Professional Documents
Culture Documents
Timeline
Day 99:
BP CEO
Hayward
Steps
Down
Day 84 & 87:
BP says Leak has
Stopped
Day 59:
Hayward Testifies to
Congress
Day 58:
BP creates Damages
Fund
Day 50:
Obama Whose ass to
kick
Day 37:
Top KillJunk
Shot
Day 45:
Robots to
the
Day 1:
4/20/10
Deepwate
r Horizon
Rig
Explodes
Day 6:
BP Robots
Not to the
Rescue
Day 8:
Fed Starts
Investigating
Day 10:
Obama Pledges
Resources
Day 11:
White House Stops
Expansion of
Offshore Drilling
Day 33:
Obama
Announce
s Oil Spill
Commissi
on
Day 22:
BP
Executive
s Appear
before
Congress
1.
2.
3.
4.
5.
Production Decisions
Cost Cutting Decisions
Management Decisions
Safety & Ethical Decisions
Political Decisions
Decision Analysis
Production Decisions
Proble
m
Locatio
n
Design Decisions
Production casing was
set in a location that
created additional
risks of hydrocarbon
influx.
Used only one cement
barrier even knowing
the risks of casing
location.
Alternative
s
Additional
mechanical
and or
cement
barriers.
Biases
Overconfiden
ce
Production Decisions
Problem
Strength
analysis for
cement
Failed
Negative
Test
Cementing
Decisions
Continued with
the cement job
without the final
comprehensive
strength analysis
report.
BP engineer did
not access and
review the
available real time
data. Instead
relied on the site
leaders assurance
that the rig crew
had successfully
Alternatives
Biases
Real time
cement data
analysis.
Anchoring
Share
information
with rig
operators.
Confirmati
on
Production Decisions
Problem
Frequent
changes
of
procedur
es
Decisions
Used Long String
Design with 6
centralizers which
was not
recommended by BP
engineers because it
could not be
cemented reliably.
Temporary
abandonment
procedure was
different from
Minerals
Alternative Errors/Bias
s
es
Use liner
design &
21
centralizers
.
Overconfide
nce
Temporarily Confirmatio
abandon the
n
well without
setting any
production
Escalation
casing.
of
commitment
Follow the
approved
procedure.
Production Decisions
Management Decisions
Failure
of Leadership
and
Decision
Making without
Management
considering
contingencies
and mitigation.
Poor risk management.
Failure to observe and
respond to critical indicators.
Inadequate control response.
Communication Failure.
Reorganization of operational
functions & personnel.
Employee performance
evaluation.
Management Decisions
Escalation of Commitment:
Poor judgment is exercised by smart people unknowingly for
many reasons including availability of information,
representativeness, anchoring and adjustment, confirmation,
overconfidence, and escalation of commitment.
Neglecting
equipments
again
Pressured
employees not
to report
problems
Cut short inspections to
reduce costs
Ken Abbott
Former BP Oil industry
Manager
Listen to Employees
Focus on following
safety operations
frequently
Before
After
Political Decisions
Do we invest in domestic oil
production or continue to depend
on international production?
Homeland Security,
Independence from outside
parties and Responsibility
for a better
Environment/Future.
Do we create policies only
at times of disasters?
Political Decisions
Confirmation Bias
Tendency to seek out information that reaffirms
past choices and to discount information that
contradicts past judgments
Before the Deepwater
Horizon Explosion
The US Government and
Politicians pushed forward
Offshore Drilling:
It was safe
Looked better than drilling
on US Land
Creates Jobs, Revenue, and
Independence
Final Thoughts