BP Made Bad Decisions Says Panel

Please refer to our Zillion Dollar Thinking Blog Post:
“A Sticky Situation: BP Forensic Decisioning”
Dated: Wednesday, June 30, 2010

Conclusions from a technical panel found that BP responded poorly to circumstances as they unfolded, leading to the explosion on the Deepwater Horizon oil rig it was operating in the Gulf of Mexico. The report stated there was a “lack of operating discipline” concerning the signs of potential risk to the rig and operations, which were apparently ignored.

Findings from the National Academy of Engineering and the National Research Council:

Failures indicate the lack of a suitable approach for anticipating and managing the inherent risks, uncertainties, and dangers associated with deepwater drilling operations.

The accident was precipitated by a decision to proceed to temporarily abandon the well, despite indications from negative pressure tests that indicated problems with the well’s integrity

BP, its contractors, and the government did not identify or correct their critical mistakes

The decision to move ahead with completing the project was compounded by delays in realizing natural gas was flowing in the well and riser and the failure to take timely well-control actions

Proceeding to remove drilling mud from the well without installing a lockdown sleeve on the production casing wellhead seals may have also contributed to accident

The decisions to move ahead despite all the warning signs indicate an "insufficient consideration of risk and a lack of operating discipline"

There were insufficient checks and balances for decisions regarding schedule and procedures for well abandonment and considerations for well safety.

Other factors that may have contributed to this accident include BP's decision to use long string well design…the use of only six centralizers on casing and not running a bond log to assess cement integrity in the well

Credits and Links:
Posted by Thomas at 12:52 PM
Labels: BP, Deepwater Horizon, Gulf of Mexico, Gulf Oil Spill

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ZDT Author’s Note:
This was/is a decision debacle at the highest levels that started smoldering early on…see our post dated 6/30/10.

Where was the model?

Would/Could Forensic Decisioning help those who seem bent on defying reason?