British Petroleum (Plc) and John Browne: a Culture of Risk Beyond Petroleum
British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum
Strayer BUS 519
October 30, 2011
Abstract The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. This reputation is even more critical when a business has is known globally with holdings and operations around the world. Such is the case with British Petroleum (BP) as it actively explores for oil in 26 countries around the world. BP is renowned as an industry leader in oil production and the refinement of oil related products such as gasoline, kerosene and motor oil products. In 1999, BP acquired American Oil Company, also known as AMOCO. Part of the acquisition included the Texas City Oil Refinery which was over 70 years old and had been noted as having a history of safety issues. Due to BP’s lack of focus on the safety issues presented in the 2004 Telos Group report coupled with the lack appropriate oversight and control, the Texas plant experienced a disastrous fire and explosion killing 15 workers and injuring 170 other personnel as stated by Halbert and Ingulli (2010) (p. 185). From this event BP faced legal issues with U.S. federal environmental laws (EPA), Occupational Safety and Health Administration (OSHA) and lawsuits from the families of victims, just to mention a few. An investigation by the Chemical Safety and Hazard Investigation Board released a report in 2007 that revealed process safety leadership issues starting with the senior management of BP as well as a disregard of safety concerns throughout the company. It also highlighted safety issues with the Alaskan Pipeline. BP at this point was faced with significant operational challenges and a major issue was a damaged reputation in the oil industry. This paper will discuss processes for a two day risk workshop to identify issues relevant to risks faced by
Strayer BUS 519
October 30, 2011
Abstract The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. This reputation is even more critical when a business has is known globally with holdings and operations around the world. Such is the case with British Petroleum (BP) as it actively explores for oil in 26 countries around the world. BP is renowned as an industry leader in oil production and the refinement of oil related products such as gasoline, kerosene and motor oil products. In 1999, BP acquired American Oil Company, also known as AMOCO. Part of the acquisition included the Texas City Oil Refinery which was over 70 years old and had been noted as having a history of safety issues. Due to BP’s lack of focus on the safety issues presented in the 2004 Telos Group report coupled with the lack appropriate oversight and control, the Texas plant experienced a disastrous fire and explosion killing 15 workers and injuring 170 other personnel as stated by Halbert and Ingulli (2010) (p. 185). From this event BP faced legal issues with U.S. federal environmental laws (EPA), Occupational Safety and Health Administration (OSHA) and lawsuits from the families of victims, just to mention a few. An investigation by the Chemical Safety and Hazard Investigation Board released a report in 2007 that revealed process safety leadership issues starting with the senior management of BP as well as a disregard of safety concerns throughout the company. It also highlighted safety issues with the Alaskan Pipeline. BP at this point was faced with significant operational challenges and a major issue was a damaged reputation in the oil industry. This paper will discuss processes for a two day risk workshop to identify issues relevant to risks faced by
References: Custom Book, (2011). BUS 519: BUS 519 Project Risk Management: Case pack 2011 Edition. New York: John Wiley & Sons. Gray, C. F. and Larson, E.W. (2008). Project Management, The Managerial Process: 2009 Custom Edition, (4th ed.). Boston, MA: McGraw-Hill Companies Inc. Halbert, T., & Ingulli, E. (2009). Law & Ethics in the Business Environment: 2010 custom edition (6th ed.). Mason, OH: South-Western Cengage Learning Heldman, K. (2005). Project Manager’s Spotlight on Risk Management. San Francisco: Jossey-Bass Hillson, D. and Simon, P. (2007). Practical Project Risk Management: The ATOM Methodology. Vienna, VA.: Management Concepts