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Industry not ready for spills, executives say

House panel criticizes BP, urges apology

By Matt Viser
Globe Staff / June 16, 2010

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WASHINGTON — Top oil executives acknowledged yesterday under sharp questioning from members of a House panel, chaired by Representative Edward Markey, that their industry has not been prepared to deal with cleaning up spills similar to the one in the Gulf of Mexico.

“When these things happen, we are not very well equipped to deal with them,’’ said Rex W. Tillerson, the chief executive of ExxonMobil. “And that’s why the emphasis is always on preventing these things from occurring. . . . That’s just a fact of the enormity of what we’re dealing with.’’

The session was widely covered in the media, providing a national platform for Markey, the Malden Democrat who is chairman of the Energy and Environment subcommittee. He tried to persuade BP to offer a public apology and to shame other executives into admitting that their response plans were inadequate. The plans from each of the five companies, for example, were nearly identical and contained information that Markey said demonstrated they were carbon copies. Several included animals not found in the Gulf Coast, for example, and listed as a participant a scientist who died several years ago.

“As I am sure you know, there aren’t any walruses in the Gulf of Mexico and there have not been for 3 million years,’’ Markey said. “How can ExxonMobil have walruses in their response plan for the Gulf of Mexico?’’

“It’s unfortunate that walruses were included,’’ responded Tillerson. “And it’s an embarrassment that they were included.’’

Markey then turned to BP America president Lamar McKay, criticizing the company for initially promoting low estimates of the oil spill.

“Are you ready to apologize to the American people for getting that number so wrong, having been so incompetent or deceptive to the American people?’’ Markey asked.

McKay demurred, saying that the estimates were not BP’s, and instead were the government’s unified command.

“We are sorry for everything the Gulf Coast is going through,’’ McKay said.

McKay would not say whether the company would agree to establish an escrow account for future claims, a request that has been made by the Obama administration.

As executives from other companies sought to distance themselves from BP, some suggested McKay should resign — or worse.

“During the samurai days, we’d just give you a knife and ask you to commit hari-kari,’’ said Representative Joseph Cao, a Republican from Louisiana.

The hearing was the first time that top executives from the major oil companies were called before Congress since the oil rig exploded in the Gulf. Testifying for several hours were executives from BP, ExxonMobil, Chevron, ConocoPhillips, and Shell. More hearings are scheduled for tomorrow, when BP chief executive Tony Hayward is scheduled to testify for the first time.

Congress is in the midst of determining how to respond to the worst oil spill in the country’s history. Congress is simultaneously considering proposals to address climate and energy issues this year. The House has passed a version of the bill, which Markey co-authored. Massachusetts Senator John Kerry has filed legislation, but its prospects in the Senate are unclear.

Most Democrats during yesterday’s hearing were critical of the oil companies. Republicans, while not outright defending the companies, said Democrats should not use the spill to score political points.

“This committee undermines its own credibility when it capitalizes on a tragedy — and this is a tragedy, 11 lives were lost — when we capitalize on a tragedy to push forward a political agenda,’’ said Representative Michael C. Burgess, a Texas Republican.

Over the past two months, Markey has been one of the most outspoken members of Congress about the oil spill. He forced BP to release its video feeds of the spill, providing footage that has become ubiquitous on cable TV.

“Now the other companies here today will contend that this was an isolated incident. They will say a similar disaster could never happen to them,’’ Markey said at the outset of the hearing. “And yet it is this kind of blind faith, which is ironically the name of an actual rig in the Gulf, that has led to this kind of disaster.’’

Matt Viser can be reached at maviser@globe.com.