Macondo Well case: Identification of 2 to 4 issues and draft of solutions and pros and cons of each. Your TA will let you know if you are on the right track for a good Case Study Report based on this draft, which can be in basic bulleted form.
Issue 1: Properly manage the potential risk factors associated with the Macondo Well Case (BOP damage, Cement sample test, Cement evaluation test)
Solution:Change the risk-seeking mindset and culture of prioritizing speed by discarding quality of theproject by properly waiting and analyzing all the results of the report before continuing the project.
Pros: The .Deepwater blow up might be prevented or, at least, could reduce the negative effects even when it happens.
Cons: The timing to complete the project will be longer and might increase additional cost in preparing the tests.
Issue 2:High risk tolerance prevented BP in investing proactive measures
Solution:Change the risk-seeking mindset and culture of keeping lowest operation cost by discarding quality of theproject, and invest in measures that could minimize the impact of potential well blowout (relief well, Acoustic Switch and Capping Stock).
Pros: The preventive upfront cost will likely to save money in the long run and reduce the impact of the catastrophic event.
Cons: BP will need to pay higher up front cost for preventative measures and might be difficult to change the BP's corporation culture.
Issue 3:BP has little oversight and supervision from the US government, which would have required them to provide details on how they might control a potential spill, and the Minerals Management Service, which is tasked with overseeing sea drilling operations in the Gulf.
Solution: Put more focus from the regulatory bodies on companies such as the size of BP and activities such as oil drilling, which could have deep environmental effects.
Pros: Reduce the probability of future threat and prevent the likelihood of encountering catastrophic events
Cons: Higher cost and time consumptionfor the government officials and might increase the cost of operation for BP.
Issue 4:The abundance of cash reserves is more comfortable with risk-seeking behavior.
Solution: Higher fines each time as proportionate to the profit BP is making in each project in order to prevent them from risk-seeking behavior.
Pros: BP might operate more safely and decrease the probability of events such as Deepwater Horizon oil rig explosion.
Cons: The fine might be difficult to set to the proper amount (Not too high or too low), and might be a challenge for the regulatory body to supervise all the time.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.