BP Oil Contract
- Wednesday July 14, 2010 - With approximately 2.5 million gallons of oil
pumping into the gulf per day, the devastation of the BP catastrophe is quite
apparent. The anger and frustration that has swept across America is now
worldwide. The Consumer Watchdog Group led by Ralph Nader, has called for
an immediate boycott of BP products and affiliates. Consumer analysts have
speculated the demise of BP, predicting possible bankruptcy or a corporate
takeover. Many locally owned gas stations under BP contract are already
feeling the effects of the nation wide boycott. Store owners are complaining the
boycott is not only hurting their gas sales, but also the sale of store goods.
Store owners thrive on this secondary source of income but when no one
stops, nobody buys anything. Some gas stations have already reported a 40%
decline in sales.
Currently we are under contract with BP. Recently at a Council Meeting, our
business ties with BP were questioned. Membership felt we as Anishinabe
should not be supporting this company that has caused such careless
devastation to our environment. Membership called for an immediate business
divorce and questioned the legalities surrounding such a move. Management
could give no details as to contractual stipulations in those regards. BRANews
recently followed up with these questions. According to management, we are
now in our third year of a ten year contract. During the beginning of our
partnership we were given a $50,000 bonus credit. If we were to buy out our
contract, it would cost us a percentage of this payback, which totals $32,000 to
successfully divorce our partnership.
With our Store and Gas Station already ailing, the effects of a nation wide
boycott would be devastating. Last month we supplemented the Store with a
$28,000 transfer. Even with this transfer our Store retained a loss of
-$14,816.34. Even though we are now in our ‘busy season’ our Gas Station
suffered an even bigger loss of $26,126. One can only speculate if this is a
reflection of the BP boycott or merely pricing issues. If we are to achieve
business success, we must regain a foothold on our enterprises and rethink
our business strategies. The BP gas contract is just one area which needs
serious consideration. We can only hope and trust our leaders handle this
issue with the utmost care and oversight. Until then I’ll see you at the pumps
with reluctance.
