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October 14, 2010

Cost Vs Process Safety - the perennial question

An article mentions that in the recent BP Deep Horizon oil spill, "Cementing contractor Halliburton had warned the well needed 21 so-called centralizers, devices used to reduce the risk of gas leaking into the well. But Mr. Walz testified that he felt a safe cement seal could be obtained by simply spreading out six centralizers BP already had. He said he and colleague John Guide thought that would "honor the modeling" from Halliburton.
That's as wishful -- and seemingly irresponsible -- as the response another BP engineer had given Halliburton before the disaster, saying that "hopefully the pipe stays centralized due to gravity."
BP engineers knew they were dealing with a difficult well and that more than 120 workers were at the Deepwater Horizon rig. Why, then, would BP personnel be so seemingly cavalier about a crucial part of the process? Mr. Walz and Mr. Guide may have provided the answer when they said BP employees are graded every year based on how much money they save the company".

Read the full artcile in this link.

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