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Saturday, May 29, 2010

As oil spill grew, BP’’s credibility faded

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GEO 436 LONDON: At nearly every step since the Deepwater Horizon exploded more than a month ago, causing the worst oil spill in U.S. history, rig operator BP PLC has downplayed the severity of the catastrophe in the Gulf of Mexico. On almost every issue — the amount of gushing oil, the environmental impact, even how to stop the leak — BP’’s statements have proven wrong. The erosion of the company’’s credibility may prove as difficult to stop as the oil spewing from the sea floor. “They keep making one mistake after another. That gives the impression that they”re hiding things,” said U.S. Sen. Bill Nelson, a Florida Democrat who has been critical of BP’’s reluctance to publicly release videos of the underwater gusher. “These guys either do not have any sense of accountability to the public or they are Neanderthals when it comes to public relations.” Take one of the most obvious questions since the April 20 explosion: How much oil is leaking? Official estimates have grown steadily — first the word was none, then it was 42,000 gallons, then 210,000 gallons. And now a team of scientists say the leak may well be five times that, making the spill worse than the Exxon Valdez. All the while, BP has been slow to acknowledge the leak was likely much worse than the public had been told. The oil giant’’s behavior has led to accusations that it has been motivated to keep the leak estimate low because under federal law the size of eventual fines is tied to the size of the leak. Nelson said that he believes BP has delayed release of everything from the actual flow rate to the videos because of a federal law that allows the government to seek penalties of $1,000 to $4,300 per barrel — 42 gallons — of oil spilled in U.S. waters. “And so naturally they want to minimize what people were thinking they were going to spill.”

Related posts:

  1. AP ENTERPRISE: Spill grew, BP’s credibility faded (AP)
  2. Oil Spill Taking Toll On BP’s, Government’s Credibility
  3. Gulf Oil Spill Now Far Worse Than Exxon Valdez, Worst In U.S. History, Scientists Say

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