In a recent WSJ article, Bob Dudley's new role and difficult task are discussed. First, the article raises the question as to why no other companies, like Exxon Mobil and Royal Dutch Shell, haven't made any advances toward the company, especially with stock prices so low. Then, it goes on to tell of the difficult task that lays ahead for the new CEO, Bob Dudley. It talks of his career path and how he got to where he is, with his start at Amoco, then move to BP when they acquired the company in the late nineties. He is the first CEO at BP that is not British, which further raises expectations. In 2003, he left BP to lead their venture in Russia. There, he saw the company go from nothing to one of Russia's leading producers. After much controversy with the Russians, he was forced to leave and in return was given a position on the board of BP. With the Deepwater Horizon incident and Tony Hayward's public mistakes, he was given the chance in the big chair. In front of him lies the task of reforming BP and restoring their faith in the American public.
I can't help but wonder, after 102 years of a British CEO, was hiring an American the first step in restoring American's faith (WSJ Art)? However, Dudley has all the credentials that could be asked of any CEO. The controversy with Russia strikes me as a little odd, as it went as far as the Russian's investigating the whole ordeal (WSJ). Although, this means that Dudley has experience with scandal. The job ahead of him is quite an extensive one. He has to fully reshape the company and reinstate that they are using ethical practices. I feel he is the best hope they have right now, as the company's stock prices still suffer the consequences of the Deepwater Horizon disaster. I, too, am wondering why no other companies haven't taken the chance to acquire BP, as Exxon and Shell are certainly poised to do so. The energy industry as a whole is completely affected by how BP recovers from this and it is all in the hands of Bob Dudley. Personally, I wish him success in this task because many jobs and companies are on the line here, as BP's reach is that of a spider, a little bit in every sector.
http://online.wsj.com/article/SB10001424052748703793804575511791844265192.html?mod=WSJ_Energy_leftHeadlines
This is a really interesting article. To answer the question about whether an American will help restore BP's image to Americans, I think that actually has very little to do with their strategy. I think that it is more that the company needs an outsider's viewpoint to fix what is wrong in the company and to put in place different policies and practices to prevent this from happening again in the future. I think that it would be even more interesting to see how the market reacted to this change in command and what affect it had on the industry as a whole.
ReplyDeleteI agree with your opinion, it would be of great benefit to BP for them to get an outsider in there. This is definitely going to have a large impact on the industry. As I see it, everything is up in the air right now and major changes are ahead for energy. I foresee a change in the 'hierarchy.
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