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Deepwater Horizon COMMUNICATION AND FAILURE WITHIN BP

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Deepwater Horizon COMMUNICATION AND FAILURE WITHIN BP. Annie Dai Jonathan Pearson Boiar Qin Victoria Wong Jason Zeng. Did you know…?. - PowerPoint PPT Presentation

Text of Deepwater Horizon COMMUNICATION AND FAILURE WITHIN BP

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Deepwater HorizonCOMMUNICATION AND FAILURE WITHIN BPAnnie Dai Jonathan Pearson Boiar Qin Victoria Wong Jason Zeng

Did you know? Deepwater Horizon left 11 men dead and spilled millions of barrels of oil into the Gulf of Mexicothe worst oil spill of all time.

22BP has had 3 CEOs in the last decade

John BrowneTony HaywardBob Dudley1989-20072007-20102010-???Wall of Shame3All levels of BP were responsible for disaster

CEOMisguided safety regulationsNo accountability for accidents

ManagersNarrow, profit-oriented mindsetInformation loss and corruptionBad decisions on project changes

Engineers and OperatorsFailure to interpret dataLack of communication with managers4A History of Risky BehaviorBackground5For bigger oil deposits and greater profits

oil companies move further offshore and deeper into the ocean.Depth increase in oil wells from 1940 to 20106BP finds success in the Gulf of Mexico

BP drilling sites in the Gulf7BP disregards safety and proper protocol

Texas City Refinery, 2005

Alaska Oil Spill, 20068LACK OF accountabilityThe CEO

9Personnel safety vs. Process safety [We will] renew our commitment to safety. (2000)

[There will be] no stone left unturned [in the Texas City investigation] (2005)

John Browne, CEO 1989-200710[We will focus] like a laser [on safety]Tony Hayward, CEO 2007-2010

11Haywards testimony to CongressIts an accident stillunder investigation.No one is yetaccountable.This could happento any oil companyin the industry.

12Haywards Prioritieshttp://www.youtube.com/watch?v=EIA_sL4cSlo

13

Tony Hayward faces public backlash14Change in CEO; no change in attitude If you put aside this Macondo, 2009 was the best year wed had, and 2010 was also heading in that direction.

Bob Dudley, CEO 2010-???15Information loss and corruption

The Managers

16BP commissioned Halliburton for cement expertise

Cement samples17Halliburton BP

FebruaryMarch 8th April 13th April 18th-20th Severe FailureFailureFailureSuccess!?

Success!April 26th April 20th BP pours cementTweaks Parameters18BP is behind schedule

First Macondo oil rig overturns19Centralizers ensure even cementing

One Piece modelSlip On model20Poorly Cemented Well

21Centralizers ensure even cementing

One Piece modelSlip On model2215 missing centralizers

who cares, its done, end of story, [we] will probably be fine and well get a good cement job.23Underwater view of the well

24Failure to interpret dataThe Engineers and Operators

25First Negative Pressure Test

26Uneven pressures before testIdeal pressure with open valveActual test: uneven pressure with open valveSecond Negative Pressure Test

Manual Pressure BleedUnknown Pressure Build-up27Manual bleed lowers pressurePressure builds up almost immediatelyThird Negative Pressure Test

Manual pressure bleed on kill linePressure inside pump remains28Bladder Effect

29Response from BP manager Mike,

??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Regards, Pat30UNCERTAINTYAssumption: Successful Negative Pressure Test!Fear?Ignorance?Misinterpreted Data?Lack of Feedback31Kicks

Drill pipe pressure log shows that when the pump (black) was off the pressure inside the well (red) increased32Final ThoughtsConclusions33BP engineer recalling the Deepwater Horizon disaster "[a]t the end of the well sometimes they think about speeding up. This may be because everybody goes to the mindset that were through, this job is done...everythings going to be okay."34Conclusions

All CompaniesDont just fire the CEO after disasterInvestigate internal communicationsManagementSustainability before profitFacilitate open communicationEngineersTake responsibility for your workBe honest about your limitsFocus on doing the job correctly35Questions?36