THE COST OF NEGLIGENCE 1
The Cost of Negligence: The Impact of the Deepwater Horizon Oil Spill
Karen Walker, Tim Holden, Joanna Pangilinan, and Alexandra Gonzalez
Donald R. Tapia College of Business, Saint Leo University
MBA 525: Professional Development
Dr. Kenneth Embry
August 24th 2024
Graduate Studies in Business Academic Honesty Statement
My signature entered below constitutes my pledge that all the writing in this document is my
own work, except for those portions which are properly documented and cited. I understand and
accept the following definition of plagiarism:
1. Plagiarism includes the literal repetition without acknowledgment of the writings of
another author. All significant phrases, clauses, or passages in this paper which have
been taken directly from source material have been enclosed in quotation marks and
acknowledged in the text itself as well as on the Reference page.
2. Plagiarism includes borrowing another’s ideas and representing them as my own.
3. To paraphrase the thoughts of another writer without acknowledgement is plagiarism.
4. Plagiarism also includes inadequate paraphrasing. Paraphrased passages (those put into
my own words) have been properly acknowledged in the text and in the references.
5. Plagiarism includes using another person or organization to prepare this paper and then
submitting it as my own work.
6. Plagiarism includes resubmitting my own previous work, in whole, or in part for a current
assignment without the written consent of the current instructor.
Saint Leo University’s core value of integrity requires that students pledge to be honest, just,
and consistent in word and deed. I fully understand what plagiarism is, and I further understand
that if plagiarism is detected in my paper, my professor will follow the procedures for academic
dishonesty set forth by Saint Leo University, the Donald R. Tapia College of Business and the
Graduate Student Handbook.
Student Signature: Karen Walker, Tim Holden, Joanna Pangilinan, and Alexandra Gonzalez
,THE COST OF NEGLIGENCE 2
Abstract
The British Petroleum Oil Spill and the Deepwater Horizon disaster is one of the most
catastrophic environmental disasters in modern history and shows the consequences of what
happens when high-ranking officers within organizations make rash and uncalculated decisions
that neglect safety measures to save time and money. This paper examines the events leading up
to the disaster, Brian Morel, the lead engineer for BP, the company's failure to follow proper
safety measures, and its decisions to cut corners to save time and money. The Deepwater
Horizon disaster ended up resulting in extensive environmental damage, significant economic
losses, and severe legal repercussions, resulting in BP tarnishing its image with the public.
Throughout this analysis, we will cover the importance of safety standards, effective and
transparent communication, and proactive risk management to prevent environmental disasters.
The lessons learned from Brian Morel and the Deepwater Horizon disaster must echo throughout
the oil and gas industry to push them toward more sustainable and responsible corporate
practices and highlight the need for openness and accountability to rebuild public trust and
prevent future tragedies.
, THE COST OF NEGLIGENCE 3
The Cost of Negligence: The Impact of the Deepwater Horizon Oil Spill
British Petroleum, otherwise known as BP, is an oil and gas company based in England.
BP is a company that operates in over eighty countries and is one of the world’s leaders in
revenue, generating over 48 billion dollars per year (Forbes, 2024). Now imagine a world where
one of the leading oil and gas industry corporations made a single decision that eventually led to
one of the most catastrophic environmental disasters in modern history. The Deepwater Horizon
oil spill was a direct result of Brian Morel and BP’s negligence and cost cutting measures. This
disaster highlights the importance of proper safety standards, effective corporate communication,
and proactive risk management in the oil and gas industry to help prevent future environmental
and economic disasters.
In 2001, BP entered into a contract with Transocean to use their Deepwater Horizon oil
rig to drill into the Macondo reservoir in the Gulf of Mexico. Upon arriving on site in January
2010, the rig was immediately plagued with delays and additional costs. As a result, BP hired
Halliburton for additional engineering and construction services. The Deepwater Horizon rig
was intended to drill a well that was 20,000 feet into the Macondo reservoir. The reservoir was
located four miles below sea level in the waters of the Gulf of Mexico and approximately forty
miles away from the Louisiana coastline (Monnier, 2021).
Feeling the effects of the delays, BP was six weeks behind schedule in determining the
location of the oil and the drilling of the Macondo reservoir. Unbeknownst to BP, these delays
had far-reaching consequences, the high-water pressures forced BP to reduce their planned
drilling depth, and to further save time and money they failed to line their drill with the necessary
casing to prevent collapse. These choices resulted in insufficient cement reinforcing the drill and
compromised the well’s integrity. In addition to these errors, the engineers failed to properly
The Cost of Negligence: The Impact of the Deepwater Horizon Oil Spill
Karen Walker, Tim Holden, Joanna Pangilinan, and Alexandra Gonzalez
Donald R. Tapia College of Business, Saint Leo University
MBA 525: Professional Development
Dr. Kenneth Embry
August 24th 2024
Graduate Studies in Business Academic Honesty Statement
My signature entered below constitutes my pledge that all the writing in this document is my
own work, except for those portions which are properly documented and cited. I understand and
accept the following definition of plagiarism:
1. Plagiarism includes the literal repetition without acknowledgment of the writings of
another author. All significant phrases, clauses, or passages in this paper which have
been taken directly from source material have been enclosed in quotation marks and
acknowledged in the text itself as well as on the Reference page.
2. Plagiarism includes borrowing another’s ideas and representing them as my own.
3. To paraphrase the thoughts of another writer without acknowledgement is plagiarism.
4. Plagiarism also includes inadequate paraphrasing. Paraphrased passages (those put into
my own words) have been properly acknowledged in the text and in the references.
5. Plagiarism includes using another person or organization to prepare this paper and then
submitting it as my own work.
6. Plagiarism includes resubmitting my own previous work, in whole, or in part for a current
assignment without the written consent of the current instructor.
Saint Leo University’s core value of integrity requires that students pledge to be honest, just,
and consistent in word and deed. I fully understand what plagiarism is, and I further understand
that if plagiarism is detected in my paper, my professor will follow the procedures for academic
dishonesty set forth by Saint Leo University, the Donald R. Tapia College of Business and the
Graduate Student Handbook.
Student Signature: Karen Walker, Tim Holden, Joanna Pangilinan, and Alexandra Gonzalez
,THE COST OF NEGLIGENCE 2
Abstract
The British Petroleum Oil Spill and the Deepwater Horizon disaster is one of the most
catastrophic environmental disasters in modern history and shows the consequences of what
happens when high-ranking officers within organizations make rash and uncalculated decisions
that neglect safety measures to save time and money. This paper examines the events leading up
to the disaster, Brian Morel, the lead engineer for BP, the company's failure to follow proper
safety measures, and its decisions to cut corners to save time and money. The Deepwater
Horizon disaster ended up resulting in extensive environmental damage, significant economic
losses, and severe legal repercussions, resulting in BP tarnishing its image with the public.
Throughout this analysis, we will cover the importance of safety standards, effective and
transparent communication, and proactive risk management to prevent environmental disasters.
The lessons learned from Brian Morel and the Deepwater Horizon disaster must echo throughout
the oil and gas industry to push them toward more sustainable and responsible corporate
practices and highlight the need for openness and accountability to rebuild public trust and
prevent future tragedies.
, THE COST OF NEGLIGENCE 3
The Cost of Negligence: The Impact of the Deepwater Horizon Oil Spill
British Petroleum, otherwise known as BP, is an oil and gas company based in England.
BP is a company that operates in over eighty countries and is one of the world’s leaders in
revenue, generating over 48 billion dollars per year (Forbes, 2024). Now imagine a world where
one of the leading oil and gas industry corporations made a single decision that eventually led to
one of the most catastrophic environmental disasters in modern history. The Deepwater Horizon
oil spill was a direct result of Brian Morel and BP’s negligence and cost cutting measures. This
disaster highlights the importance of proper safety standards, effective corporate communication,
and proactive risk management in the oil and gas industry to help prevent future environmental
and economic disasters.
In 2001, BP entered into a contract with Transocean to use their Deepwater Horizon oil
rig to drill into the Macondo reservoir in the Gulf of Mexico. Upon arriving on site in January
2010, the rig was immediately plagued with delays and additional costs. As a result, BP hired
Halliburton for additional engineering and construction services. The Deepwater Horizon rig
was intended to drill a well that was 20,000 feet into the Macondo reservoir. The reservoir was
located four miles below sea level in the waters of the Gulf of Mexico and approximately forty
miles away from the Louisiana coastline (Monnier, 2021).
Feeling the effects of the delays, BP was six weeks behind schedule in determining the
location of the oil and the drilling of the Macondo reservoir. Unbeknownst to BP, these delays
had far-reaching consequences, the high-water pressures forced BP to reduce their planned
drilling depth, and to further save time and money they failed to line their drill with the necessary
casing to prevent collapse. These choices resulted in insufficient cement reinforcing the drill and
compromised the well’s integrity. In addition to these errors, the engineers failed to properly
