Monday, 7 June 2010

Is one of our largest UK companies Obama’s whipping boy? You bet your sweet BP!

The title of this blog contains the catchphrase of one of the USA’s best loved comedy shows but I don’t think this is a laughing matter.

One of the UKs largest companies by market capitalisation, BP is bearing the brunt of the fallout from the gulf of Mexico oil slick which is now contaminating shorelines in several US states.

Does BP deserve to be the Obama’s whipping boy or should some other company be shouldering their share of the blame?
Some facts have been conveniently left out by the World’s media:

Does BP own the offshore drilling platform? No

Does BP employ the people who worked on the rig? No

Did BP staff cause the explosion? No

Well, who owns the rig, employs the drilling staff and who caused the explosion? The answer is Transocean, an American owned company which is the largest offshore drilling company in the world.

Isn’t it strange that nobody has heard of TransOcean and whilst BP is getting all of the flak? Transocean seems to be walking between the raindrops and not getting drenched by the media storm.

However BP is the prime contractor and they did employ the services of Transocean and the Prime Contractor ultimately takes responsibility. Nevertheless, is it morally right that BP shareholders are losing tens of Billions in shareholder value, whilst the little known US company escapes scrutiny.

Surely BP should slope shoulder and blame somebody else, but this would not be a wise move with such a sensitive issue that affects the ecology, the economy and not to mention swing state votes needed for a second term?

I will leave it to you to formulate your opinion.