BP's status

Investors as well as critics of the oil company BP have sought radical changes in its policies following the Gulf of Mexico disaster.

The company has announced a $32 billion pre-tax charge to pay for the spill. It has changed leadership, prepared to sell $30 billion in assets and pledged to concentrate on safety, the Wall Street Journal reported.

The British oil giant has selected Robert Dudley, an American, to replace Tony Hayward as chief executive. Mr. Dudley pledged Tuesday that BP would become a “different company.”

At the same time, Mr. Dudley credited Mr. Hayward with making a “cultural change” to emphasize safer operations that the new CEO will “accelerate.”

He added that the oil and gas industry as a whole must review safety measures and equipment for deepwater operations as well as the relationship with contractors, the Journal reported.

Some investors feel that more radical change was needed. Yet the fact that BP managed to seal its broken well, albeit three months after the spill began, has improved its prospects somewhat.

The company said it is financially healthy. Discounting the $32 billion charge for the spill, its net profit was $4.385 billion in the second quarter. Counting the charge, it lost $17.15 billion.

If the company is found to be grossly negligent, it will face even stiffer penalties. As it is, BP has lost about 40 percent of its market value and faces an uncertain future.

Whatever happens with BP, the greater hope is that the oil industry has learned much from this catastrophe and will redouble efforts to protect workers and the environment. We cannot afford another such “spill.”