BP Managers Ignore Multiple Malfunctions Preceding Explosion
BP plc’s BP supervisors at its Toledo, OH refinery chose to keep the plant operational despite a string of malfunctions and a petroleum spill prior to an accident that claimed the lives of two workers in September 2022, according to a preliminary study by the U.S. Chemical Safety and Hazard Investigation Board, as reported by The Wall Street Journal.
According to the report, a valve failure on the morning of Sep 20 led to a significant leakage of highly flammable naphtha. While this caused management to shut down a portion of the plant, it continued to keep a neighboring crude-processing tower running up until a fatal explosion and fire that same evening.
The interim report, which is anticipated to be released this week, is the third official finding that the accident (at what was formerly known as the BP-Husky Toledo Refinery) may have been caused by a variety of factors. These include a lack of employee training, unclear safety procedures, supervisory decision-making, or a combination of these.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum Corporation EPM, Eni SpA E and RGC Resources Inc. RGCO. While both Evolution Petroleum and Eni SpA sport a Zacks Rank #1 (Strong Buy), RGC Resources carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
Eni SpA is a leading integrated energy major thatoperates primarily through three business segments —Exploration & Production, Gas & Power, and Refining & Marketing and Chemicals. E has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.
RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries —Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas.
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BP p.l.c. (BP) : Free Stock Analysis Report
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