Monday, June 04, 2007

Checkbook Mentality and Higher Gas Prices

Big oil's own paperwork suggest at least one company not only put profits before needed repairs -- but profited from an eventual breakdown.

"BP field managers were being asked to choose between saving money and ccritical maintenance." -- Rep Bart Stupak, (D-MI), Chairman, Energy and Commerce Investigations Subcommittee

Internal documents from BP show the company ignored corrosion problems on the Alaska pipeline. The company slashed $800,000 in spending on anti-corrosion chemicals and reduced the number of inspections.

Over the same time, BP raked in $106 billion in profits.

The cutbacks resulted in leaks -- idling the pipeline for months, cutting off millions of barrels of oil and driving up oil and gasoline prices. And those higher prices resulted in more profits for BP -- effectively rewarding them for allowing the pipeline to breakdown. (Wyoming Tribune-Eagle)

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