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Showing posts with label bp. Show all posts
Showing posts with label bp. Show all posts

Wednesday, June 16, 2010

The Oil Spill Address: Barack Obama again runs for.....President.

If the American People wanted answers.  They didn't get any.  If the American People expected solutions.  Sorry, no such luck.  If the American People hoped to hear how the Obama Administration, in partnership with British Petroleum, was going to solve the oil spill crisis in the gulf, and clean up the mess.  Nothing doing.

What the American People got was another campaign speech.

President Obama gave an 18 minute address to the nation last night, and it was merely a re-iteration of some of the the same rhetoric that we heard from candidate Obama when he was running for the office of leader of the free world.  The only difference was that back then, it was fresh and new.  Last night, it sounded old and re-hashed.

What we did learn is that the arrogance and thuggery that is becoming synonymous with this administration was fully present, in that President Obama declared that he was going to "make" BP put money into a slush fund administered by a third party, money which is to be used to clean up the oil and compensate those who are losing their livelihoods due to the spill.  Sounds like tough talk from a man who is working hard in the interest of the people of the gulf region.  The only problem is:  President Obama simply doesn't have the power, under the Constitution, to do it.

The reality is, BP is legally bound to pay only the amount of damages up to the cap set by the U.S. Congress, which is currently $75 million. This does not mean that BP won't pay more, as anyone affected by the spill, including an entire state, can file a civil lawsuit which can be legally decided outside the scope of the Federal legal liability cap set by congress.  And BP itself has stated that they intend to do as much as possible to clean up the mess they've created, which includes spending well more than the $75 million cap.

We also learned, in President Obama's address, that he intends to use the oil spill situation as a campaign issue to press for all sorts of new regulation, new and increased taxes upon the American people, and subsidy for ethereal alternative forms of energy, none of which is a solution for the problem at hand. In other words, President Obama's insatiable drive to grow government is wholly intact.  And we leaned, through the absence of specifics, that the spill in the gulf is currently unstoppable, and it appears it will remain so for the foreseeable future.  Apparently the best we can hope for is for a better "mop up" effort in an attempt to soak up the continuous spillage of oil which is currently taking place.  But no details were forthcoming about how either BP, or the Federal Government, intended to improve what has been universally declared a dismal clean-up effort.

Basically, what we were offered last night was nothing more than a commonly vague political speech which gave us no real details or solutions for the problem today, and no real solutions or details for solving anything tomorrow.  It was a speech reminiscent of empty campaign promises, and as such, was utterly forgettable.

Monday, June 7, 2010

We need action, not excuses, in the Gulf of Mexico

I've walked the beaches of Grand Isle, Louisiana.  I've swam with dolphins there.  I've walked the beaches of Mississippi, and nearly stepped on a stingray there.  It floated up out of the sand and glided off from where I was about to place my foot.  I've also swam in the waters off of Pensacola Beach, and have never seen clearer water or whiter sand, though I've been told there is such a thing somewhere.

Now the gulf oil spill threatens all of that.  It threatens the fisheries, the beaches, the tourism industry.  Just a few years after Hurricane Katrina did billions in damage from the coast inland, the oil spill is threatening to do billions more in damage along the coast and off the shores of Texas, Louisiana, Mississippi, Alabama, and Florida.  Some say the oil could drift around Florida itself and start heading up the Eastern Seaboard.

There is no doubt that British Petroleum and it's contractors who were involved the errors which caused the Deep Water Horizon disaster should take responsibility for the situation.  If they do not, then they should be forced to take responsibility...to a point.  Here's where I will come into direct conflict with the rabid band of finger-pointers who wish to effectively burn BP at the stake:

BP, and it's contractors, can only take responsibility for the situation as long as they remain financially capable of doing so.  I listened to a press conference this morning with Admiral Thad Allen and Obama Press Secretary Robert Gibbs, and a question was posed to them as the whether BP should forfeit the oil from the relief will being drilled as a method of stemming the flow of oil into the gulf.  As if the oil should be taken away from BP in some form of punitive punishment for causing the spill in the first place.  Well, the fact is, and Robert Gibbs correctly pointed out, that the costs to BP for the remediation of the gulf oil spill are going to be far greater than the profits from the sale of any oil collected during the remediation process.  As long as that well keeps gushing oil into the gulf, the "meter is running", and costs are going to continue to skyrocket.  BP is going to NEED that oil to help pay for their share of the cleanup.  It will do absolutely no good if BP, or it's contractors, are forced into bankruptcy.  Unlike the U.S. Government, BP cannot print it's own money.  It cannot sell bonds to China.  It cannot simply tax it customers for any budget shortfall it incurs due to this disaster.  If they run out of money, the game is over for them.  Who is left holding the bag then?

Which brings us around the Federal Government's responsibility for this mess.  For all of BP's direct fault for the oil spill that continues in the gulf to this day, the U.S. Government DID sell the leases involved.  The U.S. government DID approve the drilling.  And the U.S. Government DOES get a good portion of the proceeds through such oil production in the form of taxes and fees on that oil at every level of production, from the exploration, to the extraction, to the refining, and to the final sale of the finished product.  Uncle Sam has his hand in the till all along the way, and grabs cash to the tune of hundreds of billions of dollars per year from the oil biz.

Thus, to what extent is the United States government culpable in this?  It pretty convenient for politicians to start pointing their fingers at everyone but themselves when disaster hits, after those same politicians have been lining up with their hands out to oil companies for decades, demanding a portion of the proceeds.

Given that such a large amount of money is involved in the production of oil in the United States, and given that the United States government receives such a huge portion of that money, why is it unrealistic to think that the U.S. government should appropriately share in the burden of clean up when something goes wrong?

Rather than pointing fingers at British Petroleum and it's contractors for the gulf oil spill mess, the Federal government should be placing every resource into position to assist in the cleanup efforts.  The U.S. Military should be on hand for logistics, equipment, and manpower, as they have the expertise in that area.  The U.S. government should be getting itself out of the way of the states in order for the National Guard to be called in, as they have the expertise in logistics and have needed manpower and equipment as well.  After all, this oil spill IS a national security issue, to the extent that the damage caused has the potential to harm and already weak economy, and will certainly harm the economies of several important states.  It also has the potential to alter domestic energy policy in a way that will further increase or dependence upon foreign oil.  At the same time, the people of the effected areas want to be involved as well.  It's their beach.  It's their economy that will suffer.  Government should be helping, not hindering, the volunteer effort that is "champing at the bit" to help.

President Barack Obama, rather than looking to place blame, would do well to merely take responsibility for the situation, and offer the full co-operation and assistance of the U.S. Government in this matter, as a partner, and a leader, rather than as a standoffish politician looking to score points .  We should not be seeing scattered work crews wandering around here and there on gulf coast beaches, with no central co-ordination, spending more time under the shelter of portable cabanas than out sifting the sand.  If for safety reasons, only 20 minutes of each hour can be spent doing actual cleanup, then there should be three times as many workers on that beach, so there are people involved in cleanup every minute of every daylight hour.  Simple things like that will go a long way towards actual, physical cleanup, which is likely to go on for month, if not years, and simple things like that will go a long way towards increasing public faith in both the Federal government, and BP, in their efforts to save the gulf coast from further harm.

Rather than attempting to vilify and demonize BP in feeble attempts to make government look good by comparison, there should be an all out effort on government's part to step up the responsibilities government takes on when they allow oil exploration and production to proceed, and get paid handsomely to do so.

Rather than continuous defensive press conferences, the people of the United States need to see, above all, action.  Where one level of the clean up effort is lacking, another should step up and help where needed.  And President Obama should be there through it all, giving direction through his top leadership people.  Rather than Interior Secretary Salazar announcing that he will keep the his "boot" on BP's neck, he should be announcing that our government will offer every assistance in this remediation and clean up effort.

The gulf oil spill is a disaster that should transcend politics.  It should not be treated as mere political theater.

Tuesday, June 1, 2010

Former Clinton Secretary of State and Obama advisor Robert Reich calls for government takeover of British Petroleum

As if the U.S. Government isn't running enough businesses, from banks, financial service companies, insurance companies, car companies, and other assorted and sundry formerly private sector businesses, now influential Democrat operative Robert Reich is calling for President Obama to simply takeover British Petroleum.

Never mind the fact that BP is a publicly owned multi-national corporation, which has stockholders spread all over the globe. Never mind that BP already has the manpower, knowledge, and equipment to best handle the situation in the gulf. Never mind that BP has EVERY incentive to solve the crisis as soon as possible, since the longer the oil gushes into the gulf, the larger BP's cleanup expenses will become, and the bigger and more numerous the payouts to affected gulf coast industries and citizens will be, not to mention the black mark upon BP's record that is likely to last for years, if not decades.

The nationalization of private industry is the kind of thinking going on in the modern Democrat/liberal/progressive mindset: If private business doesn't do what government wants, when government wants, then government should simply take over that business and run it themselves.

Reich is calling for the takeover of BP based on the precedents set by President Obama since his ascent to office. Says Reich:

"If the government can take over giant global insurer AIG and the auto giant General Motors and replace their CEOs, in order to keep them financially solvent, it should be able to put BP’s north American operations into temporary receivership in order to stop one of the worst environmental disasters in U.S. history."

The Obama administration has created a Federal monster, in that once government usurps the rights of private business and it's owners, whether it be individual, partnership, or a corporation with stockholders, government then wants to use their new found power with greater frequency (Bureaucrats, after all, by their very nature want to manage something). First, it was mismanaged and financially destitute business' that were deemed "too big to fail". The government takeover of banking and auto companies allowed the administration to effect political payoffs by transferring ownership to big time financial contributors and supportive labor unions. Now it's an oil company that isn't working fast enough for certain members of the U.S. government, and which is becoming a political liability to the Obama administration.

It wasn't very long ago, politically speaking, that it would have been unthinkable for the U.S. Government to simply take over massive sectors of private enterprise. I seriously doubt that if Robert Reich, as a Cabinet member, had suggested to then President Bill Clinton that the U.S. Government should nationalize an oil company, that he'd even be taken seriously. The public outcry if such a statement were made public "way back then" would have been enormous.

Yet here we are, in 2010, only two administrations later, and government takeovers are "old hat". So much so, that it hardly makes news when Obama advisor Robert Reich floats a "trial balloon" about further government takeovers, such as he did on June 1st.

The U.S. Constitution clearly defines the role of Federal government. Nowhere does that document allow the kind of abuse of power we've come to expect from Washington, D.C.

When does government begin to honor the Constitution, and put a check on it's own power? Fact is, at this point, with the Obama White House flush with victory on several controversial fronts, primarily through political manuevering, and despite the opposition of the majority of the American people on several major issues, including bailouts, takeovers, and socialized health care, there is no reason to believe that this administration will suddenly decide that "enough is enough".