Andy Swan » My approach to BP oil spill….

My approach to BP oil spill….

June 24, 2010 – 2:25 pm

It’s obvious that we’ve gotten what we asked for in DC. Zero executive experience, zero business experience….and it SHOWS. Holy hell does it show.

Anyway, here is what I would have done (and still would) as President to “plug the damn hole”:

1. Set up a $2.5 BILLION prize fund (ask BP to fund it and enjoy the positive PR) for the successful plugging of the hole and a stop to the oil leaking.

2. Invite entrepreneurs, corporations and other countries to participate in the contest, with the $2.5b as a guaranteed prize.

3. Setup 25 one-week window periods for contestants to have full access to the well and to attempt their fix.

4. Auction off the one-week window periods. Highest bidder gets the window and must pay up front. If you get week 24 and someone else has already plugged the hole in week 16, you don’t get your money back…that’s part of the process. Minimum bid of $5 million. Plan must pass most basic of environmental tests. Funds received go to fund to help human victims in the gulf.

5. Watch as innovators team with large companies for their equipment and resources (entry fee). Watch as capitalist pigs and evil big oil companies front $40m and use of equipment to a group of geniuses who are currently completely shut out with no incentive. Watch a venture fund put $5m behind a drilling startup for rights to 80% of the $2.5b if it goes well.

Watch what happens when government does what it does best: Sets incentives and GETS OUT OF THE WAY.

Would this work? Who knows!

But I can 100% guarantee you that it will work better than “We are in charge but BP has to do it and we have our boot on BP’s neck and BP will be punished and we are going to sue everyone and here look at my carbon tax windmill farm bonanza!” telepromptations from the beach.

There are two questions a leader should ask himself in order to achieve a goal:

How do we set up the proper INCENTIVES to encourage participation?

How do we make sure that all participants have their INTERESTS ALIGNED with ours?

WIN.

Dgogo

Well... It is almost plugged....

Da_mato

Sorry for coming late to the party. I'm assuming some solutions will alter the initial state of the well. This dramatically increases the risk for all subsequent attempts. This would make say the being the fifth company to take a shot very risky. Because of compounding risk for each subsequent slot you would only get two or three bids at the most.

In terms of politics if this method fails then the potus would get killed in the press for trying out "fancy" theoretical solutions. This risk is the reason why it would never happen.

andyswan

Good points all

steveplace

X-prize is doing this: http://www.physorg.com/news199466838.html

DrVinnyboombatz

What would Teddy Roosevelt do? Declare the spill an enemy attack on US soil and bomb it like the Russians did on a Baltic sea deep water.

Practicality aside if Obama was the progressive proactive Pres of this nation he claimed to be he would have simply requested updated inspections made prior to giving his graces to further drill there and examine company statements and possible insider sales.

That well was defective and leaking prior to this.

Coolmoffkr

In your opinion, do you think the former President GWB would have had a better approach to this crisis?

Dave Pinsen

Andy,

I agree that the response to this disaster hasn't been the administration's finest hour, but I don't think your idea is a good one. Check out this graphic to get a picture of how deep that well is. The BP folks (or engineering teams at other deep sea drilling oil companies) are probably the only ones with the ability to even work at these depths. I don't think this will get fixed any faster if you give random folks a crack at this, any more than I think a random outsider would do a better job of running your company than you.

Josh

First, BP showed it didn't know at the corporate level how to drill at these depths.

Therefore, it is a given, that it is beyond them to fix this mess.

andyswan

So your contention is that BP employees are the only people capable of finding a solution to this?

Why couldn't BP or exxon or shell or any other country/company that drills 7k feet down be a partner?

The fact that these "random folks" are capable of raising $5m+++ for a one week window makes me think their plan might have just as much merit as the failures BP has thrown at it.

Dave Pinsen

No, of course not just BP employees. I mentioned the folks at other deep sea drilling oil companies too. I'm sure folks at Exxon or Petrobras or Shell other companies would have similar skills and technology. And if memory serves, BP has consulted with other companies in the industry about possible solutions.

I just don't think your "Apprentice"-style approach would fix this any faster. I think it might have the opposite effect.

________________________________

bankdraft

Kevin Costner

JakeGint

"Telepromptations."

Sweet neologism. I may steal....

______

scott

So I'm guessing that the solution proffered by Sarah Palin to just "Pray" for it to stop is not viable as well.Just saying because if BO was not our president you can be sure that she would be point man(woman) on this issue given her oil drilling expertise.

andyswan

She told her readers of faith about an effort by locals of faith to pray for a solution or a miracle. In what bizzaro world is this equal to her saying that was the only solution? In what kind of mind is prayer by people of faith so offensive?

But Palin! Bush! Halliburton!

Either plug the hole or get out of the way and stop selling the "government solution for all!" nonsense. Somehow, you've kept enough people so poor and dependent that they actually still believe the two-word sales pitch.

Josh

It wouldn't work and here's why: BP is actually understating the extent of that catastrophe, with the help of the government.

Neither BP or anybody else knows how to fix this thing.

It's much much worse than you think.

andyswan

So your theory is that there is no solution? That no amount of incentive
(and therefore effort) will plug the hole?

If that's the case, then fine....at least we raise money for victims.

Gotta be better than the current approach.

Josh

Correct. I'm not sure there's a solution to the gusher. We'll just need all the help we can get to clean up and restore life there. I said it will take years, to which someone replied "Decades".

Check The Oil Drum for an idea of what's really going on.

andyswan

I'm not SURE either. But I'm not ready to give up. Let's give some people
outside of BP and the Federal Gov give it a shot!

John Gant

Andy, I'm sure you've seen this... right?
http://www.fastcompany.com/1663156/bp-to-innoce...

Lucas

Great stuff as always sir. Andy Swan for congress.

anthonybrown

I love it!

stringsn88keys

What is this "Government getting out of the way" thing you speak of?

I'm surprised OSHA hasn't blocked clean-up attempts yet.