Watching The World: BP fights 'reckless' charge

July 12, 2010
Reckless" is a charge the oil and gas industry has heard a lot since BP PLC's Macondo blowout.

Reckless" is a charge the oil and gas industry has heard a lot since BP PLC's Macondo blowout. Indeed, from US President Barack Obama down to op-ed writers halfway around the globe, reckless" has become a shibboleth.

I will meet with the chairman of BP and inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company's recklessness," said Obama ahead of his meeting last month with BP Chief Executive Tony Hayward.

We look forward to meeting with President Obama…for a constructive discussion about how to best achieve these mutual goals," BP said, agreeing to the creation of a $20 billion compensation fund but without making any comment at all on the charge of recklessness.

Then, in a public hearing, US lawmakers launched bitter attacks on Hayward, BP's response to the disaster, and decisions the company made that critics believe led to the failure of the well and the subsequent explosion that killed 11 rig workers.

Congressional brickbats

According to one report, Hayward replied in a flat, even voice, absorbing the legislators' brickbats without argument. I understand your anger," Hayward repeated several times.

But that was insufficient for Rep. Cliff Stearns (R-Fla.), who asked Hayward if it would be appropriate to tell Floridians that oil was spilling onto their coast because of BP's reckless behavior."

Hayward deflected the charge. It's a consequence of a big accident," Hayward said. But Stearns wasn't satisfied. No, yes or no. Reckless behavior or not?" Stearns pressed. There is no evidence of reckless behavior," said Hayward.

Hardly had Hayward uttered his denial, than Anadarko Petroleum Corp.—a 25% stakeholder in the Macondo well—issued a statement that this tragedy was preventable and the direct result of BP's reckless decisions and actions."

An ugly mess

BP responded by contrasting its own pledge to clean up the oil and gas spill in the Gulf of Mexico" with its characterization of Anadarko as refusing to accept responsibility for oil spill removal costs and damages."

All in all, it has been an ugly mess.

Despite the charges, BP has been stout in its own defense, while continuing with its effort to staunch the leak. Not least, the firm has made no effort to evade any potential responsibility it may bear in the crisis.

That was made entirely clear to this writer by Andrew Gowers, the head of BP corporate communications. When our talk turned to charges of BP's reckless" behavior, Gowers said: We will be giving our response to these issues in the fullness of time."

That's equal to trust us." But perhaps it's time for everyone to do just that. Sooner or later the facts will emerge. When they do, everyone will know who was—or was not—really reckless.

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