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Posts tagged with BP

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6:44 PM

Invoice # 4 (attn: BP)

A little while back the talk of the town was a little thing called the liability cap, a legally enshrined maximum amount an (oil) company could forced to pay to the government in the event of a catastrophic oil spill or other environmental disaster. Every news outlet buzzed about what Congress should do; Congress boiled with debate. All over the issue of whether or not it was conscionable to augment the arbitrary decision to limit liability for environmental catastrophes to 75 million dollars.

Today however, the news is that the White House is officially collecting the 4th of many payments from BP, sending a bill for $99.7 million to BP, Transocean, Anadarko and MOEX.

Remember, wary traveler, BP voluntarily acquiesced in deciding to pay any and all costs of the spill. Our government had no legal framework upon which they could compel BP to do so. BP chose to own up.

Powers of coercion have quite the heavy burden when they are trusted to an entity larger than ourselves, but then again, the weight of the crude pressing upon the surface of our shores and floating in stasis in our waters bears its own unique burden. Why does that burden become coupled with political theater the second it reaches the Congress?

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9:19 AM

Spillster Nation

NBC’s Tom Costello interviews BP Coo Doug Sutles:

TOM: “I think a lot of Americans are surprised that here we are dealing with the biggest oil disaster in US history, yet we’re relying on technology to clean it up that is 30, 40, 50 years old. Has the technology to clean up a spill just simply not advanced, and if not, why not?”

DOUG: “Tom, I’m not the expert on technology, but I think events like this typically advance the technology by leaps and bounds.”

TOM: “We’re still relying on booms, still rely on skippers and on shovels. 40 years after the [IXTOC] spill in the Gulf of Mexico, why don’t you have giant vacuum sucking tubes? Why don’t you have the most high tech, 21st century response to this?”

DOUG: “Tom, I think that part of the reason is there have been so few and big spills. The events haven’t driven the technology change that’s out there. I think this event probably will.”

For all of the outrage that this spill has generated, outrage towards big oil, towards incompetent regulators, towards government in general, it shouldn’t come as a surprise to anyone that Americans blindly believed that a disaster of this magnitude couldn’t happen.

What’s more is the strength of inertia is on full display during this disaster.

Obama responds in the same way all other elected officials have – declaring a moratorium on new offshore drilling. Congress kicks into shit-storm response mode, with politicians taking every opportunity to show exactly how mad they are (only words, mind you). Oil interests (BP primarily, but not solely) have immediately kicked into damage control mode – not the kind of real importance but rather a PR based sort of damage control, and meanwhile continue to flaunt the reckless expansion of drilling into deeper waters. Americans and their media bastions have gotten red-faced and have literally had a field day picking and choosing who to be fuming mad at over this spill. Some have chosen the private industry and profiteers who have gained the most from the flagrant drilling of oil to be the target of their ire, while others declared Obama’s cool composure to be the culprit and still others pointed towards the scandal-ridden, publicly-shamed and broken regulatory agency charged with overseeing the entirety of off-shore drilling.

But no one seems willing to picket outside of their local gas station and display the same anger toward our fellow citizens who are so choosing to live a petrol-based lifestyle, despite the demand it creates for perpetual oil production. No one is picketing Monsanto or Archer Daniels Midland for their short-sighted commandeering of an agricultural system that uses 10 calories of petrol-based energy to create 1 calorie of food energy. No one is organizing marches on the suburbs to protest the role they play in supporting an un-sustainable, petrol dependent America.

But then again, it is clear (to me at least) that Americans don’t actually want to change.

We just want an easy scapegoat. We just want someone to blame, so we can feel better and move on. Our media drives this narrative, but they didn’t create it. Our fellow citizens soak up this sort of cut and dry version of reality, lest they have to admit their role in the problems of our time. It really is an easy choice to be able to tune out the world around you, to succumb to the delusions of privilege and adhere to the standard mode of American politicking, indignation, and repose.

This is one of the biggest national issues in the last decade, having dominated the news for almost 2 months, but we as a nation continue to deal with it using the same foibles that have defined American life and American politics for 30, 40, 50 years.

So when this well (hopefully) stops bleeding out, when all the emails and press releases from political organizations have found some new hot topic, when BP fades from daily life and adopts a new moniker, when Obama’s personality or politics is front and center in another media narrative explaining away the problems of our country – the question remains:

Has our collective capacity to solve problems just simply not advanced? And if not, why not?

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9:02 AM

Dropping the Guise

For all the serious people who are involved in this oil spill, there sure is a lot of inane behavior amongst them. BP tops that list, but really, what’s new?

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
The Spilling Fields – BP Ad Campaign
www.thedailyshow.com
Daily Show Full Episodes Political Humor Tea Party

Good Morning America sends two divers, including Felipe Cousteau Jr., into the oil-contaminated waters of the Gulf of Mexico.

“The consistency is unlike anything I’ve ever seen…a lot of people are saying that when you apply the chemical dispersant, you know, it disappears, the oil goes away. But here we go right now. This is evidence that doesn’t happen

…the oil is now suspended. You can now imagine any fish coming through this would just be covered in it.”

(or Transocean or Halliburton)

“Let’s wait and see,” said Sen. James Inhofe on the floor of the Senate today.

This liability cap is a big issue indeed, and one that is not as straightforward as it first seems. In discussing a maximum amount that a privately owned oil company can be held liable for in the event of a catastrophic environmental disaster, we are implicitly deciding how much the taxpayer burden for such disasters should be. I haven’t seen comprehensive enough of numbers to guess a total cost of this spill, nor have I seen many people guessing totals, but I have heard figures such as a cost to BP of 15 million dollars a day. That to me, sounds low. I would guess this number is the immediate cost to BP, but that it doesn’t account for governmental expenses or economic losses in surrounding regions.

Lets take that at face value though, maybe the 15 million covers every single cost associated.

That would mean that under the current 75 million dollar liability cap, BP’s capitol liability would have ceased after 5 days.

This spill has been going on, without much hope of stopping, for nearly a month. And now there are said to be giant plumes of oil floating under the surface of the sea, their locations unknown and magnitude only hypothesized.

From where I”m sitting, the existence of a liability cap for economic damages of catastrophic oil spills and other environmental damage caused by industry is a policy that serves one very small constituency, at the expense of another very large constituency. Sen. Inhofe seems to think this policy is necessary to keep the independents in the game. The independent oil barons that is – you know, those small business oil ventures.

Ultimately, anyone trying to turn a (gigantic) profit, especially by pillaging the earth’s oil reserves, should be liable for all risk and damages. Why should there be different rules for these folks, when other entrepreneurs, the truly small business independents, risk their homes and livelihoods taking relatively menial risks?

I think its time to turn this equation around, fuck the conversation of liability caps for oil companies and other resource-mongers capable of incurring catastrophic environmental damages – lets just get rid of the cap. How about some protections for the rest of us whose relative burdens of liability far exceed anything BP or James Inhofe could compain about? If our government should be doing anything in the realm of safety nets, how about restoring some of the social ones!

I guess the same logic applies about our country’s and globe’s neo-liberalization – we don’t really know what the ultimate cost will be, so lets not upset anyone with a vested interest in this system of producing wealth; rather, let’s wait and see!

The video below is footage of the gushing well head at the bottom of the Gulf of Mexico before and after BP’s latest attempt to stem the tide (switch occurs around 2:30)

I wonder if anyone knows how long the spill would have to continue at this rate for the reserve the well is spilling from to dry up?

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11:04 AM

The Spill Reaches Chicago

[graffiti in Chicago shows the Northern Gannet, enshrined as the first oiled bird recovered by BP]

The Deepwater Horizon oil rig that exploded and sank on April 20, 2010 and has since spilled millions of gallons of oil into the Gulf of Mexico is an absolute enigma. Even after following this story for the 4+ weeks since it surfaced, I have yet to find anyone who can speak with certainty about this spill, or its fallout.

How much oil is actually leaking? What are the real costs of this disaster, and what are the real costs of the fossil fuels we consume? What does it mean for the future of the US’s energy policy? What are the policy implications of elected officials in Florida and Louisiana saying they no longer support off-shore drilling? Will there be a calcified “drill, baby, drill” cult, unmoved by this catastrophe?

Most importantly though – how will we ever wean ourselves off oil if our politicians, leaders of industry, government, and citizenry stomach this spill?

Yet, there remains good (?) news on the horizon.

Interior Secretary Ken Salazar is keeping the pressure on BP to clean up their mess, saying in response to BP’s elated statements that an attempt to stem the flow of oil out of the gushing well is (finally) working, that the technique is “not a solution to the problem and it is not yet clear how successful it may be…we will not rest until BP permanently seals the well head, the spill is cleaned up, and the communities and natural resources of the Gulf Coast are restored and made whole.”

That is it for the (somewhat) good news. Here is yet the bad news:

Researchers from the National Institute for Undersea Science and Technology said they had detected the slicks lurking just beneath the surface of the sea and at depths of 4,000ft (1,200m).

Samantha Joye, a marine science professor at the University of Georgia, said: “It could take years, possibly decades, for the system to recover from an infusion of this quantity of oil and gas.

“We’ve never seen anything like this before. It’s impossible to fathom the impact.”

Chemical dispersants BP has been dumping underwater may be preventing the oil from rising to the top of the ocean, the scientists said.

The find suggests the scale of the potential environmental disaster is much worse than previously feared…Some scientists cast doubt on BP’s estimate of the oil flow rate, saying the widely repeated figure of 5,000 barrels per day dramatically understates the real amount.

…Mississippi has become the third US state to have traces of oil wash up on its coast, along with Louisiana and Alabama.The spill is threatening to eclipse the 1989 Exxon Valdez leak off Alaska as America’s worst environmental disaster. (BBC 5/17/10) [emphasis added]

Welcome to the 21st century, I suppose.

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4:15 PM

Beyond Patronage (con’t)

Adorning my comments cue this afternoon:

What you fail to address is that the gov’t 86′d the request to skip some of the “standard” steps for the fix.  They wanted to go beyond the basic 1, 2, 3 fix and the gov’t denied them.

Also, these are Federal waters . . . why was the gov’t so slow in responding?  Whether you all want to believe it or not, Bush reacted to Hurricane Katrina 100 times faster than Obama’s response to this spill.

Also, please note that this is one, yes one, off-shore well out of thousands  . . . considering the numbers out there and the years inbetween “spills” . . .

…in Katrina thousands of Americans were trapped in their homes without water or food or any tangible hopes for rescue…the oil spill didn’t even reach American shores until nearly 2 weeks after it first began – so there isn’t much room to conflate these disasters as being comparably disastrous nor caused by the same factors and therefore part of the same policy debate.

I actually don’t find the fact that this Deepwater Rig is one out of hundreds or thousands other off-shore oil rigs to be very comforting…it merely implies that this is only a drop compared to how much oil could spill into the ocean, not exactly a comforting thought if this comparatively little spill can do so much damage, cause so many people to be out of work, and cost the government/private industry sooo much money.

Especially true when one considers the contemporary context of the sole government agency that oversees off-shore oil drilling, the Mineral Management Service (MMS), whose most egregious debacles occurred under the watch of our last administration (sex for oil…another scandal involving meth use at the MMS(?)…). Of greatest importance though, from the Wall St. Journal on May 7, 2010:

The small U.S. agency that oversees offshore drilling doesn’t write or implement most safety regulations, having gradually shifted such responsibilities to the oil industry itself for more than a decade. Instead, the Minerals Management Service—now caught up in the crisis of the Deepwater Horizon rig that for weeks has sent crude oil gushing into the Gulf of Mexico—sets broad performance goals for the industry. Oil producers and drilling companies are then free to decide for themselves how to meet those goals, industry executives and former regulators say.

Clearly something broke before this administration, allowing this spill to be gushing 3 weeks later and with our only real hope at this point of assuredly stopping this flow of oil into the Guld of Mexico still about 2 1/2 months away.  Unfortunately for that cause, most all of BPs tactics have been only used once – on this spill! And does shooting recycled rubber and golf balls into the pipe sound like a hair-brained scheme or what?

Considering that fact though, that thousands of other oil rigs inhabit our coastal waters, something must change in this relationship. Is it the government’s perogative to hold blind trust in the companies who operate these rigs? Or is it the government’s perogative to use its existing agencies to create a standard upon which we uphold a minimum standard of worker safety, environmental integrity, disaster response, and corporate accountability?

So the question becomes, what is Obama’s next step? Fix that broken government!

Interior Secretary Ken Salazar has named two high-level officials to oversee a restructuring of an agency that oversees offshore drilling.

Salazar said this week he wants to split the Minerals Management Service in two. One agency would be charged with inspecting oil rigs, investigating oil companies and enforcing safety regulations, while the other would oversee leases for drilling and collection of billions of dollars in royalties.

Rhea Suh, assistant Interior Secretary for policy, management and budget, and Chris Henderson, a senior adviser to Salazar, will oversee the MMS restructuring. Salazar has said the plan will ensure there is no conflict, “real or perceived,” regarding the agency’s functions. (WaPo 5/13/10)

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11:59 AM

Beyond Patronage

As if news of an increasingly threatening oil spill in the Gulf of Mexico isn’t bad enough on its own, we now get to revel in the inane plans to stop the spill conjured up by BP:

“British firm BP will make a second attempt this week to seal the oil well.

An attempt to drop a huge box on to the leak failed at the weekend and BP will now try to cap it with a smaller box.

The energy giant is also expected to try to plug the well using rubbish like tyres and golf balls,” (BBC 5/11/10)

And, for our added delight, we can also observe the child-like bickering of each responsible party (BP, Halliburton, Transocean), as they appeared before the Senate this morning, each of which apparently figures that their best course of action is to shift blame to someone else:

“The Deepwater Horizon rig that blew up in the Gulf of Mexico on 20 April was owned and operated by drilling firm Transocean, but leased by BP.

The head of BP America told the Senate hearing he had reason to believe a critical safety device called a blowout protector had been modified, reports news agency Reuters.

Lamar McKay also noted the 450-tonne device was owned by Transocean.

But Transocean’s boss said there was no reason to believe its blowout protector had been at fault, as he pointed the finger at BP.

“Offshore oil and gas production projects begin and end with the operator, in this case BP,” said chief executive Steven Newman.

He also pinned blame on the failure of a cement oil-well casing, built by BP contractor Halliburton.

But Halliburton executive Tim Probert argued his firm had followed all requirements set out by BP and industry practices.”

What amazes me is not the unique nature of this oil spill, or the originality of these executive’s techniques in front of a pissed-off Congress, rather, I’m amazed by the fact that Halliburton continues to get jobs while millions of Americans and thousands of other American businesses languish – I mean, if a group of scoundrels (KBR) that were oh so willing to defraud the government during a war are still being hired to do “honest” work, what hope is there for the American economy? Well, to refine that, what hope is there for the integrity of the American economy? And furthermore, why aren’t the tea partiers jumping down these bastard’s throats? For all of their outrage in the past year, they seem to blankly stare at the face of corporate corruption.

This example of the oil executive’s willingness to game the system, cover their asses and cut their losses shows how predominant laissez-faire remains within our country’s and government’s consciousness. It isn’t even a risk for these cats to put on a straight face and tell whatever version of the facts they wish, because they have extremely-well paid lawyers on their side who coach them in precisely how to best pull the blanket over Congress’ head. Its just like with Goldman Sachs recently. Where even though it was painfully obvious that the corporation’s lawyer had instructed their clients to stall, meander, play dumb and otherwise waste Congress’ (and the taxpayer’s) time, they stayed within the legal bounds of how one can lie under oath.

Congress and the American people know this to be the case. Sen. Susan Collins asserted during the Goldman Sachs hearing that she was certain the bank execs strategy was one of running out the clock. Today, Sen. John Barrasso reacts to BP, Halliburton and Transocean’s Congressional testimony as such, “”I hear one message – don’t blame me. Shifting the blame game doesn’t get us very far.”

We know these tactics to be tried and true for Corporate America, but we continue to give them a platform upon which to be upheld as honest and truthful, and our media continues to disseminate the corporate talking points impartially and under the guise that each news story has to have fair and balanced view points represented. This is not only frustrating as an observer and quasi-participant in the system, but as a human being. Corporations are not people and should receive no special treatment or deference, nor should the people who run corporations be upheld as inherently valuable or irreplaceable for that matter. Privilege should not beget priority in our system, but it often does.

The critical question in examining how our country can move beyond patronage is one that focuses on Congress: will they punish those whose transgressions befell enormous consequences for the larger population, or will they just as soon yield their own power to those with privilege?

This past week, it has become a looming reality that the oil rig which exploded and sank into the Gulf of Mexico, spilling thousands of gallons of oil a day, is not under control and poses vast environmental risks for the area.

Similarly becoming clear is that this newly acknowledged national disaster will re-shape the national discourse on energy policy concerning domestic and off-shore drilling specifically. As the world watched the oil slick grow to the now epic expanse of 130 miles long, an off-shore wind farm was approved in Cape Cod, Massachusetts after 9 years of mucking around in the legal system. Leaving the almost ironic contrast of these two pieces of energy news aside, a more fundamental question resounds in my brain: Is the Government ultimately responsible for the direction of and oversight of our national energy pursuits, and is this reality only tacitly acknowledged in situations where massive catastrophes occur and the private sector that profits from our energy pursuits proves to be incapable of dealing with the consequences?

Wordy, yes, but goddamn important to raise. As in the case of the oil rig, whose consequences in terms of area and volume effected have tripled in just the last day, it is overwhelmingly clear that the Federal Government (DoHS, DoD, Coast Guard) needed to act to control the spill. I say this because even Louisiana’s Republican Gov. Bobby Jindal has asserted that oil giant BP, whose rig it was that initiated this disaster, cannot handle the clean up and mitigation efforts: “I do have concerns that BP’s resources are not adequate,” (BBC 5/1/10).

Despite these mounting concerns that big oil cannot handle the consequences of their endeavors, the company has repeatedly downplayed any suggestions of such, with their COO Doug Suttles saying “[it had mounted] the largest response effort ever done in the world,” (BBC 5/1/10)

Continuing along that vein though, the COO’s admissions as to the stark reality of tampering with such dangerous, uncertain oil exploration leaves much to be wanting in terms of clean energy in this country:

Officials from BP and the federal government have repeatedly said they had prepared for the worst, even though a plan filed last year with the government said it was highly unlikely that a spill or leak would ever result from the Deep Horizon rig.

“There are not much additional available resources in the world to fight this thing offshore,” said Doug Suttles, BP’s chief operating officer for exploration and production, in an interview. “We’ve basically thrown everything we have at it.”

Mr. Suttles said BP’s efforts did not change after it was disclosed Wednesday night that the leak was estimated at 5,000 barrels a day, five times larger than initial estimates had suggested. He said BP, which is spending roughly $6 million a day and will likely spend far more when oil reaches land, had already been mobilizing for a far larger spill. However, he did not deny that BP initially thought the slick could be stopped before it reached the coastline.

“In the early days, the belief was that we probably could have contained it offshore,” Mr. Suttles said. “Unfortunately, since the event began we haven’t had that much good weather.” (NYTimes 5/1/10)

Veiled in the sympathized PR magic that any oil company must possess is the inability to ignore the fact that even when risk is assumed to be minimal, that risk is relative to the forces at play. BP, for all their planning, resources, and expertise in these deep-ocean drilling operations, now owns the fallout from this spill. 6$ million a day is a lot to spend on attempting to clean an ocean of oil, but this shit is just now reaching land and that land happens to be protected wildlife reserves. On top of that, there have been nearly 24 hr relief efforts underway for the last 9 days, with the Coast Guard at the helm, Homeland Security Secretary Janet Napolitano issuing statements and dedicating time to the relief efforts by setting up a second command station in Mobile, Alabama, the Department of Defense now dedicating resources and time, and fianlly President Obama will be heading to Louisiana tomorrow to see the fallout firsthand and issue another public response.

Whoever bears the final costs seems negligible at this point, even though it is likely that BP’s shareholders will suffer more than BP’s executives, because the damage caused by BP’s work will be irreversible. Burning layers of oil off the surface of the ocean, an unfettered well 5,000 feet below the surface of the ocean gushing 210,000 gallons of oil a day, and now thousands more gallons of sub-surface dispersant (whose environmental effects are unknown) are being deployed to attempt to prevent oil from reaching the surface of the ocean.

Of course, the question politicians of all stripes are rushing to answer is: what does this spill, this imminent environmental disaster, imply for future off-shore oil exploration?

At the heart of that question, and ultimately the un-spoken truth revolving around this issue, is that the Federal Government must own their energy policy and its consequences.

If Sarah Palin is to get her way and we “drill here, drill now”, the risks of future catastrophes such as this one becomes multiplied by some unknown factor (even if rigs are determined safe, anything can happen because the forces at play are larger than BP’s pursuit of drilling permits). The proponents of this approach seem, however, to label epic environmental catastrophe as a consequence they are willing to accept in pursuit of a Federal energy policy that favors any and all available forms of resource extraction. I find this distasteful at the least and reckless at the most. Sarah Palin’s habitat will not be the ones covered in rusty, sweet crude oil because of that decision, nor will it be our energy future that is secured by such a move – it is merely a stop-gap, a band-aid that gives the appearance of proactive government intervention while disguising its inherent risks as weighing less than the benefits.

But what should not get lost in this conversation is our nationally accepted perceptions that the Federal Government needs to direct our nation’s and our economy’s use of natural resources.

So my question becomes, why drive a train down dead end tracks? Why should we invest our country in a short-term, low-benefit, high-cost solution?

Is it for the wind-fall profit taxes that we can use to reduce our debt? Or is it for the sake of garnering the good graces of extremely moneyed, well-connected special interests for the next 2 decades or so – to provide in campaign donations and non-adversarial policy campaigns?

And if either of these are the case, no one has yet to prove that any humble citizen’s life will improve because BP gets access to formerly protected areas. To be sure, there are negative consequences inherent in any energy policy decision made at this point, but what has been fundamentally ignored in many’s consideration of expanding domestic drilling is how marginally, if at all, the positives outweigh the negatives.

As such, I will be following the ensuing debate over how to realign our energy policy in recognition of these consequences, and whether anyone will be so bold as to offer viable alternatives that don’t amount to appeasement of special interests.

And damnit, our country doesn’t need any more stock photos of little helpless animals or shorelines coated in oil. What are we going to do about that?