More than 100 days ago, America witnessed the worst oil spill in its history with 11 oil rig workers dead and millions of gallons of oil and toxic dispersant decimating the Gulf of Mexico while doing untold environmental and economic damage to its residents. The catastrophic BP Gulf Oil Blowout adds to the dark legacy of British Petroleum, owner of a habitual record of large accidents causing multiple workers’ deaths resulting in lawsuits for negligence combined with record government fines for safety violations over the last 10 years. BP’s massive oil spill has outraged its critics, environmentalists and many average Americans while at the same time produced its share of ardent supporters and ideologues in rabid support of any and all things Big Oil and Gas.
BP Boycott, yes or no? Philadelphians continue to wrestle with the ongoing debate if boycotting area BP gas stations are an effective means of sending a voice of protest to the less than candid and troubled oil giant. There are more than 87 BP gas stations within a 50 mile radius of the city with 40 of those BP stations in Center City. BP has 287 or so branded gas stations throughout the state. Some argue a boycott of buying BP gas would send an effective voice of protest. Those opposed argue such a boycott does nothing other harm the local business owners of BP gas stations.
Local radio personality Michael Smerconish supports BP. Smerconish is against a BP boycott on economic and security grounds recently stating, “Of course, BP is already paying – dearly. Since the April 20 explosion that triggered the spill, the company’s stock has fallen 40 percent, equating to a $74.4 billion decline in market value. Smerconish further stated, “But I’m not content to watch the (BP) ship sink. I intend to drive out of my way to fill up at a BP pump.”
Recent record BP profits. From 2007 through 1Q 2010, BP reported total net profits of $52 billion dollars including $25 billion in net profit alone in 2008. The law firm of Goldberg Segalla reported in July that BP has already gone on record as saying their “captive insurers” will reimburse the company for large portions of its massive oil spill costs.
BP begins providing selective financial support to its gas station owners. John Kleine of the BP Amoco Marketers Association, the head of a trade group representing U.S. distributors of BP gasoline told the Associated Press BP was advising outlets they would receive financial support in the form of cash, reductions in credit card fees, and help with more national advertising. Kleine stated, “The cash component will be based on distributors' volume and will be higher for outlets along the Gulf Coast than for those elsewhere.” which means less cash support, on average, for local area BP station owners.
BP now stops supplying gasoline to certain Pennsylvania gas stations. In December 2009, BP began notifying its Pennsylvania gas retailers, all privately owned, it would no longer distribute gas in the state, except for Pittsburgh and Philadelphia. Local retailers have speculated the lack of a cost effective number of station outlets throughout the state was resulting in more expensive distribution costs to BP.
Locally based Sunoco has greater local economic impact. In contrast to BP, Philadelphia based Sunoco employs more than 4000 people locally while it maintains well in excess of 100 Sunoco A Plus gas stations in this area. In addition, it is a sponsor of NASCAR racing which has a major local track event of positive economic impact, the yearly Pocono 500. The environmental group, the Sierra Club, rates Sunoco as one of the most environmentally responsible oil and gas companies.
The real issue? Perhaps the issue is not about boycotting BP but rather for Philadelphians to consider supporting Sunoco gas stations, owned by a major local corporation with an above average environmental record who employs several thousand area residents.
To learn more about BP’s poor safety record, go to: http://www.newsweek.com/2010/06/08/new-report-reveals-bp-s-long-history-of-safety-problems.html
To learn more about efforts to boycott BP, go to: http://www.facebook.com/BoycottBP
To read of Michael Smerconish’s support for BP, go to: http://wpht.cbslocal.com/2010/06/03/smerconish-philadelphia-daily-news-column-why-a-bp-boycott-is-fuelish/
Disclosure: This writer holds no investments or stocks or has any financial arrangements with BP, Sunoco or the law firm of Goldberg Segalla.
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