BP
BP Deepwater Horizon Oil Spill
Estimated impact: $65B
The Deepwater Horizon drilling rig exploded in the Gulf of Mexico, killing 11 workers and causing the largest marine oil spill in history. BP and its contractors ignored multiple warning signs including failed cement tests and anomalous pressure readings, prioritizing schedule adherence over safety protocols.
Decision context
Whether to proceed with well completion operations despite failed negative pressure tests and multiple indicators that the cement barrier at the well bottom was compromised.
Biases present in the decision
Toxic combinations
- Blind Sprint
- Sunk Ship
- Deadline Panic
Reference class base rates
Across all 146 curated case studies in our library:
Lessons learned
- Schedule pressure ("the rig is $1M/day") creates cognitive misering that shortcuts critical safety analysis.
- Sunk cost fallacy in well completion means teams push forward with a compromised well rather than abandoning costly work.
- Multiple independent warning signs dismissed in sequence represent a systemic failure of organizational decision-making.
Source: National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, Final Report (2011) (Case Study)
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