Wednesday 10 November 2010

US oil inquiry chief slams BP "culture of complacency"

BP and the other companies involved in the Gulf of Mexico oil disaster were operating under a "culture of complacency" and need top-to-bottom reform, the head of the presidential investigation into the oil spill said today.
A day after releasing preliminary findings on the causes of the fatal explosion on the Deepwater Horizon – the first of multiple inquiries – William Reilly, co-chair of the commission, was scathing about the safety regime on board the Deepwater Horizon.
Reilly said there was "emphatically not a culture of safety on that rig". He added: "I referred to a culture of complacency and speaking for myself, all these companies we heard from displayed it."
Bob Graham, the commission's other co-chair and a former senator, said: "There were a series of almost incredible failures in the days and hours leading up to the disaster."
On Monday, the commission's chief investigator, Fred Bartlit, uncovered a string of bad judgments by all three companies, BP, Transocean and Halliburton, during the last days of the rig.
Eleven men were killed in the 20 April explosion, which sent nearly 5m barrels of oil spewing into the Gulf.
The bad calls on the rig included: going ahead despite a faulty cement seal at the bottom of the well;
overlooking a failed pressure test; replacing heavy drilling mud (compounds used to lubricate and cool wells during drilling) with seawater; and failing to notice monitors, on board and onshore, showing a strong kick of gas. These were warning signs that the well was about to blow.
Much of the scrutiny focused on the company's plan to temporarily plug the well, which investigators with the presidential commission say added to the risk of a blowout. Plugging the well is a procedure used to seal it off until the company comes back to produce oil and gas.
Experts questioned BP's use of a single plug in the process. Charlie Williams, a chief scientist with Shell Energy Resources, said his company used a minimum of three plugs in its deepwater wells.
Reilly described the narrative, developed by Bartlit in a courtroom style that drew on sophisticated graphics and questioning of executives from the three companies, as "ghastly".
Bartlit said he found no concrete evidence that any of those mistakes were motivated by cost – a conclusion that drew angry criticism from Democrats in Congress. But he also noted that time and money were always factors because of the huge costs associated with offshore drilling. "Any time you are talking about $1.5m [£935,000] a day, money enters into it."
Panel members also said that BP was hurried and made confusing, last-minute changes to plans that were unusual in the complex environment of deep-water drilling. They said BP could have operated more safely if it had taken the time to get the necessary equipment and materials.
"We are aware of what appeared to be a rush to completion," Reilly said. What is unclear, he added, was what drove people to determine that they could not wait for equipment and materials to perform operations more safely.
Today's proceedings are devoted to developing a safety culture of offshore drilling, with two other oil companies, Exxon and Shell, talking about their safety protocols.
But Reilly put BP in a category of its own. "BP has been notoriously challenged on matters of process safety," Reilly said. "Other companies may not be so challenged."
The panel is due to release its final report on 11 January, but it has been pressing hard for the Senate to grant Bartlit powers to issue subpoenas for more rigorous questioning of the oil companies. A number of those who were on the rig have refused to talk to the investigators.
Suzanne Goldenberg @'The Guardian'

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