A year ago today, the oil industry was shaken by a blowout on
the Deepwater Horizon rig, 1500 metres deep in the Gulf of
Mexico. The explosion killed 11 people and spilled 200 million
gallons of oil. BP’s bill – over US$8 billion to date – is
expected to reach US$32 billion after all damage claims have
been made. BP wasn’t solely responsible for the spill. BP’s
contractors were also held to task, including Transocean, the
rig owner; Halliburton, who did the cement job; and Cameron
International, who built the blowout preventer. The incident
highlighted the complexity – and vulnerability – of today’s oil
and gas contracting arrangements. IIED’s new report Shared
value, shared responsibility: a new approach to managing oil and
gas contracting chains argues that a shift in industry culture
is required to manage the challenges posed by complex chains of
oil and gas contractors in increasingly risk-laden environments.