Archive for October 19th, 2011
Bob Dudley announced Monday that British Petroleum had come to terms with Anadarko, which has agreed to give up its 25% stake in the Macondo Well and pay British Petroleum $4 billion dollars as its share of damage claims and cleanup costs.
“I am very pleased that they stepped in and are now shouldering some of the responsibilities,” BP Chief Executive Bob Dudley said. He went on to add the agreement was not an admission of liability from either party, but the settlement is “favorable for both companies.”
Well, of course nobody is liable, of course, but favorable to both Anadarko and British Petroleum…how might that be?
Well, simply put, British Petroleum has estimated total costs in cleanup and damages will eventually reach $42 billion dollars. Anadarko could have potentially been on the line for 25% of that due to its 25% ownership of the well. However, if Anadarko had been able to prove in its lawsuit that British Petroleum was grossly negligent, then they would have been financially off the hook altogether. So, essentially Anadarko chose to cut their losses, with BP agreeing to the company paying only 10% of projected damages and cleanup costs, while Anadarko also gives up its pursuit of proving BP was grossly negligent in the spill.
And in case one needs reminding, a proven designation of gross negligence would raise BP’s fine by $18 billion dollars, because the fine per barrel under such a designation would increase from $1,100 per barrel to $4,300 dollars.
And that’s getting expensive, really expensive, so though Bob was glad to see Anadarko “shouldering some of the responsibilities,” what BP really wanted was for the company to stop pursuing this designation, same as they want to settle with Transocean and Halliburton more than likely under the same terms, possibly saving British Petroleum billions… billions that would go towards the restoration of the Gulf Coast, billions that would certainly constitute BP fulfilling their sense of responsibility, and potentially coming closer to finally making the coast whole again.
So yeah, when Bob Dudley says on Monday, “There is clear progress with parties stepping forward to meet their obligations and help fund the economic and environmental restoration of the Gulf, it’s time for the contractors, including Transocean and Halliburton, to do the same,” that’s pretty damned annoying to hear from the CEO of British Petroleum, and pretty self-serving too.
I get that as a profit-making company, Bob and BP are beholden to their shareholders. I also understand it only makes sense in our current system for a profit-making company to try real hard to not pay out damages, regardless of who or how many it hurts, while at the same time, giving the impression they are doing all they can to make things right.
But Bob? Mr. Dudley?
To those of us who pay close attention to this story, we do see what is going on here. Your company complains Ken Feinberg is paying too much to claimants. Your company bought off scientists from universities all over the Gulf Coast in hopes of furthering your advantage in upcoming court proceedings. Your company killed eleven people in this catastraphuk alone. Your company is making it very difficult for researchers to get their hands on necessary oil samples so they can find ways to restore the coast your company fucked up. Your company stands accused of harassing plaintiffs who have filed lawsuits against it.
And yes, your company is fighting the designation of gross negligence while at the same time urging other companies to own up to their obligations and responsibilities.
In other words, Bob, you’re full of shit.
Your company is grossly negligent. There is little to dispute about that, but what, unfortunately, is very much in dispute is whether you sons of bitches are going to be able to buy your way out of it.
Read the article:
Have a nice day.