CSR red flag – Chevron say Utah oil spills ‘highly unusual’ despite two issues in 6 months

While the giant BP oil ‘spill’ disaster quite rightly caught the attention of the international media plus of course governments and environmentalists yet another smaller accident is almost being ignored by the media. Should the size of the spill actually determine the significance of the event or is the more important matter of fact that these issues keep happening? Moreover I’m not even comfortable with calling what happened in the Gulf of Mexico a ‘spill’ it was far more than that, perhaps a rupture would be more appropriate terminology. However, a spill this summer in Michigan plus what turned out to be a second event in Utah mean that at least four oil spills have taken place in the US / US waters so far in 2010. That seems to be far too many and I haven’t  yet taken the time to find out if that’s just skimming the surface for similar occurrences in North America. I’m sure globally the total number of events regardless of size would be more than alarming.

A Chevron refinery in Richmond, California

Surely the corporate social responsibility of the oil industry and all of its constituents is to provide the safest and most reliable method of sourcing, transporting and refining oil. By its very nature the industry poses huge risks to the environment and its population while somehow this story from Salt Lake City this week hardly merited a mention in terms of headline coverage. In terms of responsibility I think there is a twofold need to both seek to prevent such occurrences but also be far more responsive in communicating what has led to them, the issue in Utah marks the second event on the same pipeline this year.

The operation is run by Chevron, and now the Federal Department of Transportation have ordered the company to temporarily close the pipeline that runs through the city after the second incident in just six months. The first occurrence was in June when the pipeline leaked and sent 800 gallons into the Jordan River. The pipeline is used to transfer oil from a terminal in western Colorado to a refinery in Utah. The Jordan River runs through Salt Lake City and empties its waters (and oil in this case) into the Great Salt Lake. The most recent incident is reported to have happened just two weeks ago on the evening of December 1st. at that time due to freezing temperatures a valve on the pipeline cracked resulting in some 500 gallons of oil spilling toward local creek. At this time only trace amounts of oil have been found in the water although that’s hardly the point.

The Chevron spokesman has stated that the leaks were ‘highly unusual’ (highly unusual does not mean twice in six months I take it?) and the company have promised a full examination of the latest accident. The government order has stated that a detailed plan must be provided and approved before the pipeline can reopen, in the meantime Chevron will be transporting oil by truck to the refinery. It’s easy to suggest that the total from the two incidents of 1,300 gallons is not that significant but the principle of the matter is the rapid recurrence of the problem. For an industry that is rapidly losing the faith of the general public the expectations and reactions of companies such as Chevron are being held under a microscope. Whether the problem is negligence or lack of investment in the pipeline the fact of the matter remains that when companies such as this offer many millions of dollars in donations to good causes it doesn’t offset the well-found concerns about their operating standards and safety.