Couldn’t predict… didn’t expect.
Turns out that the grand wizards of corpocrazy have been exposed yet again.
Financial meltdown? Not gonna happen!
Major oil spills in the Gulf? Highly unlikely!
Finance and oil – profit margins other industries can only dream of. Must be visionary management…
These crooked CEOs and CFOs knew all along that the risks were immense, but what do they care as long as the bottom line is surpassed and obscene bonuses await at year-end.
Via AP:
Document: BP didn’t plan for major oil spill
BP suggested it was unlikely, or virtually impossible, for an accident to occur that would lead to a giant crude oil spill and serious damage to beaches, fish and mammals.
[…]
BP’s 52-page exploration plan for the Deepwater Horizon well, filed with the federal Minerals Management Service, says repeatedly that it was “unlikely that an accidental surface or subsurface oil spill would occur from the proposed activities.”And while the company conceded that a spill would impact beaches, wildlife refuges and wilderness areas, it argued that “due to the distance to shore (48 miles) and the response capabilities that would be implemented, no significant adverse impacts are expected.”
Virtually impossible! Well, now it is a certainty! A major oil spill and consequent disaster for the environment. BP is nowhere close to containing the blow-out and the spill is increasing in volume, not declining. BP has acknowledged that 210,000 gallons leak every day, abandoning a claim that it was “only” 42,000 gallons a day.
Not only did BP dramatically downplay the possibility of disaster – they actively lobbied against stricter regulations:
While the cause of the fire and explosion on Deepwater Horizon is still uncertain, one thing is clear: BP, which was in charge of operating the rig, has a history of fighting tough regulations and safety inspections, misleading federal authorities about the dangers of a potential oil spill, and actively advocating for more relaxed safety standards — much like Massey Energy Co. repeatedly fought tougher regulation of mines.
It will be costly for BP and its shareholders:
BP says that the offshore drilling accident that is spewing thousands of barrels of oil a day into the Gulf of Mexico could cost the company several hundred million dollars.
[…]
But regardless of the out-of-pocket costs, the long-term damage to BP’s reputation — and possibly, its future prospects for drilling in the Gulf of Mexico — is likely to be far higher, according to industry analysts.The magnitude of the Deepwater Horizon disaster seems to be finally sinking in with investors. BP’s stock plunged more than 8 percent Thursday in American trading in an otherwise strong day for stocks. Since the accident, the American depositary receipts of the company have fallen about 13 percent, closing Thursday at $52.56.
Let the full and true costs be borne by BP and any manager responsible for the safety failures.