May 2, 2010 British Petroleum the world’s leader in oil production can’t turn the oil off from their leased oil rig in the Gulf of Mexico. The technology to drill this deep in offshore rigs is there, but there is no real technology used to shut off the well heads. The oil is still gushing out into the ocean waters on the deep water rig and BP doesn’t know how to shut it off is the crux of the matter.
Day 12, and BP is no where closer to stop the damage it is doing to the shores of the United States and executives such as the CEO who are highly paid -can’t figure it out yet.
The offshore rigs through highly advanced technology and higher oil prices whether they be artificially manipulated on the oil market or whether demand is higher has not kept up with safety technology in cases such as this in the gulf.
Meaning oil companies are all over extracting oil and gas for profit but have little desire to attend to or ensure safety during this extraction process even with or without adherence to government regulations.
The dangers of this operation and the determination of BP Oil to go to the lengths of deep ocean oil exploration has risk and drawbacks that BP Oil has ignored. Platforms such as this have exploded in the past and presented hazards to the environment and businesses that derive income from the sea.
In 2001 the Petrobras Oil Platform 36 exploded and 11 people were killed and earlier in 1980 the storm in the North Sea caused 123 lives. These platforms are up to 5,000 feet down such as the one spilling into the ocean in the gulf at this very minute. The depths of these wells call for extreme safety measures due to the depths of exploration and in this case the shut off valve is not working. A moratorium on oil drilling at this depth should be banned until all safety regulations are followed despite the oil companies who demand more leasing rights offshore in the US.
It is not only the oil that is spilling into the water it is the heavy metals and the method of attempting to disperse the oil with more chemicals which will not solve the problem. Offshore drilling is not only dangerous or unsafe in this region due to the high probability of hurricanes in the Gulf region but also the storms.
The process is an oil company obtains a lease from the government and proceeds to extract oil. European countries have higher standards that their US counterparts and demand shut off valves are operative and tested. In the United States with deregulation of the oil industry and corporate interests in general oil companies have pressured the politicians to lessen safety measures. The coal industry totally ignores safety violations and regulations as we have seen in West Virginia’s Massey Energy coal mine explosion that cost 29 lives.
BP Oil CEO Compensation
For the past few days you have seen his face on all the major news networks indicating that BP Oil is doing all it can to shut off the oil which is engulfing the gulf of Mexico and endangering the economy of four southern states.
Tony Hayward the CEO of British Petroleum or BP Oil received over 6 million dollars in compensation last year. For that kind of money BP oil was cheated since as a CEO Mr. Hayward would have the responsibility to ensure safe oil drilling for his corporation. Mr. Hayward’s compensation package was increased by 41 percent which doubled his income from the year previous even though oil profits were lower by 45 percent. Is BP Oil rewarding a CEO for poor performance or what is the reasoning of increasing the CEO”s pay without increase in profit or performance? It appears that Tony Hayward was compensated more for reducing “operational costs” such as fewer safety measures and fewer shut off valves and cutting corners to increase profits.
Mr. Hayward was compensated for increasing the companies operational performance and by increasing daily oil production however did Mr. Hayward increase the safety of BP Oil operations? We think not. In fact Mr. Hayward’s lack of attention to safety will cost the company tens of billions of dollars in the clean up and the pending lawsuits for what is being called the Biggest Oil Disaster Spill in History of the United States.
The puzzling fact is: if BP Oil is regulated as in Norway to ensure safety valves work on rigs in Europe why would they not ensure these same safety measures are operative in the Gulf for their biggest oil consumer the United States?
BP has claimed it will improve its profitability by cutting costs and make even more money in the future by cutting safety measures and increasing profits for their shareholders. BP oil has gone head to head with Exxon in the race to produce the most profitable oil company in spite of ignoring proper best practices in oil drilling.
Stock investors will do well to avoid BP Oil stocks for their practice of short term gains has proven to cost long term debt by statistically ignoring safety while increasing the compensation of their CEO Tony Hayward.
Tags: BP Oil CEO Compensation, BP Oil Compensation to Executives, BP Oil Gulf Spill, BP Oil ignored safety, BP Oil lack of safety, BP Oil increases CEO Compensation, Tony Hayward CEO BP Oil.