Dennis Minott | Swimming, spilling, shilling

The Deepwater Horizon oil spill and the Bhopal disaster rank among the most devastating industrial accidents in history. Both calamities resulted from a lethal mix of corporate negligence, inadequate safety regulations, and political corruption.

We will delve into the key aspects of these two disasters, exploring the potential role of shilling in their initial promotion. We will also examine the lessons we can draw from these tragedies and how we can proactively prevent similar disasters in the future.

DEEPWATER HORIZON OIL SPILL

The Deepwater Horizon oil spill stands as a catastrophic incident that unfolded on April 20, 2010 in the Gulf of Mexico. This disaster was triggered by an explosion on the Deepwater Horizon oil rig, which was owned by Transocean and leased by BP. The explosion claimed the lives of 11 workers and unleashed an estimated 210 million gallons of oil into the Gulf. The environmental devastation and economic losses caused by the oil spill were extensive, and it took 87 days to successfully cap the well.

CORPORATE NEGLIGENCE

In the years leading up to the disaster, numerous reports surfaced, suggesting that Transocean and BP had systematically downplayed the risks of oil spills while excessively promoting the safety of their operations. These reports indicate the possibility of these companies engaging in shilling to endorse their deepwater drilling projects and downplay associated risks.

For instance, a 2009 report by the US Chemical Safety Board revealed that Transocean and BP had inadequately trained their workers in safety procedures and failed to implement proper safety measures on the Deepwater Horizon rig. The report also highlighted instances where these companies had understated the dangers of oil spills in their public statements.

Another report published by the Associated Press in 2010 exposed that Transocean and BP had financially incentivised numerous scientists and academics to craft articles promoting the safety of deepwater drilling. These articles were disseminated in scientific journals and other publications, contributing to the perception that deepwater drilling was a secure and dependable method for oil and gas extraction.

INADEQUATE SAFETY REGULATIONS

The Deepwater Horizon oil spill underscored severe deficiencies in the safety regulations governing offshore oil drilling in the United States. Notably, the Minerals Management Service (MMS), the agency responsible for overseeing offshore oil drilling at the time, was found to have close ties with the oil industry. This raised concerns regarding the adequacy of the MMS’ regulatory functions and its ability to safeguard the public interest.

POLITICAL CORRUPTION

Political corruption within the oil industry also became evident through the Deepwater Horizon oil spill. BP had a longstanding history of lobbying the US government to weaken safety regulations for offshore oil drilling. The close ties between BP and the Obama administration raised questions about the government’s decision to award BP the contract for drilling the Deepwater Horizon well.

SHILLING

While it’s challenging to definitively prove whether Transocean, BP, and other companies engaged in shilling to promote the Deepwater Horizon oil rig project, the evidence strongly suggests that these companies downplayed the risks of oil spills and promoted the safety of their operations in a potentially misleading manner. It’s crucial to recognise that shilling, if indeed employed, was just one factor contributing to the Deepwater Horizon disaster. Inadequate safety regulations and poor regulatory oversight were equally significant contributors to the tragedy.

Nonetheless, shilling can play a role in advancing high-risk industrial projects while minimising associated risks, making it challenging for regulators and the public to identify and mitigate these dangers.

BHOPAL DISASTER

The Bhopal (capital city of central Indian state of Madhya Pradesh) disaster exposed glaring deficiencies in India’s safety regulations for chemical plants. Notably, the Indian government failed to conduct proper inspections of the Union Carbide pesticide plant and neglected to enforce safety regulations. Additionally, permitting the Union Carbide plant to operate in a densely populated area increased the potential for casualties, in the event of an accident.

The Bhopal disaster also shed light on political corruption in India. Union Carbide Corporation had strong ties to the Indian government, potentially influencing the government’s lax oversight of the company’s pesticide plant. The Indian government’s sluggish response to the Bhopal disaster and reluctance to hold Union Carbide Corporation accountable further highlighted the role of political corruption in the tragedy.

SHILLING

Although specific allegations of shilling were not raised in the context of the Bhopal disaster, concerns and allegations regarding corporate practices, influence, and potential manipulation of safety standards were prevalent. Shilling typically involves using deceptive or manipulative tactics to promote a product, idea, or agenda, often by individuals or organisations with vested interests.

In the case of the Bhopal disaster, concerns primarily revolved around issues such as inadequate safety measures, cost-cutting, and potential influence over regulatory agencies. Allegations suggested that Union Carbide Corporation held substantial economic and political influence in the region, possibly affecting regulatory oversight and safety standards. However, these concerns were more related to corporate influence and potential regulatory capture, rather than traditional ‘shilling’, as commonly understood.

LESSONS LEARNT

The Deepwater Horizon oil spill and the Bhopal disaster offer essential lessons about the perils of corporate negligence, insufficient safety regulations, and political corruption.

First, it is imperative to hold corporations accountable for their actions. When corporations engage in negligent behaviour, they must face the full weight of the law.

Second, there is a pressing need to bolster safety regulations for industrial projects. These regulations should be grounded in the latest scientific knowledge and enforced by impartial regulatory bodies.

Third, measures to reduce the influence of money in politics are crucial. Corporations should not be allowed to purchase political influence or weaken safety regulations

PREVENTATIVE MEASURES

To avert similar disasters in the future, several actions can be taken:

– Enhancing transparency and accountability in industries engaged in high-risk activities, such as the oil and gas sector, is crucial. This includes mandating companies to disclose more information about their operations and safety records.

– Investing in research and development to create safer technologies and practices is essential. This involves directing resources toward renewable energy sources and developing safer methods for oil and gas extraction and transportation.

– Strengthening international cooperation on safety regulations and environmental protection is vital. Collaborative efforts to develop and enforce global safety standards are paramount.

These two disasters represent two of the most devastating industrial accidents in history. These disasters serve as stark reminders of the grave consequences of corporate negligence, insufficient safety regulations, and political corruption.

The lessons gleaned provide a blueprint for preventing future disasters. Holding corporations accountable, fortifying safety regulations, and diminishing the influence of money in politics are imperative steps. Additionally, investments in research and international collaboration on safety standards can help avert future calamities and safeguard the environment and public health.

Dennis Minott, PhD, is the CEO of A-QuEST-FAIR. He is a renewable energy specialist and worked in the oil and energy sector. Send feedback to columns@gleanerjm.com