March 10, 2007 |

BP Annual Report Reveals Subpoenas for BP Texas City Refinery Blast and Bonus Cuts for Execs – More Reasons to Proactively Improve Performance by Using Advanced Root Cause Analysis

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It’s been almost two years since the March 23, 2005, explosion and fire at the BP Texas City Refinery, but the bad news hasn’t stopped. Continuing bad publicity is just one of the many ignored costs of a major accident.

The most recent bad publicity came from BP’s recently released 2006 Annual Report. BP had several references to the explosion, including: federal investigations (EPA, OSHA, and CSB), the Baker Commission Report, and an ongoing criminal investigation by the US Department of Justice. Newspapers picked up on a paragraph on Page 28 of the Annual Report that revealed that the Justice Department had issued subpoenas to BP for documents and testimony in a grand jury criminal investigation.

Also detailed in the report was pay for high level executives at BP. Again, reporters picked up on the fact that even though financial performance at BP was excellent for the year, outgoing CEO John Browne’s total compensation was cut by almost $2 million dollars (28% according to an AP story in the Houston Chronicle).

The Chemical Safety Board had announced that it will release it’s long awaited investigation root cause analysis report on March 20. This will no doubt mean another round of negative stories.

So what do you need to do to convince your management team to improve safety performance? Perhaps an example of potential criminal investigations and big pay cuts for executives will get their attention. Certainly these are more reasons among the many obvious reasons that companies should do everything in their power to prevent major accidents by using advanced root cause analysis proactively to improve performance before accidents occur.

For more on PROACTIVE use of root cause analysis to prevent accidents click on the button for the schedule of the Proactive Improvement Best Practices Track at the TapRooT® Summit.

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