BP chief executive Tony Hayward has been told by an angry US Congressional panel his firm ignored dangers when drilling in the Gulf of Mexico. House committee on energy and commerce chairman Henry Waxman said BP's "complacency" before the 20 April rig explosion had been "astonishing". He accused Mr Hayward of "stonewalling" for failing to answer his questions.
As a public relations exercise for BP, the hearing was a disaster, a BBC correspondent says.
Over and over, the BP chief refused to agree with the conclusions of a group of angry, hostile Congressmen and women who seemed in no doubt, after their own lengthy enquiries, that BP had shown a reckless lack of attention to safety, Paul Adams reports. Infuriated by Mr Hayward's inability or unwillingness to answer their questions, committee members resorted to expressing their disgust, more than one saying he felt insulted.Eleven people died in the Deepwater Horizon drill rig accident, which left a ruptured well spewing hundreds of thousands of barrels of oil into the Gulf of Mexico. Despite BP efforts to contain the leak, oil continues to enter the sea, threatening states along the Gulf coast.
The questions, set out in a letter to Mr Hayward on Sunday by Mr Waxman and fellow committee member Bart Stupak, include allegations that BP:
1)Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option.
2)Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton.
3)Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
4)Decided to forego a recommended safety step in the circulation of drilling mud
Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below .
As a public relations exercise for BP, the hearing was a disaster, a BBC correspondent says.
Over and over, the BP chief refused to agree with the conclusions of a group of angry, hostile Congressmen and women who seemed in no doubt, after their own lengthy enquiries, that BP had shown a reckless lack of attention to safety, Paul Adams reports. Infuriated by Mr Hayward's inability or unwillingness to answer their questions, committee members resorted to expressing their disgust, more than one saying he felt insulted.Eleven people died in the Deepwater Horizon drill rig accident, which left a ruptured well spewing hundreds of thousands of barrels of oil into the Gulf of Mexico. Despite BP efforts to contain the leak, oil continues to enter the sea, threatening states along the Gulf coast.
BP says it will withhold dividends until the end of the year as part of its response to the spill.
The long-term hope for ending the spill rests with two relief wells now being drilled, one of which has reached two miles (3km) below the seabed, or about two-thirds of its way to its target, US disaster coordinator Admiral Thad Allen reported on Thursday.
It is planned is to seal the leak with concrete but that is not likely to happen until August at the earliest. BP's shares rose more than 6% after it agreed to put $20bn (£13.5bn) in a fund to compensate victims of the spill. The increase halted falls that had led to the company's stock value halving in recent weeks.
The long-term hope for ending the spill rests with two relief wells now being drilled, one of which has reached two miles (3km) below the seabed, or about two-thirds of its way to its target, US disaster coordinator Admiral Thad Allen reported on Thursday.
It is planned is to seal the leak with concrete but that is not likely to happen until August at the earliest. BP's shares rose more than 6% after it agreed to put $20bn (£13.5bn) in a fund to compensate victims of the spill. The increase halted falls that had led to the company's stock value halving in recent weeks.
Congressman Waxman said in his opening remarks that BP had "cut corner after corner" in order to save money, which led to the explosion and fire on board the Deepwater Horizon.
"We could find no evidence that you paid any attention to the tremendous risks BP was taking," he went on.
"We reviewed 30,000 pages of documents from BP, including your e-mails. There is not a single e-mail or document that shows you paid even the slightest attention to the dangers at this well."
He told Mr Hayward: "You're not taking responsibility, you're kicking the can down the road."
One by one, other Congressmen, both Democrats and Republicans, questioned BP's activities in America in a hearing which lasted some seven hours.
"We are not small people but we wish to get our lives back," said Bart Stupak, playing on a comment made the day before by BP chairman Carl-Henric Svanberg about how BP sympathised with the "small people" of the Gulf, and a recent remark by Mr Hayward about wanting his "life back".
"We could find no evidence that you paid any attention to the tremendous risks BP was taking," he went on.
"We reviewed 30,000 pages of documents from BP, including your e-mails. There is not a single e-mail or document that shows you paid even the slightest attention to the dangers at this well."
He told Mr Hayward: "You're not taking responsibility, you're kicking the can down the road."
One by one, other Congressmen, both Democrats and Republicans, questioned BP's activities in America in a hearing which lasted some seven hours.
"We are not small people but we wish to get our lives back," said Bart Stupak, playing on a comment made the day before by BP chairman Carl-Henric Svanberg about how BP sympathised with the "small people" of the Gulf, and a recent remark by Mr Hayward about wanting his "life back".
Mr Hayward faced a barrage of questions about the drilling rig. Texan Republican Michael Burgess expressed surprise when the BP chief said he had not known anything about the well in question until he was told in April that drilling had confirmed an oil discovery.
"But you're the CEO of the company," Congressman Burgess said.
"With due respect," Mr Hayward replied, "we drill hundreds of wells around the world."
"Yeah, that's what scares me right now," said Mr Burgess.
"But you're the CEO of the company," Congressman Burgess said.
"With due respect," Mr Hayward replied, "we drill hundreds of wells around the world."
"Yeah, that's what scares me right now," said Mr Burgess.
A row erupted within Republican ranks after another Texan Republican, Joe Barton, suggested BP had been subjected to a "$20bn shakedown" by the Obama administration. Mr Barton, the senior Republican on Mr Waxman's committee, was rebuked by his own party leaders and retracted his words, the Associated Press reports.
"I regret the impact that my statement this morning implied that BP should not pay for the consequences of their decisions and actions in this incident," he said in a statement.
"I regret the impact that my statement this morning implied that BP should not pay for the consequences of their decisions and actions in this incident," he said in a statement.
Earlier, as Mr Hayward prepared to testify, a protester briefly disrupted the hearing, shouting that he should be "charged with a crime" before she was removed. She was identified as Diane Wilson, a fisherwoman from Seadrift, Texas, near the Gulf Coast.
Expressing his "deep regret" for the spill, Mr Hayward repeatedly stressed he was constrained in what he could say by the fact that a number of investigations into the explosion had yet to finish.
"There is nothing I have seen so far that suggests that anyone put costs ahead of safety," he said at one point. "If there are, then we'll take action."
He said he had focused on improving safety for the three years he had been in his post and his priority was ending the spill and clearing uo the oil.
"I give my pledge as the leader of BP that we will not rest until we make this right," he said.
Mr Hayward's inability to answer specific technical questions about the situation on the rig angered the panel particularly. BP's chief executive said answers would be supplied by his firm when they were ready.
Expressing his "deep regret" for the spill, Mr Hayward repeatedly stressed he was constrained in what he could say by the fact that a number of investigations into the explosion had yet to finish.
"There is nothing I have seen so far that suggests that anyone put costs ahead of safety," he said at one point. "If there are, then we'll take action."
He said he had focused on improving safety for the three years he had been in his post and his priority was ending the spill and clearing uo the oil.
"I give my pledge as the leader of BP that we will not rest until we make this right," he said.
Mr Hayward's inability to answer specific technical questions about the situation on the rig angered the panel particularly. BP's chief executive said answers would be supplied by his firm when they were ready.
The questions, set out in a letter to Mr Hayward on Sunday by Mr Waxman and fellow committee member Bart Stupak, include allegations that BP:
1)Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option.
2)Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton.
3)Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
4)Decided to forego a recommended safety step in the circulation of drilling mud
Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below .
If these allegations can be proven without a doubt, then I agree with the fisherwoman that BP should be 'charged with a crime.'
When will people learn? This whole debacle is deplorable. The damaged ecosystems, tourism suffering, people in general down in that area suffering.
ReplyDeleteGreed, power and corruption seem to rule the earth these days and it sickens me. Even with all the people who are working at trying to save this planet, the animals, it becomes disheartening when we have people like this man running around loose on the streets...
Good thing we won't give up the fight to save this Earth.
Sorry for the rant, again. I have been having some tough things to deal with regarding a friend...
P.S. Got some more flowers today, no name. Just asking if my knee is better.
Seriously? Gonna move out of this kooky state.
Lina
P.P.S. Have a Happy Weekend gals!
You made a good point, everything seems to be going to hell in a hand basket and not many people seem to care. It will eventually affect the whole world in some way, not many places will be spared.
ReplyDeleteNo we won't give up the fight to save our planet and we will win in the long run.
Sorry about your friend and hope it turns out for the best.
You can always come here to rant and let off steam that's one reason we are here...as you may notice I rant a lot and afterwards I feel better and I hope you do also.
Accept the flowers graciously and I don't think he means any harm. He may just be concern and reaching out to someone as you said he do look lonesome...if he's who I think he is , not to worry he's harmless.
Seriously: Where would you go if you move???
PIC and myself look forward to hearing from you and have become quite fond of you, so just jump in on any post and talk about the things that interest you.
Lina... you also have a great weekend ....
I watch some of the tape of old Tony...boy he is an arrogant S.O.B.
ReplyDeleteMost British/English people don't act like him...not the ones I have come in contact with and most of the ones I have met is guite nice and go out their way to be nice, but old tony don't have to worry he will get his just due and you can take that to the bank.
I wish the lady with the oil on her had got her hands on him , she would have tore him limb from limb.
BP has thrown old Tony boy to the wolves and he will have to take the heat, in all big corporations some one has to be the fall guy and Tony you are it and when it's all said and done...old shit-head Tony will only be a memory.
Thanks so much for making me feel welcome! You gals are amazing. You get crap thrown your way and it never seems to get you too down, if you know what I mean! I am quite fond of the both of you too-it is so hard to find people who say what they mean and mean what they say.
ReplyDeleteNah, I won't move, I was being rather a baby I guess.
The flowers cheered me up mostly which I needed today :)
Lina
You nailed that PIC. He is the scape-goat. Everyone knows Tony wasn't making all the decisions by himself.It's a huge corporation with a huge board of directors.
ReplyDeleteBut as usual, one guy has to take the fall, just like in government.
Don't give up on the world Lina, some of us are trying to do a little bit here and there to save it.We're all in this together. We've got nowhere else to go....so far.