BP releases internal Gulf disaster report

BP has released its internal inquiry report into the Deep Horizon oil rig disaster.  The company has released an executive summary, the full report, a video and a press release.  Not surprising there are multiple factors that combined to create the disaster but it is significant that BP stresses that ““multiple companies and work teams” contributed to the accident”.  Clearly a major purpose of the media statements is to indicate that BP should carry the entire responsibility for the incident, a position it has consistently voiced.

The report requires a fair amount of analysis to identify the lessons and any lessons will need to be compared with any of the findings from the other investigations being undertaken.  Also, BP has settled into its PR damage control process and careful analysis of the report and the media statements over the next few days in particular will provide much information on process safety, business continuity and media management.

Kevin Jones

Pressure grows for the release of oil drilling investigation

The Australian government has indicated that it will release a report into the Montara oil spill after the general election.  However the Australian election result remains in doubt and, therefore, still no report.

The frustration over this stalling has begun to appear in the very conservative Australian newspaper, The Australian Financial Review (AFR). Once the business and financial community start complaining, a government knows something is serious.

In the AFR editorial on 1 September 2010 (not available online),

“The Borthwick report is likely to make some tough recommendations on safety procedures to prevent another spill. The inquiry heard extraordinary evidence that crucial work programs on the rig were sometimes scrawled on a whiteboard. PTTEP has a promised to review its procedures in the light of the deficiencies raised at the inquiry, but the government should look further afield. It is hard to imagine that PTTEP was a totally isolated case.” Continue reading “Pressure grows for the release of oil drilling investigation”

Politics overrides safety

Why has the Australian government refused to release the investigation report into the Montara oil spill?

SafetyAtWorkBlog’s interest in this report is principally over the identification of potential risk control measures that could reduce the chances of another deep-sea oil rig exploding or identify any design or safety features that could stop such a savage leak of oil into the community.

The Australian Broadcasting Corporation reported on 12 August 2010 about the devastation to East Timor’s fishing and seaweed industries as a result of the spill in 2009 .  An earlier media report about Indonesia seeking compensation for its seaweed beds is available HERE.

The Australian Resources Minister, Martin Ferguson, said on 11 August 2010:

“The lessons to be learned from Montara, and I might say the Gulf [of Mexico], create a clear need in a very sensitive, important national industry, both environmentally, economically and from a health and safety point of view, for a strong single national regulator that’s well resourced and focussed,” ……

This may be the way to go but AAP reports that Ferguson he is refusing to release the investigation report until after the August 2010 general election!! Continue reading “Politics overrides safety”

Montara oil spill report still not released and restlessness is increasing

At least one state government in Australia is becoming annoyed with the delayed release of the investigation report in to the Montara oil spill in the Timor Sea in 2009.  The Federal Government has had the final report for almost one month.

In an ABC media report:

“The Country Liberals environment spokesman Peter Chandler [said] “There’s only one reason that anyone would want to stall releasing a report [and that] is because the report’s damning of perhaps both the Territory Government and the Federal Government in this matter,”….

The Australian Greens are also pursuing the final report.

Although the report will be of direct relevance to the oil and gas industries in Australia, the international significance from parallels with the BP Gulf of Mexico leak cannot be ignored.  This resonance could also be part of the report’s delay as the government refines a media strategy for the release.

The need for cautious assessment is understandable but it is just possible that an early release of the final report will assist in the United States’ control and remediation measures in the Gulf, the prevention of similar incidents in the hundreds of existing and planned deep sea oil rigs in the US and avoid the Federal election hoo-ha that seems to have already begun in Australia.

Kevin Jones

The Bhopal disaster should be remembered when considering what comes after the BP oil spill

As the BP/Gulf of Mexico oil spill dominates the American media, the rest of world has been noting a closure, of sorts, on the Bhopal disaster of 1984.  Seven former Union Carbide executives have been sentenced to 2 years jail each over the disaster.  The CEO, Warren Anderson, showed an appalling lack corporate leadership by leaving India and not facing the charges laid against him in India.

The disaster exposed half a million people to methyl isocyanate, killed almost 4,000 people, and changed the lives of millions.  These changes continue today with birth defects, health problems and contaminated land.

Some media have noted a similarity in corporate responses to initial investigations and inquiries but there are more important lessons involving safety, corporate responsibility and social policy from the Bhopal legacy that should resonate with those American communities affected by the Gulf of Mexico spill.  The mishandling of the aftermath of the Bhopal disaster has exacerbated the horror of that day which can accurately but heartlessly be described as a “process safety failure”.

These issues are tellingly described and reported in a highly-recommended series of radio programs produced by Radio Netherlands and broadcast on 19 June 2010.

Kevin Jones

Off shore drilling safety will change forever

The ramifications for corporate America and particularly, the oil industry, from the Gulf of Mexico oil spill are becoming clearer.  In his 15 June 2010, address to the nation, President Obama stated his financial and operational expectations of BP prior to his meeting the company’s CEO, Tony Hayward on 16 June.

In essence, BP will be required to fund compensation for the families of dead and injured workers and those who are suffering economic hardship as a result of action which the President described as “reckless”.  The distrust of BP was evident by the compensation fund, which is likely to be billions of dollars, being administered by a third party.

But the BP spill has changed the way that oil exploration and extraction will occur in American waters.   Continue reading “Off shore drilling safety will change forever”

“We will trust but we will verify” – upcoming lessons from the Gulf of Mexico

The mass media is full of reports on legal action being taken on behalf of shareholders in BP over the continuing oil spill from the former Deepwater oil rig in the Gulf of Mexico.

An Australian video report was broadcast on 25 May 2010 and a composite article has appeared in The Australian on 26 May 2010 as well as elsewhere. Many outlets are mentioning the law suit (Southeastern Pennsylvania Transportation Authority and Robert Freedman v Anthony B Hayward et al, Court of Chancery for the state of Delaware, No. 5511) but no details of the suit are publicly available at the moment.

Although safety is mentioned as one of the bases for the suit, it is likely that environmental impact will get prominence over occupational safety and that impact on stock value will be of the most concern.   The shareholder outrage mentioned in some of the articles seems to focus mostly on the financial impact on BP share value rather than any moral outrage on environmental impact or dead and injured workers.

BP CEO Anthony Hayward has acknowledged the substantial  “reputational risk” but his comments are almost always reported surrounded by financial bad news.   Continue reading ““We will trust but we will verify” – upcoming lessons from the Gulf of Mexico”

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