I was reading the transcripts of the US Congressional grilling of BP CEO Tony Hayward, and this passage caught my attention:

Dr. Burgess: Let me ask you another question. You said in response to some information that came up that there was no evidence that BP was focusing on the cost of drilling. And, yet, March 2010 strategy presentation, you stated, “We have added exploration resources efficiently. Our discovery cost was $1.40 per barrel in 2009. This is consistent with our track record over the last 5 years of having the lowest discovery costs in the industry.”

Now, certainly, that would be enviable, except, in a culture of safety, I mean, I might even spend $1.45 or $1.47, instead of just $1.40, if it meant that it was a safe procedure.

So was maintaining the lowest‐cost discovery in the industry possibly a factor in the decision‐making on this well?

Mr. Hayward: None whatsoever.

But that metric is created by dividing the volume of barrels discovered by the costs. And what it talks to is the success of our exploration program and the scale of the volume that we have discovered, not anything to do with costs.

Dr. Burgess: Well, but it does have something to do with cost. Now, it has been reported that completion of the Macondo well was running behind schedule. Is this accurate?

Mr. Hayward: I believe it was running behind schedule, that is correct.

Dr. Burgess: How far behind schedule?

Mr. Hayward: I don’t know the precise number.

Dr. Burgess: What does it cost today to run a rig like that?

Mr. Hayward: That sort of rig, fully built up, the cost is probably a million dollars a day or thereabouts.

Dr. Burgess: So, even a couple of days over is a significant cost driver on that $1.40‐a‐barrel minimal discovery cost in the industry.

Mr. Hayward: Well, with respect, Congressman, the most important thing was that actually we had made a discovery, and we wanted to secure it in the proper way. And that was going to be a far bigger driver of any value that the company was going to create than the cost of the operation.

Dr. Burgess: I don’t disagree with that. But, oh, how I wish that that had been the case, as we are investing hearing after hearing after hearing on this thing case and the darned thing is still bubbling down at the bottom of the gulf. That doesn’t seem to be accurate.

Beware what metrics you use in your strategy meetings! Big Brother is always watching!