Is Transocean's Denial Hurting Their Reputation?

The Energy company, Transocean, is being sued by the state of Louisiana for being responsible towards the damages of the oil spill in the Gulf. Earlier this year, their rig carried 700,00 gallons of fuel which sank in the Gulf. Transocean argues that their company is not the only one that caused problems in the Gulf and that their damages are nowhere near to those in comparison of BP and there fore they take no responsibility of the overall damage. Because Transocean does not accept the full responsibility, Louisiana will not be able to fund repairs of the damages caused by the spill. Transocean is concerned that if the judge rules against their favor, they will be facing many financial issues.

Through this crisis, Transocean is faced with the opportunity to help repair what their rig has damaged. But because of financial matters, they prefer to fight against the allegations and deny that their rig sank underwater. As a result, the state of Louisiana is left destitute not being able to pay for the damages. The Coast Guard reacted by assigning both BP and Transocean responsible for breaking the Oil Pollution Act.

I think that Transocean should make an agreement with BP and the state of Louisiana to help repair damages. It is odd that at first Transocean admits that their rig sank under water at first and then denies it to the judge and coast guard. If Transocean does not do what they can to help clean, they will most probably aggravate customers and then eventually lose them and see a decline in their profit. Transocean would also probably be seen as a loyal and honest company if they help with the mess they contributed to.

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