BP Oil Spill: Hayward's Fall, Dudley's Rise and What It Means for the Gulf Coast

(MoneyWatch) 

Bob Dudley

Tony Hayward's Gulf-oil-spill-tainted stint as BP CEO will come to an end in October, a departure that gives the company a narrow opportunity to appoint a senior executive who can help it survive this environmental disaster and change the culture throughout its operations. BP oil spill response chief Bob Dudley will take over the CEO spot, and at first glance he's the perfect choice. Question is whether the Gulf spill restoration effort will suffer as a result?

Dudley, described by Hayward once as the BP's foreign secretary, is an American, a PR boost at least in the states; has been heralded for his handling of the politically sticky TNK-BP joint venture with Russia; and is the only senior exec not marred by BP's numerous safety problems in U.S. over the past few years.

As CEO, Dudley has the authority to make drastic changes to the company's global operations. Most importantly, he can tackle BP America, the most important division to BP -- and its most troubled. Forty percent of BP's business is within the U.S.; and it's the largest oil and gas producer in the Gulf of Mexico. But BP America also has created major problems for the company, including the 2005 refinery fire in Texas that killed 15 workers.

With Dudley's CEO appointment, however, the Gulf restoration effort could get a little murky. Dudley will run BP from London -- not Houston, where he's lived since early May. That means the day-to-day management of the cleanup and restoration of the Gulf will fall to Lamar McKay, head of BP America in Houston. McKay isn't exactly liked in Washington or in the Gulf. Rep. Joseph Cao, R-La, suggested during congressional testimony about the Gulf oil spill that McKay commit hara-kiri, meaning suicide.

Sure, as CEO, Dudley has the ultimate authority and responsibility over the spill. But he'll also be bogged down by its entire global operations, which means his attention to the spill will be compromised. And his replacement falls short. Of course, Dudley has promised otherwise. He knows that the post-spill cleanup, claims process and restoration is the most important issue facing the company. And Dudley knows he will be held accountable for every misstep his spill response replacement makes.

Photo of Bob Dudley from BP America

For complete coverage, see All Things BNET on BP's Gulf of Mexico Spill

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