Tony Hayward - Deepwater Horizon Oil Spill

Deepwater Horizon Oil Spill

On 20 April 2010, an explosion occurred on the Deepwater Horizon oil rig, operated by BP. Eleven people were killed in the blast and oil began to leak from the ocean floor at a rate variously estimated to be between 5,000 barrels (790 m3) and 100,000 barrels (16,000 m3) per day. Hayward, and BP in general, initially downplayed the spill, stating on 17 May 2010 that the environmental impact of the Gulf spill would likely be "very very modest" and calling the spill "relatively tiny" in comparison with the size of the ocean. By 27 May, Hayward changed his assessment, calling the spill an "environmental catastrophe" in an interview with CNN.

On 12 May 2009, in a postgraduate lecture to Stanford Business School, Hayward analyzed the role and organization of the company for which he acted as Chief Executive Officer. During the lecture he stated to the business students that "...our primary purpose in life is to create value for our shareholders. In order to do that you have to take care of the world." Subsequent statements that focused only on the individual corporate remit have also been quoted outside the context of the full lecture.

Hayward stated that his job might be at risk as a result of the spill, saying "we made a few little mistakes early on." He received criticism for various statements he has made during the spill, including telling a camera man to "get out of there" during a photo-op on the shores of Louisiana. On 30 May, he told a reporter "we're sorry for the massive disruption it's caused to their lives. There's no one who wants this thing over more than I do, I'd like my life back." He was widely condemned for his comment which was perceived as selfish, and United States Representative Charlie Melancon (D-La.) called on Hayward to resign in the wake of this comment. He later apologized for the comment on BP America's Facebook Page. On 31 May, Hayward disputed claims of huge underwater plumes of oil suspended in the Gulf, as had been reported by scientists from three universities. Hayward said there was "no evidence" that plumes of oil were suspended under the sea, and that because it is lighter than water any plumes seen are just in the process of rising to the surface. A chemist from Louisiana State University agreed with this assessment. Still other scientists have suggested that the manner of expulsion of the oil from the well and the use of dispersants may have led to an emulsion situation in which the oil is suspended in water for some time.

On 5 June the Daily Telegraph reported that Hayward sold approximately one third of his shares in BP a month before the Deepwater Horizon rig exploded. The shares subsequently fell in value by 30%, although the Telegraph stated: "There is no suggestion that he acted improperly or had prior knowledge that the company was to face the biggest setback in its history."

In an interview on NBC on 8 June, U.S. President Barack Obama said that Hayward "wouldn't be working for me after any of those statements", referring to the remarks Hayward made following the spill. The Obama administration had been public in their criticism of BP for the oil spill.

Before a congressional hearing on the oil spill held on 17 June, subcommittee chairman Bart Stupak of Michigan said that he expected Hayward to be "spliced and diced" by both himself and other committee members. Hayward's eleven-page document that he read to the committee included a passage in which he said he would "pledge as leader of BP that we will not stop until we stop this well ... and address economic claims in a responsible manner". He continued, "This is a complex accident, caused by an unprecedented combination of failures. A number of companies are involved, including BP, and it is simply too early to understand the cause."

On 18 June, the day after Hayward appeared before the congressional hearing, the chairman of BP said that Hayward would step away from daily involvement in the company's efforts in the Gulf. On 19 June, the day before Father's Day, Hayward was in Cowes – having taken a "day off" – in order to see Bob, his co-owned boat, participate in the JP Morgan Asset Management Round the Island yacht race off the Isle of Wight. Rahm Emanuel, President Obama's chief of staff, said that Hayward had committed yet another in a "long line of PR gaffes" by attending the race while the Gulf oil spill continued. Obama was also criticized for playing four hours of golf at the same time as the yacht race.

In June, BP put Mississippi native Bob Dudley in charge of handling the Gulf of Mexico oil spill. Dudley was appointed president and chief executive of the newly created Gulf Coast Restoration Organization, reporting to Hayward.