BP chief: 'Unprecedented' string of failures led to spill
Washington (AFP) June 16, 2010 BP chief: 'Unprecedented' string of failures led to spill Washington (AFP) June 16, 2010 - BP chief executive Tony Hayward blamed Wednesday an unprecedented series of failures for the Gulf of Mexico oil spill and said he was "personally devastated" by the catastrophe. "I understand people want a simple answer about why this happened and who is to blame," Hayward said in testimony prepared for delivery in his first appearance Thursday before angry US lawmakers. "The truth, however, is that this is a complex accident, caused by an unprecedented combination of failures. A number of companies are involved, including BP, and it is simply too early to understand the cause." While "there is still extensive work to do" to understand what led to the worst environmental disaster in US history, BP's nearly two-month-old internal probe had focused on failures in seven critical safety mechanisms, he said. Those systems "should have prevented this accident or reduced the impact of the spill," Hayward said in remarks made public on the eve of his appearance before the House Energy and Commerce Subcommittee on Oversight and Investigations. He cited the cement that seals the reservoir from the well; the casing system designed to seal the well bore; pressure tests to ensure the well is sealed; procedures to detect and control hydrocarbons in the well, including the use of the "blowout preventer" (BOP) and its maintenance. Hayward also listed the BOP emergency disconnect system, "which can be activated by pushing a button at multiple locations on the rig," the BOP's automatic closure failsafe, and other features that can close the BOP and seal the well at the seabed after a blowout. His appearance came amid deep and growing anger at BP both in Congress and the Gulf Coast areas bearing the brunt of the environmental and economic devastation from the gushing well 1,500 meters (5,000 feet) below the surface. Lawmakers have accused BP of cutting corners on safety in order to save money in the run up to the April 20 blast that sank the Deepwater Horizon offshore drilling platform and killed 11 workers aboard. "While we can't undo these tragic events, I give you my word that we will do the right thing," Hayward said, stressing he was aware of "the concerns, fears, frustrations -- and anger -- being voiced across the country." "We will not rest until the well is under control, and we will meet all our obligations to clean up the spill and address its environmental and economic impacts," he promised. BP is legally required to cover all cleanup costs and promised Wednesday to set aside 20 billion dollars over the next four years to make good on "all legitimate claims." Hayward said BP had paid out more than 90 million dollars to date on more than 56,000 claims, mostly from individuals, and planned to pay out nearly 16 million dollars this week to businesses harmed by the spill. "The explosion and fire aboard the Deepwater Horizon and the resulting oil spill in the Gulf of Mexico never should have happened -- and I am deeply sorry that they did," said Hayward, describing himself as "personally devastated." "None of us yet knows why it happened. But whatever the cause, we at BP will do what we can to make certain that an incident like this does not happen again."
earlier related report President Barack Obama's Democratic allies cheered the news as a solid step towards helping afflicted areas recover from the worst environmental catastrophe in US history but said that more action would be needed. Democratic House Speaker Nancy Pelosi welcomed the news but warned: "If it takes more than 20 billion dollars, BP will have to cover the full amount for the families, workers, and small business owners of the Gulf Coast." "We will monitor BP's payments to those hit hardest by this crisis, and will not hesitate to pass tough legislation if BP fails to follow through on its responsibilities," she said in a statement. "It is a good first step toward compensating victims," said Democratic Senate Majority Leader Harry Reid, adding that BP was signalling "it is willing to take some responsibility for its actions." "I am hopeful that this development will help jump start the rebuilding process for the industries, businesses and residents in the Gulf Coast who were hurt by this disaster," Reid said in a statement. Democratic Senator Robert Menendez called the fund "the very least BP must do to start making the coastal communities devastated by its recklessness whole again." "But it should not be mistaken for an acceptance of full accountability or as a removal of the liability cap" on economic damages, set by law at 75 million dollars, said Menendez, who favors scrapping the limit. "We absolutely need to continue our work to guarantee that BP is bound to cover all economic and environmental damage," he said in a statement. Obama's number two Republican critic in the House of Representatives, Eric Cantor, welcomed the announcement but sharply criticized the president's overall approach to the catastrophe. "I do commend the president working with BP to establish that fund, and clearly BP has to pay. For their part, they've clearly stepped up, taken responsibility and support the escrow fund. But the president still has not offered a fix to the problem," he said through a spokesman. Cantor charged that Obama had "not offered any plan to help the people right now who need it most." Republican Senate Minority Leader Mitch McConnell had no immediate reaction to news of the fund, but had warned that the energy giant was fully responsible for costs tied to the "monumental" disaster in the Gulf. "BP should pay for every bit of it. They've said they're going to and they certainly will pay for every part of the cost of this disaster," McConnell had said as the Senate began its work on Wednesday. "But in the meantime, the question is, are we going to get the leak stopped and what are we going to do to keep that oil offshore if at all possible?" he said. Republican Senator George Lemieux, whose home state is Florida, said "questions remain" about the mechanics of the fund but called its creation "a positive sign for those who are losing money because of this disaster." "I commend the president for pursuing this idea and pressing BP to make it a reality. Job number one remains stopping the spill; the second is mitigating the spill's effects," he said in a statement.
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