Blaming oil companies
is wrong
Extended version of a piece appearing in The Express, 2001
'Blame the oil companies” screamed the banner headline in
the London Evening Standard. The director the Petrol Retailers’
Association was bemused why the companies had not sent their drivers
and tankers out to the garage forecourts, especially since the demonstrations
were peaceful. Someone from the Centre for Global Energy Studies
joined assorted newsmen in accusing the oil companies of enjoying
the protests. Others went further and accused them of complicity.
This is all almost certainly rot.
Yes, it always pays to wonder if firms are behaving in a Machiavellian
way. They are of course self-interested. Maybe the big guns of Big
Oil have been conference calling each other as to how to play the
issue. Maybe the high prices they are being charged for crude make
it worth their while to plot to see if the price at the pumps could
be eased, but with someone else (the Treasury) taking the strain.
Another theory has it that the high value of their own reserves,
and the strength of their own share prices, means that they don’t
mind strangling the country’s juice for a few days. They just
got richer.
There's another and much simpler reason why the firms were reluctant
on Monday and Tuesday to send tankers out of their terminals. Remember
Brent Spar? Shell suffered a media outcry five years ago when it
started to tow a vast storage buoy out to be sunk in the Atlantic,
as had been agreed with the Government’s regulators. The furore
produced an agonised re-assessment of how to keep on the right side
of 'the public”. For years big firms had been told that they
were hopelessly out of touch and arrogant. Now they believed it.
Still the message is being received loud and clear. The media, politicians
of left and right, and consumer groups all bellow it. The Green
hardly ever say anything else.
So how on earth does an industry respond when there are nice farmers
and salt of the earth small hauliers camped outside their gates?
Extensive and expensive PR consultancy (much of it from ex-Greens,
lefties, right-on journalists and consumer activitists) have taught
boards of directors that you never, ever put yourself against public
opinion, at least not in public. Savvy to the modern, touchie-feelie,
world, the firms waited until the people who are supposed to run
the country – the Government – told them loud and clear
that they really ought to supply their customers. The firms needed
this belated political support as much as the promised police protection.
Finally, Gordon Brown reminded the world, this isn't the British
Way, not even with New Labour. Poor John Prescott was sound too:
let's remember that democracy has proper channels, he said. The
TUC conference yesterday agreed. How boring. How true. The oil companies
were right to wait for the forces of real democracy to swing behind
them.
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