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BP 'disregarded dangers' at well BP 'disregarded dangers' at well
(about 1 hour later)
Mr Hayward faced a barrage of questions about the drilling rigMr Hayward faced a barrage of questions about the drilling rig
BP chief executive Tony Hayward has been told by an angry US Congressional panel his firm ignored dangers when drilling in the Gulf of Mexico.BP chief executive Tony Hayward has been told by an angry US Congressional panel his firm ignored dangers when drilling in the Gulf of Mexico.
House committee on energy and commerce chairman Henry Waxman said BP's "complacency" before the 20 April rig explosion had been "astonishing".House committee on energy and commerce chairman Henry Waxman said BP's "complacency" before the 20 April rig explosion had been "astonishing".
Asked about apparent shortcuts taken before the spill, Mr Hayward said it was too early to draw conclusions.Asked about apparent shortcuts taken before the spill, Mr Hayward said it was too early to draw conclusions.
Mr Waxman replied that the BP chief executive was "stonewalling".Mr Waxman replied that the BP chief executive was "stonewalling".
"You're not taking responsibility, you're kicking the can down the road," he added."You're not taking responsibility, you're kicking the can down the road," he added.
Eleven people died in the Deepwater Horizon drill rig accident, which left a ruptured well spewing hundreds of thousands of barrels of oil into the Gulf of Mexico.
Despite BP efforts to contain the leak, oil continues to enter the sea, threatening states along the Gulf coast.
BP says it will withhold dividends until the end of the year as part of its response to the spill.BP says it will withhold dividends until the end of the year as part of its response to the spill.
'Tremendous risks'
The company's shares rose more than 6% after it agreed to put $20bn (£13.5bn) in a fund to compensate victims of the spill.The company's shares rose more than 6% after it agreed to put $20bn (£13.5bn) in a fund to compensate victims of the spill.
The increase halted falls that had led to the company's stock value halving in recent weeks.The increase halted falls that had led to the company's stock value halving in recent weeks.
Meanwhile, the firm's first containment device for the ruptured well is working again after a brief shutdown.
And BP announced on Wednesday that a second containment system had been launched, designed to bring oil and gas to the surface.
'Tremendous risks'
Congressman Waxman said in his opening remarks that BP had "cut corner after corner" in order to save money, which led to the explosion and fire on board the Deepwater Horizon.Congressman Waxman said in his opening remarks that BP had "cut corner after corner" in order to save money, which led to the explosion and fire on board the Deepwater Horizon.
Congress, he went on, could find no evidence that BP had been monitoring the risks. "We could find no evidence that you paid any attention to the tremendous risks BP was taking," he went on.
"Deepwater drilling is inherently dangerous," he said.
"As the entire country now knows, an uncontrolled blowout can kill rig workers and cause an environmental disaster.
"We wanted to know whether you were briefed about the risks and were monitoring the safety of the drilling operation.
"We could find no evidence that you paid any attention to the tremendous risks BP was taking.
"We reviewed 30,000 pages of documents from BP, including your e-mails. There is not a single e-mail or document that shows you paid even the slightest attention to the dangers at this well.""We reviewed 30,000 pages of documents from BP, including your e-mails. There is not a single e-mail or document that shows you paid even the slightest attention to the dangers at this well."
One by one, other Congressmen attacked BP's activities in America.One by one, other Congressmen attacked BP's activities in America.
Congressman Mike Ross pointed out that BP had so far failed to stop the oil spill.Congressman Mike Ross pointed out that BP had so far failed to stop the oil spill.
"Mr Hayward, since this hearing began a little over an hour ago, up to 112,847 gallons have been dumped into the Gulf," he said."Mr Hayward, since this hearing began a little over an hour ago, up to 112,847 gallons have been dumped into the Gulf," he said.
"On day 59 of this environmental and economic disaster... I continue to be frustrated and downright angry about BP's response.""On day 59 of this environmental and economic disaster... I continue to be frustrated and downright angry about BP's response."
Congressman Joe Barton, the senior Republican on Mr Waxman's committee, said that while he agreed BP should explain its actions, he was "ashamed" to see the firm having to set up the compensation fund. Congressman Joe Barton, the senior Republican on Mr Waxman's committee, said that while he agreed BP should explain its actions, he was "ashamed" to see the firm being made to set up the compensation fund.
It was, he said, a "$20bn shakedown". BP, he suggested, had been subjected to a "$20bn shakedown" by the Obama administration.
As Mr Hayward prepared to speak, a heckler disrupted proceedings. An unidentified woman could be seen shouting before she was apparently removed from the hearing. As Mr Hayward prepared to speak, a heckler disrupted proceedings. An unidentified woman could be seen shouting before she was removed from the hearing.
Mr Hayward said he had focused on improving safety for the past three years.Mr Hayward said he had focused on improving safety for the past three years.
Asked if his job was at stake, he said his priority was stopping the leak and clearing up the oil.Asked if his job was at stake, he said his priority was stopping the leak and clearing up the oil.
"I give my pledge as the leader of BP that we will not rest until we make this right," he said at the start of his testimony. "I give my pledge as the leader of BP that we will not rest until we make this right," he said.
"We're a strong company and no resources will be spared.""We're a strong company and no resources will be spared."
Detailed questions Mr Hayward's inability to answer specific technical questions about the situation on the rig angered the panel particularly.
Specific questions were href="http://thehill.com/blogs/congress-blog/energy-a-environment/103255-letter-to-tony-hayward-chief-executive-officer-of-bp-rep-henry-waxman-and-rep-bart-stupak">set out in a letter to Mr Hayward on Sunday by Mr Waxman and fellow committee member Bart Stupak. BP's chief executive said answers would be supplied by his firm when they were ready.
In particular, they want Mr Hayward to answer allegations that BP: The questions, href="http://thehill.com/blogs/congress-blog/energy-a-environment/103255-letter-to-tony-hayward-chief-executive-officer-of-bp-rep-henry-waxman-and-rep-bart-stupak">set out in a letter to Mr Hayward on Sunday by Mr Waxman and fellow committee member Bart Stupak, include allegations that BP:
  • Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option
  • Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton
  • Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
  • Decided to forego a recommended safety step in the circulation of drilling mud
  • Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below
  • Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option
  • Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton
  • Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
  • Decided to forego a recommended safety step in the circulation of drilling mud
  • Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below
Analysts say the BP's finances should be strong enough to withstand the fiscal fallout from the spill.
The blast on the Deepwater Horizon led to the deaths of 11 people, caused the rig to sink, and has since seen hundreds of thousands of barrels of oil spew into the Gulf of Mexico.
Some of the oil is now washing ashore in states along the Gulf coast.
The spill threatens to cripple businesses and seriously damage wildlife across the Gulf.
It has already paralysed the fishing industry in the area.
Are you affected by this story? Send us your comments on the Congress committee.Are you affected by this story? Send us your comments on the Congress committee.