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Deepwater Horizon COMMUNICATION AND FAILURE WITHIN BP

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

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Deepwater Horizon COMMUNICATION AND FAILURE WITHIN BP

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  1. Deepwater HorizonCOMMUNICATION AND FAILURE WITHIN BP Annie Dai Jonathan Pearson Boiar Qin Victoria Wong Jason Zeng

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

  3. BP has had 3 CEOs in the last decade Wall of Shame John Browne Tony Hayward Bob Dudley 1989-2007 2007-2010 2010-???

  4. All levels of BP were responsible for disaster CEO Misguided safety regulations No accountability for accidents Managers Narrow, profit-oriented mindset Information loss and corruption Bad decisions on project changes Engineers and Operators Failure to interpret data Lack of communication with managers

  5. Background A History of Risky Behavior

  6. For bigger oil deposits and greater profits… … oil companies move further offshore and deeper into the ocean. Depth increase in oil wells from 1940 to 2010

  7. BP finds success in the Gulf of Mexico… BP drilling sites in the Gulf

  8. Texas City Refinery, 2005 BP disregards safety and proper protocol Alaska Oil Spill, 2006

  9. The CEO LACK OF accountability

  10. Personnel 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 1989-2007

  11. “[We will focus] like a laser [on safety]” Tony Hayward, CEO 2007-2010

  12. Hayward’s testimony to Congress “It’s an accident still under investigation. No one is yet accountable. This could happen to any oil company in the industry.”

  13. Hayward’s Priorities http://www.youtube.com/watch?v=EIA_sL4cSlo

  14. Tony Hayward faces public backlash

  15. Change in CEO; no change in attitude “If you put aside this Macondo, 2009 was the best year we’d had, and 2010 was also heading in that direction.” Bob Dudley, CEO 2010-???

  16. The Managers Information loss and corruption

  17. BP commissioned Halliburton for cement expertise Cement samples

  18. Halliburton BP February Severe Failure March 8th ? Failure April 13th Failure April 26th “Tweaks” Parameters April 20th – BP pours cement Success! Success! April 18th-20th

  19. BP is behind schedule First Macondo oil rig overturns

  20. Centralizers ensure even cementing “One Piece” model “Slip On” model

  21. Poorly Cemented Well

  22. Centralizers ensure even cementing “One Piece” model “Slip On” model

  23. 15 missing centralizers “…who cares, it’s done, end of story, [we] will probably be fine and we’ll get a good cement job.”

  24. Underwater view of the well

  25. The Engineers and Operators Failure to interpret data

  26. First Negative Pressure Test Uneven pressures before test Actual test: uneven pressure with open valve Ideal pressure with open valve

  27. Second Negative Pressure Test Unknown Pressure Build-up Manual Pressure Bleed Pressure builds up almost immediately Manual bleed lowers pressure

  28. Third Negative Pressure Test Manual pressure bleed on kill line Pressure inside pump remains

  29. “Bladder Effect”

  30. Response from BP manager Mike, ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Regards, Pat

  31. Fear? Ignorance? Misinterpreted Data? Lack of Feedback UNCERTAINTY Assumption: Successful Negative Pressure Test!

  32. Kicks Drill pipe pressure log shows that when the pump (black) was off the pressure inside the well (red) increased

  33. Conclusions Final Thoughts

  34. BP 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 we‘re through, this job is done...everything‘s going to be okay."

  35. Conclusions All Companies Don’t just fire the CEO after disaster Investigate internal communications Management Sustainability before profit Facilitate open communication Engineers Take responsibility for your work Be honest about your limits Focus on doing the job correctly

  36. Questions?

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