Barton Questions BP's Commitment To Safety, Stewardship of U.S. Resources
WASHINGTON - U.S. Rep. Joe Barton, R-Texas, today sent a letter to Sir
John Browne, chief executive of British Petroleum, calling into question BP's
commitment to safety, reliability, and responsible stewardship of America's
energy resources.
Barton has scheduled a hearing for Sept. 7 on the BP Alaskan pipeline
shutdown. The hearing will focus on the company's management of its corrosion
control in its oil-transit lines.
August 11, 2006
Sir John Browne
The Lord Browne of Madingley, FREng
Group Chief Executive
British Petroleum
London, England
Dear Lord Browne:
The Committee on Energy & Commerce has legislative and regulatory
responsibility for protecting pipeline safety and ensuring energy supply
reliability. Accordingly, the Committee has been closely examining BP's Alaska
pipeline operation and maintenance, particularly since the BP oil spill five
months ago at Prudhoe Bay. From then until this week BP has repeatedly assured
the Committee that the condition of the pipeline that failed in March was an
anomaly, and that BP's corrosion control program was an effective means to
monitor and maintain pipelines and infrastructure on Alaska's North Slope.
News that BP production of roughly 400,000 barrels per day of crude oil at
Prudhoe Bay has been shut down due to excessive corrosion of its oil transit
lines contradicts everything the Committee has been told. The fact that BP's
consistent assurances were not well grounded is troubling and requires further
examination.
The consequent disruptions to energy production and delivery and resultant
adverse impacts on American consumers and the American economy are not
excusable, particularly in light of substantial evidence that BP's chronic
neglect directly contributed to the shutdown. At a time when supply and demand
are already constrained due to geopolitical and global market pressures, and at
a time of already record high oil prices driving record high profits for your
company, this additional disruption jars an already constrained domestic and
global market.
Following on the heels of the BP refinery disaster that killed 15 people in
Texas City, Texas in 2005, and the BP oil spill in March, this latest incident
once again calls into question BP's commitment to safety, reliability, and
responsible stewardship of America's energy resources.
Among the questions we will plan to explore are these:
- Why does BP not operate and maintain its U.S.-based facilities up to U.S.
industrial standards?
- Why did BP wait for the U.S. Department of Transportation to issue a
corrective action order against it before taking steps to adequately inspect
the corroded pipeline?
- Was there a market strategy component to BP's decisions that led up to the
oil shutdown, particularly in light of the allegations of BP's propane gas
market manipulation practices?
We will pursue answers to these and other questions as long as it takes to
secure credible answers that the American people await and deserve.
Sincerely,
Joe Barton
Chairman
cc: The Honorable John D. Dingell, Ranking Member
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