Deepwater Horizon Case

On April 20th, 2010, the Deepwater Horizon drilling rig explosion occurred along with a massive fire, and later on sank to the bottom of the ocean. This unfortunate disaster was just the start. Along with the explosion came leakage of the crude oil into the Gulf of Mexico, because of rupture of the oil line on the seafloor. This is widely known as the BP (British Petroleum) oil spill and it created a lot of controversy due to the environmental and economic impact it had on the United States as well, as the world. Oil trade for BP greatly declined in the months of attempting to cap the oil well, as well as the months after the catastrophe occurred. After all the chaos and the federal intervention, a new step has been taken by the US government, to tighten up regulations on pumping oil from the Gulf, in fear that something as catastrophic as what occurred in the spring and summer of 2010, could potentially occur again. The U.S. Interior Department has issued a new suspension regarding the deepwater drillings.

Directly after the explosion, BP and the U.S. Coast guard had no thought that there was leaking oil from the sunken oil well. Although on April 24th 2010, four days after the explosion that there was a leakage from the damaged wellhead. With the constant confusion and rush to attempt to cap the oil well at the sea floor of the Deepwater Horizon oil rig, environmentalist's were concerned with the marine wildlife, and the marshes on the coast. NOAA (National Oceanic and Atmospheric Administration) were the ones who realized this concern right of the bat. They knew that after a month of gas pumping out into the gulf that there would be a large impact on the safety of marine animals, reefs, water quality, and for those whose livelihood depends on the gulf. But because of this at the peak of the crisis, in June 2010, around 37% of the gulf waters were closed to fishing due to water contamination. NOAA Fisheries Service prohibited fishing as a precautionary measure to ensure public safety and assure consumer confidence in Gulf of Mexico seafood. On May 24, a fisheries disaster was declared by the federal government for the states of Alabama, Mississippi and Louisiana. Initial cost deficits estimated to the fishing industry were around $2.5 billion.