BP’s heir has right accent but not background
Bob Dudley, BP’s likely next chief, may be a superb diplomat. But the American executive’s roots at Amoco — the oil company BP acquired in 1998, and which has been the source of most of its safety problems — make him a less than ideal choice to reform BP’s flawed corporate culture. A fresh hire from outside arguably stands a better chance of transforming BP.
At first blush BP’s expected appointment of Dudley, as soon as Tuesday, looks like a break with tradition. As successor to Tony Hayward, Dudley would be the first non-British CEO at the former government-owned company. And with his southern drawl and calm confidence, the Mississippi native is well placed to repair BP’s shattered relations with Uncle Sam. Placating U.S. anger over BP’s Gulf of Mexico fiasco is BP’s most pressing task. Being squeezed out of growth opportunities in America — where it is the largest domestic oil producer — threatens the firm’s independence.
But there is more to the job than glad-handing lawmakers and officials. The new chief’s task will be to succeed where Hayward failed, in restoring BP’s reputation for technical competence and high safety standards. A root-and-branch reform of the firm’s procedures will be needed, along with incentives for staff to comply with them.
Anointing another insider who rose through the ranks under former boss Lord Browne — while at the same time perhaps reshuffling Hayward, rather than cutting ties with him — raises doubts about BP’s desire to reinvent itself. Dudley hails from the most accident-prone quarter of BP’s empire, joining Amoco in 1979 and rising to head of group strategy.
Indeed, it was from Amoco that BP inherited the Texas City Refinery, where 15 workers were killed in a 2005 blast. Long before BP’s takeover Amoco’s safety record had been tarnished, notably by the 1978 Amoco Cadiz tanker spill, the largest of its kind at the time, and a fatal 1980 chemical plant explosion in New Castle, Delaware.
Of the internal candidates, Dudley was surely the politically shrewdest choice. And it’s true that a newcomer would struggle to rapidly understand BP’s maze of businesses — one reason that most big oil companies like to promote from within. But with BP’s long-term survival hinging on a profound cultural shift away from its corner-cutting past, now might have been a good time to depart from this industry custom.


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PR move, and not a very shrewd one, though in all honesty there is no easy answer for BP. It does show one important thing (that not many people jump recognize): USA still has power over foreign corps unlike any other country. Can you see China or Russia, Germany or Japan having the power to get a foreign CEO of a mega-corp replaced with one of their citizens? NO CHANCE!
Based on what about Duley, he sounds that he could do the job in the administrative and pr areas, but doesn’t have the technical back-ground.
What it boils down to is: what he says is true; will what he says will be done, actually be done in a timely manner? Currently, to this date, we have not seen this and people are hurting, along with the enviorment.
A short time will tell.
This article neglects to mention that Dudley is a trained petroleum engineer, and has worked in a variety of technical roles during his career. You do not get to this level of a company like BP without understanding how the rocks and valves work.
Culturally, he is his own man, and showed his ability to adapt to the circumstances in Russia.He knows what the challenge is and will rise to it.
What BP needs is not just a change in face to placate some of its largest customers. It needs a total revamp of its cultural fabric~for which Dudley is not a likely candidate.Trained petroleum engineer do not ensure that he has ethical mores and adaptation to circumstances to places like Russia may not be a great trait. There is a need for a person who understands the present circumstances and try for great solutions.