Goings-on in the BP boardroom: WTF?

BP is a genuine puzzle.  How can an enormous company of considerable long standing with some seriously impressive attributes, be so maladroit in its senior appointments?  With the summary eviction of Mr Manifold[1], BP will have had 3 chairs and 5 CEOs since 2020, and a heap of embarrassment.  This is a crazy level of volatility at the top.

It's not a company I have definitive views on; but inevitably I have had loads of dealings with them over my decades in the industry.  (They offered me a job once: but I didn't want to move to Japan.)  Here are some observations.

• Although superficially they might all look pretty similar, big multinational oil companies aren't remotely all operating under the same business model.  We can map out a spectrum.  At one end we have Exxon - fundamentally centred on building and managing physical assets; i.e. engineer-driven, and deeply suspicious of finance & trading activity, which it minimises very purposefully.  At the other end,  BP  - plenty of capable engineers and physical assets, but also exceptionally capable and commercially active traders and finance types.  At these two extremes on the spectrum, the respective P&L and balance sheets aren't very similar.[2]  
• BP has shown itself somewhat prone to accommodating the woke agenda.  The 'Beyond Petroleum' rebrand dates as far back as 2000, under the proto-scandalous John Browne[3], so that until recently the eco-'green' stuff was fairly prominent in the business, almost as much as the traditional 'green stuff'.  They have also made several 'questionable' appointments of females at very exalted levels, IMHO for the sole purpose of having wimmin in senior jobs because at least a couple of them are self-evidently not up to the job.
• More generally, they seem to hire outsiders for top jobs far more than is usual in the industry.  Really confident big companies of long standing place far more trust in promotion from the ranks of their long-term employees - rightly or wrongly. [4]
• However, the boardroom nonsense of all kinds clearly hasn't been at the expense of their trading prowess.  And overall, I have a fair degree of respect for the senior working-level management of the company across the board, who mostly seem to get on with business in an intelligent and competent way.

All that doesn't lead me to any firm conclusions about BP's future.  But the company has been such a major part of the UK business scene for so long, I have to believe many C@W readers will have well-informed perspectives on the company.  So - the floor is yours.

ND

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[1]  Cue the obvious jokes about Manifold sins and wickedness ...

[2]  Shell, incidentally, is pretty much bang in the middle

[3]  Scandal notwithstanding, Browne was a serious oil man.  He called the market correctly in 1997, judging $10 to be the bottom (when the Economist was suggesting $6 was coming) and bought Amoco. 

Arco and BurmahCastrol at the absolute bottom of the market, doubling the size of BP.  That's impressively good business judgment - speculative, but based on solid knowledge, experience and instinct, rather than a bought-in price forecast from some 'econometrics' outfit. 

[4]  The pros and cons of this can of course be argued at length: maybe for another post.

How long can Russia keep this up?

An odd barb sometimes thrown in this blog's direction (from who-knows-what troll factory) is that since Russia's invasion of Ukraine four years ago (four!) we have been predicting the imminent collapse of Russia itself.  Well, we haven't.  Ever.  In fact, right from the start we have said that ultimately there's nothing to stop Putin taking Ukraine if he really wants to - which, if anything, was far too generous to L'il Volodya and his ramshackle army.  Further, we've always remarked that the Russian capacity for enduring privation and general suffering should never be underestimated. 

But it is beginning to look as though Putin's stamina is waning.  There are so many straws in the wind: in no particular order -

• the 'victory' parade, hugely-reduced in scale and betraying obvious fears for its security, to the point where Putin could be humiliated (the word used by Russian milbloggers) by Zelenskyy's gracious 'permission' to go ahead with the parade
• widespread and debilitating fuel shortages, courtesy of Ukraine's remarkable drone campaign ...
•  ... which, incidentally, has - yet again - blithely crossed one of Russia's stated nuclear red lines in terms of its scale ("the massive launch / take-off of aerospace attack weapons ... and their crossing of the state border of the Russian Federation")
• Russia's re-engagement with US negotiators, with the usual risible sabre-rattling
• the background PR planning for a sudden 'declaration of victory' - even based on today's status quo, if necessary
• serious domestic discontent at frequent blocking of the www and the (supposedly) imminent closure of access to Telegram, all in the name of 'security'
• internal dismay at the Hungarian election result, adding to keenly-felt impotence over Syria / Cuba / Venezuela
• serious economic issues, macro and micro - see below
• angst over the pitiful battlefield performance thus far in 2026 - zero net progress** in the spring/summer offensive campaign (intended to capture the remaining Donbass territory by autumn: Kkarkiv, Kherson and Odessa are rarely mentioned these days); casualty rates exceeding enlistments; and Ukraine has achieved, at least for now, superiority in the 'battlefield air interdiction' (BAI) stakes, courtesy of its swarms of very smart drones and their equally smart deployment in Russia's immediate rear, over and above the deeper oil refinery campaign 
• etc etc: I could go on.

Oh, and on the global scale, no joy from Xi on the long (very long)-awaited deal for more gas sales to China, a farce that we've often written about here in the past - check the 'Gazprom' tag - another serious strategic disappointment.

Even so, I still don't reckon on near-term "collapse", or defenestration of Putin.  He has plenty of tools to prevent either.  But I do say he's now beginning to think seriously in terms of an off-ramp: and many powerful people in Russia are even more seriously trying to get this to the top of the agenda.

In the midst of it all, the IISS has published this sober analysis.  It doesn't predict imminent collapse either; but it does set out the genuine problems and major dilemma Putin faces.  Between now and Xmas, I'm guessing we'll see recognisable, tangible movement taking place - in one direction or another.

ND 

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** Ukraine has in fact started making systematic small-scale territorial (re)gains all over the front, which in recent weeks have been larger than Russia's own small territorial gains.  On both sides these are to be understood in context: they are trivial in extent - largely infiltration sorties - and essentially opportunist in nature.  But there's a big difference: Russia's are intended, and indeed celebrated, as purposeful steps towards the taking of the Donbass; i.e. they are meant to be strategic.  Ukraine's, by contrast, are tactical spoiling measures - highly disruptive for any coherent Russian offensive this year.  But if they do indeed have that effect, they add up to having an important strategic consequence.

Jury trials, for and against

Photo: BBC

A bit of a plate-spinner here, pre-scheduled.  I⁴'ve been meaning to open this one up for a while now but, well, events.

So:  judge-only trials for criminal offences?  OK, Lammy isn't the sharpest knife in the drawer [1] but then again, Justice Delayed is Justice Denied; and the backlog in the courts is appalling.  Balancing the system by waiting for victims and witnesses to lose heart (or die) is no way to dispense justice.  The guilty go free by default and simple delaying tactics.

But hey, if it's me in the dock, there are circumstances in which I probably want a jury; and I think most people agree.  And, although it's strictly irrelevant to the criminal cases I'm most concerned with, I was once party to a massive civil case in the commercial courts which in the USA would have been heard by a jury, and (all parties agreed [2]) would definitely have gone only one way - but here, being heard only by a single judge, it went the other way on a judicial whim over an odd technicality, and required overturning at Appeal.

I reckon we know where the blame lies, not least in the shocking reduction in funding for the CJS by the Tories: and covid didn't help; nor the latitude given to defence lawyers to waste time - one of the juries I sat on (a murder trial) saw some remarkable time-wasting being accommodated, albeit testily, by the judge.  Somebody has to address the situation, somehow - under whatever leadership.

So what can we agree on?

• truly, the backlog has got to be addressed decisively
• we've long ago sold the pass on really nasty terrorist cases (N.Ireland, where the threat to juries is chillingly real - and that might spread across more of the realm in years to come, you don't need me to paint the scenarios)
• having sat on three juries, I tremble at the thought of jury trials for complex cases of fraud & the like
• hey, I'm an old soldier and know all about summary justice at first hand: it has to be a very serious offence before it gets anywhere near a Court Martial [3]
• so like taxation, it's already happened, & how much more in future is all a matter of degree

What else then, does t'readership think on this most critical of issues for a society supposedly built on the rule of law? [4] 

ND

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[1]   And nowadays it seems to be OK to point this out: everyone else does.  This has surprised me somewhat.  I had several accounts of what a good impression Lammy made in a handful of trips to the USA in 2023/24.  But there we have it - by common consent, the man's a laughing stock.  Pity he's in charge of this difficult issue.

[2]  So clear was this to all concerned that the party which won at First Instance was desperate to have the case heard in England, and they succeeded.  Conversely, the other party had tried equally desperately to have it heard in the USA.  Some $400m was at stake. 

[3]  For any US readers, in the British Armed Forces we don't term regimental-level justice a 'CM': it's a term reserved for full military trials with defence counsel etc.  (No juries, though: an experienced panel.)  At the regimental level or below ('CO's Orders' or 'OC's Orders'), evidence is taken, but it's summary justice, CO = judge-and-jury.  As my first Sergeant Major explained, the process is straightforward:  "March the guilty party in.  Find the guilty party 'Guilty'.  March the guilty party out."  GP will be invited to elect for CM, but it never happens: Sergeant Major makes sure of that, too.  Oh no, son, you don't want that.  You definitely don't want that.

[4]  I shan't open up an episode of History Corner on you - Henrys I and II, Edward I, and Henry VII 

Streeting will land us with Miliband

I'm off on a short hol, but I leave you with my view - a prediction that has been simmering for 18 months, as you know (check the Mili tag).

• It's clear enough why Streeting might feel his only chance (ever) is to move now
• He may get 80 signatures, but he won't get elected
• Not sure if Starmer will stand and fight - John Major did (and won), but that was different in material ways
• In any case, if Streeting moves, Miliband wins

Have fun.   If I can find some wifi in a few days time, I might join in.

ND

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PS: the lefties at Novara are often quite good on lefty stuff, but made a really ridiculous assessment on Tuesday evening.  They said Miliband doesn't fly "because he's been rejected by the electorate before".  FFS!

1. The electorate ain't being consulted
2. errr ... Harold Wilson 1974?
3. errr ... Donald Trump 2024?
4. - plus loads of French and Italian politicians who think nothing of going round for a second bite  

PPS:  Rayner's 11th-hour "exoneration" is pretty damn' convenient, eh???  For Starmer as well as for her.  Sounds to me like the story of McSweeney's 'phone: nobody's gonna believe it. 

Stonewall Starmer goes full 'Sierra'

Not as much fun as you thought?

Having long suggested that Team Starmer fully intends to tough it out - and they had plenty of advanced notice and planning time [1] for this crisis, at least - that's how it still seems, & strongly so, at the time of writing.  There's only one oven-ready candidate in the wings, with no "anyone but [Wes]" votes against him: our old pick Ed Miliband.  

Team S is pursuing what I call the Sierra Strategy when I'm strategising in business.  Recall the Ford jallopy of that name?  Having had many years of consummate success with its predecessor, the smart rust-bucket Cortina line[2], Marks 1-4, Ford went for a fairly 'bold' new look.  The 'jelly-mould' hatchback found immediate disfavour, and despite the usual launch promotions sales were not good.

Ford had a massive call to make:  re-skin and rebrand it fairly promptly with as much commercial dignity as possible, or double down.  They doubled down with massive corporate determination.  Advertising, deep discounts, promotions of all kinds, a smarter Ghia variant that was half-decent - everything in the marketing man's book of tricks.  For several years!  Dunno what this campaign cost, or how the counterfactual might have played out: but in terms of sheer brute force to get the Sierra into the top 3 or 4 UK best-sellers, they succeeded.  And that's Starmer now.

PS, Miliband is sitting there trying to figure his optimum positioning for picking up the crown when it falls.  And a coronation is what he wants: no knife-job.  My guess?  At the critical moment, he offers Starmer Foreign Secretary and a big Euro-push mandate.  Kier, we can both make history together ...     

PPS  If you think Starmer is stonewalling impressively, just watch Trump between now and the mid-terms.  He'll be looking at everything from conjuring a genuine crisis in order to call them off, to calling the results void - and calling out the National Guard in every state that returns a Dem.    

ND  

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[1]  E.g. the timing of the King's Speech

[2]  The Mk 1 started life as just the plain 'Consul'.  Didn't play ideally, so they changed it to 'Consul Cortina' (as opposed to its predecessor the 'Consul Classic'.  See, these Ford guys were always sharp with marketing-based solutions.