 miles away began to die
• Occured during peak breeding season for local wildlife
• Microbes used to consume the oil reduced oxygen availability in the water
• 20% of bluefin tuna stock depleted

Economic

• US$2.4 billion fishing industry in Lousiana disrupted, estimated 7 years before fishing could resume
• 26% of people visiting Louisian postponed or cancelled
• 25% of people believed leisure activities (e.g. swamp tours) were cancelled
• 34.4 million employees effected

Social Effects

• 11 workers assumed dead
• 17 injured
• Corexit oil dispersant contained 57 harmful chemicals (e.g. carcinogenic)
• Between June and September 2010, >700 people (from Mississippi, Louisian and Alabama) required health services relating to exposure of the oil spill
• Recreational fishing banned

Managment Strategies and Impacts

• 46,000 people deployed
• 70 countries offered assistance; 8 accepted due to special equipment
• BP spent US$14 billion on the cleanup which was conclude in 2014
• Skimming surface oil
• Burning surface oil→48% of the crude oil was methane
• Dispersants→1.84 million gallons used→Studies suggest that dispersed oil is more toxic than fresh oil
• Artificial barrier islands→Quickly washed away by currents

• Beach cleaning
• 10 days after the explosion a moratorium began on deep water drilling along the outer continental shelf for 6 months
• BP set up a claims fund of US$20 billion; US$13.1 billion currently claimed
• In July 2013, BP tries to halt some claim payments on the basis of fraud, which was overruled
• Clean Air Act fine could cost BP US$13.8 billion