Thursday, September 16, 2010

ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell Oil (NYSE:RDS-A) Ads Point to BP's (NYSE:BP) Failure

Although the name of BP (NYSE:BP) hasn't specifically been mentioned, competitors ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell Oil (NYSE:RDS-A) have been putting ads in major newspapers, saying if wells were built and operated correctly in the first place, they wouldn't fail.

The headline of one of the ads say, “Engineer it. Build it. And make sure it is never needed.”

But in the fine print is where they make their key attack. It says, “While we don’t yet have all the facts regarding the incident in the Gulf of Mexico, we do know that such tragedies are avoidable. By starting with properly designed wells, by following established procedures and best practices, by conducting relentless inspections, tests and drills, and with frequent, thorough training of personnel, accidents like this should never happen.”

The four majors mentioned above are part of a partnership to build a rapid response system to limit the damage of an oil spill if it ever does happen again. They are together spending about $1 billion to develop it.

Other than those who had a direct stake or contractual connection to the Deepwater Horizon oil rig or Macondo oil well, this may be the first time others with no direct connection have entered into the public relations fray.

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