BP's Next CEO Says Company To Put Safety First
BP's next CEO says the energy giant will put safety at the center of its reinvention, but cautioned that any legislative action to prevent it from operating in the Gulf of Mexico could have "unintended consequences."
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Dudley will replace BP CEO Tony Hayward on Oct. 1, becoming the British company's first American chief executive. That announcement Tuesday came after Hayward was widely criticized for his handling of the oil spill in the Gulf of Mexico that was caused by the deadly April 20 explosion on the Deepwater Horizon rig.
BP's handling of the cleanup and its safety record prior to the blast on the Deepwater Horizon rig in the gulf has come under fire. Dudley said his immediate job is to oversee the cleanup operations.
"Our success and our ability to do business in the United States, I think, depends on our corporate response and follow through on this," he said. "And we have some very large commitments that we intend to keep in America."
Dudley said the goal is to cap the well and kill it, following which the company will skim any remaining oil on the surface and focus its effort on cleaning up the beaches. He said he is hopeful that the well could be killed by next Monday or Tuesday.
"I do believe we're seeing the end of the oil flowing into the gulf," Dudley said.
He also emphasized a long-term corporate commitment to the region, saying BP will stay in the gulf for years to come.
"There are people along the Gulf Coast that think that because we capped the well, then we're going to pack up and leave — that's not the case," he said. "We'll be there for years. We'll have offices across the Gulf Coast."
Dudley acknowledged that the safety measures introduced by Hayward, upon assuming the post of CEO, three years ago did not come fast enough, but vowed to ensure that it becomes a key part of BP.
"There's no question with this accident we have to up the trajectory on this dramatically," he said. "And that's what we will be doing."
But BP's safety record faces hurdles, including in the form of congressional legislation that would prevent companies with poor safety records from getting new licenses for exploration for oil and gas in the Gulf of Mexico.
Dudley said such actions would have a negative effect.
"I think there should be a thoughtful approach to this," he said. "A simple banning of one of America's largest employers there in the gulf may have some unintended consequences."
BP expects to pay what could be the largest fine in corporate history for the disaster, Dudley said, and had made provisions in its second quarter numbers, which were announced Tuesday.
The company announced a loss of $17 billion dollars in its second quarter and set aside more than $32 billion to pay for all the expected costs related to the spill.



