A Boycott Won’t Hurt BP Much

The NYTimes has published a bit of unwelcome information for anyone who is boycotting BP service stations–there’s almost no connection between the oil that BP pumps out of the ground and the gas that is sold at BP franchises. Refineries buy and process oil from multiple companies, then sell gasoline that is not derived from any single company’s oil (updated for clarity). BP eventually adds some additives, but they are a small portion of the cost per gallon, and don’t give BP a ton of profit. Lastly, the service stations are primarily franchises, and BP would prefer to sell the few that it owns.

Surprise, BP Took Excessive Risks

This Wall Street Journal article makes a convincing case that BP’s negligence was to blame for the oil spill. When I first heard that people were boycotting BP, I had the neurotic worry that offshore drilling might be so intrinsically dangerous that all companies doing it are equally culpable and BP was just the one to lose its gamble.  That wouldn’t necessarily make punishing BP a bad decision, but knowing that BP took on unnecessary extra risks makes everything more straightforward.

Update: And BP has a history of terrible safety. (via Daring Fireball)