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Official Investigation: BP’s Risky Efforts To Cut Costs Caused The Deepwater Horizon Disaster

The federal investigation into the BP Gulf of Mexico oil disaster finds that cost-cutting measures by the oil giant led to the blowout of the Deepwater Horizon rig. The final report of the joint Coast Guard-Bureau of Ocean Energy investigation finds that BP and its contracting companies — Halliburton and Transocean — were responsible for the disaster that poisoned the Gulf Coast and crippled the region’s economy.

The “contributing causes” to the blowout at the Macondo prospect include “BP’s cost or time saving decisions without considering contingencies and mitigation”:

BP’s cost or time saving decisions without considering contingencies and mitigation were contributing causes of the Macondo blowout.

The failure of the rig crew to stop work on the Deepwater Horizon after encountering multiple hazards and warnings was a contributing cause of the Macondo blowout.

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BP’s failure to fully assess the risks associated with a number of operational decisions leading up to the blowout was a contributing cause of the Macondo blowout.

BP’s failure to ensure all risks associated with operations on the Deepwater Horizon were as low as reasonably practicable was a contributing cause of the Macondo blowout.

BP’s failure to have full supervision and accountability over the activities associated with the Deepwater Horizon was a contributing cause of the Macondo blowout.

The report summarizes:

The loss of life at the Macondo site on April 20, 2010, and the subsequent pollution of the Gulf of Mexico through the summer of 2010 were the result of poor risk management, last‐minute changes to plans, failure to observe and respond to critical indicators, inadequate well control response, and insufficient emergency bridge response training by companies and individuals responsible for drilling at the Macondo well and for the operation of the Deepwater Horizon.

Halliburton shares blame, the investigators find. “BP and Halliburton’s failure to perform the production casing cement job in accordance with industry‐accepted recommendations as defined in API RP 65 was a contributing cause of the blowout.” Transocean’s rig crew also made mistakes that led to the disaster. “The Deepwater Horizon crew’s (BP and Transocean) collective misinterpretation of the negative tests was a cause of the well control failure.”