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Ranjeet Kumar Singh


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


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


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


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






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 after-effects 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 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.
Broad
Strategy
Perspective
Differential
pricing

Seasonal (or promotional) pricing (e.g. discount or free
offers
Group booking offers

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

Financial planning and budgeting to manage
fluctuating operational costs (employees and other
resources) based on cyclical trends
Closure of business in off-peak season

Diversified
attraction

Inability to control fluctuating seasonal
costs.
Reduction of operational costs

Introduction or development of festivals and events

Increasing visitation in low periods

Development of the local environment (access to
restricted natural attractions)

Increasing visitation in low periods.

Facility or structural development (e.g. public
transport, public amenities)

Increasing visitation in low periods.

Service level differentiation (reducing opening times in
low season)

Reducing costs, increasing yield. Meeting
customer needs.

Diversifying into niche product or service areas (e.g.
identifying and matching seasonal motivation with
product/service or local attraction)

Attracting a different market.
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)

Flattening of seasonal peaks and
troughs.

Align with tour operators or travel agents
to sell product/service

Market
diversification

Increasing business in low periods
and increasing market penetration.

Environmental regeneration initiatives

Damage to local environment
during peak periods.

Improved and expanded regional
infrastructure

Greater access to rural or remote
areas during both high and low
seasons.

Development of local business networks
and partnership

Provision of greater marketing
resources and support for
infrastructure development

Provision of business support services
(marketing, financial planning)

Cash flow and other financial
problems.

Staggering of holidays over a longer
period

Flattening of seasonal peaks and
troughs.

Increasing yield (reducing costs
and increasing income)


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



www.gulfspillrestoration.noaa.gov/restoration/give-us-your-ideas/



gulfresearchinitiative.org.



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



bp.com/gulfofmexico/inpictures.



restorethegulf.gov/release/2011/07/29/osat-summary-report-subsea-and-sub-surface-oil-anddispersant-detection-ecotoxic.
THANK YOU

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Bp oil spill case study

  • 2.  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
  • 3.  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
  • 4.
  • 5.  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
  • 6.
  • 7.  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
  • 8.    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 after-effects 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
  • 9.        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.
  • 10. Broad Strategy Perspective Differential pricing Seasonal (or promotional) pricing (e.g. discount or free offers Group booking offers 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 Financial planning and budgeting to manage fluctuating operational costs (employees and other resources) based on cyclical trends Closure of business in off-peak season Diversified attraction Inability to control fluctuating seasonal costs. Reduction of operational costs Introduction or development of festivals and events Increasing visitation in low periods Development of the local environment (access to restricted natural attractions) Increasing visitation in low periods. Facility or structural development (e.g. public transport, public amenities) Increasing visitation in low periods. Service level differentiation (reducing opening times in low season) Reducing costs, increasing yield. Meeting customer needs. Diversifying into niche product or service areas (e.g. identifying and matching seasonal motivation with product/service or local attraction) Attracting a different market.
  • 11. 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) Flattening of seasonal peaks and troughs. Align with tour operators or travel agents to sell product/service Market diversification Increasing business in low periods and increasing market penetration. Environmental regeneration initiatives Damage to local environment during peak periods. Improved and expanded regional infrastructure Greater access to rural or remote areas during both high and low seasons. Development of local business networks and partnership Provision of greater marketing resources and support for infrastructure development Provision of business support services (marketing, financial planning) Cash flow and other financial problems. Staggering of holidays over a longer period Flattening of seasonal peaks and troughs. Increasing yield (reducing costs and increasing income)