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Drowning in Oil: BP & the Reckless Pursuit of Profit [Hardcover]

Loren C. Steffy
4.4 out of 5 stars  See all reviews (18 customer reviews)

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Book Description

November 5, 2010

The definitive account of how BP's win-at-all-costs culture led to this era's greatest industrial catastrophe

"A carefully and powerfully written story."
Financial Times

"When an author uses a loaded word like 'reckless' in a book's title, the burden of proof is high. . . . Steffy meets the burden by demonstrating that corporate behemoth BP (formerly British Petroleum) could have prevented the 11 deaths on April 20, 2010, aboard the Deepwater Horizon. . . . The deaths and the gigantic oil spill following the sinking of Deepwater Horizon will surely become a landmark of corporate ineptness and greed for the remainder of human history, thanks in part to Steffy's remarkable account."
San Antonio Express-News

"Steffy has produced a fascinating, gripping, revealing account. . . . The book details events aboard the Deepwater Horizon in April of 2010 to start, but it digs deeper into what is revealed as a culture of cost-cutting boiling over within BP. Steffy documents years of incidents and poor management decisions, detailing the rise of key characters like John Browne and Tony Hayward alongside riveting outlines of horrifying events in Texas City and at other BP locations. . . . The book reads like fiction at times, with the author's heavily-detailed accounts of explosions and conversations creating vivid, nearly fantastical images. The tragic history of BP is all-too-real, though, as the lost lives and environmental damage certainly attest to.. . . Steffy is a thorough, straightforward author. His concerns largely lie with the loss of life and the general culture of cost-cutting of BP, painting an apt and terrifying picture of rampant, steady, costly neglect."
Seattle Post Intelligencer

"Steffy provides valuable insight and crucial corporate context in explaining how so much oil ended up in the Gulf of Mexico."
BusinessWeek

"[Steffy's] investigations reveal a corporate culture of cost-cutting initiatives that put profits ahead of workers' lives and the environment, with repeated safety violations and an abysmal accident history. . . . Steffy details how, in the context of BP's record, the disaster was just part of a pattern of poor decision making in the relentless pursuit by BP to become the largest and most profitable oil company in the world."
Booklist

About the Book

As night settled on April 20, 2010, a series of explosions rocked Deepwater Horizon, the immense semisubmersible drilling platform leased by British Petroleum, located 40 miles off the Louisiana coast. The ensuing inferno claimed 11 lives, and it would rage uncontained for two days, until its wreckage sank to a final resting place nearly a mile beneath the waves. On the ocean floor, the unit's wellhead erupted. Over the next ten weeks, as repeated attempts to cap the geyser failed, an estimated 200 million gallons of oil—the equivalent of 20 Exxon Valdez spills—spewed into the Gulf of Mexico, eventually lapping up on beaches as far away as Florida.

Drowning in Oil, by award-winning Houston Chronicle business reporter and columnist Loren Steffy—considered by many to be the writer with the best access to the story—is an unprecedented and gripping narrative of this catastrophe and how BP's winner-take-all business culture made it all but inevitable.

Through never-before-published interviews with BP executives and employees, environmental experts, and oil industry insiders, Steffy takes us behind the scenes of 100 years of BP corporate history. Beginning with the conglomerate's early gambits in the Middle East to its recent ascent among energy titans, Steff unearths the roots of the Gulf oil spill in the unwritten bargain between oil producers and consumers, whose insatiable appetites drive the search for new supplies faster, farther, and deeper.

Beyond this, the Deepwater Horizon disaster took place after a history of cost cutting in pursuit of profits, particularly under the guidance of its two most recent ex-CEOs, John Browne and Anthony Hayward.

Exhaustively researched and documented, Drowning in Oil is the first in-depth examination of how a lack of corporate responsibility and government oversight led to the biggest offshore oil spill in U.S. history. It is an objective, no-punches-pulled account of the energy industry: its environmental impact and the intense competition among stakeholders in today's oil markets.

This book puts all the pieces together, offering a definitive account of BP's pursuit of outsized profits as the industrial world awakens to the grim realities of Peak Oil.

"They fumbled around the darkened room and found an instruction manual. By flashlight, they read the starting procedures. They were doing everything right. After five or six futile tries, they gave up and headed back toward the bridge. Back on the bridge, alarms were shrieking and the captain knew they were running out of time. The subsea engineer had hit the emergency disconnect for the well, and although the control panel showed the rig should be free, it wasn't. The hydraulics were dead. Fire continued to shoot from the top of the derrick. The rig had no power, and without power, it had no pumps for the firefighting equipment, no way to shut off the flow of gas from the well, and no way to disconnect the rig from the flaming umbilical that had it tethered to the wellhead." —from Drowning in Oil


Frequently Bought Together

Drowning in Oil: BP & the Reckless Pursuit of Profit + In Too Deep: BP and the Drilling Race That Took it Down (Bloomberg) + Disaster on the Horizon: High Stakes, High Risks, and the Story Behind the Deepwater Well Blowout
Price for all three: $49.25

Buy the selected items together


Editorial Reviews

From Booklist

Steffy, business columnist for the Houston Chronicle, first began covering British Petroleum in 2005 after the deadly explosion at their Texas City refinery killed 15 people and injured 170 others. His investigations reveal a corporate culture of cost-cutting initiatives that put profits ahead of workers� lives and the environment, with repeated safely violations and an abysmal accident history. As we all watched helplessly for three months while the Deepwater Horizon oil spill leaked millions of gallons of oil into the Gulf of Mexico, we were led to believe that the disaster could not have been foreseen. Steffy details how, in the context of BP�s record, the disaster was just part of a pattern of poor decision making in the relentless pursuit by BP to become the largest and most profitable oil company in the world. When the Deepwater Horizon well was finally killed for good in September 2010, the world barely took notice. BP CEO Tony Hayward, who never stood amid the charred rubble and burned flesh of his own decisions, has resigned, but Steffy sees few signs of major reform at the company. --David Siegfried

About the Author

Loren C. Steffy is the business columnist for the Houston Chronicle. He has been recognized by the Society of American Business Editors and Writers, the Associated Press Managing Editors, the Houston Press Club, and other societies and organizations. In addition, his work has been cited in publications, including the New York Times, the Washington Post Online, and Texas Monthly, and he's made numerous appearances on CNBC, FOX News, MSNBC, The NewsHour with Jim Lehrer, and Court TV. He lives in The Woodlands, Texas.

Product Details

  • Hardcover: 256 pages
  • Publisher: McGraw-Hill; 1 edition (November 5, 2010)
  • Language: English
  • ISBN-10: 0071760814
  • ISBN-13: 978-0071760812
  • Product Dimensions: 6.3 x 1 x 9.3 inches
  • Shipping Weight: 1.2 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (18 customer reviews)
  • Amazon Best Sellers Rank: #168,422 in Books (See Top 100 in Books)

More About the Author

Loren Steffy is the business columnist for the Houston Chronicle. His column appears in on Wednesdays, Fridays and Sundays, and he writes a daily blog that discusses business topics. He has appeared on CNBC, Fox Business, the BBC and the NewsHour with Jim Lehrer.

Before joining the Chronicle in April 2004, Steffy was Dallas bureau chief and a senior writer for Bloomberg News in Dallas for 12 years. He covered a variety of business topics in Texas and across the country, including the collapse of Enron. Before joining Bloomberg, Steffy worked at the Dallas Times Herald, the Dallas Business Journal and the Arlington Daily News.

Since joining the Chronicle, Steffy's columns have received awards from the Society of American Business Editors and Writers, press clubs of Dallas and Houston, the Associated Press Managing Editors and the Hearst Corporation. He received the Chronicle's Jesse Award for Commentator of the Year in 2006.

He won the Dallas Bar Association's Stephen H. Philbin Award for Excellence in Legal Reporting in 2001 and 2003. He also was a 2002 finalist for a Gerald R. Loeb Award for Distinguished Business and Financial Journalism sponsored by the Anderson School of Business at UCLA.

Steffy's reporting on the collapse of Arthur Andersen was selected for the 2003 edition of the "Best Business Stories of the Year."

He holds a bachelor's degree in journalism from Texas A&M University and lives in The Woodlands, Texas.

Customer Reviews

Most Helpful Customer Reviews
14 of 14 people found the following review helpful
Format:Hardcover
When the British Petroleum (BP) drilling rig in the Gulf of Mexico exploded and spewed millions of gallons of oil into the ocean, I was with the majority of Americans in being angry with BP. The arrogance of the CEO and the recounting of the poor safety record of the company was retold many times and the sight of the oil washing up on the beaches and the animals coated with it were sickening. I was happy when the Obama administration reached an agreement with BP whereby the company would put $20 billion into a fund to compensate the victims at all levels. Finally, I was disgusted when a member of the U. S. House (Joe Barton) felt the need to publicly apologize to BP for what he described as a $20 billion shakedown.
All those emotions were revisited when I read this book and another was added, depression at the realization of how callous BP is in their cost cutting measures with little regard for safety. Steffy does a superb job in revisiting the history of BP and how for decades it was effectively controlled and owned by the British government. I was puzzled by the British reaction to the disaster and how BP was defended in the British press, but after reading the history of the company I understood it. Still hated it, but at least I understood why BP is so dear to the British public heart.
I also learned why it was absurd for congressman Barton to apologize for the Obama administration's treatment of BP. The company was happy to set aside $20 billion into a fund administered by the federal government, this program deflected a lot of criticism from BP to the government and helped insulate the company against what could have been much higher costs.
Finally, it was fascinating to learn how BP is regarded by the other major oil companies, in a word "despised." Their attitude is one of thinly disguised contempt for BP's ruthless cutting of costs, poor safety record, record fines for noncompliance and the universal company policy of blaming the victims. It is a commonly held belief among the other oil companies that BP's failures has created problems for the rest of the industry as well, which has a much better safety record.
While most of the events reported in this book have been published or reported before, this collection has been superbly done. Facts presented as part of a short story don't hit as hard or as deep as when they are all collected together and reinforce each other. This is an excellent background description of why this disaster was so likely to happen.
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2 of 2 people found the following review helpful
4.0 out of 5 stars A Leadership Primer: What Happens When We ... March 13, 2011
Format:Kindle Edition
I was driving into the parking lot of a major oil company building west of Houston last week and looked up at the BP tower. Above it, lazily circling on the updrafts, were dozens of buzzards. What a symbolic image. At the fast-read level, this book provides a semi-objective look at the rise of BP under John Browne, how the seeds for the most recent safety catastrophe were sown in the culture and how his replacement, Tony Hayward, was not able to overcome that "Reckless Pursuit of Profit" culture.

The author, Loren Steffy, does a nice job of tapping into the multiple facets that, in combination, help us make sense of organizational behaviors. You will find wonderful anecdotes that link to each of the five core frames for gaining a comprehensive understanding of organizational actions: culture, politics, human resources, structure and systems.

At another level, this is a book about how the new CEO and the new head of the US operations of BP could not change the embedded culture because they did not understand all the elements of the system that supported their culture. I was reminded of a colleague, one with an extensive career in the petrochemical industry, who would say, "Culture eats change for lunch."

I found "Drowning in Oil" much more interesting when read as a primer on leadership-in-action. The scale of the events at BP make is all too easy to overlook the relevance for our own organizations, divisions, departments and teams. This book is not about one person making one bad decision. Rather, it is about the collective "What happens when we ..."
... measure results against singular and narrowly focused goals?
... deny or dismiss cause-effect relationships?
... dismiss inconvenient feedback from lower levels?
... get exactly what we design into our reward systems?
... place personal gain over the general interest?
... minimize downside risk?
... do not anticipate or scan for unintended consequences?
... employ fuzzy decision making criteria and create fuzzy lines of accountability?
... elect to scape-goat individuals rather than address the systemic issues?
... do not develop and promote leaders who are able to see the whole system?
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2 of 2 people found the following review helpful
5.0 out of 5 stars An "Accident Waiting to Happen" February 18, 2011
Format:Hardcover
Drowning in Oil" provides excellent background on the 2010 Deepwater Horizon disaster in the Gulf of Mexico, aka the Macondo well blowout. Author Loren Steffey's (Houston Chronicle business writer) most important contribution in this book is demonstrating that the tragedy was not the result of a single error or sloppiness by front-line personnel, but rather the accumulation of a series of top-level errors that took place over a period of years creating a corporate culture that had little concern for safety. The 'Deepwater Horizon' incident literally was a disaster waiting to happen.

The Deepwater Horizon floating drilling platform was a portable town for 126 people, suspended ten stories above the water's surface and a mile over the underwater well. The platform was also a ship capable of moving about 5 m.p.h. and also staying stably positioned over a wellhead. Its drilling derrick was 20 stories tall over the main deck; the entire apparatus cost about a half-billion dollars to have built (in Korea - but that's another story, about our on-going economic disaster) in 2001, and about half a million dollars/day to operate. Offshore wells cost about 5X that of land wells; BP had spent about $150 million up to that point on the well.

Steffey provides a good detailing of the chaos and terror of those first moments after the explosion - two massive explosions that immediately ended lighting and power, the roar of the escaping gas, destruction/debris everywhere and impeding walking, shrieking alarms, a hot, noisy and angry fire engulfing the derrick, and thick oil/sludge covering the water below that also began burning. The human toll (11 died) would have been higher but for numerous acts of heroism and personal strength (eg. getting up after being blown across a room and covered with debris, jumping into water 70' below, carrying others unable to get up) among those on the platform. Fortunately, safety drills had been regularly practiced, the emergency equipment mostly worked, a supply boat was nearby and able to pick up survivors from the water, and Coast Guard helicopters arrived soon after to take the worst injured to expert medical facilities on shore.

Incredibly, however, remaining survivors reaching shore 28 hours later were greeted by BP bureaucrats demanding that they immediately undertake drug and alcohol tests to assess possible personal blame, and then sign papers declaring that they were not witnesses to the incident. About ten days later they were also requested to sign waivers stating that they had not been injured, in return for $5,000 payment for their possessions lost on the rig.

BP CEO Tony Hayward had been chosen to reverse BP's accident record - about 10X the rate of the next highest oil firm. Steffey makes clear that while Hayward had succeeded in lowering costs, he hadn't succeeded in improving safety. The bulk of "Drowning in Oil" consists of Steffey's review of recent prior major BP accidents, the most serious of which was the 2005 Texas City refinery plant explosion - 15 died at the site near I-10 which I've passed by numerous times. Just months prior to that explosion a consulting report had concluded "We have never seen a site where the notion 'I could die today' was so real." Later, an impartial commission led by former Treasury Secretary James Baker cited numerous issues and concluded in its 2007 report that BP had not distinguished between occupational safety (eg. preventing slips and falls, driving while using cell phones) and process safety (design, hazard analysis, equipment maintenance, follow-up on incidents, etc.). Government action in that instance was limited to imposing a $50 million fine for environmental violations; BP has also paid more than $1.6 billion to compensate victims. Incredibly, OSHA then cited over 700 safety violations and imposed an additional $87 million fine in 2009 for BP's failing to correct safety hazards at Texas City revealed in the 2005 explosion. (BP has paid $50.6 million, and is contesting the remaining $30.7 million; the fine was also reduced by $6.1 million.) BP recently sold the refinery (Houston Chronicle, 2/1/2011).

Steffey also castigates the government's Minerals Management Service (MMS) responsible for ensuring operational safety on Gulf oil rigs. It had 55 inspectors for about 3,000 offshore facilities requiring monthly inspections. Its last inspection of Deepwater Horizon was four months prior to the explosion, and conducted by a new employee making his first inspection. Steffey also reports on the numerous allegations of improper relationships between MMS and BP staffers, and the MMS strategy of coping with understaffing through stressing voluntary compliance.

It is still unclear why the Macondo well blowout occurred. Once that happened, however, a 'blowout preventer' was supposed to prevent massive spills and fires. Steffey and others believe that the blowout preventer failed because three pieces of pipe were caught inside instead of the one it was designed for. However, even the rationale for that occurring is not certain.

Finally, Steffey addresses BP's gross underestimating of the spill's size - about 1,000 barrels/day, vs. a reality of 70,000/day. As for BP's willingness to waive the $75 million liability cap, seen by some as indicative of BP's willingness to assume liability, Steffey sees this as more likely BPs way to avoid being banned from future drilling in the Gulf. (The ability to drill in deep water was seen by BP as its competitive advantage.) Regardless, after incurring costs and liabilities exceeding $40 billion, as well as a black eye for the deaths of 11 workers and creating an oil spill that dwarfed that of the Exxon Valdez, Tony Hayward was forcibly retired and 'got his life back.'

Bottom-Line: Steffey's accounting is incomplete - many questions remain, which he admits. Coming out as it did only two months prior to the Deepwater Commission's final 346-page report means it probably contributed little; however, it did at least help prevent a 'whitewash' by that group. Nonetheless, "Drowning in Oil" clearly chronicles the 'real' cause of the Gulfwater Horizon disaster - a company oblivious over the years to responsibilities for employees, the environment, and the general populace. However, BP is not the only party guilty of this - federal government regulators in the undermanned and poorly managed MMS unit (aka the SEC), legislators that set funding levels for those regulators, and the general public are also. The latter because despite still unanswered questions of how to prevent a recurrence, much of the area's population, the judiciary, and numerous political leaders immediately decried the temporary ban on Gulf drilling that followed. It seems that other industries' 'success' building profits through offshoring jobs has also made us overly biased towards fixing the resulting jobs shortage.
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Most Recent Customer Reviews
5.0 out of 5 stars Well written and very informative. Bought 5 copies for friends after...
Enjoyed this book thoroughly. It was well written and very informative. It was such that I purchased five
additional copies to give to friends to read and this is the only... Read more
Published 4 months ago by Marian Marti
4.0 out of 5 stars Breathtaking and a hard lesson to learn
A hard lesson to learn about complacency and greed. Well written and highly recommended for all whether an oil guy or not a must read to see inside the industry. Read more
Published 6 months ago by Jason Puszkar
4.0 out of 5 stars By fellow author, J.A. (John) Turley
Drowning in Oil is a big book, as in heavy topics, one of which is BP's blowout, a topic I know well. Read more
Published 8 months ago by J.A. (John) Turley
5.0 out of 5 stars Couldn't put it down
It's very rare that I read a book straight through - but it's 3am and I just finished "Drowning in Oil. Read more
Published 8 months ago by cybervigilante
5.0 out of 5 stars Excellent Read, Provides a Detail Account of BP's History
I was hesitant to read this book because i figured it would be a 200+ page rant of how all oil companies are evil. I couldn't have been any more wrong. Read more
Published 11 months ago by G. Clough
5.0 out of 5 stars GREAT BOOK
this was a fantastic read. if you are looking for an in depth accounting of the BP oil disaster; pick this book up.
Published 16 months ago by michael kleer
2.0 out of 5 stars Keep looking
I have been reading all the books I can find on this topic and felt that this book came up short in comparison to other books out there.
Published on March 14, 2011 by Timbo
5.0 out of 5 stars Excellent
I really enjoyed Steffy's book. His knowledge about the history of BP disasters shines through. The very elaborate discussion of the Texas City disaster and its bearing on the... Read more
Published on February 13, 2011 by wiseprof
5.0 out of 5 stars Great story of BP Disaster
I could not put this book down. Mr. Steffy did a great job of taking the reader through the history of BP and its leaders. Read more
Published on February 7, 2011 by Gail Tucker
4.0 out of 5 stars Spilled Oil and Corporate Negligence
April 20, 2010 is a date that will go down in history, for it was on this date that the Deepwater Horizon exploded, killing eleven individuals and spewing millions of gallons of... Read more
Published on January 21, 2011 by Bryan Carey
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