Sarah Palin, former Governor of Alaska, a net oil producing region, is a big believer in oil and its benefits. What does she mean when she says as well as caring deeply for the sea life and wildlife threatened by the oil disaster, she says “they’re polluting our oil”. A Freudian slip, I suspect. It would have been more appropriate to focus on their polluting our water, landscape etc. Oil slick in Gulf of Mexico (BBC Science and Environment).
Like millions of others around the global I share her concern. BP is a multi national, but one of the UK’s star performers, despite employing many US citizens. According to excellent British daily, the Daily Telegraph, it turns out her husband worked for BP for 18 years.as a production supervisor, and only left the company last year to spend more time with his family. The Telegraph comments that Sarah Palin is attacking the British oil giant over the recent Deepwater Horizon spill and a previous one in her state in 2006. There seems less of her time spent on the tragic loss of 11 lives in the disaster, is this less worthy of her attention? Mrs Palin, promoted the slogan “Drill, baby, drill,” said she continues to support offshore drilling but the US should not rely on foreign countries for oil.
BP has some serious explaining to do too.
In 2006, a BP pipeline in Alaska spilt 200,000 gallons of oil at Prudhoe Bay, Alaska. Analysts who investigated the disaster blamed the spill on corrosion. BP paid £12m in compensation and fines. These cases can often lie outside business risk insurance and marine consultant business risk insurance boundaries.
Apparently, many months before the Deepwater Horizon tragedy 2 US Congressmen raised serious concerns about BP’s operations in Alaska. Since there had been four major incidents in just 24 months any proposed budget cuts may well seriously compromise safety. Events have proved them to be correct.
My question to Sarah, who like most educated Americans, seems a decent sort, is have US Oil companies a better track record? If so,why did the contracts go to we globally respected market leader like BP? Future contracts should go to US Oil companies with better credentials, and in order to build solidarity and goodwill the best practice shared with BP. From a financial perspective what would a UK Accountant make of the BP Gulf of Mexico metrics? Is BP trying to cut corners?