Will Tony Hayward get his wish?
Just a week into the history’s greatest environmental disaster, British Petroleum CEO Tony Hayward opined that the recovery would not take long, saying “I’m eager to get my life back”—an expression that rocked the Gulf Coast almost as hard as the spill itself. This week, BP’s Board of Directors probably will grant his wish.
The British Petroleum Board of Directors is meeting in London this week. As directors gather, speculation swirls that they will announce Tony Hayward’s departure and promotion of American Robert Dudley to CEO. Rumors of the change circulate as BP is embroiled in the latest among a series of scandals, dodging and weaving amidst allegations that the company urged British officials to release the Lockerbie bomber as part of an ongoing oil-drilling negotiation off the shores of Libya. Credit for that debacle would land on Hayward’s resume, almost topping his gross mismanagement of the oil spill in the Gulf of Mexico.
Although some Brits have expressed misgivings about the board’s consideration of an American for the post as Chief, analysts point out that more than 40% of BP holdings are in the United States—most notably the Alaska Pipeline, now aging and at-risk of a breach as disastrous as the Gulf spill. Analysts similarly note that nearly half of BP shareholders are Americans, including major pension systems from Louisiana and California. Spill-watchers point out that Dudley has managed to stay away from the press since he took over supervision of the Gulf clean-up operation, and the pace of recovery and “kill” efforts seems to have increased since he took the helm.
Speaking with the New York Times, Gulf oil claims administrator Kenneth Feinberg had nothing but praise for Dudley. “He is cool, calm, collected,” Feinberg contrasted Dudley with Hayward. “He is proactive. He reached out to me and expressed the desire for BP to be as responsive and cooperative as possible.” Speaking off the record, several other Obama administration officials expressed similar sentiments.
British Petroleum will announce its earnings during the Board of Directors meeting, too. Although BP shares have lost approximately half of their pre-spill value, the company is expected to report record earnings for the quarter. Both oil and gasoline prices have spiked since the off-shore rig exploded on April 20. Gasoline prices have risen more than 50%, and BP outlets remain some of the world’s largest gasoline distributors.
