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Members of the British Petroleum1 executive, from left, outgoing CEO Tony Hayward, Chairman Carl-Henric Svanberg, and incoming CEO Bob Dudley, pose for the media outside their global headquarters in London, 27 Jul 2010
The international oil giant BP has announced record losses for the past quarter and confirmed Tuesday it is replacing its chief executive, Tony Hayward. BP's woes2 stem from the disastrous3 oil spill in the Gulf4 of Mexico.
BP's losses for the past quarter amount to some $17 billion, due to having to set aside more than $32 billion for costs linked to the oil spill off the U.S. coast in the Gulf of Mexico.
BP's board also confirmed what had been widely predicted in recent days, company's CEO Tony Hayward is stepping aside. Hayward will be replaced by fellow executive Robert Dudley.
BP Chairman Carl-Henric Svanberg said the decision was by mutual5 agreement.
"In view of the Macondo well and everything that has happened... it became clear that you needed, in this case, a new face and a new man to lead this," he explained. "And, of course, especially America is our biggest market so that is also important."
Tony Hayward had become the embattled public face of BP and the Gulf oil disaster. He made a few blatant6 public relations gaffes7, such as saying he would like to get his life back, after 11 people had been killed when the drilling rig exploded in April and oil continued to gush8 into the Gulf.
Vessels9 operate at the site of the Deepwater Horizon oil spill in the Gulf of Mexico 17 Jul 2010
Many factors may have been to blame for the disaster. But, the focus turned on Hayward, says economic and environmental policy expert Robert Faulkner of the London School of Economics. He says Hayward's departure was inevitable10.
"It may not be entirely11 justified12 that he was the 'fall guy,' but in the public's eye and in the view of the U.S. Congress and the president, he was the man responsible for this," noted13 Faulkner. "And as so often in major crises, the top man has to take that responsibility and walk."
Hayward will "walk" on October 1 with a hefty severance14 package and a pension for his years with the company that will total more than $17 million.
The Gulf oil spill has also hit BP's balance sheet and the company announced it will sell $30 billion in assets during the next 18 months. It is a huge blow for BP says Faulkner.
"It will be a smaller company because of this, and it will have lost a great deal of capital that it needs now to invest in future oil exploration," added Faulkner. "So, BP's phenomenal growth in recent years has been halted, slightly reversed, but the important thing is it has survived so far; it has avoided hostile takeover; it has avoided bankruptcy15 so far."
It all depends, says Faulkner, on whether the damaged well can be fixed16, the spill stopped permanently17 and how well clean-up operations go.
BP has been stressing its strength and viability18 globally, but there is little doubt its public image has been hugely damaged in the United States.
Faulkner says rebranding may be needed.
"There are serious doubts about whether BP can retain its logo and its brand name in the way it has," Faulkner explained. "We must remember that BP merged19 with the American oil company Amoco and dropped the Amoco label in 2001. So it may have to conduct a rebranding in the United States to stay competitive."
The task of rebuilding the company, any rebranding and taking it into the future will fall mainly on American Robert Dudley, the new CEO. Dudley grew up partly in the southern U.S. state of Mississippi, which has been heavily affected20 by the oil spill. He spent many years at Amoco, before it merged with BP.
1 petroleum | |
n.原油,石油 | |
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2 woes | |
困境( woe的名词复数 ); 悲伤; 我好苦哇; 某人就要倒霉 | |
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3 disastrous | |
adj.灾难性的,造成灾害的;极坏的,很糟的 | |
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4 gulf | |
n.海湾;深渊,鸿沟;分歧,隔阂 | |
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5 mutual | |
adj.相互的,彼此的;共同的,共有的 | |
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6 blatant | |
adj.厚颜无耻的;显眼的;炫耀的 | |
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7 gaffes | |
n.失礼,出丑( gaffe的名词复数 ) | |
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8 gush | |
v.喷,涌;滔滔不绝(说话);n.喷,涌流;迸发 | |
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9 vessels | |
n.血管( vessel的名词复数 );船;容器;(具有特殊品质或接受特殊品质的)人 | |
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10 inevitable | |
adj.不可避免的,必然发生的 | |
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11 entirely | |
ad.全部地,完整地;完全地,彻底地 | |
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12 justified | |
a.正当的,有理的 | |
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13 noted | |
adj.著名的,知名的 | |
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14 severance | |
n.离职金;切断 | |
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15 bankruptcy | |
n.破产;无偿付能力 | |
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16 fixed | |
adj.固定的,不变的,准备好的;(计算机)固定的 | |
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17 permanently | |
adv.永恒地,永久地,固定不变地 | |
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18 viability | |
n.存活(能力) | |
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19 merged | |
(使)混合( merge的过去式和过去分词 ); 相融; 融入; 渐渐消失在某物中 | |
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20 affected | |
adj.不自然的,假装的 | |
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