Exxon Mobil and Chevron Executives Say BP Spill Unlikely to Repeat


oil execs before CongressIn the wake of the environmental disaster stemming from the BP (BP) oil spill in the Gulf of Mexico, Congress summoned oil officials to testify over the safety of their offshore drilling.

The oil spill that started back on April 20 when one of BP's offshore drilling platforms exploded continues to leak into the ocean, and could take up to another two months to stop. Following the accident, President Obama imposed a six-month moratorium on deep-water drilling and Congress is now trying to determine the likelihood of another disaster taking place.

Oil executives gathered Tuesday to testify in front of the House Energy and Commerce Committee, and overwhelmingly stated that they believed the BP accident was an aberration that is unlikely to repeat if proper controls and safety procedures are followed.

Rex Tillerson, CEO of Exxon Mobil (XOM), testified that accidents like the one BP experienced "should not happen" if companies follow proper well design, drilling, maintenance and training procedures

With so much on the line, oil companies are trying to distance themselves from BP, and Chevron (CVX) CEO John S. Watson noted that every Chevron employee has the right to stop work immediately if they spot anything that they view as unsafe. This was a direct stab at reports that BP continued operating its deep-water Horizon well even after it had been warned several times that conditions were dangerous.

As more inter-company emails surface, it is becoming clear that BP officials were well aware of the fact that corners had been cut, and basically turned a blind eye to the consequences that could result.

One BP engineer emailed a co-worker less than a week before the disaster stating that the company had chosen a cheap, fast option to secure the well, and went so far as to refer to the well as a "disaster."

Another email was sent out by a BP official stating that "who cares, it's done, end of story, will probably be fine." Unfortunately, things were not fine, and instead led to the nation's largest environmental disaster in our history.

House Energy and Commerce Committee Chairman Henry Waxman Monday night reported that the committee had found an alarming pattern of neglect on the part of BP, including cutting corners and doing things faster than they should have in an attempt to trim costs whenever possible.

In today's testimony, Chevron's CEO reported that his company had performed an internal audit, which confirmed that Chevron's wells are safe and environmentally sound.

In addition to looking for ways to prevent future accidents, the committee is also looking at the various plans of clean up that each company has in place should another disaster take place. Alarmingly all of the plans are roughly the same, which Mr. Waxman referred to as "paper exercises."

A couple aspects of the clean-up plans raise alarms. For example, they include measures for protecting walruses -- which have not lived in the Gulf for three million years. And two companies list the phone number for the exact same expert that BP has in their plan. What makes this truly alarming is the fact that the expert is long-dead.

Obviously there are problems with the clean-up plans that need to be addressed before we can rest easy that another disaster is not around the corner.

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