BP’s new CEO Bob Dudley will make his debut with the company by sacking the oil group’s exploration and production chief.
It appears Mr. Dudley will be following through on his promise to restructure the company amid safety concerns and a diminishing public relations campaign.
He replaced Andy Inglis, head of Exploration and Production, in a relatively short time following his supplanting of BP’s former CEO, Tony Hayward. Inglis’ departure from the company was expected by BP insiders primarily because the blown out underwater well came under the remit of his unit. He leaves BP with a full year’s salary of $1.1 million.
Mark Bly will now take over as BP’s new safety guru and assume a far stronger role than his predecessors. Bly will have representatives in each business unit that will have the authority to intervene if they feel practices aren’t meeting BP’s standards.
The company also said Bly’s unit will have its own expert staff “embedded” in BP’s operating units.
Dudley is orchestrating an overhaul of BP’s system of incentives, which critics say puts cost-cutting and profits ahead of safety.
\”There is a pressing need to rebuild trust in BP around the world,\” New CEO Bob Dudley
“These are the first and most urgent steps in a program I am putting in place to rebuild trust in BP – the trust of our customers, of governments, of our employees and of the world at large. That trust is vital to the restoration of shareholder value which has been so adversely affected by recent events,” Dudley, who is set to become CEO on Friday, said in a statement.
Following the largest maritime spill in history, BP continues to enrage its oil rivals by purposefully failing to admit ‘gross negligence’ for the explosion.
The company is closely tied to its talking points: “The disaster was the result of a sequence of industry failures”. BP also continues to make the point that a large share of the blame lies in the mistakes made by oil rig owner Transocean and contractor Haliburton, which cemented the well.
Transocean still managed to fly under the radar of the public, reportedly making $270 million in profits from insurance payouts after the disaster.
According to BP, the disaster has, thus far, cost them about $9.5 billion and will eventually cost them a total of $32 billion. This translated to BP’s stock plummeting by tens of billions of dollars and devastating investors.
However, analysts now predict that investors will be encouraged by Dudley’s promise to renew bold steps to ensure less risk and improved safety measures. Already, BP’s stock responded well to the firing of Inglis, jumping 1.93%.
Unfortunately, the environment in the golf remains destitute and void of any real positive signs since the spill. Millions of gallons of oil will remain in the ocean, ravaging the underwater ecosystem, and 100 miles of Louisiana coastline will never be the same. Oil spills are the greatest cause of environmental damage that possibly exists in the short term, and many environmentalists argue that they could include a climatological catastrophe in the long term.
Oil spills are just a cost of doing business for BP.