Billy Partridge: BP disaster's ripples of retribution spread across the pond

THE BP disaster in the Gulf of Mexico is a very British problem. But Aberdeen's global reputation as the capital of European oil and gas market makes it a very Scottish problem, too.

BP is in no danger of solving its commercial, reputational and financial difficulties any time soon, which means the ripple effects will certainly be felt closer to home for some time to come.

We have already heard about the striking number of British citizens who have some kind of stake in BP through pension funds — it apparently accounts for one in every six pension pounds invested. But we have yet to clarify the wider consequences of the heavy and consistent pounding BP has received from not only American politicians but also investors, the public and the media.

It is no coincidence that US commentators continually refer to the company by its full — and very British — name. British industry is facing serious reputational risk, and due to their firm grip on the oil and gas markets, companies with a base in Scotland could bear the brunt.

Many Scottish businesses in the oil and gas sector play on a global stage. Aberdeen provides infrastructure, services and expertise to the oil and gas sector and it is this community that must be concerned about the wider reputational damage facing BP.

You have to wonder whether the international business community will ever forget some of the more damaging descriptions of BP. "Carelessness" and "complacency" are not the kind of associations that make for a strong commercial position in the oil and gas sector.

Indeed, the link between a falling corporate reputation and negative commercial impact is very clear. Scottish businesses linked to oil and gas must be concerned about whether the international markets will respond to the Gulf crisis with a broad brush.

What can BP do? And how will its actions affect our business community? US president Barack Obama's address to his nation set America's sights firmly on renewable energy — something Scotland has something of a track record in. But it also sought retribution — BP would pay for its "assault on the shores and citizens of the US". It would be myopic in the extreme to assume that this is a BP-specific problem. It could be an industry-wide problem. The aftermath of this environmental disaster will be felt for some time to come, and in Scotland the ripples are starting to be felt.

Cameras are turning up in Aberdeen wanting to take footage of large deep sea drilling equipment. Questions are being asked about health and safety. Investors and financiers are wondering what implications BP's downfall will have on attitudes to financial risk in the sector, and all the consequences that brings.

In short, Scottish business is looking long and hard at how it can mitigate against two things: the effects of this disaster; and the potential for yet another spill.

How much of this can be linked to BP's reputational fall from grace is difficult to quantify. But it is interesting how much commentary has been afforded to the parallel performances of both BP's worldwide CEO Tony Hayward and Mr Obama. The former has yet to demonstrate that his company has real control of the situation, even if the task in front of them does represent the single largest environmental disaster ever to hit the world's most powerful nation.

The truth is that commerce and reputation are intrinsically linked. Britain is at the heart of this disaster and it remains to be seen how it will cope when the ripples of retribution start to be felt from across the Atlantic.

• Billy Partridge is associate director of Grayling Communications. z