Updated: 06:15, Thursday May 17, 2007
Congressional investigators have turned up a “mountain” of evidence the oil spill in BP’s Prudhoe Bay oil field in Alaska was caused by heavy cost cutting.
The cuts led to the worst oil spill on the North Slope last March, the people investigating the spill said.
The root causes of the spills in Alaska showed “striking similarities” to those that caused a 2005 explosion at BP’s Texas City, Texas, committee members found.
The spill at that refinery left 15 workers dead and at least 170 injured.
But BP America CEO Bob Malone earlier insisted cost cutting was not the problem.
He said BP was working to overhaul its operations on the recommendation of independent consultants.
The consultants had argued that Texas City and Alaska both showed BP managers had blurred responsibilities that led to poor assessments of risks.
BP “must change the way we identify, assess, understand and communicate risk… (and) change the way we integrate what we have learned into our operations and budget decisions,” Mr Malone stated.
http://news.sky.com/skynews/article/0,,30400-1266055,00.html
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