With great power, saith Spiderman’s uncle in the comic strip and subsequent feature film, comes great responsibility.
No one should be more cognizant of that responsibility, it would seem, than the men and women who run the petroleum industry. For with the wealth accrued by those people for the good their product could do for industry and the world at large, arrogance and complacency inevitably creep into the mix. It was that perceived arrogance that gave rise to the environmental movement back in the 1960s and 70s, given the blight that the black gold could leave on the land when the enterprises that extracted oil from the ground went awry.
Apart from the opprobrium that sometimes falls on the oil industry for price hikes like consumers have not seen for quite some time, the environmental suspicions surrounding the industry also have not gone away.
No sooner did the fallout over the spill into the Gulf of Mexico blamed on BP (NYSE: BP) stop ringing in our ears did another clarion call sound this week, when a so-called "sheen" of oil was spotted in the same body of water. Many fingers pointed in the direction of Royal Dutch Shell (NYSE: RDS.A), when it was assumed that the 16-kilometre sheen spotted off the Louisiana coast was the result of a mishap at its operations in the area.
But almost as quickly, Royal Dutch sent out ships to investigate, and came back with the statement that the whole thing was NOT its fault, an Associated Press piece quoting the company as saying it found no sign of leaks. Shell also ruled out any well-control issues associated with its operations.
Nor is the sheen, spotted April 11, anywhere near the proportion of the leakage that befell BP’s operations two years ago; Shell estimated the damage at six barrels of oil, or just under 1,000 litres.
The company has two production platforms in the area, called Mars and Ursa, producing oil and natural gas from huge tension-leg production platforms. The Mars platform is in 2,900 feet of water while Ursa is in 4,000 feet.
Shares in Royal Dutch Shell PLC fell in European trading early Thursday after the sheen was reported, and while no one should be convinced it’s the end of the story, Shell's U.S. shares were up nine cents in late Thursday trading in New York to $67.84 U.S., perhaps due to its resolve and quick action – or at least, the perception of quick action.
BP, since the mishap in 2010, has unceremoniously drummed out its CEO, and seen its stock pitch and roll like a vessel on the rocky seas. The stock peaked around the $55.00 U.S. mark in the spring of 2010, to sit currently just under $43.00 U.S. in mid-April 2012.
The harsh light of reality will continue to shine on oil wells throughout the world – both above and below ground – and those who respond responsibly will be rewarded, both in the equity arena and the court of public opinion.
