Forthcoming Case Study

BP’s Deepwater Disaster (A): Oil Industry’s Value Chain Risk

Abstract:

On April 20th 2010, Transoceans Deepwater Horizon drilling rig, leased to the oil giant BP, exploded and sank 5,000 feet below water, resulting in a massive oil spill. The Gulf of Mexico oil spill has once again brought forth the debate over the safety of the oil industry and has shed light on the risks and dangers associated with the oil industry. The case analyzes the nature of oil industry through value chain analysis and the risks involved in it. It also debates on organisational preparedness in the light of inherent industry nature and discusses the kind of organisational capabilities required at each of the stage of the industry's value chain.

Pedagogical Objectives:

• To understand the nature of oil industry’s risks with the help of oil industry’s value chain analysis
• To analyse the major oil mishaps and assess whether they could have been prevented
• To debate on organisational preparedness in the light of inherent industry nature and discuss the kind of organisational capabilities required at each of the stage of the industry’s value chain.

Keywords: Value Chain, Value Chain Analysis, Oil Industry’s Value Chain, Up Stream, Mid Stream, Down Stream, Risk Assessment, Oil Industry’s Value Chain Risk Assessment, The Gulf of Mexico Oil Spill, BP, Tony Hayward, Oil Industry’s major mishaps, Organizational Response, Organizational Preparedness, Organizational Capabilities

Course:  Strategy / Value Chain Analysis

Concept:  Value Chain Analysis of Oil Industry

Key Focus:  Risk assessment through the Oil Industry’s value chain