Thursday, June 23, 2011

Another Lesson: Don't Do This!

Every organization and business, other than Transocean: Do as I say, not as Transocean does!

It's been 16 months since the April 2010 explosion on a Gulf Of Mexico oil rig that killed eleven men and dumped a ton of crude oil into the ocean.

Except for the eleven families, and many Gulf area businesses, most people have quit thinking about the disaster and oil spill.

So, Transocean reminded everyone this week, and, once again, blamed BP. Transocean said BP used a poor well design and failed to properly assess the risks and failed to alert Transocean to the dangers.

BP reminded the public that it had "stepped up to its responsibilities..." and added, "...Transocean continues to take every opportunity to avoid its responsibilties."

I know, I know, the lawyers made them do it.

Their lawyers are not worrying about Transocean's reputation, nor future business. They are concentrating on saving Transocean as many billions of dollars as possible and BP lawyers are trying to spread the cost of capping the well, cleaning up the damage and paying claims to families that lost loved ones and others who lost their livilhood, to as many others as possible.

It has been estimated that the total bill will exceed $41-billion, including $4-billion to $5-billion in fines.

So far, BP partner Mitsui & Co. has agreed to pay $1.1-billion and Weatherford International will cough up $75-million to help BP recoup some of its loss. Meanwhile BP is pressuring Transocean, Halliburton and Anadarko Petroleum Corp. to help with several billion dollars each.

The first of hundreds of spill-related lawsuits are expected to go to trial next February.

While the lawyers have their responsibility to their clients, my advice would be to stop pointing fingers, and settle every claim quietly and out-of-court. I'm not a financial expert, but I bet it will cost a lot less in dollars and added reputation loss, to pay whatever it will take to resolve all the claims and end the public spectacle.

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