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Which is why we're going to continue seeing these things happen as long as the oil industry is protected by a cap on damages.
The scenario I described is already SOP in the aircraft industry, and there are more than a few instances where airlines have been forced to ground every one of a particular model of aircraft while something safety or maintenance related was investigated. It's one of the reasons why we continue to be less likely to die flying across the ocean than we are heading for the drive-thru line at Burger King.
Gene Kim-Eng
------- Original Message -------
On 6/11/2010 11:22 PM Sarah Stegall wrote:
In an ideal world, Gene, your scenario would apply. But in this one, the
results of your suggested action would be massive industrial layoffs.
Shutdowns cost millions; it takes more to re-start a rig than to shut it
down. In fact, one of the contributing factors to the Piper Alpha fire
was the fact that neighboring platforms continued operations during the
fire (thereby feeding it) because the operators didn't have the
authority to shut down; it would have (and did) cost the company an
enormous sum. Politicians and government officials do not respond well
in situations where they are likely to be caught between angry unions,
laid-off workers, and furious stockholders.
Which is why I put my trust in class action lawsuits. Nothing puts the
fear of God into a CEO like the prospect of a lawsuit.
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