Even with this news, BP is left in a disastrous PR position, forever tattooed as the perpetrator of the greatest environmental disaster in U.S. history. Can they ever rebound? Exxon did from the Valdez oil spill, even though a recent forensic study revealed open pools of oil still scar the shoals of Prudhoe Bay, 20 years after the catastrophe.
With more than $6 billion in first quarter earnings, BP certainly has the financial wherewithal to weather the storm. But the company has to change its approach to the public, and take real and lasting steps to systemically transform itself into a company that understands the public trust it holds in its hands every time it undertakes the risky endeavor to sink a well. Here's what I would be telling BP:
1. Put up or shut up. Now that progress is being made to capture the leaking oil, it's time for BP to put up a $1 billion remediation fund for the people of Gulf Coast. Use the money to ramp up restoration. Pay off claims. Bail out busted businesses. And clean the shores and wetlands. It's a monumental challenge that takes money. BP has the money and needs to spend it now to reclaim any hope of salvaging its global reputation. It's also in the best interest of BP shareholders. Without strong and quick action, the company faces tremendous risk that can be mitigated through sincere and immediate action.
2. Put up another $200 million to fund oil industry remediation research, centered at Louisiana State University. Since Edwin Drake, the oil industry's technological breakthroughs have focused on getting oil out of the ground. Horizontal drilling. CO2 injection. Tethered platforms. Deep water drilling needs technology to keep oil in the ground or from ever hitting the ground, beaches, and oceans. The unintended consequence of Prudhoe Bay is that the world actually believes steam and paper towels can clean up an oil spill. (They can't and they don't.) Oil industry technology has to go beyond simply drilling deeper and cleaning up the mess after the fact. The industry needs to develop new technologies to contend with the risk of today's deep water drilling, whether here, in the North Sea, or off Norway.
3. Get Tony Hayward off American TV. A recent study conducted by Gregory FCA shows that Hayward's reputation has cratered since BP started airing TV commercials with him serving as spokesperson. The American ideal of a leader isn't someone who looks like Liz Lemon's fall-back love on "30 Rock," Welsey Snipes. (No, not that Wesley Snipes.)
Separated at birth: Tony Hayward ...
Wesley Snipes (not that Wesley Snipes)
Rather, we need to see and hear from a fellow American who has a vested interest in our country, not the whiny Hayward, who recently lamented that he can't wait for the crisis to be over so he can get his life back.
