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nothing happens, she said She has begun pressing for changes in workplace safety laws The regulatory environment in the United States, though, remains tilted in companies favor All of these incidents happened against a backdrop of record operating pro ts for BP With the fallout from the Horizon accident straining the company s resources, BP s culture of getting more for less is likely to intensify the company s operational shortcomings Perhaps the most consistent aspect of BP in the decade since it acquired Amoco and Arco, the bedrock of the safety lapses that pervade its operations, is management s stubborn refusal to see any connection between its cost cutting and the disasters that have become BP s hallmark In mid-September, Tony Hayward appeared before a committee of the British Parliament, which was considering imposing restrictions on offshore drilling as a result of the Horizon accident Once again, as he and John Browne before him had done so many times, he rejected any connection between BP s woes and cost cutting Despite the Texas City re nery explosion, the leaks in Alaska, the trading violations, the problems with Thunder Horse, the ongoing dispute with OSHA over work conditions at its re neries, the latest gas release in Texas City, and, most of all, the Deepwater Horizon disaster, Hayward clung to his company line It s easy for some parties to suggest that this is a problem with BP I emphatically do not believe that is the case, he said It was one of his last public appearances as chief executive Bob Dudley took over a couple of weeks later Hayward s stubborn refusal to acknowledge the role of BP s culture, of its top-down focus on nancial performance over operating performance, raised questions about whether Dudley would also parrot the company line of his predecessors Would the
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company change Had it really learned any of the lessons that it so frequently talked about Had executives learned the terrible price of stressing nancial performance over operations Or would more employees be put at risk It s very dangerous to join up dots that may not be appropriate to join up, Hayward said Even without connecting the dots, the pattern is painfully clear Hayward, like Browne before him, was blind to the consequences of his actions because, as Texas City re ghter David Teverbaugh noted, neither chief executive ever stood amid the charred rubble and burned esh of their own decisions To the company s management, BP s mistakes are always accidents that could happen to any oil company But equipment changes and mea culpas don t address the underlying problem that has plagued BP for the past decade Its culture has resisted change and has clung to fundamental principles that emphasize nancial performance over safety, not overtly, but subtly As it attempts to recover from the Horizon disaster, BP faces a nancial outlook unlike anything that it has confronted since William Knox D Arcy sought the investment of Burmah Oil to keep the company in business If the relentless cost cutting under Browne and Hayward spawned a culture of disaster, what will happen when the inevitable next round of budget cuts are demanded of its managers
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The tragedy of the Deepwater Horizon has few victories The well was nally killed, but not before it had exacted a huge cost BP, of course, has paid a nancial price, and it has paid with its reputation Tony Hayward and Andy Inglis, BP s exploration chief and a former Browne turtle, paid with their jobs BP s shareholders, including thousands of British pensioners, have paid with
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