Barack Obama blitzes BP
A month ago we thought the British economy depended on the banks but now we’re learning it also depends on dividends from BP.
Is Barack Obama correct in ramping up the criticism and penalties on BP? The spill is big, the company has taken several imaginative engineering measures and had some success with more to follow, it is also offering to clear up the mess. How much more does Mr Obama want?
The US is now saying that it is going to intervene in BP’s business by dictating its dividend policy, and expecting it to compensate other companies who can’t now set up drilling in the Caribbean. Both of these seem to be excessive measures.
From what I have read the US is trying to be independant in oil supply and that means taking bigger risks drilling deeper oil. That one of these risks occurred should be something the US is prepared for. How much a company can do seems quite limited compared to a government and perhaps also relates to how much people are willing to pay for their fuel. It’s becoming a bit like a witch-hunt on BP and the UK should be looking at what it can do both to assist and to put pressure on the US to ease up on BP.
It is fair to comment that BP has been involved in two other major incidents in the US and it would be interesting to know how that stacks up with other companies. For example the Total fuel dump that exploded near London was huge but I don’t recall a government campaign against Total.
The jury has been out on the UK / US relationship over the last couple of years despite Mr Obama using the ’special’ word recently, the appropriateness of the action on BP can be seen as another piece of that jigsaw.