Bp Texas City Case

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BP TEXAS CITY When BP’s Horizon oil rig exploded in the Gulf of Mexico in 2010, it triggered tragic reminders for experts in the safety community. In March 2005, an explosion and fire at British Petroleum’s (BP) Texas City, Texas, refinery killed 15 people and injured 500 people in the worst U.S. industrial accident in more than 10 years. That disaster triggered three investigations: one internal investigation by BP, one by U.S. Chemical Safety Board, and an independent chaired by former U.S. Secretary of State James Baker and an 11-member panel that was organized at BP’s request. To put the results of these three investigations into context, it’s useful to understand that under its current management, BP had pursued, for the past 10 or so years before the Texas City explosion, a strategy emphasizing cost-cutting and profitability. The basic conclusion of the investigations was that cost-cutting helped compromise safety at the Texas City refinery . It’s useful to consider each investigation’s findings. The Chemical Safety Board’s (CSB) investigation, according to Carol Merritt, the board’s chairwoman, showed that “BP’s global management was aware of problems with maintenance, spending, and infrastructure well before March 2005.” Apparently, faced with numerous earlier accidents, BP did make some safety improvements. However, it focused primarily on emphasizing personal employee safety behaviors and procedural compliance, and on thereby reducing safety accident rates. The problem (according to CSB) was that “catastrophic safety risks remained.” For example, according to the CSB, “unsafe and antiquated equipment designs were left in place, and unacceptable deficiencies in preventive maintenance were tolerated.” Basically, the CSB found that BP’s budget cuts led to a progressive deterioration of safety at the Texas City refinery. Said Ms. Merritt, “In an aging

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