Wednesday, June 16, 2010

BP cut safety to cut costs


From the AP:

BP took measures to cut costs in the weeks before the catastrophic blowout in the Gulf of Mexico as it dealt with one problem after another, prompting a BP engineer to describe the doomed rig as a "nightmare well," according to internal documents released Monday.

Generally, BP rejected options that would have enhanced safety and instead chose to do everything on the cheap. For example:

BP apparently rejected advice of a subcontractor, Halliburton Inc., in preparing for a cementing job to close up the well. BP rejected Halliburton's recommendation to use 21 "centralizers" to make sure the casing ran down the centre of the well bore. Instead, BP used six centralizers.

In an email on April 16, a BP official involved in the decision explained: "It will take 10 hours to install them. I do not like this." Later that day, another official recognized the risks of proceeding with insufficient centralizers but commented: "who cares, it's done, end of story, will probably be fine."

You know you're not doing well when you make Halliburton, of all companies, look good by comparison.

And that line from the BP official has to be the worst prediction of the year. As of right now, everyone cares, it's far from done, there's no end in sight to the story, and, far from fine, BP has justifiably become one of the world's most hated corporate villains while the worst environmental disaster in American history continues to wreak havoc on the entire region.

And all to save a few million and a few hours.

Oops.

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