by crashtech » Sat Jun 25, 2011 1:44 pm
This reminds me a bit of my kindergartener's school work, where she is required to draw lines across a page, connecting pictures of things that belong together. Something must of happened to Azrael in kindergarten, because he flat out refuses to draw the lines, instead insisting on proof from the teacher as to exactly why the lines must be just so. We would not draw a line from a roughneck to an operating room, or from a doctor to an offshore platform. It's self-evident that this is wrong. But you could never supply enough proof to a kid who is being intentionally obtuse.
There are precious few businesses that do not have some kind of liability exposure. Virtually all businesses have to have insurance to cover someone tripping and breaking their nose on their front step, all the way up to whatever the exposure is for their particular industry. It would require a particular kind of Procrustean monomania to try and fit all businesses into same sort of insurance and legal framework.
I actually support legal reforms on both industries in question, but for different reasons, because the two industries are vastly different. For instance, I believe more doctors should be going to prison for their crimes against their patients. They are often personally responsible for the deaths of their patients. Large cash awards do little to deter bad doctors from making bad decisions and killing or maiming more people, all the awards do is drive up costs. Of course, since we are talking about actual prison time, the bar will have to be set much higher for proof of wrongdoing, which means there will be far fewer judgements, and far less money involved. The lawyers in Congress would never countenance such a thing, but money doesn't bring back the dead.
As to the oil industry, large cash awards are useful because there is usually a giant, costly mess to be dealt with. More prison sentences should be dealt out to responsible parties as well. The infuriating thing about the way platforms are run is that critical decisions are being made over the phone by executives who have little sense of the reality on the platform. These guys end up being insulated by a high-dollar legal team and never go to prison. What I would like to see is a senior company executive placed on the rig, one who is able to make any decision that needs to be made. A captain, if you will, upon whom ultimate authority is placed. There's no better place to make decisions than on the scene. I'm guessing there are senior drillers who would accept executive pay and perks in exchange for such responsibilities.
And then there are the blowout preventers that no one seems to want to talk about, whose inability to function as designed ultimately allowed the two of the largest oil spills in history to take place.
I hope that helps explain where I am on these matters, now that my head is back on straight.