Analysis of Exxon Valdez Oil Spill
Mahalia Gauld
January 18, 2011
MGMT 2850
Case Study #1- Exxon Valdez
Situation in Brief:
On March 24, 1989, an Exxon supertanker spilled 11 million gallons of oil while traveling through the pristine waters of Alaska’s Prince William Sound. The consequences of this spill were detrimental and continue to affect life today. The oil spill killed thousands of wildlife, extensively damaged a portion of the beautiful Alaskan environment, and eventually affected the economy to global proportions. Unfortunately, this tragedy could have been prevented. Lack of adequate safety efforts, enforcement, and regulations all played a major role in this truly catastrophic event.
However, Prince William Sound’s remote location made government and industry relief efforts extremely difficult. The Alaskan community and the United States heavily criticized Exxon for their slow response to one of the largest environmental disasters of the century. The failed clean up left Exxon with several lawsuits that led to extreme political consequences. The environmental and economical effects were devastating and continue to be an issue in today’s society. Stakeholders: * Exxon Co. & Employees * Coast Guard * Local Vendors * Wildlife (Animals) * Fishermen * Population of Alaska * Government Agencies * Lawyers * Clean-up crews * Investors * Lawyers * Other oil tanker companies * Environmentalists * Volunteers Issues: * Exxon operated with faulty equipment * Staff failed to repair the Raycas radar system on the ship * This would have indicated the impending collision with the Bligh Reef * The radar had been disabled for over a year; the company was aware of this * Exxon operated with lack of staff * Exxon failed to supervise the master and provide rest * There was not a sufficient crew on ship * Lack of money * The original contingency plans
January 18, 2011
MGMT 2850
Case Study #1- Exxon Valdez
Situation in Brief:
On March 24, 1989, an Exxon supertanker spilled 11 million gallons of oil while traveling through the pristine waters of Alaska’s Prince William Sound. The consequences of this spill were detrimental and continue to affect life today. The oil spill killed thousands of wildlife, extensively damaged a portion of the beautiful Alaskan environment, and eventually affected the economy to global proportions. Unfortunately, this tragedy could have been prevented. Lack of adequate safety efforts, enforcement, and regulations all played a major role in this truly catastrophic event.
However, Prince William Sound’s remote location made government and industry relief efforts extremely difficult. The Alaskan community and the United States heavily criticized Exxon for their slow response to one of the largest environmental disasters of the century. The failed clean up left Exxon with several lawsuits that led to extreme political consequences. The environmental and economical effects were devastating and continue to be an issue in today’s society. Stakeholders: * Exxon Co. & Employees * Coast Guard * Local Vendors * Wildlife (Animals) * Fishermen * Population of Alaska * Government Agencies * Lawyers * Clean-up crews * Investors * Lawyers * Other oil tanker companies * Environmentalists * Volunteers Issues: * Exxon operated with faulty equipment * Staff failed to repair the Raycas radar system on the ship * This would have indicated the impending collision with the Bligh Reef * The radar had been disabled for over a year; the company was aware of this * Exxon operated with lack of staff * Exxon failed to supervise the master and provide rest * There was not a sufficient crew on ship * Lack of money * The original contingency plans