This presentation summarizes BP's major safety disasters and the initiatives taken to improve safety culture. It describes three major disasters - in Texas in 2005, Alaska in 2006, and the Gulf of Mexico in 2010 - that resulted from a lack of safety practices and negligence prioritizing profit over safety. BP faced billions in fines and penalties and long-term damage to its reputation. New programs like Operating Management System and Site Alignment aim to standardize operations and improve two-way communication between levels to prevent future incidents.

1. GET Presentation
We are what we repeatedly do, excellence therefore, is not
an act but a habit.
Prepared by-:
MOHIT SINGLA
& TEAM

2. Safety Moment

3. Putting profit before safety
Case Study on working of BP
?

4. OBJECTIVE
To take learning from the RECURRING mistakes of BP, and the
initiatives taken to REGAIN its LOST REPUTATION.
Wise man learn from his own mistakes
But
Wiser one learn from others mistakes

5. Overview Of The Presentation
1. Introduction to BP
2. Major Disaster and their Cause
3. Bakers recommendations
4. Financial Impact
5. Major Safety Initiatives

6. BP: journey to Beyond Petroleum
Is One of the Six
Oil And Gas "Supermajors“
PRIMARY PRODUCT- OIL AND NATURAL GAS
OTHER PRODUCT- BIOFULES AND WIND ENERGY
HEADQUATER -London, England, United Kingdom.
1. The 5th largest energy company by Market Capitalization
2. Annual Turnover around $338.285 billion
3. 4th Largest Company registered with FTSE 100 index.
4. With 85,700 no. employees

7. ????
WHY
SAFETY vs PROFIT

8. Some Realities Relating To Accidents
500
450
400
350
300
250
200
150
100
50
0
100
90
90
461 450
80
408
70 60
60
327
50
46
305
44
50
272
38
40
32 239 23032
26
30
22
188
168 152
167 175
14 12
20
134
6 10
10
0
??
1999 2000 2001 2002 2003 2004FATALITIES
2005 2006 2007 2008 2009 2010 2011 2012
Injured

9. Major Disasters
1. In Texas,2005
2. In ALASKA,2006
3. In GULF of Mexico,2010

10. Tragedy In Texas
HYDROCARBON VAPOR CLOUD
at BP's Texas
On the 23rd,
EXPLOSION
City refinery in Texas City, Texas
March 2005
• Fatality 15 Workers
• Injuring More Than 170
• Market Share Price Down By 6%
• About $ 2 Billion For Compensations And Penalties By Gov.

11. Cause
Immediate cause:
excess gasoline spilled into a vent system which led to explosion
after ignition.
Sequence of events leading to the immediate cause:
Lack of proper training of workforce.
Step-up supervisors didn’t complete all the
checks properly before startup.
Liquid overflow from stack.
Improper communication to top officials about
disablement of alarms.

12. ALASKA TRAGEDY
•
Largest Oil Spill On Alaska's North Slope On March 2, 2006
•
267,000 US Gallons Oil were spilled over 1.9 acres
• $255 Million Fine was imposed for negligence
• Cost US $100 Million to replace the 16 miles (26 km) of corroded
pipeline.
• Price Of Crude Oil on NYMEX jumped US$2.22 a barrel closing at
US$76.98 per barrel
•
BP shares slumped nearly 2 percent.

13. Cause
Immediate Cause:
A corroded transit pipeline spilled 2,67,000 gallons of oil in early 2006.
Sequence of events leading to the immediate cause:
UT technology was used since1998 instead of the
PIG(pipeline inspection gauge).
.
Water was substituted for corrosion inhibiting chemicals
since 1998
Corrosion in the transit pipeline
Ineffective leak detection system.
No replacement of deficient systems

14. Gulf of Mexico
• Deepwater Horizon oil spill on 20 April 2010 in the Gulf of Mexico
• Claimed 11
Lives and 16 injured.
• The Largest Accidental Marine Oil Spill of The History
• Total Discharge Has Been Estimated At 154.3 Million US Gallon
• DEAD-More Than 1,200 Fish, 200 Birds, 227 Sea Turtles And 29 Marine
Mammals
• Company's Total Spill-related Expenses Is Around $42.2 Billion
• Market Share Price Down By 43%

15. Cause
Immediate Cause:
High pressure methane gas from well expanded into drilling riser and went to
drilling rig and it caused an explosion.
Sequence of events leading to immediate cause:
Absence of blow out preventers
Use of sub standard quality of cement for the wall of oil well
Alarms had been overridden.
All critical digital and analog drilling instruments were not
calibrated
Overdue maintenance jobs of 3,545 man-hours.

16. Common Shortcomings
Lack of Leadership
Focus on short term Profit
Negligence
Improper work Culture
Lack of communication
Improper planning
Government leniency

17. Financial Impact
OR
????

18. Fines And Penalties
Value (US$)
Site/Business
175,000
Alaska
210,000
Maryland
294,000
Whiting
300,000
Carson
8,000,000
Whiting
2,13,027,000
Texas City refinery
42,30,000,000
GULF OF MEXICO

19. Market Share Price
63
46
US$
27
MAR 2010
YEAR (2000’S)

20. Profits
300
200
196.99
153.32
192.44
234.25
237.02
2011
2012
100
0
2008
2009
2010
SALES (B US$)
20
15
16.03
11.54
10.62
10
5
-2.41
0
-5
7.31
??
2008
2009
2010
2011
NET INCOME(B US$)
2012

21. SAFETY
PROFIT

22. IT IS NEVER
TOO LATE
TO Begin

23. BP’s Safety Initiatives
•
OMS- Operating Management System
OMS are Guiding Principles and requirements for safe, reliable and compliant
operations.
• It addresses 8
‘elements of operating’, under the areas of people, plant,
process, and performance
• It covers health, Safety, Security, The Environment, Social Responsibility And
Operational Reliability, Maintenance, Contractor Relations
It provides with one systematic and
controlled holistic approach for
how businesses are managed.

24. Site Alignment (Two-way Communication)
1
2
4
5
3
6

25. Site Alignment (Two-way Communication)
(Bulwer refinery in Australia)
• Environment Spills Cut By Half
• Safety Incidents Cut By 2/3
• Move From 'Worst
To First' In Regional Safe Results
• Regional Record In Production
Uptime
• 25% Reduction In Rig Work Over Cost
• Maintaince Backlog Reduced By 12000 Hours
In 2013, Site Alignment is projected to get implemented in 60 sites.

26. Process Safety
• Building Organizational
Capability
• Participative in Safety Initiatives And Risk Assessment is
now one of deciding factor for Bonus given to Employee

27. Takeaways From This Case Study
• Operational safety is equally important as personal
•
•
•
•
safety.
Problems raised by shop floor associates should be
communicated to the higher levels at the latest.
Neglecting Safety may give short term profits but
finally leads to huge loss.
Site Alignment is one of the best practices
Cost cutting should not be at the cost of safety.
Safety is not an individual’s
responsibility, but the entire
organization’s.

28. We can & we shall…..