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May 14, 2010 Plan B in the GulfPosted: 06:29 PM ET
JOHN HOFMEISTER WILL BE A GUEST ON LARRY KING LIVE TONIGHT! Stop Outsourcing LIKE many other American corporations, oil and gas companies have been outsourcing critical, high-risk operations for several decades, sacrificing control to save money. Today, platforms like the Deepwater Horizon resemble small villages, home to distinct chains of command from several different subcontractors. Workers for different companies may hardly know one another despite working side by side; they often answer to different bosses. Some argue that the level of specialization and technical expertise required to run a platform demands teamwork by different companies, each with its own research and development and command structures. True, but specialization and cost-cutting can go too far. Fragmented control is not likely to blame for the Gulf spill, but it is likely to hamper the search for the real cause and the effort to enact reforms to keep such disasters from happening again. Slowing, or even reversing, the outsourcing trend is a critical next step for the industry. — JOHN HOFMEISTER, former president of Shell and author of “Why We Hate the Oil Companies: Straight Talk from an Energy Insider” Filed under: Larry King Live
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