Flags fly at Half Staff outside the British Petroleum refinery in Texas City
BP chief executive John Browne declared the company's Texas City , Texas , refinery "a very safe plant" as the death toll in Wednesday's explosion there climbed to 15.
It was the third fatal accident at the mammoth plant in the last year. A worker died in a fall last May, and two were killed and one injured in September when scalding hot water burst from a pipe.
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A large explosion and fire also occurred last March 30, although no deaths or serious injuries were reported.
"It is a very safe plant," said Browne, who rushed to Texas following the blast. "I think these events are unrelated, but there have been a few and we regret each one."
The plant opened in 1934 and BP took it over when it bought US company Amoco in 1999.
It is the third largest refinery in the United States , has the capacity to process 470,000 barrels of oil daily and makes about 3 percent of US gasoline supplies.
The blast was the largest human tragedy for BP in Browne's 38 years with the company, he said at a news conference.
In addition to the dead, 70 workers in the plant and 30 people in nearby areas were injured by the powerful explosion that shook buildings and broke windows several miles away.
Five workers were in "tough shape," according to refinery manager Don Parus.
Most of the dead workers were employed by contractor JE Merit, a subsidiary of California-based Jacobs Engineering Group Inc. The toll increased when the body of a missing worker was discovered around midday on Thursday.
A Jacobs spokesman declined to discuss specifics of the disaster.
"We're trying at this stage to work with the authorities and get the facts," spokesman Rod Sharp said. "Our focus entirely is on those who have been affected by this."
Browne confirmed the explosion occurred at the isomerization unit, used to improve octane in gasoline, as it was being restarted after routine maintenance.
"That's all we know at the moment," he said.
No Impact Seen On Gasoline Supply
Browne said the blast should have no effect on US gasoline supplies and he estimated it would reduce the damaged refinery's production by no more than 5 percent.
"These effects are very small, very small indeed in the overall system in the United States and the global picture," Browne said.
He noted that despite recently spiking gasoline futures prices on the New York Mercantile Exchange, US government statistics showed 214.3 million barrels of gasoline supply, a 7.5 percent increase above year-ago levels.
"Gasoline stocks in the United States are extremely healthy," Browne said. "In other words, they are larger than they normally would be, so this incident, in our opinion, will not affect the supply of gasoline to consumers in the United States ."
NYMEX April gasoline was priced around US$1.59 per gallon in early afternoon trade Thursday after rising to an all-time record of US$1.6080 in off-hours trading late Wednesday in reaction to the blast.
Investigation Starting
BP said it could not immediately pinpoint the cause of the explosion, but it ruled out a terror attack on the 1,200-acre (486-hectare) complex.
The U.S. Chemical Safety Board and the US Occupational Safety and Health Administration were investigating.
Browne vowed there would be "no stone left unturned" as the company tries to determine the cause and prevent a similar accident in the future.
Despite insisting the recent refinery accidents are unrelated, Browne acknowledged the company would investigate whether there is a common thread.
"We need to examine it in the light of other similar incidents, not only here but all over the world; not only by BP but other people," Browne said. "We should also examine the pattern of activity in Texas City ."
Company Liability Examined
The blast at the 71-year-old refinery raised the specter of litigation, regulatory problems and costly reconstruction bills, experts say.
"There will be worker's compensation issues for both lost time and medical costs," said Christopher Guidette, a vice president at ISO, which provides analysis and support to help insurers manage and assess risk.
Other risk analysis sources who declined to be identified said damage to the refinery and potential litigation could put the costs of the incident over US$1 billion, though detailed damage assessments are not yet available.
Jeff Wigington, a lawyer for the family of the worker killed in May, said his own investigation of the plant raises concerns.
"Our investigation has thus far revealed there are significant safety problems at that refinery," Wigington told Reuters. "It does not compare favorably to other refineries."
Analysts said the accident was unlikely to make a significant dent in BP's profitability. The company's London and US-listed shares only slightly underperformed the market following the explosion.
It was the third fatal accident at the mammoth plant in the last year. A worker died in a fall last May, and two were killed and one injured in September when scalding hot water burst from a pipe.
Audio and Video
A large explosion and fire also occurred last March 30, although no deaths or serious injuries were reported.
"It is a very safe plant," said Browne, who rushed to Texas following the blast. "I think these events are unrelated, but there have been a few and we regret each one."
The plant opened in 1934 and BP took it over when it bought US company Amoco in 1999.
It is the third largest refinery in the United States , has the capacity to process 470,000 barrels of oil daily and makes about 3 percent of US gasoline supplies.
The blast was the largest human tragedy for BP in Browne's 38 years with the company, he said at a news conference.
In addition to the dead, 70 workers in the plant and 30 people in nearby areas were injured by the powerful explosion that shook buildings and broke windows several miles away.
Five workers were in "tough shape," according to refinery manager Don Parus.
Most of the dead workers were employed by contractor JE Merit, a subsidiary of California-based Jacobs Engineering Group Inc. The toll increased when the body of a missing worker was discovered around midday on Thursday.
A Jacobs spokesman declined to discuss specifics of the disaster.
"We're trying at this stage to work with the authorities and get the facts," spokesman Rod Sharp said. "Our focus entirely is on those who have been affected by this."
Browne confirmed the explosion occurred at the isomerization unit, used to improve octane in gasoline, as it was being restarted after routine maintenance.
"That's all we know at the moment," he said.
No Impact Seen On Gasoline Supply
Browne said the blast should have no effect on US gasoline supplies and he estimated it would reduce the damaged refinery's production by no more than 5 percent.
"These effects are very small, very small indeed in the overall system in the United States and the global picture," Browne said.
He noted that despite recently spiking gasoline futures prices on the New York Mercantile Exchange, US government statistics showed 214.3 million barrels of gasoline supply, a 7.5 percent increase above year-ago levels.
"Gasoline stocks in the United States are extremely healthy," Browne said. "In other words, they are larger than they normally would be, so this incident, in our opinion, will not affect the supply of gasoline to consumers in the United States ."
NYMEX April gasoline was priced around US$1.59 per gallon in early afternoon trade Thursday after rising to an all-time record of US$1.6080 in off-hours trading late Wednesday in reaction to the blast.
Investigation Starting
BP said it could not immediately pinpoint the cause of the explosion, but it ruled out a terror attack on the 1,200-acre (486-hectare) complex.
The U.S. Chemical Safety Board and the US Occupational Safety and Health Administration were investigating.
Browne vowed there would be "no stone left unturned" as the company tries to determine the cause and prevent a similar accident in the future.
Despite insisting the recent refinery accidents are unrelated, Browne acknowledged the company would investigate whether there is a common thread.
"We need to examine it in the light of other similar incidents, not only here but all over the world; not only by BP but other people," Browne said. "We should also examine the pattern of activity in Texas City ."
Company Liability Examined
The blast at the 71-year-old refinery raised the specter of litigation, regulatory problems and costly reconstruction bills, experts say.
"There will be worker's compensation issues for both lost time and medical costs," said Christopher Guidette, a vice president at ISO, which provides analysis and support to help insurers manage and assess risk.
Other risk analysis sources who declined to be identified said damage to the refinery and potential litigation could put the costs of the incident over US$1 billion, though detailed damage assessments are not yet available.
Jeff Wigington, a lawyer for the family of the worker killed in May, said his own investigation of the plant raises concerns.
"Our investigation has thus far revealed there are significant safety problems at that refinery," Wigington told Reuters. "It does not compare favorably to other refineries."
Analysts said the accident was unlikely to make a significant dent in BP's profitability. The company's London and US-listed shares only slightly underperformed the market following the explosion.