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News: BP Chief on Hot Seat
15 years ago
WASHINGTON—BP PLC Chief Executive Tony Hayward went to Capitol Hill to apologize for the disaster caused by his company's gushing Gulf of Mexico oil well, and to absorb the blows as American politics requires when business leaders stumble into tragedy or scandal.
BP Chief Executive Tony Hayward said he wasn't involved in key decisions with the Horizon oil well, frustrating lawmakers looking for more details. Neil King and Bob O'Brien discuss. Also, Paul Vigna discusses the limited options the Fed and Treasury have if the economy falls back into recession.
Mr. Hayward stuck to his plan. He sat for hours on Thursday, alone at a witness table, parrying questions from indignant members of the House Energy and Commerce Committee in a deliberate monotone.
Over and over, he said he wasn't involved in the decisions preceding the accident and declined to speculate on causes until investigations were complete.
Summoning executives of companies caught up in financial or legal trouble to receive televised scoldings is a ritual of U.S. politics. Detroit auto titans, Wall Street bankers, and the head of Japanese auto giant Toyota Motor Corp. have all done time in Congress's dock as lawmakers looked for someone to blame for the calamities of the past two years.
More on the Spill
See graphics covering how the spill happened, what's being done to stop it, and the impact on the region.
View Interactive
Timeline
Follow key developments since the initial explosion.
View Interactive
More photos and interactive graphics Even by the standards of these proceedings, the fury directed at Mr. Hayward was unusual. Democrats accused BP of sacrificing safety for profit. One said the video of the Gulf spill made her physically ill. A Louisiana Republican held up a photograph of an oil-slimed pelican.
And when one senior Republican—Rep. Joe Barton of Texas—stepped up to apologize to Mr. Hayward, the backlash was so severe he was forced to apologize for his apology.
Just minutes into the hearing, Mr. Barton, a ranking member of the committee, denounced the Obama Administration for pushing the British oil company to agree Tuesday to put $20 billion into a fund to cover damages caused by the disaster. Mr. Barton called the plan a "slush fund."
To that point, Mr. Barton's critique echoed statements by other Republicans. Then he went further.
"I apologize," Mr. Barton said. "I do not want to live in a country where any time a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is—again, in my words—amounts to a shakedown. So, I apologize."
Rep. Barton left the hearing immediately after making his statement. The aftershocks rumbled throughout the day.
Mr. Hayward's entourage included a phalanx of dark suits including aides, experts and a body guard. He brought a public-relations specialist.
Experience WSJ professional Editors' Deep Dive: Liability Projections Hit BPINTERNATIONAL HERALD TRIBUNE
BP's Pledge of $20 Billion Unlikely to Be Final WordDow Jones Capital Markets Report
Liability and Settlement Whipsaw BP's DebtPlatts Commodity News
BP Promises to Replace Lost IncomeAccess thousands of business sources not available on the free web. Learn More He soon found that $20 billion and an apology weren't going to make his day better.
"The explosion and fire aboard the Deepwater Horizon and the resulting oil spill in the Gulf of Mexico never should have happened—and I am deeply sorry that they did," Mr. Hayward said in an 11-page written statement.
Members of the House Energy and Commerce Subcommittee on Oversight and Investigations were having none of it. They grew increasingly frustrated as Mr. Hayward dodged specific questions aimed at pinning blame for the explosion on specific BP decisions and on him as the company's leader.
More
Recap: Analysis of Hayward's testimony View Slideshow
Associated Press
Protesters stand behind BP CEO Tony Hayward, as he arrives on Capitol Hill June 17, to testify before the House Oversight and Investigations subcommittee hearing.
Investors were relieved by BP's decision to suspend dividends, hoping it would ease pressure on the company over its handling of the Gulf of Mexico oil spill. Grainne McCarthy, David Weidner and Guy Chazan discuss. Also, David Wessel discusses America's system of home ownership, saying that although it has been celebrated for putting so many families into their own homes, it has become, as one economist put it, "a case study in failure."
The Gulf Spill
Democrats Are Divided on Energy Bill Claims Fund Offers Shield From Suits Russian Leader Assesses Spill and BP BP Investors' Enthusiasm Turns to Doubt BP Agrees to $20 Billion Fund Obama Address Gets Low Marks BP Investors Hope Pressure Will Ease Inspector General Slams 'Backwards' MMS Probe Congress to Scrutinize Another BP Rig Fight Erupts Over Oil Trial Venues Opinion: President's Animosities | Crude Politics "With respect, sir, we drill hundreds of wells each year," he said slowly, fingering a pen as he testified.
"That's what's scaring me," shot back Rep. Michael Burgess, a Texas Republican.
Energy and Commerce Committee chairman Henry Waxman (D., Calif.) accused Mr. Hayward of stonewalling.
BP Chief Executive Tony Hayward said he wasn't involved in key decisions with the Horizon oil well, frustrating lawmakers looking for more details. Neil King and Bob O'Brien discuss. Also, Paul Vigna discusses the limited options the Fed and Treasury have if the economy falls back into recession.
Mr. Hayward stuck to his plan. He sat for hours on Thursday, alone at a witness table, parrying questions from indignant members of the House Energy and Commerce Committee in a deliberate monotone.
Over and over, he said he wasn't involved in the decisions preceding the accident and declined to speculate on causes until investigations were complete.
Summoning executives of companies caught up in financial or legal trouble to receive televised scoldings is a ritual of U.S. politics. Detroit auto titans, Wall Street bankers, and the head of Japanese auto giant Toyota Motor Corp. have all done time in Congress's dock as lawmakers looked for someone to blame for the calamities of the past two years.
More on the Spill
See graphics covering how the spill happened, what's being done to stop it, and the impact on the region.
View Interactive
Timeline
Follow key developments since the initial explosion.
View Interactive
More photos and interactive graphics Even by the standards of these proceedings, the fury directed at Mr. Hayward was unusual. Democrats accused BP of sacrificing safety for profit. One said the video of the Gulf spill made her physically ill. A Louisiana Republican held up a photograph of an oil-slimed pelican.
And when one senior Republican—Rep. Joe Barton of Texas—stepped up to apologize to Mr. Hayward, the backlash was so severe he was forced to apologize for his apology.
Just minutes into the hearing, Mr. Barton, a ranking member of the committee, denounced the Obama Administration for pushing the British oil company to agree Tuesday to put $20 billion into a fund to cover damages caused by the disaster. Mr. Barton called the plan a "slush fund."
To that point, Mr. Barton's critique echoed statements by other Republicans. Then he went further.
"I apologize," Mr. Barton said. "I do not want to live in a country where any time a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is—again, in my words—amounts to a shakedown. So, I apologize."
Rep. Barton left the hearing immediately after making his statement. The aftershocks rumbled throughout the day.
Mr. Hayward's entourage included a phalanx of dark suits including aides, experts and a body guard. He brought a public-relations specialist.
Experience WSJ professional Editors' Deep Dive: Liability Projections Hit BPINTERNATIONAL HERALD TRIBUNE
BP's Pledge of $20 Billion Unlikely to Be Final WordDow Jones Capital Markets Report
Liability and Settlement Whipsaw BP's DebtPlatts Commodity News
BP Promises to Replace Lost IncomeAccess thousands of business sources not available on the free web. Learn More He soon found that $20 billion and an apology weren't going to make his day better.
"The explosion and fire aboard the Deepwater Horizon and the resulting oil spill in the Gulf of Mexico never should have happened—and I am deeply sorry that they did," Mr. Hayward said in an 11-page written statement.
Members of the House Energy and Commerce Subcommittee on Oversight and Investigations were having none of it. They grew increasingly frustrated as Mr. Hayward dodged specific questions aimed at pinning blame for the explosion on specific BP decisions and on him as the company's leader.
More
Recap: Analysis of Hayward's testimony View Slideshow
Associated Press
Protesters stand behind BP CEO Tony Hayward, as he arrives on Capitol Hill June 17, to testify before the House Oversight and Investigations subcommittee hearing.
Investors were relieved by BP's decision to suspend dividends, hoping it would ease pressure on the company over its handling of the Gulf of Mexico oil spill. Grainne McCarthy, David Weidner and Guy Chazan discuss. Also, David Wessel discusses America's system of home ownership, saying that although it has been celebrated for putting so many families into their own homes, it has become, as one economist put it, "a case study in failure."
The Gulf Spill
Democrats Are Divided on Energy Bill Claims Fund Offers Shield From Suits Russian Leader Assesses Spill and BP BP Investors' Enthusiasm Turns to Doubt BP Agrees to $20 Billion Fund Obama Address Gets Low Marks BP Investors Hope Pressure Will Ease Inspector General Slams 'Backwards' MMS Probe Congress to Scrutinize Another BP Rig Fight Erupts Over Oil Trial Venues Opinion: President's Animosities | Crude Politics "With respect, sir, we drill hundreds of wells each year," he said slowly, fingering a pen as he testified.
"That's what's scaring me," shot back Rep. Michael Burgess, a Texas Republican.
Energy and Commerce Committee chairman Henry Waxman (D., Calif.) accused Mr. Hayward of stonewalling.
