BP will likely proceed with a multibillion-dollar dividend payout to investors in spite of the massive Gulf of Mexico oil spill resulting from the explosion of its leased Deepwater Horizon rig on April 20.
In a presentation to investors on Friday, BP chief executive Tony Hayward said that BP could “meet its obligations to all stakeholders,” adding that shareholders “depend on BP for part of their financial security.” The Board of Directors has put off making a final decision until July 27, likely hoping that public anger will somehow have been attenuated by then.
Hayward assured investors that the oil giant has more than enough resources to absorb costs stemming from the disaster, though he was described as “coy” over whether or not dividends would be distributed in their full. Most British analysts believe the dividend will be distributed in full, but some believe that it may be reduced in some degree.
Hayward’s comments highlight the socially destructive character of capitalism. The oil giant’s profit drive has created an unprecedented environmental catastrophe in the Gulf of Mexico. An enormous amount of evidence demonstrates that it skipped over important safety and environmental considerations in the drilling of the well in order to save money. As a result, much of the Gulf is ruined, and tens of thousands of workers in the region’s tourism and fishing industries will lose their jobs. By all rights, the executives and top shareholders of BP should be under criminal indictment, company assets and personal fortunes seized. Instead, the debate that rages is over whether BP will distribute $10.5 billion to its shareholders or somewhat less.
http://www.wsws.org/articles/2010/jun2010/divi-j05.shtml
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