Deepwater Horizon Deepwater . . . Sources: Outline “ Pretty Slick, 2016 documentary Alpha Piper Ethics Suggestionsavoid disasters to tendencies seeking risk vs. averse Risk Managerial problems Technical problems andtheirassociation withcompanies and Summary events the companies of Deepwater Horizon Deepwater This file is electronically made available to MERIT students who agree agree who students MERITto available made electronically is file This diasaster ”, by M by ”, , mins NOT to post or to distribute it to theothers.to it distribute to or postto NOT 44 of 26-44 of etin Çakanyıldırım https ://www.youtube.com/watch?v=HCkvRrIsZ08 and references cited therein. therein. cited and references
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metin /~ & 154 114 48 Macondo – gas personnel to the rigs in Gulf of Mexico of Gulf inrigs the to personnel gas miles from the nearest land, land, nearest the from miles miles fromHouma helicopter base used for transporting oil Port from miles Undersea river canyons are rich in sedimentary rocks sedimentary inrich are canyons river Undersea well is in block 252 of Mississippi canyon; canyon; Mississippi of 252 block in is well Fourchon that services and supplies oil rigs rigs oil supplies and services that Geography 582 miles southwest of UTD campus UTD of southwest miles 582 Digging Macondo well
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metin /~ Additional complexity: Gap between pore pressure and fracture pressure is tight in GOM GOM in tight is pressure fracture and pressure pore between Gap complexity: Additional 12,000 drilling of Cost has Region in is well Macando – ti ntecnietlsefweetesefsoeaedopn fast dropping are slope shelf the where shelf continental the on is It turbidites deepwater (sedimentary rocks deposited by currents) with HC reservoirs: high porosity & permeability & porosity high reservoirs: HC with currents) by deposited rocks (sedimentary ft into the seabed is high but the production is highrate very highinto is seabed the but the production region of GOM (Gulf of Mexico), sea depth 5000 ft. 5000 depth sea Mexico), of (Gulf GOM of region Geology ⇒ Cost per deepwater bbl fields is low low is
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metin /~ On theday of blowout only 7 out of 126O on board wereBP employees. (Houston Anadarko 25% BP, 65% based) 252: Block in Other and Interest companies:Working – – – perated as a joint venture (cost and revenue sharing) while BP was responsible for operations the for responsible was BP while sharing) revenue and (cost venture a jointas perated …. Halliburton: Transocean: Companies Involved Companies 10% MOEX ( MOEX 10% J apan based). based). apan
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metin /~ Transocean’s Deepwater Horizon Rig Horizon Deepwater Transocean’s and services, bringing total cost to $1 million per day. per million $1 to cost total bringing services, and at Horizon a BP per a Deepwater for of rate amount day fuel, similarand expendables incurred $530,000 rented 2001. in Industries Heavy Hyundai to million$560 paid Transocean semi positioned adynamically was Horizon Deepwater 4000 9000 – – – If the thrusters do not work (e.g., with power loss), the rig can be carried or rotated by waves. by rotated or carried be can rig the loss), power with (e.g., work not do thrusters the If ships. cargo on another its to Atintendedlocation, it uses directional thrusters smallpropellers) (8 location maintain to location its andorientation one from transferred is It ft ft of drilling with Transocean’s Deepwater Horizon, brought in Feb in the Feb drilling brought complete 2010 to Horizon, Deepwater with Transocean’s of drilling at drilling of Macondo with Transocean’s rig, Marianas damaged during with Transocean’s 320 t to level sea From op of derrickop of 60- ft 75 - submersible rig. submersible ft From sealevel to bottom Huricane 75 Ida in Nov 2009 Nov in Ida ft
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metin /~ .. …. design flow; gas barriersfew to withA well Technical Problems
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metin /~ A well well A designwithfew barriers to gas flow
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metin /~ .. …. much re Too – Limited tenure and experience at at position a certain and experience tenure Limited organization in-organization BP Managerial Problems
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metin /~ … ….. Halliburton Transocean BP: – – Need to satisfy the client BP clientthe satisfy to Need W ell design to avoid pressure build up in the annulus the up in build pressure avoid to design ell Why they did what they did?
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metin /~ at peopleof /positionsNames Halliburton Transocean BP Who wanted to progress fast progress to wanted Who
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metin /~ Recommendations to avoid another disaster another to avoid Recommendations
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metin /~ Unethical behavior, if any, how to avoid? to how any, if behavior, Unethical
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metin /~ Final Thoughts? Final
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metin /~ Summary Ethics Suggestionsavoid disasters to tendencies seeking risk vs. averse Risk Managerial problems Technical problems andtheirassociation withcompanies and Summary events the companies of
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metin /~ managerial problems and technical on focuses body mainthe in Discussion BOP did not function well function not did BOP of One mechanismsfailemployed are there to problems, prevent of multitude awith blowout Even – – – – – Blowout preventer was investigated afterwards: was investigated preventer Blowout W to cut Rig crew hesitated pipe the was other The battery of out was panel control One A Glance A them is is them ell manager attempted but could not cut cut not could but attempted manager ell the Blowout preventer Blowout the mis - wired - safe safe
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metin /~ I went through this valuation in 2017for valuationI this through went See by using rig a of value Estimated on the BP) (e.g., rigpressure which rig create the Rig drive values lessee fees, lease – – – – – http://www.bassoe.no/rigvalues Hi Yes environment: inoperate to harsh Ability Yes drilling: Currently 2010- starting inYears service Semi - » tech and Yes and tech specifications: - This rig has a value between $283 and $312 millions, almost half of what Transocean inpaid 2001. half of almost Transocean what $312 millions, $283and rigThis a has between value submersible rig submersible Value of a Value Rig Rig Rig / 2016 Valuatio n n Valuatio Tool (RVT ) by Norwegian Company Bassoe Company Norwegian by Offshore
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metin /~ See apologies Tony CEO BP Hayward’smocks series)(Cartoon South Park https:// www.youtube.com/watch?v=15HTd4Um1m4 Deepwater Horizon Accident? Accident? Horizon Deepwater How Sorry is BP CEO for CEO BP is Sorry How
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metin /~