The new CEO of BP (NYSE: BP), one of the world's largest oil companies, says that its next quarter will be "dreadful," according to The Financial Times. How can that be with oil prices at record highs? The shares of rival Exxon Mobil (NYSE: XOM) trade at almost $92, close to an all-time high.

The answer seems to be that BP is in the wrong segments of the oil and gas business at the wrong time, and poor management has crippled the company. Its shares are up 10% this year, less than the S&P 500 and virtually all of its competitors.

BP is heavily into the refining and natural gas businesses where margins have not been as good as they are in oil exploration. The company's North Sea pipeline has been damaged.

BP also suffers from missteps in its recent past. Its Alaska pipeline has had leak problems, and the explosion of one of its refineries in Texas killed several workers.

New management, however, also points the finger at an organization that has been set up with too much complexity, making operating the huge company more difficult. The plan is to cut-back levels of staff and consolidate the company into fewer divisions.

It is a classic case of blaming the former management when things go badly.

Douglas A. McIntyre is a partner at 24/7 Wall St.