BP cracks down on problems
Oil giant BP is trying to fix a bad run of accidents by working on its management structure. Sam Eaton reports the company's biggest problem boils down to inefficiency.
BP chief executive Tony Hayward at a press conference in London (John D McHugh/AFP/Getty Images)
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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.
