Showing posts with label oil industry. Show all posts
Showing posts with label oil industry. Show all posts

Thursday, June 10, 2010

Have Congress and the President Lost their Minds with BP Attacks? Obama has never even talked to BP!

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Every day the congress and president have taken turns blasting BP for the oil spill and demanding that BP be required to pay for more and more costs that are not the direct result of BP actions. Clearly our politicians have read the polls and know it is popular to blast BP but will it help the people of the Gulf get their money, will it help the trial lawyers keep money from going to the people of the Gulf, and could it jeopardize what BP has already agreed to do?

For someone like Obama who claims to be in charge of the situation, and has been since day one, doesn't it seem rather odd that as of today Obama has never talked to the head of BP about anything, not even the spill, the clean up, the methods to stop the leak and the long term consequences. How can we be working with BP if our leader sees no need to even talk to their leader?



From day one BP has already said they will pay for all legitimate costs relating to the oil spill. Under existing federal law they are only required to pay $75 million in costs. In spite of that law they have already agreed to pay out nearly $1.2 billion and are willing to accept much more of the burden. No one in congress or the White House seems to be talking about the fact they are already paying out 16 times more than our federal law requires.

But facts never meant much to politicians anyway and they are now hell bent on persecuting BP for every bill that is even remotely connected, if connected at all, to the oil spill in a feeding frenzy to drive the company into bankruptcy. Of course the liberals in the White House and congress are brain dead to the fact the court does not think retroactive laws are viable so a retroactive change in laws like congress and the president seem to want is probably illegal.

The very same politicians gave away trillions of dollars to banks, insurance companies and auto companies and in spite of the potential for criminal activity having caused the economic meltdown no laws were changed retroactively. Be honest people.



Yesterday Obama's Interior Secretary said BP would have to pay for the consequences of the delay in permits for offshore drilling, the knee jerk reaction of the president to prove he was getting tough on big oil. Such a claim is juvenile and nonsense.

Our government will waste millions of dollars in legal fees pursuing frivolous changes in the laws and defense of the laws in federal courts and the first question should be what law firms get the contracts from the White House and Justice or Interior Departments to do the work since we know our government does not have the legal capability to take on such a mission. Look for prominent campaign contributors to the Obama and congressional leaders among the trial lawyers receiving these contracts.

No one is on BP's side in this debate, and I agree they must pay their fair share. But our Democrat leadership in congress has a twisted view of fair share and will never get away with the promises they are making clearly for campaign purposes. Does the media not remember the hundred promises Obama and the Democrats made in the last campaign they remain ignored?



Why did Obama and the Democrats not go after the banks, mortgage and insurance companies that cost Americans trillions of dollars in savings and real estate values from manipulation of regulations? Instead are politicians wasted billions more to bailout the crooks. Suddenly our politicians have found honesty? It has a lot more to do with campaign contributions than honesty. Thus bellowing about BP is totally inconsistent with the actions of politicians to date.

As expected, BP is not taking kindly to the many threats of bravado from politicians promises to make BP responsible for costs having nothing to do with their commitment or liability. The new government in England is having the same problem as it is a British, not American corporation. Look for BP to start taking legal action to protect itself from stupid claims against them by our government.

A few billion dollars in cost will have little effect on BP, even though the media are screaming they may go bankrupt paying all the cost. BP is one of the largest oil producers in America with over one million barrels a day. They are also one of the largest in the world. Whatever Obama and Congress do to drive down BP stock value will result in higher oil prices, thus higher gas costs for everyone. This will only make more money for BP as a major oil producer.

Liberal politicians seem to think BP bashing is a chance to demonize oil companies and improve the chances for Al Gore's windfall, the president's energy bill. With Goldman Sachs in line to share in the windfall profits from anything Obama does to help alternative energy and limit carbon credits, look for even more threats from Congress.



So what are the other consequences?

For one, we may very well alienate relations with Britain who happens to think their BP is one of the best oil companies in the world and certainly one of the largest multi-national companies in the world. If our congress keeps making charges and demanding BP pay for things not involved in the oil spill Britain can do many things to make life miserable for Obama.

For comparison, just look how the Obama policy affected the sanctions against Iran. We lost the support of two former allies, Turkey and Brazil, and in order to get the support of Russia and China we agreed to remove the only provisions of the sanctions that might have made a difference. Russia is free to sell a ballistic missile system to the renegade nation and there will be no gas embargo against Iran which might have actually done some good.

Our foreign policy moves have been a disaster for the Obama campaign promises, and whatever worldwide goodwill he gained in being elected he has lost with his actions in being president.



As for BP, yes the stock value has dropped in half. That was expected. Any effort to extend the costs beyond the legal liability will have grave economic consequences. The salaries for out of work oil workers whose jobs may be lost because of the Obama suspension of offshore drilling is not the fault of BP. Unsubstantiated claims that BP is liable for up to $30 billion in unidentified costs only increases tension between the US and all other oil dependent nations.

Beyond the fact England is not about to allow Obama to destroy one of the most successful companies in Britain, the Brits could retaliate by withdrawing troop support in Afghanistan, by working trade and development deals in Russia and China that are not beneficial to the US, and a host of other unintended consequences. We need them a lot more than they need us.

As for the 50% loss in stock value at BP, does that really just hurt the company? Billions of dollars in BP stock are held by American pension funds, investment funds for our seniors, and investments by many state governments and institutions from America. The radical rhetoric in Washington just cost our own citizens millions of dollars in value for their retirement accounts. Those same stock holders get one of the biggest dividend payouts of any stock in the world and congress and the president want to stop the dividends as well.



Finally one must not forget there are hundreds of thousands of employees in America in the oil industry, and millions more employed in fields dependent on oil for their products and services who could be out of work if congress overreacts to the crisis. All Americans will suffer from the gas price increase that has resulted from the attacks on the oil industry. It would do well for our politicians to think before they cut loose their bionic tongues.

So whose side are Obama and Congress on? Is it the anti-capitalist side of socialism, the anti-oil side, the far left side advocating the redistribution of wealth, or the side of their top campaign contributors from the trial lawyers who will make millions in fees that should have gone to victims?

We are still waiting for leaders to step forward in Washington whose wisdom is more prominent than their bravado and whose knowledge influences their words. And waiting... And waiting...

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Thursday, May 06, 2010

"Houston, We've had a Problem" - BP Gets Help - America responds as Well

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When the BP headquarters in Houston got word from the Deepwater Horizon oil platform there was an accident on April 20, 2010, it was almost 40 years to the day since the worst accident in the Apollo space program history took place on April 13, 1970.

That fateful message came from Apollo 13 as it streaked toward the moon under the command of James Lovell and an equipment malfunction never before encountered faced the scientists, engineers and computer jocks working to conquer space. It took the greatest mobilization of minds and the greatest American outpouring of prayer but by April 17 the crippled spacecraft had miraculously been safely landed back on earth.

Today, 40 years later, we face a similar impending catastrophe and once again it will take the greatest minds of scientists, engineers and computer jocks, along with the greatest outpouring of public support and prayer to avoid an even greater disaster.



The BP oil rig was pioneering deep water drilling reaching depths never before achieved, with the well going 35,000 feet below the ocean surface. If successful the technology would help make a giant leap forward toward American oil independence from foreign oil opening the way for billions of barrels of new, American offshore oil reserves for commercial production.

Far below the surface in pressures never before experienced, some 1,000 times more powerful than pressure on the water's surface, something went wrong and tragically, 11 experienced, dedicated oil veterans were killed as the rig exploded. Yet a more daunting task lie ahead, trying to cap a spewing well 5,000 feet deep and covered with 32,000 tons of debris from the rig that sank to the Gulf floor.

Washington politicians, as usual, immediately started finger pointing and issuing threats. Even White House Press Secretary Robert Gibbs jumped into the bitter political environment with his reiteration of the threat by Obama's Interior Secretary Ken Salazar that Obama would "keep the boot on the neck of BP," a divisive and counterproductive ill-timed comment.



When faced with a technological crisis playing the blame game will never be a successful strategy. Some parts of the government responded, like the Coast Guard, but mostly it was more of the same from Washington. Politicians should keep their political shenanigans in our nation's capitol, we have work to do to help heal our nation on the Gulf.

Quietly, like Americans have always done when faced with a national crisis, the people set about the task of preparing for the worst and unselfishly offering to help. BP asked for the best minds from competitors like Chevron, Exxon, Shell, Conoco and Anadarko among others to help them devised a solution to the seemingly impossible task of stopping the 210,000 gallons a day of crude oil.

They came up with a plan never before attempted at such a depth to build and drop a 100 ton cone on the well 5,000 feet down. The first of three cones has been finished and it currently on the way to the site. By this weekend we will know if a major environmental disaster can be avoided.

But this doesn't just have national implications. There are over 8,300 offshore drilling rigs in operation around the world. All nations of the world will benefit from a successful response to this accident.

Offers of help have poured into the State Department from around the world as 13 nations and the United Nations have offered their people, equipment and resources to help stop the leak. U.S. neighbors Canada and Mexico are among those offering equipment and experts in containing and cleaning up the leak from the BP oil rig that exploded April 20.



State Department spokesman P.J. Crowley said Wednesday that the Coast Guard is evaluating the needs of the cleanup operation and will decide what, if any, aid to accept in the coming days. Also offering aid are Britain, Croatia, France, Germany, Ireland, the Netherlands, Norway, Romania, South Korea, Spain, Sweden and the U.N. Environmental Program.

The response has also come from the people of America in ways the government, so caught up in political bickering, would never even consider. Hair salons from across the country have been collecting hair and sending it to the Gulf coast to be rolled into absorbent cloth and used to absorb oil that may reach the shore. Hair is a powerful absorbent and thousands of people are responding to this call for help.

Many others are flocking to the Gulf coast to help with the clean up of any oil that reaches the beaches and marshlands, to help with wildlife recovery and care, and to help in any way possible. These offers of help from the little people of America, people I refer to in my book The Joshua Chronicles as the "Raggedy People", the silent multitudes upon whom a new civilization will be built, reflect more of the spirit of America than politicians could ever hope to be.



They know the game of politics no longer works. They know now is not the time for blame but for hope, inspiration, dedication and innovation to overcome this potential disaster. Obama and Congress should be encouraging these efforts to help by the citizens, corporate community and other nations and save the blame game for later.



Today is the National Day of Prayer. Prayer works. It did for Apollo 13 and it can for the Deepwater Horizon crisis. If only our politicians would join together in prayer for the success of this massive international effort and this dramatic mobilization of the people we could all stand united in our purpose and maybe the prayers will be heard.

No one wanted this disaster to happen. BP has over 80,000 employees whose jobs are dependent on the oil being delivered safely. Millions of people are employed directly in the oil and gas industry and many millions more have jobs dependent on the oil industry. We all benefit from their efforts and our quality of life is much improved because of them.



America and Americans will help get us through this crisis, even if the politicians continue to stammer and sputter in Washington. It would be nice if our leadership would focus on the problem and help to mobilize and encourage those who are dedicated to solving problems, not compounding them. It would also help if they would attend their own Prayer Day activities and really listen to the message of the priests, ministers and rabbis. We are all in this together.

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