BP Gulf Spill: Meet Bob Dudley, the New Man in Charge
Robert "Bob" Dudley, the former Mississippian who was once a candidate to become BP's CEO, will take over the Gulf oil spill response and replace his boss Tony Hayward, the man who ultimately got the top executive post. The change, planned for weeks and made official today, couldn't have come sooner. And the job couldn't be more difficult, thanks to Hayward's piss-poor handling of the clean up, claims process and containment effort, which after some success took a turn for the worse Wednesday when an underwater robot collided with the containment cap placed over the leaking well.
Hayward has been more than embarrassment for BP. His persistent mishandling of the Gulf oil spill has exposed BP to greater financial risk. Widespread complaints about BP's claims process, its lack of transparency with U.S. government agencies -- not to mention Hayward's callous "I'd like my life back" remark -- sent lawmakers into a public tizzy and led directly to the White House's demand for a $20 billion escrow account to pay for the Gulf spill. In other words, Hayward helped light the fuse that obliterated BP's image and its financial security.
Now that Dudley is officially in charge, what skills and attributes does he bring to the Gulf?
In its statement on the new Gulf Coast Restoration Organization, BP tries to sell Dudley as the congenial good ol' boy, a local you can trust. And as silly as it may seem, it's a powerful symbol to Gulf coast residents. Here is a guy, who on the face of it, understands what the Gulf means. Dudley's roots may give him a little more credibility in the Gulf than Hayward, but it will be his experience in Russia that will help him steer BP through this disaster.
Dudley is best known for his role as president and CEO of TNK-BP, a joint venture in Russia, and his ultimate expulsion from the country. During Dudley's five year tenure, he pushed safety in a country that has traditionally made it a low priority, all the while growing oil production 26 percent, increasing downstream earnings five times over and keeping costs down. But relations between BP and its Russian owners, which were never on the best of terms, worsened as the Kremlin-backed business magnates wrestled for control, the NYT noted. BP turned management over to its Russian partners several months after Dudley's visa was revoked and he was forced to leave. TNK-BP is still profitable.
It may not seem like a successful stint. But Dudley has been widely credited for dealing with the corruption and politically sticky mess that comes with doing business in Russia. He'll face the same mistrust and power struggles with the Gulf oil spill. In a way, the pressure on Dudley is far greater than what's been placed on Hayward's shoulders. Or put another way: Mr. Dudley is BP's only hope.
The tough part will be success in the containment and the permanent capping of the well, two areas that Dudley can direct, but ultimately has little control over. After all, the guy can't dive down there himself. But Dudley can make a difference by managing other aspects of the disaster better.
Dudley should be able to avoid the public gaffes that Hayward repeatedly made. The bar's pretty low in that arena. And if he can increase the transparency and cooperation with local, state and federal agencies; effectively and efficiently turn over the claims process to the independent handler Kenneth Feinberg; boost clean up efforts and stop toying with reporters and limiting access to public beaches, that boot on the neck of BP may let up a bit.
Some other highlights of Dudley's career:
- Worked for Amoco, beginning in 1979, until BP bought the company in 1998;
- Negotiated and developed projects in the South China Sea for six years;
- Worked in corporate development in Moscow on Amoco's upstream and downstream businesses;
- Dudley was appointed managing director of BP Group in April 2009
For complete coverage, see: All Things BNET on BP's Gulf of Mexico Spill
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