Steve Hawkes
Win 100 iconic DVDs
Two damning reports have blamed cost-cutting by BP for one of the worst onshore oil spills in Alaska in another huge blow to the UK group.
The reports, commissioned by BP after a ruptured pipeline led to the spillage of 200,000 gallons of crude at the Prudhoe Bay field last year, will place yet more pressure on Tony Hayward, the new chief executive.
He was in charge of BP’s exploration and production division before being promoted to the top job last week.
One report, by a US consulting firm, claims that deep cost cuts imposed by BP management contributed directly to a complacent attitude towards the risks of corrosion in pipelines at the Prudhoe Bay site.
The second, carried out by CC Technologies, a specialist engineering firm, attacks BP’s failure to carry out routine maintenace.
A US congressional committee is reviewing both reports as part of a continuing investigation into the spillage, which took place in March last year.
According to Reuters, a source in Congress said: “The reports speak to the fact that top-down cost-cutting was going on without any risk analysis.”
The reports come only two months after the US Chemical and Safety Board slammed BP for cost-cutting that the board claimed contributed to the Texas City refinery blast that killed 15 people in 2005.
It said: "Warning signs of a possible disaster were present for several years, but company officials did not intervene effectively to prevent it."
A congressional hearing into Prudhoe Bay is expected next Wednesday.
A BP spokesman said that the group did not plan to release copies of the findings until “we’ve had an opportunity to meet the members of the committee”.
The report by CC Technologies said that BP’s failure to flush out sediment regularly inside the Prudhoe Bay pipeline allowed corrosive bacteria that caused the rupture to thrive.
The sediment shielded bacteria from corrosive-preventing chemicals injected by BP.
BP had not used a device called a pig to clean the inside of the pipeline since 1998, a decision already criticised by federal regulators.
BP has already begun overhauling its US management structure.
Bob Malone, the new BP America chief executive, has more authority over the group’s operations.
The group announced on Tuesday that it had appointed its first independent safety expert, as recommended this year by the Baker report into the Texas City blast.
Mr Hayward took over as chief executive last week when Lord Browne of Madingley sensationally resigned after it emerged that he had lied to a court about a love affair with Jeff Chevalier, a 27-year-old former student.
On taking the job, Mr Hayward told staff that it was “time to move on, rebuild momentum and restore pride”.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
36-month car lease
on contract hire for
£359.99 plus VAT pm
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
The UK's leading alternative to showroom finance.
Finance packages tailored to your needs.
Minimum loan of £15,000
Car Insurance
c£100,000 + car, bonus & bens
Lord Search & Selection
Midlands
Competitive salary + NHS pens
The Council for Healthcare Regulatory Excellence (CHRE)
London
Not Specified
The Sheppard Trust
London
£31,842 – £38,378pa
Charity Commision
London, Liverpool or Taunton
Moments from Battersea Park.
For sale with Winkworth.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.