BP: The Ongoing Issue of Safety
The British multinational oil company BP (formerly known as British Petroleum) is not new to controversy. It has a reputation for taking risks and has suffered a number of safety breaches. In the 1960s, it had the worst safety record in the oil industry and was responsible for the massive Torrey Canyon oil spill off the British coast. In 1995, John Browne became CEO and moved the company in the direction of aggressive expansion. Browne also tried to improve the company’s safety record; however, after the company’s acquisitions of Amoco and Arco, it was strapped for cash. As a result, neither Browne nor his successor, Tony Hayward, had sufficient funds to upgrade worn-out facilities to the extent needed, and the company has been experiencing safety incidents as listed below:
• In 2005, 15 workers died and more than 170 workers sustained injuries in a Texas City Refinery explosion.
• In 2006, the Thunder Horse production platform in the Gulf of Mexico almost sank in a hurricane when workers installed a valve backward.
• Pipeline corrosion in the Prudhoe Bay oil field on Alaska’s North Slope in the same year caused a major oil spill.
• The company’s Ohio and Texas refineries accounted for 97% of the U.S. Occupational Safety and Health Administration 2007–2010 “egregious” and “willful” violations.
It is evident that an underlying structure or set of structures have been responsible for BP’s failures in the area of safety. As discussed in Module 5, structure shapes a system’s behavior or behavioral patterns; therefore, to change a specific behavior, management needs to change the underlying structure from which the behavior emerges. Accordingly, conduct research to collect information about BP in relevant areas. Next, identify and utilize one or more proper Systems Archetype(s) as a diagnostic tool to gain insight into and analyze the underlying structures that have been contributing to BP’s safety issues. (1) Present your analysis of the behavior of BP’s system and (2) make proper recommendations to help BP reduce its safety problems. Please offer and justify short-term and long-term solutions. You can use Systems Thinking to inform your justification. A key resource for this assignment is William Braun’s article, “The System Archetypes,” which is available inside Module 5. This article provides sample cases, analyses, and recommendations that help to utilize Systems Archetypes more effectively. The case analysis will be 4-6 pages (excluding cover page and reference page); APA writing conventions should be followed with a minimum of six (6) sources referenced and cited.
Components % of Grade
Case Analysis 25%
Application of Ethics Concepts, Frameworks, and Techniques 30%
Recommendations 25%
Technical Requirements 15%
Citations 5%
TOTAL 100%
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Analysis of BP’s Safety Failures Using Systems Archetypes
BP has consistently struggled with safety breaches over the years, as highlighted in various incidents such as the Texas City Refinery explosion, the Thunder Horse platform mishap, and significant oil spills. To understand the underlying structures contributing to these issues, we will apply Systems Thinking and Systems Archetypes, tools that provide insight into how behavior emerges from organizational structures and dynamics.
Key Systems Archetypes to Apply:
- Fixes that Fail
This archetype occurs when short-term solutions or fixes are implemented without addressing the root cause of the problem. In BP’s case, while the company attempted to improve its safety record under CEO John Browne by expanding, the fixes (acquisitions of Amoco and Arco) did not account for the long-term investment needed in infrastructure, leading to safety lapses. Fixing symptoms without addressing core systemic issues is a key characteristic of this archetype. - Shifting the Burden
BP seems to have engaged in shifting the burden by addressing safety issues on the surface (such as reorganizing or improving safety protocols) while avoiding deeper structural changes, like investing in infrastructure upgrades. The long-term problems of aging facilities and insufficient cash flow to upgrade them were not tackled adequately, leading to recurring safety failures. - Tragedy of the Commons
This archetype occurs when shared resources (in this case, BP’s safety budget and attention) are overused or mismanaged due to a lack of coordination. The lack of sufficient investment in safety infrastructure, despite the company’s significant profits and the public importance of safety, may suggest an organizational breakdown in prioritizing shared goals such as worker safety and environmental protection.
1. Behavior Analysis of BP’s System
The behavior of BP’s system has largely been reactive rather than proactive. The recurring safety incidents suggest that:
- Short-term financial decisions have been prioritized over long-term safety investments.
- Inadequate infrastructure maintenance has created vulnerabilities, resulting in preventable disasters like the Texas City Refinery explosion and the Prudhoe Bay oil spill.
- Safety concerns have been managed as isolated issues rather than as part of a systemic problem that requires deep structural changes to organizational culture and resources.
These recurring safety failures indicate a systemic problem rooted in BP’s organizational structure, decision-making processes, and resource allocation.
2. Recommendations to Improve BP’s Safety Record
Short-Term Solutions (1-2 Years)
- Immediate Safety Audits and Inspections
Conduct thorough audits of all existing facilities, pipelines, and refineries to identify immediate safety hazards. Prioritize inspections based on potential risks to employee and environmental safety. Implement temporary fixes or shutdowns as necessary to address the most critical risks. - Enhanced Training and Safety Protocols
Launch a company-wide safety awareness program focusing on specific risk areas, such as proper installation procedures and maintenance of equipment. Increase worker training and introduce regular, mandatory safety drills to ensure that employees are equipped to deal with hazardous situations. - Strengthen Communication Channels
Improve communication between workers and management regarding safety concerns. This could involve implementing regular feedback loops, anonymous reporting mechanisms, and creating a culture of open communication where employees feel comfortable reporting safety issues.
Long-Term Solutions (3-5 Years)
- Infrastructure Investment and Modernization
BP needs to dedicate sufficient resources to upgrade aging facilities and replace outdated equipment. The company should allocate a specific percentage of annual profits toward a safety and infrastructure fund dedicated to ensuring long-term safety improvements. This aligns with the “Fixes that Fail” archetype, addressing the root causes of BP’s safety problems rather than offering temporary solutions. - Systems Thinking Approach to Safety Culture
BP should implement a systems thinking approach to safety, which involves seeing safety as a shared responsibility and understanding the interconnectedness of various factors. This means analyzing the whole system—such as leadership, resource allocation, worker training, and maintenance practices—and addressing the systemic causes of safety failures rather than just symptoms. - Long-Term Safety Leadership and Culture Change
The company should establish a dedicated safety leadership team focused solely on safety metrics and improvement. This team should report directly to the board and be empowered to make decisions regarding safety without budget constraints. Additionally, BP should work to instill a safety-first culture, where safety is embedded into the company’s values, goals, and incentives.
Conclusion
By applying Systems Archetypes like Fixes that Fail, Shifting the Burden, and Tragedy of the Commons, we can diagnose the underlying structures contributing to BP’s repeated safety issues. Short-term solutions focused on immediate safety improvements can offer some relief, but it is the long-term solutions—like infrastructure upgrades, systems thinking, and leadership changes—that will provide sustainable results. Only by fundamentally restructuring its approach to safety can BP ensure that these failures are not repeated in the future.
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