1 presentation bp, copiapó, and the mv braer. 2 presentation bp oil spill
TRANSCRIPT
1
Presentation
BP, Copiapó, and the MV Braer
2
Presentation
BP Oil Spill
The BP Crisis
Day 1. (April 20, 2010)
Transocean moving the Deepwater Horizon: Leased to the BP Group. Finished drilling a high pressure well for BP. Explosion creates an out-of-control sea-floor
oil gusher. The oil rig sinks.
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In Fairness to BP
Horizon Deepwater was very successful rig: Seven-year safety record. Drilling the deepest wells in the world. Never fail or mostly working? Should BP have known?
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Mostly Working in Normal Times
2005: Texas City Refinery explosion. 15 deaths. 180 injuries. Cause: Hydrocarbon overflow. Maintenance
cut as a cost-saving measure.
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Weak Signals
At the BP Texas City refinery in : 2006. Worker crushed between a pipe stack
and mechanical lift. 2007. Worker electrocuted. 2008. Worker killed by a 500-pound piece of
metal.
In the North Sea in good weather: 2009. BP helicopter ferrying workers from BP
oil platform crashed killing all 16 on board.
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Not-so-Weak Signals
2009 post-disaster inspection findings: 270 unfixed safety violations. 439 new violations.
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More Details
From 2007 to 2010, (Occupational Safety and Health Administration) OSHA reported: 851 willful safety violations by U.S. oil
refiners. 829 by BP.
February 2010. OSHA reported that “BP has a serious, systemic safety problem in their company."
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Information not Shared
On the Horizon Deepwater, workers were surveyed prior to the oil spill: Concerned about safety practices. Feared reprisals if they reported problems. Unreliable equipment. “Run it, break it, fix it.” Did BP have access to the information?
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Failure to Collaborate
On the Horizon Deepwater, Transocean did a 112-page equipment assessment report: Unsafe conditions and practices. Rig had never been in dry dock. Blowout preventer rams and fail-safe valves
not inspected. 26 components and systems in “bad” or “poo
r” condition.
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Lacey Resignation
Kevin Lacy:• Drilling engineer.• Rigorous drilling safety program at Chevron.• Hired by BP in 2007. Senior vice president for
drilling operations.• Resigned in 2009.• Left January 2010.
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Ready to Respond?
Slow progress. One thing to be surprised. Another thing not to be ready. Attack in stages.
Close blowout preventer valves. Add a containment dome. Pump in heavy fluids Pump in mud and cement.
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July 15, 2010
• Day 86. • Gusher is capped.• Released 5 million barrels of oil.
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Presentation
Chilean Mine Rescue
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Copiapó Mining Accident
Day 1. August 5, 2010 Copiapó, Chile. Collapse of San José copper-gold mine Trapped: 33 miners 770 meters below
ground. Did they survive?
Quick Response
Day 4. Chilean President Sebastián Piñera. Andre Sougarret, head of El Teniente mine. Flew immediately to Copiapó. Took charge. Did they survive?
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Situation at the Mine
Day 5.
Sougarret: Nest of confusion with rescue workers,
firefighters, police officers, volunteers and relatives.
Sent rescue workers home. Talked to escaped workers. Inspected the mine. Gathered maps.
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Gathering Information
Day 6.
Findings: Huge block of stone closed the 4-mile
corkscrew shaft to the miners. Collapse involved 700,000 tons of rock. Reopening the shaft could cause another
collapse. Nobody knew if the miners were still alive.
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Hope for the Miners
Day 7.
Sougarret talked to miners who had escaped: Maps were not up-to-date. Likely location of trapped miners. Safe room with 48-hour supply of food and
water. Also repair shop. Ventilation shaft.. Miners had a chance to be alive.
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Find the Miners.
4 drill shafts to galley near shelter.
4 drill shafts to shelter.
2 points of collapse
Repair shop.
Shelter.
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Day 17
The 8 drills getting close. Rescue team heard banging on the drill head. Rescue team retrieved note.
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Days 18 to 69
Drill two 28-inch wide shafts. Send food, water, oxygen, messages,
progress reports. Monitor health conditions.
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Successful Rescue
Day 70. October 13, 2010 From midnight to 11 pm. One at a time. 33 times.
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Presentation
Risk Management
In Action
BP Weakness Before the Event
Before the extreme event: Safety information identified but not shared. Failures to comply with regulations. Collaboration not encouraged.
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BP Weakness after the Crisis
Weaknesses include: Failure to respond decisively to spill. Failure to respond decisively to clean up.
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Copiapó Situation
Copiapó was different: Good. Local risk management. Bad. Central risk management.
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Local Risk Management
Two safety features: “Safe” room.
Stocked with provisions. Ventilation shaft.
Separate escape route.
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Central Risk Management
Weakness before the crisis: Failure to maintain safety standards in a
dangerous place. Failure to install ladders after failing a safety
inspection that closed the mine. Opportunity lost. A second collapse closed
the shaft.
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Presentation
The Big Picture
Question
Did BP have the big picture in 2010?
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Big Picture
Board of Directors
Safety Practices in Texas
Cost Cutting
Concerns of Rig Workers
Maintenance of Oil Rig itself
Kevin Lacy Resignation
OSHA Violations
Big Picture
Top Management
High pressure well
41 miles from Louisiana wetlands
Everybody not ready
Rig needs overhaul
Rushing to complete drilling
Cost Cutting and 41 Miles
Linkages.
leads to creating
while
for a big loss when
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Cost Cutting
Unsafe practices
Rushing to complete drilling
Everybody is not ready
41 miles from Louisiana wetlands
Poor maintenance of oil rig
Question
Did Sebastián Piñera and Andre Sougarret have the big picture in 2010?
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Presentation
MV Braer
Overview
Canadian Ultramar Ltd.•Worldwide operator of general purpose and medium-range product tankers•Cargoes. Hydrocarbon liquids ranging from crude oil to refined petroleum products.•Voyage Routes. Worldwide.
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Question
The company formed a crisis team. Who would you recommend by title to be part of the team?
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The Team
Team Leader Systems Specialist Finance Specialist Petroleum Engineer Logistics Specialist Public Relations Manager
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Situation
The MV Braer, a refined-products tanker, passing the Shetland Islands in January 1993.•Ran aground in a storm.•Near Quendale (300 year-round residents and one 40-room hotel(.
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Crisis Response Efforts
Within 12 to 36 hours after the spill: Tugs from London arrived with oil
containment equipment. 150 personnel arrived to clean up of oil. 12 hours on and 12 hours off. 3-4 weeks to finish the job.
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Question
Few local residents willing to provide sleeping accommodations for workers.
The hotel was closed. The owner would not open it.
What to do?
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Answer (1)
Possibilities include: Negotiate with the hotel owner. Negotiate with homeowners. Bring in tents. Bring in a small cruise ship. Expand the search for housing to other
towns.
Answer (2)
If you ask the wrong question, you will always get the wrong answer.
• Instead of, “What should he do,” we might ask, “What can he do?”
• Then we ask, “Does he have the authority to do it?
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Answer (3)
He bought
The Hotel.
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