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BP based spill plans on flawed US data
BP shares are a tick higher after reports say its safety report was based on bad US government data about the likely impact of a spill in the Gulf of mexico.
Markets
BP and other oil companies based their spill contingency plans on faulty government data, according to a report in the Wall Street Journal.
The newspaper said US government reports gave very low odds of oil hitting shore, even in the case of a spill much larger than the one from BP's Deepwater Horizon well in the Gulf of Mexico.
The news comes as oil from the well has now reached 171 miles of shoreline across four US states.
This morning BP said it had continued to capture oil from the well overnight despite temporarily removing the cap it had in place to capture the spill after an accident yesterday.
The government models, which oil companies are required to use but have not been updated since 2004, assumed that most of the oil would rapidly evaporate or get broken up by waves or weather, the newspaper said.
BP's contingency report has received widespread criticism as analysis suggests BP was cutting and pasting information from previous reports, citing dead experts, mis-naming other experts, understating the dangers from a leak and overstating the company’s ability to cope in the event of a crisis.
One of the most glaring pieces of evidence suggesting that a proper assessment was not made is the mention of walruses, sea otters, sea lions and seals as animals that may be at risk if there was a spill even though none of these mammals live anywhere near the well.
BP shares were down 0.7p, or 0.21%, at 322.8p - outperforming a downbeat market.
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6 comments so far. Why not have your say?
Anonymous 1 needed this 'off the record'
Jun 24, 2010 at 20:54
Seems like something there for Mr Obama to put in his pipe and smoke. He maybe should be tasting pie of the humble variety rather than pumpkin.
Also in fairnes should he not be requiring US banks to compensate the rest of the world for the financial crisis that theycreated?
report thisJon
Jun 24, 2010 at 23:26
Or any compensation should be based on that made re the Bhopal disaster.
And Obama should dig deep as the US economy will suffer only by lost foreign tourists or US people going abroad rather than to the affected areas. The money not spend on tourism etc around the Florida coast will be spent somewhere else.
But Americans do not have a reputation for reason!!
report thisSharon Turk
Jun 25, 2010 at 02:34
How corporations survive - pass the blame and evade the responsibility! Yeah, the tourists are going elsewhere. Believe me, I live in Florida.
report thisSharon Turk
Jun 25, 2010 at 02:34
How corporations survive - pass the blame and evade the responsibility! Yeah, the tourists are going elsewhere. Believe me, I live in Florida.
report thisJ
Jun 25, 2010 at 12:55
Anonymous 1 and Jon, Mr Obama does not want to hear about his Banks and the Bohpal disaster.
report thisChristopher
Jun 27, 2010 at 15:59
Maybe BP should go back to its old name....BP Amoco...
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