Index

Abraham, Spencer, 82 Anadarko Corp., 74, 185 Accidents, industrial, 18 Anderson, Jason, 158 Acheson, Dean, 53 Anderson, Paul, 153 , 24, 46, 56 –57, 81, 89 Anglo-Persian (Iranian) Oil Co., 45, 49, BP’s maintenance problems, 135 50 –54 fi nes paid by BP for spills, 133, 143 Angola, 12, 38, 41, 70 oil spills, 114, 119–135 Apache Corp., 186 Al-Husseini, Sadad I., 124 Atlantic Richfi eld Co. (ARCO), 30 –31, Allen, Mark, 37–38 56, 57, 114, 125, 126 Allen, Thad, 176 Atlantis, 66, 72, 193 All the Shah’s Men (Kinzer), 51 Azerbaijan, 31, 37, 41, 47 Al-Megrahi, Abdel Basset, 38 Al-Naimi, Ali, 35 –36 Baker, James, 105, 112, 142 Alternative energyCOPYRIGHTED technology, 33 Balzer, MATERIAL Dick, 40 Alyeska Pipeline Service Co., Barbier, Carl, 185 120, 121 Barton, Joe, 151, 182 American Petroleum Institute (API), 82, Bauer, Robert, 182 87, 91 Bea, Bob, 125 –128, 131, 160, 173 , 28 –30, 36 –37, 106, 125, 126 Bertone, Stephen, 6 –9, 16

217

bbindex.inddindex.indd 217217 112/1/102/1/10 77:05:39:05:39 AAMM INDEX

Big Kahuna, 78 establishes victims’ fund after Gulf spill, Blackbeard well, 129, 160 181, 182–183 Bledsoe, Paul, 34 events leading up to Gulf explosion, preventer (BOP), 92, 146, 155 –173 148, 156 –157, 161, 167, 168, exploration and production unit, 175, 192 10, 145 Bly, Mark, 165 –166, 169 fi nally caps Gulf well, 152 Bondy, Rupert, 145 fi nancial liability from spill, 152 Bowlin, Mike, 30 fi nes paid for safety violations, 133, 143 BP: industrial accidents in U.S., 18 begins developing Alaska, 56 –57 investigation into Gulf explosion, begins drilling Macondo well, 156 –158 165 –169 branding, 32–34 lack of disaster preparation, 70 and Britain’s fi nancial situation, as leader in deepwater drilling, 12 55 –56, 184 leases in Gulf of , 30, 35, 65, cleanup strategy fi led with MMS, 93 124, 180 and climate change, 32–34 liabilities from civil lawsuits, 169 company losses after Gulf spill, 153 litigation against, 104 –107, 184 –185 corporate culture, 124 –125, 130 –133, lobbying during 2008 campaign, 95 140 –141, 144 –145, 191–192 loses credibility with American cost cutting, 31, 105, 108, 122–123, public, 146 127, 131, 141, 142–143, 165 market value after blowout, 175 cost of spill, 185 mergers and acquisitions, 27, 29, 30 –31, costs per barrel discovered, 77 35 –36 damage to company from Gulf spill, and Michael Daly, 77–78 183 –186 in the Middle East, 46 early exploration in Gulf of Mexico, new culture of safety at, 191–192 61– 67 oil production, 14, 18, 54, 69–70 early history, 45 –54 oil reserves, 11, 41, 50 early response to Gulf explosion, relationship with Russia, 187–188 147–148, 177, 179–180 relationship with U.S. government after efforts to stop oil leaking into Gulf, spill, 180, 181, 183 175 –176 report of Chemical Safety Board, 111 emergency plan, 93 reports to MMS, 157–158 employee morale, 190 reputation, 155, 177 Energy Committee’s report to Hayward, and risk taking, 76 163 (see also Energy and Commerce rivals question Macondo well Committee, U.S. Congress) design, 165

218

bbindex.inddindex.indd 218218 112/1/102/1/10 7:05:397:05:39 AMAM Index

and safety, 103, 105 –106, 112, and Shell, 114 –115 130 –133 Texas City refi nery explosion, safety violations, 133 –134, 173 103, 107 sells assets after Gulf spill, 186 –191 trouble grooming successors, 39– 41 setbacks before Gulf spill, 191 Bryant, Terry, 104 stock price, 109, 149, 178, 183 –184 Burgan fi eld, 45 struggles to survive after blowout, , 35, 48, 49 175 –193 Bush, George H.W., 81 Texas City refi nery explosion, 101–114 Bush, George W., 81– 82, 84, 90 top kill effort, 148 trouble grooming Browne successors, Cao, Anh “Joseph,” 178 39– 41 Carbon emissions, 96 Brazil, 70, 71 Carbon trading, 32–33, 95 Bresland, John, 144 Cement problems, 158, 162, 163, Britain’s fi nances, 55 –56, 184 165, 166 British Petroleum, 49. See also BP Center for Catastrophic Risk Brown, Doug, 6 –9, 16, 158, 170 Management, 125 Browne, John, 10, 11, 21– 44 Centralizers, 163 –164 and Amoco, 28 –30 Chemical Safety Board, U.S., 105, 111, and BP’s safety problems, 112 127, 131, 144 and Bush’s energy policy, 82 Cheney, Dick, 81– 82 as CEO, 2–3, 18 Chevalier, Jeff, 24, 116 –117 early career, 23 –26 Chevron, 30, 119, 178, 192 end of career, 99–118 China, 31 and ExxonMobil, 41 China National Petroleum Corp., 13 and Exxon Valdez spill, 57 Chu, Steven, 148, 178 failure in understanding management of Churchill, Winston, 49 U.S. refi neries, 36 –37 Claussen, Eileen, 33 as head of exploration and Clean Water Act, 184 production, 63 Climate change, 32–34, 88, 95 and homosexuality, 24, 116 –117 Clinton, Bill, 32 legacy, 37 Congress, U.S.: pressure to retire, 100 –101 ban on new oil exploration, 81 relationship with Peter Sutherland, debate about offshore drilling ban, 87 115 –116 hearings about Gulf oil spill, 17 resignation, 118, 137 launches investigation of Gulf spill, 177 after resigning, 195 –196 relationship with BP after spill, 180, as risk taker, 26 181, 183

219

bbindex.inddindex.indd 219219 112/1/102/1/10 7:05:407:05:40 AMAM INDEX

Conn, Iain, 137, 138 Drilling: ConocoPhillips, 119, 192 overhaul bill on, 188 Coon, Brent, 104 –107, 113, 184 –185 oversight of equipment, 146 Corporate culture, 37–39, 124 –125, rig’s safety equipment, 92 126 –128, 130 –133, 140 –141, technology, 64 144, 191–192 Drilling mud, 158, 159, 170 –172, 178 Corrosion, 114, 122 Dudley, Robert W., 139, 145 Corser, Kent, 163 announces BP will remain in Gulf of Cost cutting, 31, 105, 108, 122–123, 127, Mexico, 189 131, 141, 142–143, 163 becomes CEO, 1–2, 3, 153 –154, 188 Creaming curve, 63 considered as Browne’s replacement, Culture, corporate, 37–39, 124 –125, 137–138 126 –128, 130 –133, 140 –141, driven from Russia, 43 144, 191–192 needs to bring new perspective to BP, 190 Curry, John, 93 thinks about selling parts of BP, 187 Duncan-Jordan, Neil, 184 Daly, Michael, 13, 74, 77–78 D’Arcy, William Knox, 46 – 48, 49 Economy, U.S., 83 Davis, Michele, 180 Effi ciency, operational, 141 Deepwater drilling, 12 Egypt, 70 banned after explosion, 177 Eisenhower, Dwight, 53 –54 exploration in the Red Sea, 193 Election of 2008, 84 – 86 growth in future production, 193 “Elephants” ( fi elds), 61 technological challenges, 67– 68 Elf (oil company), 30 , 64, 156, 171, 191 Energy and Commerce Committee, U.S. attempted fi xes before blowout, 158 Congress, 121, 122, 134 –135, discovery of Kaskida, 73 150 –151, 163, 177 night of explosion, 5 –19 Energy bill, 95 –96 reports that well was in trouble, 96 Energy Information Administration, 87 what went wrong, 162 Energy policy, U.S., 82, 94 –95 Desmarest, Thierry, 30 Energy security, 83 – 84, 94 Derivatives, 26 Environmental Defense Fund, 32 Devon Energy Corp., 95 Environmental impact review, 92 Diamond Offshore Drilling Co., 64, Environment America, 88 75, 173 Etgen, John, 78 Diana fi eld, 62 Exploration and production, 10, 78, 84, Disaster prevention, 192–193 90, 96, 145 Douglas, Scherie, 96 opinion of American voters, 87

220

bbindex.inddindex.indd 220220 112/1/102/1/10 7:05:407:05:40 AMAM Index

Explosion, Deepwater Horizon: Gingrich, Newt, 85 cause at Macondo well, 161–162 (see also Global warming, 32, 33, 88 Macondo well) Gorelick, Jamie, 182 early BP response to, 147 Gould, Andrew, 144, 189 events immediately before, 167–168 Gowers, Andrew, 145 events on night of, 5 –19 Graham, Lindsey, 95 –96 reveals fl aws in BP culture and Grangemouth refi nery, 131 structure, 191 Gravitz, Michael, 88 Explosion, Texas City refi nery, 101–114 Green Book, 39 ExxonMobil, 12, 13, 30, 35, 41, 46, Grimsley, Sean, 166 50, 57, 119, 121, 141, 142, Groningen fi eld, 55 165 –166, 178, 191 Grote, Byron, 39, 183 abandons Blackbeard well, 160 Guide, John, 164 corporate culture, 191 Gulf Coast Restoration Organization, 60 early work in Gulf of Mexico, 62 Gulf of Mexico, 41, 59–78, 191 helps establish standby containment BP leases in, 30, 35, 65, 124, 180 system in Gulf of Mexico, 192 BP production in, 14 safety, 129 closed to fi shing after spill, 176 Exxon Valdez spill, 57, 81, 128 development of emergency standby containment system for, 192 Farnsworth, Jim, 77 differences in U.S. and British Federal Trade Commission, 31 perceptions about spill in, 150 Feinberg, Kenneth, 181 early exploration by BP, 61– 67 Fishing, 176 growing importance to oil industry, 10 Fitzgerald, Don, 161 oil slick moving across, 176 Fleytas, Andrea, 8 –9 total production, 69 Fold belt plays, 72 and U.S. oil output, 193 Forties Field, 46, 55, 124 Gulf of Mexico Oil Spill Trust, 183 Fraser, William, 51, 52 Fratto, Tony, 179–180 Hackett, James, 74, 185 Fridman, Mikhail, 42, 44, 187 Hall, Noah, 184 Frontier, 12 Halliburton, 31, 82, 129, 155 –156, 191 Fuller, Larry, 28 criticisms of conclusions about causes of explosion, 169–170 Gas, 161, 165, 166 –167 faulty cement, 162, 163, 165, 166 prices, 84, 86, 95 Harrell, Jimmy, 170 –172 Geology, petroleum, 63 – 64 Harriman, Averell, 53 Gheit, Fadel, 190 Harris, John, 120 –121

221

bbindex.inddindex.indd 221221 112/1/102/1/10 7:05:407:05:40 AMAM INDEX

Hayward, Tony, 42 Iran, 23, 46, 51–54. See also Persia admits BP unprepared for disaster, 70, 93 Iraq, 45 beating from U.S. media and politicians, Islamic Revolution, 54 148 –154 Isomerization unit, 110 –111 commitment to fi xing BP’s safety problems, 132 Jacobs Engineering, 101 and cost cutting, 142 early days as CEO, 139–140 Kaluza, Robert, 171, 172 effect of Gulf explosion on, 145 –147 Kaskida, 73 goals as CEO, 141–142 Keathley Canyon, 73 loses credibility with American public, 146 Kemp, Courtney, 186 and operational effi ciency, 141 Kerry, John, 95 –96 public relations fi ascos, 151–152 Kick, 159, 162 resignation, 1–2, 17, 153 –154 Kill line, 157, 172 and safety, 130, 142 Kinzer, Stephen, 51 and top kill effort, 178 Kirkuk oil fi eld, 45 tries to fi x BP’s problems, 137–154 Kolton, Anne Womack, 180 tries to reassure world leaders after Gulf Krupp, Fred, 32 spill, 180 Kuchta, Carl, 8 –9 views on BP’s building projects, 68 Kuparuk, 24 Heinitz, Eric, 94 Kuwait, 45, 54, 56 Herkstroter, Cor, 27 Hess Corp., 189 Landrieu, Mary, 186 Holder, Eric, 177 Larry, Carl, 87 Horton, Robert, 25 Lawsuits: Houma, Louisiana, 10, 80 Deepwater Horizon explosion, House Energy Committee. See Energy and 104 –107, 169, 184 –185 Commerce Committee, U.S. Congress Texas City refi nery explosion, Houston, 18, 60, 70, 80 104 –107 Humble Oil, 56 Leveson, Nancy, 112 Hutchinson, Kay Bailey, 83 Libya, 31, 37–38, 54, 70, 189 Hydrocarbons, 162, 166, 172, 176 Lichtblau, John, 30 Liquefi ed natural gas (LNG), 30, 41 Indonesia, 41 “Listening to the well,” 160 Inglis, Andy, 10 –13, 15 –16, 17, 61, 74, Lobbyists, 95 137, 145, 191 Long string, 163 In Salah gas fi eld, 32 Louisiana Offshore Oil Port, 79 Interior Department, U.S., 192–193 Lovegrove, Martin, 139

222

bbindex.inddindex.indd 222222 112/1/102/1/10 7:05:417:05:41 AMAM Index

Macondo well, 6, 151, 155 –158, 171. See Mud engineers, 159 also Explosion, Deepwater Horizon Murray, Glenn, 129 after explosion, 16 cause of explosion, 161–162 National Commission on the BP impact of explosion, 60 Deepwater Horizon Oil Spill, 191 legacy of blowout, 191–192 National Environmental Protection Act, 92 original estimate of size of spill, 177 Nationalization, 45 – 46, 50 –54 problems before blowout, 59– 60, 76 –77 National Petroleum Council, 82 Mad Dog, 66, 72, 78 Natural gas, 158, 165. See also Gas Maintenance, 119–135 Natural Resources Defense Council, 92 Malone, Bob, 121–123, 134 Nichols, Larry, 95 Manuel, Athan, 96 , 46, 55, 56 –57 Manzoni, John, 113, 137, 138 North Slope, 56 –57, 119–135, 178, 188 Margerie, Christophe de, 193 Noto, Lou, 27 Marianas, 156 Marine Spill Response Corp., 147 Obama, Barack, 17 Marine Well Containment Co., 192 announces ban on deepwater permits, 177 Mars fi eld, 62, 71, 72 criticism of, after Gulf spill, 181–182 Masjid-i-Suleiman, 48 drilling moratorium, 185, 193 McCain, John, 85, 88, 89 election of 2008, 84 – 86 McKay, Lamar, 134, 143, 178 encourages Congress to repeal drilling MC 911-1 well, 65 ban, 89–90 Melancon, Charlie, 176 opens new areas for offshore drilling, Merritt, Carolyn, 127, 131, 135 94 –96 Methane, 167, 173 political costs of Gulf spill, 185 –186 Michel, Jacqueline, 148 response to BP’s failure to stop leak in Middle East, 45, 46, 50, 54 Gulf of Mexico, 148 Miller, George, 188 support of offshore drilling, 80, 88 – 89 Minerals Management Service (MMS), Offshore drilling, 96 91–93, 94, 157–158, 185 data collecting tools, 62 approval of drilling plan, 160, 163 growth in future production, 193 report of trouble on Deepwater Gulf widows encourage resumption Horizon, 96 of, 186, 197 study of shear rams, 168 limits since 1981, 81 Mississippi Canyon, 6, 65, 91–92, 96, 156 moratorium on, 60, 87, 89–90, 177, Mobil, 27. See also ExxonMobil 178, 185 Montrose oil fi eld, 124 new culture of safety, 191–192 Mossadegh, Mohammed, 50 –54 opinion of American voters, 86 – 88

223

bbindex.inddindex.indd 223223 112/1/102/1/10 7:05:417:05:41 AMAM INDEX

Offshore drilling (Continued ) Pleasant, Christopher, 171, 172 safety, 86 – 87 Politics, 79–97 standards and rules for, 162 Politte, Mark, 108 support by Obama, 80, 88 – 89 Pollution, oil, 18 and U.S. energy policy, 83 Pompano, 59, 74 Oil: Pope, Carl, 93 crude price, 81 Port Fourchon, Louisiana, 79, 80 daily consumption, 196 –197 Potanin, Vladimir, 41 hedging prices, 26 President’s Oil Spill Commission, 166, 171 prices, 31, 84, 123 Prisoner-transfer agreement, 38 refi ning, 109–110 Prize, The (Yergin), 56 U.S. consumption, 82– 83, 197 Productivity, worker, 124 –125 Oil Outlooks & Opinion LLC, 87 Propane, 114, 143 Oil rigs, safety procedures, 161 Prudhoe Bay, 24, 46, 56, 186 Oil spills, 119–135 oil spills, 114, 119–135 Operation Ajax, 54 Operational safety. See Safety Qaddafi , Muammar, 37–38, 54 Operation Boot, 54 Qatar, 54 Operations Management System, 144 Qavam, Ahmad, 53 Organic reserve replacements, 77 Quantum Reservoir Impact, 173 OSHA (Occupational Safety and Health Administration), 18, 125, 133 –134, Rainey, Dave, 59– 60, 62– 63, 73 143 –144 Raymond, Lee, 30, 35 Red Sea, 193 Pahlavi, Shah Mohammed Riza, 51–54 Reich, Robert, 181 Palin, Sarah, 89 Reid, Harry, 182 Pan Am 103 bombing, 38 Reilly, William, 129–130, 164 –165, 191 Parus, Donald, 108 Research Planning, Inc., 147 Patton, Frank, 92, 96, 159, 162 Reynolds, George, 47– 48, 49 Pelosi, Nancy, 87 “Riding the throughput curve,” 119–135 Persia, 46 – 48. See also Iran Rig workers, 74 –76 Petroleum geology, 63– 64 and safety procedures, 161 Research Association, 30 Risk, 26, 72, 76, 111, 113, 127, Pettit, David, 92 128 –129, 130 Pew Center on Global Climate Change, 33 Riverstone, LLC, 196 PFC Energy, 191 Roberts, Karlene, 126, 132 Piggott, Neil, 64 Robinson, Steve, 166 Plaquemines Parish, 93, 176 Robots, 67, 148

224

bbindex.inddindex.indd 224224 112/1/102/1/10 7:05:427:05:42 AMAM Index

Roshto, Natalie, 197 Shear rams, 92, 157, 167–168 Roth, Thomas, 169 Shell Oil Co., 49, 54, 62, 99, 114 –115, 192 Rothstein, Edward, 197–198 Shrimpers, 176 Rowe, Eva, 106 Sidanco, 41– 43 , 27, 35, 44, 50, 142 Sierra Club, 96 Rumaila oil fi eld, 13 –14, 45 Simon, David, 114, 115 Russia, 21–23, 41– 44 Skimming vessels, 93 –94, 147 effects of BP’s problems in U.S., 187–188 Sonangol, 38 Sonatrach, 32 Sabato, Larry, 86 Spence, Jim, 56 Safety, 86 – 87, 103, 105 –106, 112, Sporkin, Stanley, 123 119–125, 130 –133 , 57, 62 BP’s violations, 133 –134, 173 Steele, Michael, 89 on Deepwater Horizon, 156 Stokes, Richard, 53 devices, 92, 157 Stone, Stephen, 161–162 and Exxon, 128 Stupak, Bart, 122, 134, 151, 162, 163, 177 Hayward’s ideas about, 140, 141 endorses plan to punish BP, 188 individual, 125, 132 Sutherland, Peter, 100, 114, 115 –116, institutionalizing, 130 –133 118, 137 new culture of, at BP, 191–192 Svanberg, Carl-Henric, 2, 154, 182 process, 125, 127, 131, 142 Szydlowski, Norm, 123 –124, 160 –161 and rig workers, 161 Texas City refi nery, 103, 105 –106, 107, Talisman Energy, 138 108, 110, 112 Technology, 15, 34 –35, 64, 67– 68, 72 types of, 125 Texaco, 30 Salazar, Ken, 90 –91, 179, 192 Texas City refi nery, 101–114, 142 Saleri, Nansen, 168, 172–173 BP pleads guilty to felony complaint, 143 Salt domes, 71–72 fi nes, 133 Saudi Arabia, 50 –51, 53, 193 isomerization unit, 110 –111 Schlumberger Ltd., 23, 31, 144, 164, 189 need for maintenance and repairs, Schrader, Bill, 188 111–112 Scruggs, Tim, 108 production, 106 , 55 safety, 105 –106, 107, 108, 110, Segal, Lauren B., 73 132–133 SemGroup Corp., 123, 160 Thunder Horse, 10, 12, 14 –15, 60, 65, Semi-submersibles, 55, 75 –76 142, 189, 193 Senko, Dave, 101–104, 111 problems, 68 September 11, 2001, 83 production, 69

225

bbindex.inddindex.indd 225225 112/1/102/1/10 7:05:427:05:42 AMAM INDEX

Thunder Horse (Continued ) Valdez, Alaska, 57, 120 size, 66 – 67 Van der Veer, Jeroen, 115 and technology, 72 Venezuela, 51, 53, 140 Tiber fi eld, 6, 15, 73 –74, 78 Venz, Steve, 147 Tillerson, Rex, 128 –129, 159, 165, 178 Vidrine, Donald, 170 –172 TNK-BP, 22, 41– 43, 138, 187–188 Viosca Knoll, 158 Tobey, Phil, 75, 173 Top kill effort, 148, 175, 178 Walz, Gregory, 164 Total (oil company), 30 Wang, John, 158 Trans Alaska pipeline (TAPS), 57, Watson, John, 178 119–120, 124 Watts, Phil, 114 –115 Inc., 6, 18, 64, 129, 155, Waxman, Henry, 134, 150 –151, 157, 191 152, 162, 163 –164, 177 blamed for Deepwater Horizon Well control situation, 6, 159, 167 explosion, 146 West, J. Robinson, 70, 191 blowout preventer testing, 161, 168 Westlake 4, 61, 147 criticisms of conclusions about West Sole fi eld, 55 explosion, 169 Westwell, Steve, 145 problems encountered with well before Wheeler, Wyman, 171 explosion, 158 –165 Whistleblowers, 123 workers miss signs of problems, 166 –167 Whiting, Indiana, refi nery, 142 Trinidad, 30, 41 Williams, Mike, 5 –9, 16, 161–162, Tubular Bells, 189 167, 168 Turbidites, 64 World War I/World War II, 49 Turtles, 40, 138 Yamal oil fi elds, 188 Ursa fi eld, 62, 71 Yeilding, Cindy, 63, 64 – 65, U.S. Geological Survey, 177 72, 78 Ust Vakh oil fi eld, 188 Yergin, Daniel, 31, 56

226

bbindex.inddindex.indd 226226 112/1/102/1/10 7:05:427:05:42 AMAM