What ethics lie Beyond Oil?

Companies’ responsibilities for safety are important social and environmental welfare concerns. This fictional case—inspired by actual events—presents a capital investment decision intended to improve oil refinery safety. Beyond Oil (BO), Inc. has a recently-acquired refinery that is in need of extensive modernization and repair. The case analysis requires you to integrate capital investment analysis methods with consideration of ethical responsibilities. You have the opportunity to consider how to incorporate both uncertainty and qualitative/strategic information into a conventional discounted cash flow (DCF) analysis and to weigh competing claims and conflicting incentives in order to make a recommendation.

► Beyond Oil recently acquired refinery facilities needing maintenance and repairs.
► Students integrate capital investment analyses with ethical duty considerations.
► The case is based on British Petroleum’s (BP) 1999 Texas City refinery acquisition.
► BP deferred maintenance and repairs that contributed to a 2005 refinery explosion.
► Teaching notes provide videos and resources on these recent real-world events.