Sunday, 12 February 2012
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The Hayward Legacy

MBA media relations modules will have no finer case study than that of Tony Hayward’s handling of the massive oil leak in the Gulf of Mexico, which appears to have cost him his job.

BP’s board meets today to consider Hayward’s exit strategy, with speculation in the press that his settlement package will be worth up to £12m.

For many weeks the focal point of the disaster, Hayward is likely to be remembered more for an ill judged comment about wanting his life back, a yachting weekend with his son and evasiveness during Congressional hearings than helping to oversee the capping of the leak.

Many questions remained unanswered about the events that led to the explosion on the Transocean Deepwater Horizon drilling rig on 20 April and subsequent failure of the blowout preventer.

The Engineer would in no way underplay the loss of life, the environmental disaster that followed the accident plus knock-on effects of the spill in the region.

However, disasters like this need a scapegoat. It can’t be denied that, for some Americans, Hayward’s stumbling handling of the disaster was compounded by his English accent, the incorrect renaming of BP to British Petroleum by some politicians, and the huge surge in anti-BP sentiment, and it’s the combination of these which appear to have conspired to squeeze him out. Let’s not forget also that there is pressure at the highest level of US government, especially with mid-term elections taking place this November.

If Hayward departs he is likely to be replaced by his American colleague Bob Dudley, currently director of the company’s US and Asian activities, who has taken charge of the clean-up operation.

Remaining with energy, and news that PricewaterhouseCoopers (PwC) has revealed that offshore wind farm developers face a £10bn funding gap by 2015 if new sources of finance are not made available for pre-construction stages.

According to PwC, an additional 27GW offshore wind generation capacity is required to meet the UK’s 30 per cent renewable generation target by 2020.

PwC estimates that less than half the average annual roll out rate of 1.1GW needed to meet this target was achieved last year.

Still with targets, this time in the East End of London and news that this week sees the Olympic Delivery Authority’s deadline for completion of its latest set of milestones, known as ’The big build: structures’.

This includes completion of the structures of the main sporting venues on the Olympic Park and the majority of homes in the Olympic Village, which will comprise 11 blocks of residential apartments each around the size of a football pitch. Come 2012, they will house 17,000 athletes and officials, as well as shops, restaurants, medical, media and leisure facilities, and large areas of open space.

Readers' comments (18)

  • I think your article sums the situation perfectly. They wanted a scapegoat; he willingly obliged. The initial loss of life is still the major sadness in all this controversy, what is now needed is a real plan to stop this ever happening again, not just a PR version of 'replace the Brit with a Yank' to satisfy the credabilty gap.

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  • I don't think that the need is to replace a "Brit with a Yank," the need is to place a firm hand on the helm of a rudderless ship. BP (whatever it stands for, a company cannot simply replace "British" with the trite "Beyond" and expect the world to care) is being exposed as a complany who has cut corners whenever and where ever possible. The American government (particularly the previous administration) is complicit in this drift away from a responsible approach to the risks being undertaken. I hope that this disaster will be taken seriously, and the proper measures will be required to minimize the likelihood and scope of any future accidents

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  • Remembering the size of my redundancy package from BP, I clearly didn't do nearly badly enough! Please may I have another go?

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  • I totally agree.

    It would also be good if some focus could be put on what the US oil industry does in Nigeria year-on-year, and the US responsibility for Bhopal. But clearly these "far away" places don't matter a jot to the average US citizen...

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  • My honest opinion:
    It doesn't sum it up well at all - He is not a "scapegoat" - he IS responsible and in any business someone HAS to be accountable - that's what some very high paid people get paid for.
    His ethics are all wrong and it comes across clearly in his interviews: openess, honesty and remorse would have sent a clear message to the families left behind, shareholders, americans, etc. and he might have kept his job!

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  • It is true that scapegoating is and always has been part of the American political process. When a huge mulitnational like BP has a huge environmental disaster it becomes a political issue and how can that not be so?

    Regardless of style and perception, actions do speak loudest. Alan Mulally did not appear any more practiced politically than the other two Big Three execs that went through the ritual beating in front of Congress. But he still has a job becuase he took actions that did not require political intervention to save his company.

    Tony Hayward's fondness for yacht racing or his English accent would not be an issue if the oil rig had not blown up and sank and if BP had been not tried all it could in the first days of the disaster to minimize what was happening. What ever happened to blood, toil, tears and sweat?

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  • When stones are thrown in the glass house every one gets cut. I do not believe that the credibility of the US government will not be effected by this sad event.

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  • I agree with many of the other comments, find an easy scapegoat - at the end of the day somebody's head was going to roll. Replace the Brit with a Yank does ring out with a few people however, Mr Hayward's PR has been a total disaster throughout and done him no favours at all.....

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  • I think Tony Hayward was unfortunate to be dealing with Americans who historically accept no blame for any of their companies' actions only to point fingers elsewhere. Their hunt for any dirt against BP should be directed into their own backyard, well done to the Scots for declining to attend their committees.

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  • How come the AMOCO part of this deal has been so easily forgotten?
    What makes Congress think it can throw its weight around and fool all of the people all of the time?

    This leak has shown Congress and the American government up as holding vested spiteful interests above the prompt effective resolution of problems.

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