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Share Price: 525.60
Bid: 526.10
Ask: 526.20
Change: 2.50 (0.48%)
Spread: 0.10 (0.019%)
Open: 529.20
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Low: 525.30
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First BP trial witness says company put cost cuts over safety

Tue, 26th Feb 2013 16:53

By Kristen Hays

NEW ORLEANS, Feb 26 (Reuters) - BP Plc fostered aculture that put cost-cutting over safety before the deadly 2010Gulf of Mexico oil spill, a noted forensic engineer said in thefirst day of testimony in the federal civil trial centered onthe disaster.

"There is ample evidence of intense pressure within thesystem to save time and money," said Bob Bea, co-founder of theCenter for Catastrophic Risk Management at the University ofCalifornia, Berkeley. "With stress and pressure come sacrificesto safety."

Bea was the first witness for the plaintiffs, the U.S.Justice Department and U.S. Gulf Coast states suing well ownerBP, rig owner Transocean Ltd and well cement providerHalliburton Co.

The plaintiffs plan to call Lamar McKay, chairman andpresident of BP America, to testify as a hostile witness onceBea wraps up. McKay is a member of the London-based oilcompany's executive committee, alongside Chief Executive OfficerBob Dudley.

Bea consulted with the White House commission thatinvestigated the spill and prepared a report faulting BP for theplaintiffs in the case. He also had consulted with BP on riskmanagement prior to 2005.

He said BP cut its Gulf of Mexico costs by 22 percent from2008 to 2009 while increasing oil and gas output by 55 percent.

Bea said during questioning by Robert Cunningham, a lawyerfor the plaintiffs, that he had told BP that "money isn'teverything" and that incentives for major accident preventionshould be on equal footing with incentives for profits.

"It's a culture of every dollar counts," Bea said.

He had yet to be cross-examined by BP lawyer Mike Brock.

The April 2010 blowout caused an explosion that killed 11men, sank a rig and spewed more than 4 million barrels of crudeoil into the Gulf.

Well-known in New Orleans, the site of the trial, Bea was akey witness in litigation over failed levees when HurricaneKatrina hit in 2005, flooding much of the city and leaving morethan 1,800 people dead.

The nonjury trial before U.S. District Judge Carl Barbier issplit into three phases, with the first focused on allocatingblame among the defendants and the severity of their negligence.

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April 23 (Reuters) - Some shippers on Canada's Trans Mountain expansion project are raising concerns that the long-delayed oil pipeline will not be fully in service by its projected start date of May 1, according to a letter to the Canada Energy Regulator on Tuesday.

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Aker BP Q1 beats forecast as costs fall, Tyrving to start sooner

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24 Apr 2024 05:38

Aker BP Q1 beats forecast on record output, lower cost

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18 Apr 2024 14:45

BP's gas and renewables boss steps down, as CEO shrinks leadership

LONDON, April 18 (Reuters) - BP said on Thursday its head of natural gas and low carbon energy Anja-Isabel Dotzenrath will step down after just over two years, while CEO Murray Auchincloss announced plans to simplify its management structure.

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18 Apr 2024 14:12

UK shareholder meetings calendar - next 7 days

Friday 19 April 
Murray International Trust PLCAGM
Quantum Exponential Group PLCGM re delisting or potential investment in company
Monday 22 April 
Renalytix PLCGM
Travis Perkins PLCAGM
Tuesday 23 April 
AIQ LtdAGM
NatWest Group PLCAGM
Taylor Wimpey PLCAGM
Wednesday 24 April 
abrdn PLCAGM
abrdn Equity Income Trust PLCAGM
AssetCo PLCAGM
Breedon Group PLCAGM
British American Tobacco PLCAGM
Bunzl PLCAGM
Coro Energy PLCAGM
Croda International PLCAGM
Entain PLCAGM
Greencoat UK Wind PLCAGM
Primary Health Properties PLCAGM
Serco Group PLCAGM
Synectics PLCAGM
Thursday 25 April 
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Admiral Group PLCAGM
Beazley PLCAGM
BP PLCAGM
CLS Holdings PLCAGM
CRH PLCAGM
Dalata Hotel Group PLCAGM
Develop North PLCAGM
Drax Group PLCAGM
Everest Global PLCAGM
Greencoat Renewables PLCAGM
Hammerson PLCAGM
Helios Towers PLCAGM
Hikma Pharmaceuticals PLCAGM
International Biotechnology Trust PLCAGM
London Stock Exchange Group PLCAGM
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Mattioli Woods PLCGM re Pollen Street Capital Ltd takeover
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Tissue Regenix Group PLCAGM
Weir Group PLCAGM
  
Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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LONDON MARKET MIDDAY: FTSE 100 up despite hawkish Fed rates outlook

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IN BRIEF: BP trims executive team in operational restructuring

BP PLC - London-based oil and gas major - Announces organisational restructuring. Intends to keep its three businesses - production & operations, gas & low carbon energy and customers & products - enabled by trading & shipping. Plans to integrate the current regions, corporates & solutions organisation into the businesses and functions. BP will now be supported by five functions: finance; technology; strategy, sustainability & ventures; people & culture; and legal. BP explains these changes will "reduce duplication and reporting line complexity".

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BP cuts size of executive team, shakes up structure

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Sustainable Finance Newsletter - Republican AGs look to limit climate groups

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Shell urges investors to reject shareholder group's climate demands

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Carbon Done Right advances Sierra Leone rewilding project

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LONDON MARKET CLOSE: Investors show nerves after Iran launches drones

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London close: Stocks slip on renewed geopolitical tensions

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