Saturday, May 29, 2010

The world that we live in

In a column about the oil spill in the Gulf, David Brooks describes the world we now live in:
Over the past decades, we’ve come to depend on an ever-expanding array of intricate high-tech systems. These hardware and software systems are the guts of financial markets, energy exploration, space exploration, air travel, defense programs and modern production plants.

These systems, which allow us to live as well as we do, are too complex for any single person to understand. Yet every day, individuals are asked to monitor the health of these networks, weigh the risks of a system failure and take appropriate measures to reduce those risks.

If there is one thing we’ve learned, it is that humans are not great at measuring and responding to risk when placed in situations too complicated to understand....

In the weeks and hours leading up to the Deepwater Horizon disaster, engineers were compelled to make a series of decisions: what sort of well-casing to use; how long to circulate and when to remove the heavy drilling fluid or “mud” from the hole; how to interpret various tests. They were forced to make these decisions without any clear sense of the risks and in an environment that seems to have encouraged overconfidence.

Over the past years, we have seen smart people at Fannie Mae, Lehman Brothers, NASA and the C.I.A. make similarly catastrophic risk assessments. As Gladwell wrote in that 1996 essay, “We have constructed a world in which the potential for high-tech catastrophe is embedded in the fabric of day-to-day life.”
Unfortunately, the latest information reported in the New York Times about the behavior of employees at BP in the months, weeks, and days leading up to the Deepwater Horizon disaster show just how fallible human beings are... and why vigorous oversight is so important as the world becomes increasingly complex.
Internal documents from BP show that there were serious problems and safety concerns with the Deepwater Horizon rig far earlier than those the company described to Congress last week.

The problems involved the well casing and the blowout preventer, which are considered critical pieces in the chain of events that led to the disaster on the rig.

The documents show that in March, after several weeks of problems on the rig, BP was struggling with a loss of “well control.” And as far back as 11 months ago, it was concerned about the well casing and the blowout preventer.

On June 22, for example, BP engineers expressed concerns that the metal casing the company wanted to use might collapse under high pressure.

“This would certainly be a worst-case scenario,” Mark E. Hafle, a senior drilling engineer at BP, warned in an internal report. “However, I have seen it happen so know it can occur.”
As The Killers sing, "This is the world we live in, maybe we'll make it through."

(Video link)

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