BP Says It Isn't The Only One To Blame
As a blogger for Florida Insurance School this news is interesting. Recently released was BP's report on what went wrong with the Deepwater Horizon oil platform. This statement is just like the hearing that was in front of congress where BP's officials are trying to shift the blame on other parties. They do claim a portion of the fault, but only in the decisions to okay other companies' work as satisfactory when it was defective.
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The initial shift was to Halliburton. They were responsible for the cement and shoe track barriers that permitted the oil and gases to escape the reservoir. BP does admit, as well as Transocean, that they did ok this work and the consequences from the negative pressure test. This was the primary cause for the accident.
The next problem was with Transocean employees not (properly~ correctly} monitoring the well and allowing the gas to accumulate on the rig from the reservoir. This lead to the fatal blast and caused other critical equipment to malfunction.
Tony Hayward addressed this issue by stating, "To put it simply, there was a bad cement job and a failure of the shoe track barrier at the bottom of the well, which let hydrocarbons from the reservoir into the production casing. The negative pressure test was accepted when it should not have been, there were failures in well control procedures and in the blow-out preventer; and the rig's fire and gas system did not prevent ignition."
Along with the report are 25 suggestions that have been presented to prevent this type of disaster from happening again. The new CEO of BP has attempted to reassure the world that BP will put into service these suggestions around the globe as soon as they know how to.
There have been testimony to congress that BP cut corners to save on the bottom line. The facts remain the same, when large profits are at risk, large businesses will save money and cut corners~ short cut procedures} where ever they can, then reduce the damage by blaming others.
The best part is that the recommendations will be put in place when BP figures out how to do them while still saving money. So far, BP has spent $8 billion in the cleanup effort. But this is just a drop in the bucket for a company that made $25.6 billion in 2008.
Posted in Accounting Post Date 10/27/2019