BP speaks up at CERAWeek
Robert Dudley, Chief Executive, BP plc, addressed the 2011 CERAWeek congress with a message of a new era and new responsibilities for the energy industry. Speaking for the first time since the 2010 Gulf of Mexico event, Dudley expressed deep regrets on the loss of life as well as the impact on the Gulf Coast neighbors and the environment. Often the response to a tragedy defines the character of the organization. Dudley emphasized that BP will emerge from this event a safer, stronger, more sustainable and more trusted, in time, more valuable organization
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Dudley spoke about BP’s responsibilities to the residents and businesses of the Gulf Coasts, its employees, its shareholders, and the oil industry. BP is still involved in the restoration of the affected areas and maintains a local presence through its state offices and staff. BP has taken a $41 billion charge against income in anticipation of potential liabilities
But the responsibilities from this event go even further. BP has created a powerful, central safety and operation risk organization that reports directly to Dudley. This new organization is active across BP in four main areas:
It is strengthening and clarifying requirement for safe, compliant and reliable operations
It is deploying around 500 specialist personnel within the business to guide and to advise and, if necessary, to intervene
It is providing deep technical expertise to our operating business
It is intervening when needed to stop operations and bring about corrective actions.
BP is seeing results from this approach. In addition, BP is making changes with its structure via three divisions for the upstream: exploration, developments and production. BP has transformed its de-centralized 80,000-person global organization into a more systematic and standardized operation. BP is barrowing from experts in safety and risk management—the US nuclear navy. Admiral Skip Bowman who served as director of the US naval nuclear propulsion program is now a board member.
After major accidents, there are always lessons to learn and changes to make. Change followed several major events including the Exxon Valdez spill, Piper Alpha disaster, Bhopal and Three Mile Island.
Dudley said, “As we have learned in the past 11 months, one company’s calamity quickly becomes every company’s concern.” BP has learned a lot from its own innovation about new technologies, systems and equipment.” BP believes it is responsibility to share what it is has learned with the industry, competitors, partners, government and regulators. In addition, BP has learned a huge amount about crisis management as part of the process. The future will see new risks alongside new opportunities.
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