Press Releases - Baldwin Grills Oil Company about Pipeline Shutdown

Baldwin Grills Oil Company about Pipeline Shutdown

Opening Statement of Representative Tammy Baldwin Before Subcommittee on Oversight and Investigations
"BP's Pipeline Spills at Prudhoe Bay: What Went Wrong?"

Thank you Mr. Chairman.

It is very important that we are holding this hearing today. Not only must we address what went wrong at Prudhoe Bay, but we must examine how we can prevent it from ever occurring again.

We've had some time to mull over the shutdown since it was first announced earlier last month. And, time and time again, I simply find myself at a loss. I am frustrated that BP shutdown 8 percent of the domestic oil supply. I am angry that gas prices were pushed even higher during the peak summer season. And, I am concerned that the Alaskan environment has been dealt a blow from which it will not quickly rebound.

But even more troubling is a trend I see among companies that can only be described as a lack of corporate responsibility. Many of us can remember a time when our communities were proud to associate themselves with the big company that made their home in the nearby town. These companies realized that their long-term success depended on investing in and improving the community, not just focusing on the bottom line.

BP Alaska was such a company. It has been one of Alaska's largest employers, providing more than 1,300 jobs to the state's workers. It has supported Alaska's communities, offering millions of dollars for charitable giving. And, it has played a large role in the "social fabric" of the community. In return, the community trusted BP - they trusted that BP was listening to its workers, investing in its infrastructure, and protecting the surrounding environment.

But, sadly, somewhere along the way, this trust has been broken. Consideration of the world in which neighbors and consumers live and work seems to have disappeared from BP executive's radar screens. And, what has been left behind in Alaska is muck on the ground and distaste, not only among Alaskans, but also among all Americans.

The BP shutdown has brought to light what happens when a company turns its back on its responsibilities. It allowed years to pass without inspecting the critical pipeline that carries 400,000 barrels of oil a day. Executives ignored workers who raised safety concerns. And consumers have been left to foot the bill.

The cost for BP is not simply calculated in lost production or replacing corroded pipes. Rather it must also include - the disappointment of loyal customers, the damage to Alaska's pristine environment, and the violation of the community's trust.

Mr. Chairman, I recognize that we cannot force companies to elevate commitment to corporate responsibility above profits. But, we can find a way to ensure that companies are not abandoning their critical infrastructure by "running their pipelines to failure" or what is known as "riding the throughput curve." The mess of a company's negligence must not be born by the consumer, the environment, or the community. Rather companies must stand up and take responsibility. And, BP must be held accountable for its actions or inactions.

I am hopeful that the series of hearings Congress is holding on this matter will force us to look at the way pipeline safety is regulated - so that future disruptions in supply will not occur. And more importantly, I hope this incident - and these hearings - will encourage other companies to look at their actions - and keep corporate responsibility and public trust in mind as they decide what sort of commitment they make to pipeline safety and maintenance.

Thank you. I yield back the balance of my time.

http://tammybaldwin.house.gov/PRArticle.aspx?NewsID=1353