Avoiding Corporate Breakdowns: The Nature and Extent of by LaRue Hosmer, Patrick J. Barry (auth.)

By LaRue Hosmer, Patrick J. Barry (auth.)

Avoiding company Breakdowns makes a speciality of prescribing a preventative procedure for managerial actors who face financial, social and environmental mess ups. Prevention is essentially easy, however it would require a substantial broadening in either the character and the level of managerial responsibility.

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The drilling shack where the tests were being conducted was crowded. It was after 6:00 in the evening, and the two shifts were changing (it is traditional in deepwater drilling that the 12-hour shifts that are needed to keep the expensive drilling platforms fully productive change at 6:00 in the morning and at 6:00 in the evening). In addition, there was a group of visiting executives from Houston, two from BP and two from Transocean, who had been brought into the drilling shack as part of their scheduled tour of the drilling rig just before it was to be disconnected from the Macondo wellhead and towed to its next drilling assignment.

0333 probability of cutoff failure? 2. Long-string riser : Why did the involved managers at BP, doubtless after consultation with others in similar positions at Halliburton (the specialty cement contractor for the Macondo well) select the long-string riser despite the acknowledged difficulties of forming the cement seals that were so essential for well closure protection? 3. Spacers for the risers: And, why did those same involved mangers at BP require that the Transocean crew go ahead with the installation of the long riser pipe despite the lack of over half the needed riser spacers needed to center that pipe and prevent swaying movements in order to eliminate the danger of forming channels in the bottom cement plugs?

It would be possible, of course, to take the historical data sets, divide those data sets into groups by their depth range, look for trends in petroleum fluid and natural gas leakage between those groups as the depth and pressure increased, adjust those trends for the type of equipment employed and the nature of the pipes and compounds used, and then project those trends to the five mile total depth of the Macondo well, after it was completed, and just prior to its closure. But suppose the relationship between the total depth of an oil well and the statistical probability and financial impact of a hard-to-control blowout, explosion, and fire is not linear, or curvilinear, but discontinuous.

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