THE GULF COAST & BP

OIL SPILL
CASE ANALYSIS

Ranjeet Kumar Singh

About the Oil Spill

April 20, 2010 - A wellhead on the Deep

Water Horizon oil drilling platform blew
out in the Gulf of Mexico

About 4.9 million barrels (780,000 m3)

of petroleum released

Oil Slick Covering an area of 130 miles

by 70 miles

Impact- An Overview

11 People Killed, 17 Injured

From April to June 21, 143 oil spill exposure cases were reported
to the Louisiana Department of Health and Hospitals

6,104 birds, 609 Sea Turtles and 100 Dolphins -> DEAD

The projected loss to Gulf tourism was estimated at more than

$22 billion http://www.oceansnorth.org/bp-oil-spill-anniversary
.

By May 26 of 2010, over 130 lawsuits relating to the spill had

been filed.

The cost of the spill for BP as of June 14, 2010 was $1.6 billion

Brand Image

Gulf Restoration- Restoring Environment

Natural Resource Damages (NRD) assessment

process

Under NRD process, BP is working to identify the nature and extent

of injuries to natural resources resulting from the Deep-water Horizon
accident, and from the subsequent response activities

BP had paid more than $600 million for assessment efforts

Wild Life Monitoring

Birds: BP & Trustees conducted more than 12500 bird observational

survey sessions from May 2010 to August 2011

Sea Turtle: Seven Marine mammal and turtle rehabilitation centres

were set up in which around 450 sea turtles were cared for and
released

Marine Mammals: BP is participating and providing fundings for

live dolphin assessments and population assessments of marine
mammals

Gulf Restoration- Restoring Economy

Promoting Tourism Along the Gulf Coast

Supporting Sea Food Industry

Sea food monitoring and testing ( $33.5 m from BP along with $48
m to promote sea food industry along the coast and around the
country)

Community Development in Gulf States

BP provides support for a variety of community organizations and

programmes throughout the regions
Support education initiatives, workforce training and large donations
to NGOs

But

If the company wants to get credit for the

clean-up efforts, they should commit to
complete recovery.

As long as the area is still affected by the aftereffects of the oil spill, the company still has a
responsibility to fix the issues it caused.

BP took too long to implement a successful

plan, and the time wasted caused a great
amount of yet-to-be-determined harm to the
Gulf Coast environment

Tourism Elevation

Tourism doesn't happen on its own, it takes marketing dollars, particularly if

you're battling an image crisis like the oil spill
Unrelated to the marketing money the company has sent to coastal states, BP
has funded its own "Voices from the Gulf" television, radio and social media
campaign
More than 100 nonprofit groups and government entities have been picked to
get shares of $43.7 million in BP funds to promote the Gulf Coast's tourism and
seafood industries following the company's 2010 oil spill.
The first round of grants announced Wednesday by court-supervised claims
administrator Patrick Juneau is part of a proposed class-action settlement
between BP and a team of private plaintiffs' attorneys.The deal calls for BP to
fund a total of $57 million in tourism and seafood promotion grants.The 110
grant recipients were picked from a pool of more than 350 applicants.
In Louisiana, 43 recipients will get $15.9 million. In Florida, 33 organizations
will receive $13.4 million. In Alabama, 21 groups will get $8.3 million. In
Mississippi, 13 organizations will get $6 million.
"The grants should go a long way toward bolstering the Gulf's tourism and
seafood industries and help revitalize the region's economy,"
Obama also went swimming in the gulf along with his daughter to
promote the fact that the gulf was safer.

Elevation of Tourism
Broad
Perspecti Strategy
ve
Differential
pricing

Seasonal (or promotional) pricing (e.g. discount

or free offers

Group booking offers

Financial planning and budgeting to manage
fluctuating operational costs (employees and
other resources) based on cyclical trends
Closure of business in off-peak season
Introduction or development of festivals and
events
Development of the local environment (access to
restricted natural attractions)
Facility or structural development (e.g. public
transport, public amenities)
Service level differentiation (reducing opening
times in low season)
Diversifying into niche product or service areas
(e.g. identifying and matching seasonal
motivation with product/service or local
attraction)

Diversified
attraction

Issue addressed
Increasing visitation in low periods.
Increasing length of stay. Increasing
yield. High prices to decrease congestion
in peak season
Increasing visitation in low periods
Inability to control fluctuating seasonal
costs.
Reduction of operational costs
Increasing visitation in low periods
Increasing visitation in low periods.
Increasing visitation in low periods.
Reducing costs, increasing yield. Meeting
customer needs.
Attracting a different market.

Elevation of Tourism
Market
diversification

Facilitation by
govt

Marketing campaigns to attract

different
markets in different seasons (a multi
segment approach)
Determination of the optimal
segment mix (e.g. financial portfolio
theory)
Align with tour operators or travel
agents
to sell product/service
Environmental regeneration
initiatives
Improved and expanded regional
infrastructure

Flattening of seasonal peaks

and troughs.

Increasing yield (reducing

costs and increasing income)
Increasing business in low
periods and increasing market
penetration.
Damage to local environment
during peak periods.

Greater access to rural or

remote areas during both high
and low seasons.
Development of local business
Provision of greater marketing
networks
resources and support for
and partnership
infrastructure development
Provision of business support services Cash flow and other financial
(marketing, financial planning)
problems.
Staggering of holidays over a longer
Flattening of seasonal peaks
period
and troughs.

References

www.gulfspillrestoration.noaa.gov/oil-spill/gulf-spill-data/

www.gulfspillrestoration.noaa.gov/restoration/give-us-your-id
eas/

gulfresearchinitiative.org.

usresponse.bp.com/go/doc/2911/963787/Health-monitoring.

bp.com/gulfofmexico/inpictures.

restorethegulf.gov/release/2011/07/29/osat-summary-reportsub-sea-and-sub-surface-oil-anddispersant-detectionecotoxic.

THANK YOU