BP's Worsening Spill Crisis Undermines CEO's Reforms

[Omaha Steve]

http://online.wsj.com/article/SB10001424052748704093204575215981090535738.html?mod=rss_whats_news_us

By GUY CHAZAN

LONDON— Tony Hayward thought he had finally slain all of BP PLC's demons. Now a new one has reared up, and it's the size of Puerto Rico.

BP's chief executive is coming under mounting pressure over the vast spill spreading in the Gulf of Mexico, which was caused when a giant drilling rig there caught fire and sank, with the loss of 11 crew members. The oil, still spewing from the well on the ocean floor, threatens to blacken the Louisana shoreline, and BP's reputation.

From the moment Mr. Hayward learned of the disaster—in a 7:24 a.m. phone call over breakfast on April 21—he has been faced with the reality that this incident could erase his rehabilitation of the British oil giant.

On Sunday, President Barack Obama, who has said BP would be held ultimately responsible for the costs of the clean-up, arrived in Louisiana to hold crisis talks with local officials. Strong winds hurt clean-up efforts as the slick drifted closer to the Louisiana coast.
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When Mr. Hayward took over BP's leadership from John Browne three years ago this week, the company was at one of the lowest points in its history: badly run, accident-prone and accused in the aftermath of a deadly explosion at its Texas City refinery of putting profits before safety. Mr. Hayward turned BP around, boosting production, cutting costs and significantly reducing on-the-job injuries. Last month, he was confident enough to talk of an irreversible "change of culture" at BP.

FULL story at link.

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