Cost Cutting Blamed for Gulf Oil Spill

Reuters reports that British Petroleum (BP) and its partners made risky cost cutting decisions on the Macondo well that ultimately led to the Gulf of Mexico oil spill, according to the White House oil spill commission. According to Reuters, the final report details errors made by BP, Halliburton and Transocean, and also blames “rogue industry or government officials” for the drilling disaster. Amongst other things, BP has reportedly been criticised for not using a cement bond log and failing to take precautions before relying on cement as a barrier to the flow of oil and gas. Reportedly, Halliburton has been criticised for its cement job on the project and Transocean, along with BP, has been reprimanded “for lacking an internal procedure for interpreting negative pressure tests”, amongst other things.
Reuters: BP, firms made risky decisions before spill: report (5 January 2011)

Related news item:
Reuters: BP, Transocean shares shrug off oil spill report (6 January 2011)
(Source: Reuters)