Wednesday, September 15, 2010
BP chief tells MPs Gulf spill was "devastating to me"
So devastated is the BP chief after the gulf spill that he wants his normal life back. In his hearing at Louisiana, Mr. Haywards mentioned that BP had spent $14 billion in safety, maintenance and hiring of the right kind of individuals. According to him, the gulf oil spill was particularly devastating for him due to "the immense progress the company had made in the past three years." Even though the company has reimbursed the families of the 11 workers it has still not taken sufficient steps for the conservation of environment. And this is not the first time that BP has come under fire due to negligence. So my question is, why is the government allowing a company like BP to move on with normal proceedings after so much colossal damage? Shouldn't there be a regulation where negligent companies like BP should be fined so heavily that other companies take more steps to ensure safety and environment conservation?
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2 comments:
I would be comfortable with BP being assessed a large fine in order to help preserve environmental safety in the future. I spent all summer on the Gulf on Mexico and even though my area was lucky enough not to experience large amounts of oil we did experience a large decrease in economic activity. Many areas of LA, MS, and FL did experience real environmental damage due to oil but even areas that experienced minimal oil felt the affects of the media. The media made every beach a "dangerous toxic zone" and it persuaded tourist to take their vacations plans elsewhere. Assessing BP with a large fine would hopefully ensure that companies take extreme precautions when drilling and even have multiple emergency plans.
In theory it makes sense to want to fine BP so heavily that it makes an impact on oil companies to ensure oil wells are safe moving forward, but this fine would end up being paid indirectly through BP shareholders (decreasing dividends), not the company itself. BP wouldn't be able to increase their price at the pump that much because they wouldn't compete. Maybe a heavy fine isn't the best way to encourage upholding safety standards in the oil industry.
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