Lord Browne's Poor Record at BP

BIG FAT STORY

BP’s buyouts of smaller, often failing, oil companies—most notably Amoco and Arco—marked the start of the Lord Browne era, a time in which the company grew enormously. Exploration and production earnings rose 54 percent, while those for refining and marketing fell by 29 percent, the BBC reported in 1999. As history made evident, however, such success would come at a serious price.

credit: James A. Finley / AP Photo

Oil Spill

Deepwater Horizon Rig Explodes

And pinpoints failures of the Browne-era.

The Daily Beast

Takeover Raids

BP Seizes Control of Failing Oil Companies

As part of aggressive expansion strategy.

BBC

BP’s buyouts of smaller, often failing, oil companies—most notably Amoco and Arco—marked the start of the Lord Browne era, a time in which the company grew enormously. Exploration and production earnings rose 54 percent, while those for refining and marketing fell by 29 percent, the BBC reported in 1999. As history made evident, however, such success would come at a serious price.
credit: James A. Finley / AP Photo

THE SINS OF BP'S GODFATHER

The U.K. government appointed former BP chief Lord Browne as its new efficiency czar—a disturbing and controversial move, considering the role Browne, who led the oil giant between 1998 and 2007, played in the gushing Deepwater Horizon spill. The Daily Beast takes a look at the larger story behind his spotty tenure.

Disaster Strikes

Texas City Oil Refinery Explodes

Due to years of infrastructure mismanagement.

Esquire

On March 23, 2005, an explosion at a refinery in Texas City, Texas, killed 15 workers and injured 170. Caused by cost cutting, massive production pressures, old equipment, and exhausted employees—some of whom worked 12 hours a day for 29 days straight—the problems were largely facilitated by Lord Browne, who ordered 25 percent cuts across the board. “Flagrant violations of law and sense” is how Brett Coon, the lawyer who investigated BP in the aftermath, put it to Esquire. OSHA later fined BP $87.4 million—the largest fine in the administration’s history—after the oil company’s failure to comply in several hundred instances. According to The New York Times , OSHA issued BP 271 notifications and identified 439 “willful and egregious” violations.
credit: Tony Gutierrez / AP Photo

In 2002, California officials alleged that BP had falsified inspections of fuel tanks at a Los Angeles area refinery. More than 80 percent of the facilities didn’t meet the requirements, and inspectors had to get a warrant before they checked the tanks. A lawsuit brought by the South Coast Air Quality Management District was settled for more than $100 million.

credit: LM Otero / AP Photo

Avoidance Techniques

BP Falsified Fuel Tank Inspections

In an attempt to avoid California regulations.
The Washington Pos

Sex Scandal

Lord Browne Forced to Resign

After lying about gay relationship.

The Guardian

In May 2007, a newspaper revealed Lord Browne had lied about how he had met Jeff Chevalier, his Canadian partner between 2002 and 2006. Browne claimed they met while running in a London park; in fact, they met via suitedandbooted.com. Already having announced he would retire by the end of 2008 after a series of operational gaffes—the Texas City explosion, the various Alaskan oil spills—this was the final straw. Tony Hayward, his designated successor, was immediately appointed.

credit: Tony Gutierrez

In March 2006, an oil worker smelled hydrocarbons, which led to the discovery of a 267,000-gallon oil spill in Prudhoe Bay, Alaska—the largest oil spill to ever occur on the tundra of the state’s North Slope at the

time. A result of decaying pipes in an aging system, this wasn’t the pipeline’s first leak during Lord Browne’s tenure, either. In fact, just five years before, 285,000 gallons spilled out after a hunter shot the pipeline. More problems in Alaska continued from there. As ProPublica reports, between September 2008 and November 2009, three BP gas and oil pipelines on the North Slope ruptured or clogged, leading to a heightened risk of explosions.

credit: Al Grillo / AP Photo

Leaking Pipes

Oil Repeatedly Spills

From pipelines on Alaska’s North Slope.

The New York Times