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Shouldn’t the Deepwater Horizon spill serve as a wakeup call?
By Lauren | August 30, 2010
The New York Times reports today that, despite the mess caused by the Deepwater Horizon leak, oil companies are taking increasing and largely unscrutinzed risks as they drill deeper for offshore petroleum. According to the Times, rigs are becoming larger and more complicated, are farther than ever from the coastlines (and immediate support in an emergency), and are more frequently serviced by robot subs that break down themselves than by live workers. The article quotes Edward C. Chow, a former oil industry executive, as follows: “‘Our ability to manage risks hasn’t caught up with our ability to explore and produce in deep water.’”
Wonderful.
Don’t get me wrong. I understand that our society runs on petroleum and recognize that there are good reasons to decrease our dependence on foreign oil. I’m just worried about an industry that seemingly knows more about how to create risks than how to guard against them and appears unconcerned about that disparity. After all, as the Times points out, it’s in the oil industry’s interest to hope that the Gulf spill was a one-time fluke. When it comes to risk management, however, hope is not an effective strategy.
The Deepwater Horizon spill has cost billions to clean up, and BP isn’t done yet. The spill has also taken an enormous toll of sheer human misery on the residents of the Gulf Coast. The oil industry needs to learn to better manage its risks before venturing into deeper water. Otherwise, it may only be a matter of time before another, bigger spill occurs.
To read the Times article, click here.
Topics: Business Ethics, Risk Management, corporate responsibility, ethics |