Tony Hayward To Hand Over Day-To-Day Gulf Operations

Tyler Durden's picture

From Sky News. Presumably someone else at the firm knows how to handle the world's biggest environmental catastrophe better than the current CEO. We can't wait to see what "upside" case studies develop as a result of a token regime change.

From Sky News:

BP's chairman Carl-Henric Svanberg has told Sky's Jeff Randall that embattled chief executive Tony Hayward is to have a changed role in dealing with the oil spill.

Asked by Randall about Mr Hayward's ongoing role, Mr Svanberg said: "He is now handing over the operation to Bob Dudley."

Mr Dudley is the managing director of the oil giant.

Mr Svanberg also told Randall that comments by Mr Hayward have had detrimental effects as the company seeks to control the fallout from the disaster.

"It is clear Tony has made remarks that have upset people," Mr Svanberg said.

Mr Svanberg admitted that the disaster is turning from an industrial accident into a much broader concern and he will now expand his own involvement.

"This has now turned into a reputation matter, financial and political and that is why you will now see more of me," Mr Svanberg.

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economessed's picture

So I'll ask again:  what is the plan to stop the oil from leaking out of the sea floor?  More Congressional hearings didn't work....

RichardP's picture

Relief wells - more than half-way there.  Estimated time of arrival at main bore is anywhere from three weeks from now to not until December.

 

DosZap's picture

econ,

with as much BULLSHIT that flowed, by Congress, and the Admin, you would think at least it would slow the flow.

Someone needs to float an idea to pump in a few hundred tons of Preparation H.

Anything but finger pointing.

Horatio Beanblower's picture

When the world needed another Winston Churchill, all we got was another Hugh Grant.

sdb5057's picture

Why can't they build a giant concrete block and just drop it on the hole?

Cursive's picture

They had better have an alternate for when the relief well doesn't work.  Many signs point to another FAIL.

Chemba's picture

LOL, that's funny!

But there is a good reason that you can not plug the well at the sea floor; the concern is that the well bore is fractured, and the well pressures are extreme, so if you simply plug the top of the well, at the sea floor, with a "giant cork", you would risk an eruption of the well pressure out through the well bore fracture and up through the sea floor.  At that point you would have a complete blowout and no way to manage, except for a relief well plug.

Inspector Asset's picture

I say 3 to 1 odds that Goldman is picked as the bank to handle the 20bil in escrow.

Obama is eager to start cutting checks.

Ironically the oil spill has produced more in terms of GNP, stimulus/cleanup; than was lost in tourism and industry.

 

Dont quote me on that though. 

You can quote me on is that there most difently something being kept from the public, in terms of the oil spill. 

 

RichardENixon's picture

My guess on what's being kept from the public is that we're going to have to figure out a way to deal with about 2 billion gallons of oil in the Gulf of Mexico. Maybe even 2 billion barrels.

naiverealist's picture

The field has been estimated to consist of around 7 billion barrels.  Imagine that in the Atlantic ocean and Gulf waters.  Imagine the impact of the toxins swirling though whale, bluefin, and other important specie migration paths. 

We have really fouled our nest this time.

I have recently read a worse case scenario in which as the oil field depletes, the pressure of the expelling gas diminishes to a point where water is able to get into the hole and surrounding strata.  What happens when this is heated to 400 degrees centigrade and explodes to steam.  It could potentially cause an eruption, blowing the silt and other sediments out and causing a tsunami on the surface that could spread inland carrying all the surface toxin for a hundred miles.  Sleep on that!

A Nanny Moose's picture

A self inflicted mass die-off would more palatable than war.

The vast majority of all species that have ever lived on the planet have gone extinct. We will be the first to do so by attempting to save ourselves....from ourselves. Sleep on that.

RichardP's picture

You obviously did not read the engineer's response to the "steam" scenario.  No 400 degrees and no steam = no erruption.  There are laws of physics that must be obeyed in all of this and they point to something less than hysteria points to.

Before we landed on the moon, we had to invent a way to do it.  If the relief wells don't do the job, engineers will invent something that will do the job.  The situation is a mess.  But it is not beyond the minds of the best and the brightest.  Morph into something new.  Not start over.

 

 

MsCreant's picture

Richard, assuming they will come up with something is, IMHO, magical thinking. I don't mean to insult you personally, just the idea that we can depend on a techno fix that is NOT in our hand.

RichardP's picture

It is not magical thinking.  It is the only way we are going to get out of this.  It will take awhile.  But - if the relief wells don't work, we are not going to just sit around and let the oil field depete itself into the gulf over however many years it will take.  I'm guessing the engineers world-wide right now are working on alternatives if the relief wells don't work.  One of the alternatives will be the solution.  Sitting and doing nothing won't be the solution.  And I'm not insulted.  Hope your folks in Florida are doing well.  Daughter just graduated 8th grade (LA - SFV).  A number of classmates are headed for Florida this evening.  None are bringing gas masks that I know of.

MsCreant's picture

Richard,

 

  1. There is no transparency, thus how can world scientists be working on it if they are not sharing information (or the same information)? Or if there is deceit/ info control?
  2. There are literal "forces" that will not let others near the site. No one can survey or do any kind of tests to see if their ideas are worth pursuing.
  3. And even if they are working on it, how will they implement the ideas if they are not attended to? Who controls who decides what to do? Politics are already slowing down some locals trying to defend against this thing. Some folks are breaking away from the Feds (near Destin) and saying fuck you, this is ours, we don't need your approval.
  4. My biggest worry, one I hear no one discuss, what if we run out of money before it is fixed? BP goes bankrupt, so do all the governments, and there are no centralized bodies big enough and solvent enough to deal with it, even if they had a workable plan.

There are a lot more things that could go wrong that are not on the list up there. I am not saying give up, I am saying plan for the worst and be ready to back off those plans if something good happens. I don't think anything better than an oily disaster, wrecked industries, and dead animals, is possible at this point. What I am worried about is ELE.

 

MsCreant's picture

Who ever junked me, please tell me where I am wrong. You would be doing me a huge favor if you did so. Thanks.

RichardP's picture

All good questions, and I don't disagree with you in general.  I'm thinking in terms of capturing oil flow out of the top of the well rather than letting the oil flow until the field is depleted.  What kind of structure(s) would one have to build to capture that on a semi-permanent basis over time?  That is a theoretical process that any engineer can be thinking through the physics of without actually needing access to the well itself right now.  It was to that process which I was referring.  If the well erodes and enlarges so that the BOP sinks into it, we are faced with something different.  But that is also a process of which the physics can be thought through without needing actual access to the well itself.  If the relief wells fail, I believe the U.S. military (or a U.N. conglomerate) will take over access to the well.  I don't believe our government will allow BP to forever block access to the well so that no "permanent" solutions can be implemented if the relief well fails.  But I'm basing that belief on common sense, not foreknowledge.  I could end up being wrong.  And I didn't junk you.

 

CPL's picture

As an engineer I honestly have no idea how they are going to fix it.

 

We are all talking about an area of the world, our deep oceans, we have about 700 hours of recorded video ever.  Most geology is theorectical in content in the purpose of deep sea exploration.  We don't send people that deep because they tend to get crushed under the weight of the ocean.

 

Seriously.  The materials we manufacture right now are strong enough to go that deep, but if watching the subs they send down, they are fragile tea cups even with 12 inches of steel around them.

 

I've been talking to at least 50-55 guys regularily since this started up and none of the math or expectations of what can be done has remotely come up with a statement of work that needs to be done.

 

The simpliest thing we have all figured out is we dug too deep without any idea on how we were going back out.  All engineering designs have at minimum 7 to 8 backout scenarios.  In this case, all 7 to 8 backout plans have only made things worse, not better.

 

Since nobody you or I know can go that deep (not even the most powerful nuclear submarine), I'll put this out there.  It won't stop until it runs out.  When one large volume becomes an empty tunnel, water will rush in and since it's around a 15km from the molten core the water will expand.  I doubt in a big explosion though.  Since it's sitting under a tectonic plate, it'll probably push the shelf.

 

basically it should be enough volume to "push" the thin skin we sit on and tear it apart.  The EMP pulse would be awesome.  Not to say this a loud but the term "we're fucked" on about ten different ways to sunday even in the best case scenario.

 

My favorite thing to watch are people talking about sopping up a water based oil spill when 90% of the oil is heavy slop around 2000 under water busily finding it's way into a nursery that supplies 2.5 billion people with fish and fish by products.

Agent P's picture

How much are you asking for the movie rights?

Cognitive Dissonance's picture

"BP's chairman Carl-Henric Svanberg has told Sky's Jeff Randall that embattled chief executive Tony Hayward is to have a changed role in dealing with the oil spill."

So the guy (Svanberg) who gave us "We care deeply about the little peoples" just fired (sorry, reassigned) the most vertically challenged member of the executive team at BP? Say it ain't so Svanberg, say it ain't so.

Personally I think it's all just a misunderstanding. You know, stiff upper lip British accent meets the great unwashed masses, meaning the "legislators" of the US Congress, every one of who are sucking deeply for re-election. I will say that at one point you could see the disgust in old Tony's face as some photographer dressed in Jeans bumped into him. For the love of God and Queen, JEANS no less. Or should I say Tony's head bumped into the other guys stomach.

At least Tony will get his life back.

Cursive's picture

Maybe when Svanberg said "small people" he was thinking of his toadie, Tony Hayward.

Cognitive Dissonance's picture

When I saw Tony get jostled by the photographer's stomach on C-Span, I realized we were dealing with "booster seat at the Congressional circus" time. The look on Tony's face for half a second is the same look I saw on my son when he accidentally put his hand in some dog poo. Yuck!

This is one aristocrat that doesn't like rubbing elbows (or stomachs) with the lower class unless it's to be handed his drink or to screw the maid, with a full body condom I might add. Which in his case would be a quart size baggie.

DaveyJones's picture

you always need a body condom when you're nothing but a dick

subqtaneous's picture

 

I can't help thinking these so-called PR gaffes are deliberately orchestrated for public consumption -- a cathartic lightning rod or pressure relief valve of sorts to take the heat and absorb the body blows.

 

dark pools of soros's picture

just the modern version of tar and feathering... in this case we really could of used the old version

hbjork1's picture

Probably a translation problem.  We like to say "small business", "common man", little guy, or refer to those who have no one to speak for them.  

I am sure Svanberg can get along in German or Finnish;  maybe Russian and French as well.  And I am sure he does better in English than you or I would do in Swedish. 

IMO, the old saw; "A liar's punishment is that he can never believe anyone else." is based upon the fact that people tend to imagine that others think as we do or are as we are.  People with different origins may live mentally in at least slightly different worlds.

Cathartes Aura's picture

agree with your well-reasoned argument, hbjork1. . .

while I would be last in line to defend BP or any of its representatives, and I don't doubt that they breathe rarefied air, it is true that many in the US speak, and think, a single language, which doesn't lend to awareness outside their "realm". . .

DosZap's picture

He's Swiss, and he likely is a bit challenged......as there are no "small" people in America, just Americans.

Maybe he was using it metaphorically, when he meant to mean the fiscally challenged..............

Personally I really liked the way Tony, basically ignored Congress...Waxman in particular, he was never rattled at all........

A CEO, is NOT the one I would go TO, ask for how to stop/seal  the oil flow.

It's his job, to go to the small people, and find out HOW to do it............

Most CEO's are abysmally unaware of how their operatonal equipment/problem solving (disasters)actually works/functions...it's not their job.

Their bottom line people................$$$$$$$$$$$$$$

Cursive's picture

There is so much pot calling the kettle black in here that I'm chuckling.  We get more of "Small People" Svanberg.  Hayword took the relatively light tongue lashing pretty well yesterday, but he probably called daddy and said he was ready to come home now.  Let's see what fresh meat we get now.  The new guy will probably have 10 times the arrogance of Hayword, but he's more like a chicken in an alligator pond.

Transor Z's picture

That's awesome, Carl-Henric. The small people will be fucking psyched to see more of you.

 

 

Cursive's picture

It would be totally awesome to drop Svanberg and Hayward off at Louisiana's Angola state penitentiary.  Think "Oz" times 10.

RichardENixon's picture

The pay per view take on that would be enough to fund the whole 20 billion.

buzzsaw99's picture

The little maggot got his own jet airplane.

 

http://www.youtube.com/watch?v=V5ZEzWwKJnY

Ripped Chunk's picture

He will run home to Mummy and cry on her lap.

"Mummy, I didn't want to be a geologist anyway. What I really wanted to be is a lion tamer!"

What a useless bag of shit he is.  What else is new??

Cognitive Dissonance's picture

"What a useless bag of shit he is." 

The bad news is he feels the same way about us. "It just a little spilled oil after all. What do you scum want?"

Slightly off topic, MCC on CNBC is standing in front of a screen talking about BP's failed drilling techniques and the caption reads "Deeper, Harder and Faster".

Sorry but I'm confused. Are they talking about BP or MCC?

RichardENixon's picture

They're talking about what Erin will be saying to me tonight around midnight.

etrader's picture

I bet MCC(s) agent is grining from ear to ear..... (Ms Drury's wont be)

http://dealbreaker.com/2010/06/cnbc-announces-new-tagline/

Dealbreaker's tagged it :-)

 

Cognitive Dissonance's picture

Thanks for the picture as proof. I couldn't believe it at first, it was so surreal.

etrader's picture

BI also running with the tag.

MCC(s) agent must be hitting every in-box

http://www.businessinsider.com/cnbc-picture-of-the-day-deeper-harder-and...

Just waiting for ZH's version :-)

Ripped Chunk's picture

I'm glad that he feels that way about us.

That way if I ever do run into him in person he understands why he ended up spending 15 weeks in ICU. No hard feeling mate!

hbjork1's picture

Listening to the news, seeing the visuals from the leak site, hearing projections of people like Simmons, I do not understand why Obama has not made this a national mini-emergency.  The emergency plan document shown by the oil company management was pathetic.

The US Navy has deep submergence vehicles, robotic and otherwise.  The absolute deep of the gulf is a little over 12,000 ft and much of it is less than 10,000 ft. The paper planning should include the nuclear option. 

http://www.navy.mil/search/display.asp?story_id=47078

The Gulf is a very large area but if cracks leaking in places other than the well are assumed, people should be there now surveying with the unmanned vehicles. 

The Navy should have been (and we can only hope that they have been)  doing the planning  and pre- preparation for the most extreme of the solutions as projected by outside expert Simmons.  IMO, planning means the paperwork for emergency approvals, specific location of materials, specific location of means of transport, specific identification of personnel and whaterever other PAPERWORK needs to be done so that the deploymnet of people and materials can be expedited IF other leaks are located.

Curse ships, or at least one I was on, had emergency training for all passangers. Where to gather, which lifejackets to put on, which life boats were assigned.  Airline personnel do a review of emergency procedures for EVERY flight (even if passengers know the routine).

Why couldn't the oil company managements have better planning in place than the 19 page boiler plate that was being displayed on C-Span.  Those multimillion dollar CEOs looked pretty pathetic with that one. 

 

 

RichardP's picture

From Day 1, most oil-field experts have said the relief wells are the only solution likely to work to control the erruption of oil.  They started the relief wells immediately.  That was their emergency plan and they implemented it immediately.  Everything else is secondary.  But the people must be entertained during the months it takes to drill the relief wells.

This is not a defense of BP.  Just an application of logic.

 

sheeple's picture

phew I thought they are going to can him

LoneStarHog's picture

By: Sorcha Faal, and as reported to her Western Subscribers

A dire report circulating in the Kremlin today that was prepared for Prime Minister Putin by Anatoly Sagalevich of Russia's Shirshov Institute of Oceanology warns that the Gulf of Mexico sea floor has been fractured “beyond all repair” and our World should begin preparing for an ecological disaster “beyond comprehension” unless “extraordinary measures” are undertaken to stop the massive flow of oil into our Planet’s eleventh largest body of water.

Most important to note about Sagalevich’s warning is that he and his fellow scientists from the Russian Academy of Sciences are the only human beings to have actually been to the Gulf of Mexico oil leak site after their being called to the disaster scene by British oil giant BP shortly after the April 22nd sinking of the Deepwater Horizon oil platform.

BP’s calling on Sagalevich after this catastrophe began is due to his being the holder of the World’s record for the deepest freshwater dive and his expertise with Russia’s two Deep Submergence Vehicles MIR 1 and MIR 2 [photo below] which are able to take their crews to the depth of 6,000 meters (19,685 ft).

RichardENixon's picture

Do they have any opinion who's gonna win the England-Algeria match?

MsCreant's picture

Richard lives in NOLA. Leave him alone. Me, I'm scared.

RichardENixon's picture

I'm in a city 10 feet below sea level with millions of barrels of oil floating around in the water 25 miles from me during what is predicted to be a busy hurricane season after having been through Katrina and its aftermath and I can't leave because I have kids living here and an ex-wife who won't let me take them somewhere else to live without my being charged with kidnapping.  Allow me my stupid little jokes, please, or I may finally crack.

RichardP's picture

If you are serious, petition the court for permission to leave until the crises is over and promise to bring them back if it is safe then - based on doing what is in the best interest for the kids (better air to breath, etc.)  You might be pleasantly surprised at the court's response.