❗Help close the gap: We still need to raise $40,000 by the end of March. Donate now

BP cracks down on problems

Sam Eaton Oct 11, 2007
HTML EMBED:
COPY

BP cracks down on problems

Sam Eaton Oct 11, 2007
HTML EMBED:
COPY

TEXT OF STORY

Doug Krizner: Oil giant BP is expected to announce a management structuring this morning. The move is a bid to regain investor confidence after a series of accidents. Marketplace’s Sam Eaton reports.


Sam Eaton: First, there were the highly publicized oil spills in Alaska. Then, a fatal explosion at a Texas refinery. Throw in serious production delays and Tony Hayward’s new job as the head of BP isn’t exactly pressure-free.

Fadel Gheit: He has to deliver.

Fadel Gheit is an oil analyst for Oppenheimer and Company:

Gheit: Not only he has to deliver, he has to deliver big results, and soon.

Gheit says BP’s fall from grace comes down to one simple thing: inefficiency. But he says that’s about to change.

Gheit: They’re going to be paying more attention to operating excellence, and this is basically what really separated BP from the likes of Shell and Exxon.

Analysts say the changes should save BP money. But the oil giant hasn’t set any specific targets.

In Los Angeles, I’m Sam Eaton for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.