Time to Boycott BP Over Gulf Oil Spill Disaster

May 25, 2010 RSS Feed Print
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By Mary Kate Cary, Thomas Jefferson Street blog

Over the weekend, Interior Secretary Ken Salazar threatened BP with a government take-over of cleanup operations in the gulf: “If we find they’re not doing what they’re supposed to be doing, we’ll push them out of the way appropriately.” That’s not what the commandant of the U.S. Coast Guard, Admiral Thad W. Allen, said. Admiral Allen stepped back from government threats to take over: “To push BP out of the way, it would raise a question: Replace them with what?” Admiral Allen, speaking at the White House yesterday, said he wouldn’t recommend that the government take control, and the Wall Street Journal today reported that Allen said the government doesn’t have any more technology or expertise than the oil company does to deal with the leaking well.

[Check out our roundup of editorial cartoons on the Gulf oil spill.]

The question is: do we go with the judgment of the secretary of the Interior, who is a former senator from land-locked Colorado, or the Coast Guard’s top man on the water--a 40-year Coast Guardsman who played a lead role in cleaning up after Katrina? If that’s the choice, I’m going with Admiral Allen. He says BP is the only one who has the ability to stop this, not the government. He would know, and I believe him.

So why are so many people demanding that the government jump in and take over? It’s the same attitude we always hear--that the government needs to do something, anything, when there’s a crisis. But it’s clear that in this case, the government has no answer. (I’d bet Kevin Costner has more of an answer than the White House does.) No EPA back-up plan was in place. If you listen to Admiral Allen, it’s clear the government has no idea how to stop the devastation. He told the Washington Post this morning it could be August before it’s plugged--and that’s with BP in charge, not the White House.

Instead of looking to the government for a solution, let’s try a more free-market answer. BP recently announced its 2010 first-quarter profits, which were $6.08 billion--in just three months--more than double the same period a year ago. Byron Grote, BP’s chief financial officer, said a week after the leak began that it was too early to talk about how much it would be spending on cleanup. According to the Houston Chronicle, he said, "It will be very much dependent on how things evolve in the next couple of months," he said. We’ll just see, is the attitude. Just a cost of doing business as it “evolves” over the next few months.

One way to get BP’s attention is by hitting their bottom line. Let’s raise the cost of doing business this way. In October, OSHA fined BP more than $87 million for workplace safety violations; in 2005 it was fined $21 million for a 2005 explosion at a Texas refinery that killed 15. How about the same for this explosion? Or perhaps the EPA should begin imposing millions in fines every day going forward that the leak is not plugged. That might get their attention. If those quarterly profits start dropping because of massive fines, they’ll get moving on plugging it faster.  

Or how about a consumer boycott of BP? According to the BP website, BP is the largest oil and gas producer in North America and one of the largest gasoline retailers in the United States, selling under both the BP and Arco labels. Why not try a boycott like consumers did in 1989 after Exxon was dragging its feet cleaning up the Valdez spill? Three weeks ago, the Washington Examiner talked to BP station owners and customers, and reported “no apparent sign” of a consumer backlash at the pump. "I haven't noticed anything yet," said Jeff Dolch, a BP station owner in Baltimore. "But if (the spill) hits hard and the news starts showing pictures of animals, at that point it may start to happen."

In the weeks since, the BP website started live-streaming shots of the oil pouring into the gulf, cable news has plenty of oil-soaked bird pictures, and now both the oil and the toxic chemicals used to break it up are spreading over three states’ shorelines. Time for something to happen, and let’s not assume the government’s going to have the answer.

Tags:
Ken Salazar,
Gulf of Mexico,
government,
EPA,
Coast Guard,
oil,
Barack Obama

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America Suck. That's just it. BP aren't much to blame here. Another company actually built the rig and American safety regulations are much laxer than Europes. That's why there are many more oil rig accidents in America. Stuff Obama, I've liked him less and less since he came into power. This makes me hate him.

Year of MO 11:24AM September 03, 2010

Lets consider american companies

Bhopal.....lets see an American company lays waste to part of India, kills thousands, encourages its staff to leave the country, refuses to extradite people to face trial and pays derisory compensation to the sick and dead......lets forget about the nickel and dime rhetoric from Obama

If this wasn't on America's back door he wouldn't give a damn!

Occidental or Piper Alpha....167 dead on an American rig in UK waters, no clean up, delays and derisory compansation paid to the families of the dead.

Come on Obama...stop the showboating

Mark 8:43AM June 11, 2010

I think it is shocking to most Brits that this attack, which has slightly xenophobic overtones, has actually been levelled at one of their own this time, rather than China/Middle East/Jonny Foreigner. That Obama is seeking to stop BP - a UK registered company - paying a dividend to UK fund holders is jaw-droppingly brazen, and in line with the sort of nonsense you would expect to see from Zimbabwe/Venezuela if only they had enough world influence.

The fact is that this was an accident. Having worked as a risk manager in the oil industry I can vouch for the fact that safety regulations in the US are more lax than they are here (although it is FAR more litigious), and BP operates in a manner no different from any of the other Majors (in fact is is probably better than most). Why is the federal government not chipping in here if it is a core problem that they created?! If the UK construction industry allowed its companies to build scaffolding from lolly sticks and twine, and the wind blew it over killing hundreds, would we be blaming the company or the regulations? BP had no idea there was a massive gas blow out coming, or that the BOP would fail, or that the engineers would be sitting around not noticing the mud pouring into the tanks that would herald a problem. I would suspect that even BP's legal contract with its subcontractors would apportion at least some of the responsibility for an accident 'downhill' - having had the misfortune to experience working with the likes of Chevron, there is nothing surer that they would legally fight tooth and nail in the case that this happened in the North Sea. US Majors are NOTORIOUS for apportioning blame elsewhere under contract.

The unfair attack on BP is quite clearly an attempt by Obama to whip up the xenophobic, Fox-News-Watching, portion of US society to mask the industry's (and hence his own) failings. If all the nonsensical comments about about pension funds not investing in BP over its 'flouting of best practices' were true, then there should be no investment in the entire oil industry. BP is a great company - by all accounts great to work for - and has extremely high, industry-leading, safety standards. It would do everyone a lot of good to remember that this was an accident - one that was quite probably not BP's fault. Please can our government start supporting this cornerstone of one of our most important industries and, indeed, our whole economy, against these ludicrous, unfair, myopic attacks by the US administration.

Rik Ban of AL 7:25AM June 10, 2010

Mary Kate Cary

Mary Kate Cary

Mary Kate Cary is a former White House speechwriter for President George H.W. Bush. She currently writes speeches for political and business leaders.

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