Waxman: Tony Hayward Acting Like He Has Nothing to Do With BP

by: Deb Weinstein, t r u t h o u t | Report

Waxman: Tony Hayward Acting Like He Has Nothing to Do With BP
(Photo: talkradionews; Edited: Lance Page / t r u t h o u t)

Unflappable before lawmakers choking back their anger, BP's Chief Executive Officer Tony Hayward responded to questions from the members of the House Committee on Energy and Commerce with the equivalent of rank, name and serial number.

Yes, Hayward said, when he was elevated to the oil conglomerate's top slot, he was committed to safety, and no, he cannot find fault with the decisions made on the Deepwater Horizon--- that will have to wait until investigations - both the one commissioned by BP and those by the US government are complete.

In Law & Order terms, Hayward was a hostile witness. Or, as Rep. Henry A. Waxman, the chairman of the Energy Committee put it: "I'm just amazed at this testimony . . . you're kicking the can down the road like you have nothing to do with this company."

The Deepwater Horizon first began leaking oil April 20. Congressional investigations have honed in on three key elements that made the well particularly risky: the choice to use six centralizers, rather than the recommended 21 which would make the well more stable; the decision to use a single 'long string' rather than a 'tie back" method which would add an additional layer of security should an accident occur; and the failure to test the cement surrounding the well.

The most recent estimates are that between 35,000 to 60,000 barrels may be rushing into the Gulf on a daily basis. BP estimates that they will be able to capture 40,000 to 50,000 barrels a day by the end of June and 60,000 to 80,000 by the end of July.

In addition to threatening wildlife, the financial cost is also of grave concern. several Louisiana state agencies requested an initial $300 million from BP to provide "critical resources" to mitigate immediate impacts on businesses and individuals affected by the spill. Commercial and recreational fishing and related industries, when combined with other economic outputs, have a total annual economic effect of nearly $4 billion in the Louisiana, according to a March 29 news release.

A report by University of Central Florida economist Sean Snaith states that 195,000 Floridians could lose their jobs and the state could lose $10.9 billion in spending due to the spill.

The fusillade of questions began with a statement by Rep. Bart Stupak (D-Michigan), who said he "wasn't surprised when we heard about the explosion in the Gulf and learned BP was part of it."

"Did BP's leadership manage the risk at this well?" Stupak asked.

Hayward responded by summarizing how, in the aftermath of two environmental disasters, he implemented a culture of safety upon being named named chief executive in 2007. Those incidents included an explosion at BP's Texas City Refinery in 2005, which killed 15 workers and injured 170 others, and a massive oil spill at the company's Prudhoe Bay operations on Alaska's Northing Slope a year later. In October 2007, BP pleaded guilty to a felony violation of the Clean Air Act in the Texas City case and paid a $50 million. The company also pleaded guilty to a criminal misdemeanor Clean Water Act violation for the Alaska oil spill and paid a $20 million fine.

Stupak would not be derailed and the two collided, with the congressman asking questions, and frustrated with sidestepping answers, cutting the CEO's answers short, only to issue another question in its place, and when that failed to elicit what he felt an adequate response, to issue another question. For Stupak, the main issue was accountability. Who, Stupak asked, should bear the blame?

"You were an exploration manager with BP . . . you hold a Ph.D. from the University of Edinburgh . . . are you trying to tell me that you have not reached a conclusion that BP really cut corners here?" he asked.

Hayward responded, his face impassive, "It's really too early to tell."

Rep. Michael C. Burgess (R-Texas) followed Stupak's line of questioning, asking about a decision to use six centralizers (a stabilizing element for wells) rather than 21. Hayward maintained his cool demeanor, answering, "I wasn't part of the decision-making for this well."

The issue of Hayward's understanding of Deepwater Horizon's progress before the April 20 explosion was raised, with congressmen repeatedly asking why the company decided to bypass measures such as cement tests or ignored recommendations to use a "tieback" rather than a single "long string," which BP's internal documents and the congressional panel said would have provided an additional layer of security in the event of an accident.

Hayward said he was "not prepared to say what may or may not have made a difference until investigations" have concluded.

Burgess then asked Hayward about the omission of a cement stress test.

"I am not a cement engineer," Hayward said in response to the query.

Lawmakers also tried to pin down specifics, with little luck. In addition to citing internal BP documents indicated concern for mounting costs and an expanding timeline, committee members asked if BP bypassed safety considerations to keep the Macondo well development on track and costs down.

Committee members, citing recent testimony from oil industry officials from ExxonMobil and Chevron, who criticized BP's execution of the Macondo well, also asked Hayward why BP would employ practices below industry standards.

When Rep. John Sullivan (R-Oklahoma) asked whether expedience overtook safety concerns, Hayward said it was too early to tell.

"I believe we should wait . . . when the investigations are completed, we'll make the judgement," Hayward said.

Even an hourlong recess failed to dampen the committee member's ire.

Rep. Diana DeGette (D-Colorado) pointedly asked, "do you think as CEO of this company was it a mistake not to conduct this cement bond [test]?"

Hayward wouldn't budge.

"I cannot answer this question . . . I think we need to complete the investigation," he said.

Rep. Phil Gingrey (R-Georgia) asked Hayward whether he would have made the same decisions the crew aboard the Deepwater Horizon made prior to the explosion.

"I'm not the drilling engineer," Hayward said. "I'm not qualified to make that statement. "

Rep. Edward Markey (D-PA), desperate for a direct answer from Hayward, asked, "Is today Thursday, yes or no?"

The individual cost of the explosion was also introduced during the session. Rep. Jan Schakowsky (D-Illinois) fanned a liability waiver that she said BP required workers, who are unable to work because of the oil gusher, had to sign before being able to participate in cleanup and containment efforts. The waiver states that BP is not responsible if those individual become ill.

"I know that you said this was an early misstep and that this was just a standard document but this was your first response to the people who were hired . . how could you do that?" Schakowsky asked.

However, not all of the criticism was reserved for the oil giant. In opening statements, as well as in the question-and-answer session, several representatives laid the blame on the Obama administration and the Mineral Management Service (MMS), the agency which oversees deepwater drilling on the outer continental shelf.

Ranking committee member Rep. Joe Barton (R-Texas) said the Obama administration has committed something akin to extortion by forcing BP to place $20 billion into an escrow account. In his opening remarks, Barton apologized to Hayward. Barton said he is "ashamed of what happened in the White House yesterday. I think it is a tragedy . . what I would characterize as a shakedown."

Rep. Marsha Blackburn (R-Tennessee) was also critical of the Obama administration, saying the White House showed a "lack of effort" in trying to contain the spill.

"The current administration also shares a significant portion of the blame for the oil spill," she said, adding that MMS "approved inadequate plans and rubberstamped inspection papers provided by the oil company."

Rep. Gingrey was even more direct in his criticism, asking how it was possible that such a disaster did not occur during the Bush administration's tenure.

Despite the overall lack of candor from Hayward, he did say containment is still at least two months away.

Relief wells, Hayward said, are the only way to stop the oil from gushing. And they won't be completed until August.

"I am afraid there are no other options to kill this well," Hayward said.

Truthout's Mike Ludwig contributed to this report.

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Deb Weinstein is an intern at Truthout.


Comments

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That was shamefull of the

That was shamefull of the Republican Barton to stand up for BP and Hayward.

We would not have heard much about the spill at all under Bush Admin. , and this hearing would not have happened either. And no $20B fishermans fund either. More like the response to Katrina...

Hayward didn't answer much, no admission of guilt just a lot of "deeply sowwy" stuff, but he was beaten up pretty good by the Senators. This article didn't report some of the best stuff, by the way...



Perhaps the blames rest with

Perhaps the blames rest with the federal government which should been actively engaged in oversight and regulation of the Deepwater Horizon to understand _before the failure_ that the data trends were in the direction of failure?



Yes, let;'s blame Obama for

Yes, let;'s blame Obama for not personally interviewing and supervising every Bush-era employee in the MMS that approved this drilling plan. While we wait, let's serve up some tea and crumpets to the guys from BP and apologize for daring to ask them uncomfortable questions about their exemplary corporate behavior. Maybe we can engage in some idle chat, like how the push to reduce regulation and oversight can in no way be linked to the lack of "oversight and regulation of the Deepwater Horizon." After that, we'll drop another truckload of oil money on Mitch McConnell's front yard and call it a day...



Here is the truth about

Here is the truth about corporations: He may actually know none of the details yet about what actually happened. I have been a part of a corporate culture where the CEO was kept in the dark about the actual events that occur day to day; I have plenty of stories about that. In fact, the one CEO interested in finding out was given a golden parachute after only six months because he decided to have lunch with regular employees, unannounced, to find out what was really going on in the company...AT&T. This happens much more than you think. Scary, huh.



What did they expect? I

What did they expect? I understand frustration at not getting answers, but why did they expect to get answers at this point from the CEO of a huge oil conglomerate? He has a legal obligation to a lot of shareholders, and anything he says could have legal repercussions for himself and others. He can't really say anything until it's established as incontrovertible fact, and it's also possible he really doesn't know the incontrovertible facts, which are all that matter in a legal proceeding.

That said, it looks a lot like BP and possibly the government are hiding something.



In fact there were numerous

In fact there were numerous oil spills during the odious reign of the illegitimate 'administration.' In their zeal to blame Obama for a thirty year run of laissez-faire corporate capitalism, the representatives conveniently 'forgot' that.
For Hayward to answer each and every question with, Dammit, Jim, I'm a doctor, not an engineer, says to me he should be held in contempt and thrown in jail. He has a legal obligation to the Congress and to the American people. Putting shareholders above the common good is one major reason why our country is going to hell. A few long stretches in the pen for oil-soaked executives and greedy, corrupt bankers, and you'd be surprised how fast this country would turn around.



Nothing hiding, it's all in

Nothing hiding, it's all in plain site for any sentient reader: (among other things -) 60 to 80K barrels containable by the end of July; with "only" 35 to 60K barrels Spilling NOW? The Actual FLOW likely EXCEEDS both and will be the subject of revised BP/FED "oversight" LYING come August! Where's MIKE Wallace to intone, "C'MON"!?



Watch Godfather III where

Watch Godfather III where Michael Corleone is brought in front of a senate committee investigating organized crime. The witnesses are intimidated; Corleone knows nothing – certainly not the details. There is one very friendly senator on the committee. No different from yesterday. And the truth is obscured forever. Thank god say the GOP. If anyone knew how close GOP personal ties were to the oil industry and how much the GOP had “the fix” in their favor so GOP and friends could get rich, well, the voters just might vote the GOP out of office.

So get this – the real price of gas at the pump is between $7 and $10, but due to government subsidies, tax breaks, tax payer funded corporate give-always, the price at the pump is a barely affordable $3. Barely being the operative word. Too much higher and the profits become obscene, as if they weren’t already, but people would begin to wonder how the much worshiped capitalistic competition allows so many energy companies to make so much money. And the simple answer is – the government makes it so; 30 years of conservatives tilting the playing field for their clients.



Worked for the CEOs of the

Worked for the CEOs of the US auto industry, worked really really well for the banksters.

What real effect do Congressional "investigations" such as this have? Will anyone in BP be indicted or subject to any fines, etc., as a result?

That's right, neither the CEO nor anyone else within the corporation is responsible for any behavior of the corporation--that's why theCEOs get the big bucks, right? Because they don't actually do anything but suck up to board members & majority shareholders?



Tony Hayward is only a small

Tony Hayward is only a small cog in BPs enormous wheel. I can't really fault the guy. Crimes always need a face. Hayward is the sacrificial goat that BP has exposed to take the brunt of world condemnation.

Doesn't this show that corporations, like financial institutions, ultimately always get too big to succeed.



Excuse me, but aren't these

Excuse me, but aren't these outraged lawmakers the self same scum that took the corporate cash for years, who turned a collective blind eye to the blatant bribery in their own chambers? Are these posturing pimps the same ones that failed to stand up against Cheney's oil cabal? Might they also be the same conglomeration of craven cretins that plunged this nation into a criminal series of murderous and meaningless wars on the basis of cheap lies so their buddies could make a buck? Are these the feckless morons that bought into the ridiculous "19 Arabs with boxcutters" story of the 9/11 false flag attack? Who supported the patently bogus and outrageously lame "lapse in security" excuse for the treason and murder on 9/11? Surely these puffed up pinheads are the same morons that consistently vote in lockstep to continue the funding of our immoral wars and insane military spending bills while the economy collapses and the people lose their jobs, their homes, and their savings. And, say, could they be the same bunch of inept simpletons that went along with t he TARP and bank bailouts? If these ARE the same gaggle of cheap whores, then nothing will come of this hearing and after the payoffs are made, it will all go back to business as usual.



I'm guessing that the famous

I'm guessing that the famous unflappable demeanor perhaps came from some Zanax?
As my Brit friends would say, what a cunty twit!



Is this George Soros at

Is this George Soros at work. Soros has about $1.0 Billion invested in Petrobras, the Brazilian oil company that has discovered big oil in even deeper waters. The Brazilians are frustrated because they cannot get enough deep water rigs. Soros was the largest contributor to the Obama campaign. A panel of eight oil industry experts submitted a report ot the White House on the mess. Under their signature the White House ADDED a recommendation to stop drilling in the Gulf. Now the rigs are preparing to leave (three have announced so far) and they are going to Brazil. Figure it out?



Tell every healthy person to

Tell every healthy person to throw away the prescriptions and get attentive. Conciousness can only awake when distraction goes down.



Obviously the republicans

Obviously the republicans live on a different planet and only visit here to take money from corporations, who they represent in Washington.



If the oil gusher

If the oil gusher accountability plan was a point supported by Republicons, we would be eating Freedom Muffins by now.



They were questioning the

They were questioning the wrong person! This was all for show. They knew they were going to barbecue Tony Hayward and they knew he wouldn't answer any questions. They should have questioned the BP Executives that made those fatal decisions in the hours before the disaster. They should have the whistleblowers there for testimony. It was a total sham. Will we ever get to question the ones in the thick of it?



Let's see, here . . .

Let's see, here . . . Southern Republicans on the wrong side of history and the issue . . . as usual. BP is the one committing Extortion. As many Executives as possible need to be in PRISON, with their personal assets rededicated to the Gulf clean-up.