Wednesday, June 16, 2010

BP Equals Big Polluter Equals British Pensioners = Big Problem=Bankruptcy Probability

BP Equals Big Polluter Equals British Pensioners = Big Problem=Bankruptcy Probability
Written by Paul I. Adujie

It is good news that President Obama is demanding and insisted that BP establish an escrow account for the clean up and compensation in the aftermath of BP disaster which BP inflicted on the American Gulf Coast. It is exceedingly good news that BP did not resist the escrow account idea and so, $20 billion dollars may be set aside for the clean up.

The mammoth clean up as a consequence of BP sloppy oil drillings in the Gulf of Mexico without regard for human and environmental safety. And the trillion dollars question to be asked is why does the energy industry spend so little in research and development to meet safety demands in the high stakes offshore oil drilling game? BP committed blunders. It is therefore almost refreshing that BP finally heeded demands to suspend dividends payments in the face burgeoning environmental and financials disaster brought upon millions by BP itself. There should be no tears from anyone for BP, none.

BP drilled for oil without mandatory precautions for the safety of persons, flora and fauna. It is a delight that BP is getting pummeled from all sides for its deliberate ineptitudes. BP is receiving a beating of its stocks on trading floors and the people and government of the United States are making sure that BP hears displeasures loud and clear. BP made a calculated decision not to invest in necessary research and development and requisite technology in disaster prevent and disaster management as BP was fixated on profits and fixated on cutting corners on matters of safety. BP wanted to avoid the overhead costs of doing oil drilling at the depth of the oceans now, BP has a trillion times expenditure to clean up, to compensate for damages BP caused as it skimped on safety. There is hell to pay in cash and damage to BP’s image!

BP is still fumbling and bungling and foundering, 8 weeks or precisely 56 days after the BP oil spillage catastrophe of April 20, 2010. More and more have been revealed BP’s poverty of ideas and BP’s extreme neglect to undertake preventive measures to avoid what is now an oil spillage disaster-catastrophe in the Gulf of Mexico, which is now determined to be 10 times more than the Exxon Valdez oil spillage in 1989 on Prince William Sound in Alaska. Big Polluter is reeling from self inflicted injuries which could see BP into bankruptcy and that will be a great lesson for all corporate wrongdoers!

More and more revelations continue to surface, as to how BP’s fixation on the bottom line, profits and greed, as BP neglected necessary precautions, at the expense of human lives, at the expense of the environment and now, the consequences have come to bite BP. And sadly, the rest of us, are adversely affected both in the short term, medium and long term. BP’s failure to have disaster preparedness plan or disaster and crises management arrangement is egregiously offensive and outrageous! BP and the other oil giants and corporate behemoths merely had archaic and antiquated ideas about drilling safety. Most of these oil conglomerates actually listed the name of a long dead disaster consultant as their go to person in case of accidents

The latest and newest of these revelations actually comes from major oil corporations as they testified under oath before the United States Congressional Hearings as President Obama and the people and government of America investigates the blunders and bungling committed by BP, which resulted in this monumental poisoning of the waters and wetlands in and around American Gulf Coast

BP made five specific shortcuts … carelessness, recklessness, confirm BP failed to follow industry standards, design standards and industry norm, most other oil companies said they would not have drilled the way BP did.

Walruses have not been seen in Gulf of Mexico for 3 million years and yet, oil companies included such useless information on their disaster plan… oil companies merely copied and Xeroxed an Alaskan plan for all locations

BP had all opportunities to make decisions to avoid high risks, but chose the cheap option, BP also misrepresented the barrels per day in the spillage which is now put about 70, 000 barrels per day and that does not even include the natural gas which is also being spewed into the waters of the American Gulf.

It is the case, and it now public knowledge, that BP took the least costly least expensive option, BP did not conduct requisite test and it was horribly negligent on the part of BP, they tried to cut costs and BP became criminally negligent. BP had choices and other members of the oil industry states this… and it has become obvious that BP put profits before safety hence the extraordinary disaster which is now unfolding

According to The New York Times, in an article titled “Oil Executives Break Ranks in Testimony” and written By JOHN M. BRODER “ The chairmen of four of the world’s largest oil companies broke their nearly two-month silence on the major spill in the Gulf of Mexico on Tuesday and publicly blamed BP for mishandling the well that caused the disaster. This may seem self-serving, but their blames for BP are consistent with what the public now knows. Here are excerpts of statements by big oil ““We would not have drilled the well the way they did,” said Rex W. Tillerson, chief executive of Exxon Mobil. “It certainly appears that not all the standards that we would recommend or that we would employ were in place,” said John S. Watson chairman of Chevron. “It’s not a well that we would have drilled in that mechanical setup,” said Marvin E. Odum, president of Shell.

All the oil companies have identical disaster plan such as what BP has applied and which has been unsuccessful. There are now back up plans and disaster management plan A and plan B

More than 5 million feet of booms or oil flow stopper or containment booms have been deployed in the American Gulf Coast, but thunderstorms and hurricane have increase ocean waves and booms are not effective and spilled oil have not been kept out of wetlands, animal habitats or even the waterfront beaches. Boom will not be the best defense or methods to clean up the spillage the size of BP oil spill disaster. BP continues to jump hoops in worth than useless efforts to pretend that it is tackling or fixing the spillage disaster, but the truth remains, that until a relief well is eventually drilled and completed in about two months, perhaps at the end of August 2010, the BP oil spill into the Gulf Coast waters will continue and oil will most probably spread into the Atlantic Ocean via Florida

Experts from national laboratory, scientists from academia, and sundry public interest experts to tackle the millions of gallons of oil into the Gulf of Mexico, what is necessary, and will make BP pay.

President Obama in his Oval Office address to Americans recounted the huge efforts his administration has so far invested in efforts to stem the BP mess. Mr. Obama describe the immense size of persons, equipment and other resources so far committed to remediation. This has involved thousands of federal and state personnel. President Obama has also assured that no efforts and expense will be spared in order to restore the American Gulf Coast to its erstwhile pristine state. Such restoration will enable residents of the currently affected states of Alabama, Louisiana, Mississippi and Florida respectively, return to their ways of life, including, seafood hunts, restaurant businesses and travel and tours to the waterfront and beaches which are the mainstays of these coastal states, apart from the oil industry, which constitutes a major employment source in the American Gulf Coast.

President Obama has expressed his commitment to dedicate resources and assistance to all Gulf States, vowing that BP will ultimately bear the expense of clean up. Mr. Obama however explained that, even the best efforts notwithstanding, there will be more oil and more damage before oil spillage is fixed. He also clearly standing his understanding of all the issues, including the fact that the way of life of the people in the Gulf Coast is in jeopardy. In this regard, he specifically referred to the adverse or negative impact of the BP oil disaster on restaurants/shops/hotels/fishermen/oyster men/way of life altered

Mr. Obama reassured Americans that every step will be taken and no stone will be left unturned to compel BP to clean up its mess and to face the natural consequences which have arisen from the BP spillage. He announced that he was set meet BP helms people and would demand that BP set aside a substantial and significant amount of money in escrow, which will be administered by independent entity, free of BP manipulations and interference.

President Obama repeatedly and incessantly, through the Oval Office speech, assured and reassured Americans, that the beauty and bounty of Gulf Coast must be restored. And a step in such direction is Mr. Obama decision to immediately appoint the former governor of Mississippi, to manager the long term efforts, of both the clean up and the compensation procedures and processes. Mr. Obama reiterated over and over, that BP will pay for impact on region. President Obama also used disaster as reason for necessity for all Americans to clamor for reasoned national policy on energy, especially, clean energy, which he described as the long term policy and the best way to prevent a recurrence or a way to ensure that there no repeat of a similar disaster, such as the current one inflicted by BP

The need for reexamination of offshore drilling approvals was also stressed; Mr. Obama insisted that all necessary precautions will now be taken and back up plans must be in place, hence his imposition of a six months moratorium on offshore drilling which he had approved prior to the Gulf of Mexico spillage by BP. Mr. Obama’s 6 months moratorium, may be reduced or may end earlier, but he did emphasize the need to know all the facts as soon as possible, such as what caused accident and how to avoid. He insisted on this requirements as preconditions for any further offshore drilling, while expressing his knowledge and awareness of the fact that many Americans are heavily reliant on the jobs in the oil industry subsector.

President Obama also used the speech to describe and chastise former employees of the Mineral Management Service or MMS, who allowed oil companies to be self-policing and self regulating. He further announced his rededication to revamp MMS, and a reborn MMS will not engage in the corruption ridden cozy relationship with oil companies. There will be no more self policing for MMS, oil companies showered MMS with gifts in corruption and influence peddling and thereby allowing companies to write regulations. Mr. Obama vowed new leadership at MMS, to rebuild industry watchdog, new regulation and enforcement. He restated the fact that offshore drilling is known to be inherently risky, it a drilling for energy source, one mile beneath the ocean waters, it is dangerous

President Obama reminded all Americans that it is time to reconsider actions and public policies which will curb addictions to oil which he sees as the cause of this risk taking drilling. Mr. Obama reminded Americans that the BP oil spillage is a poignant pointer to the consequences of inaction now in plain sight in this spillage, which he explained as the crude oil which is now a tragedy still unfolding in proportions and magnitude. President Obama concisely stated his mission as a national mission to seize control of US destiny in clean energy. Clean energy he said , is way to go and it must be accelerated.

BP seem to be at end its ropes, the deliberate obfuscations are perhaps finally over. The lessons are quite spectacular in nature. Consider the fact that BP engage half-truths and retailing of facts in its dealings with the government of the United States and the states of Alabama, Louisiana, Mississippi and Florida, as well as the American press and media.

It is quite easy to imagine, what BP or any other oil corporate giant would have done, were the spewing in the Gulf of Mexico to have occurred in a less powerful nation, with less powerful and assertive government, scientists, environmentalists, press and media and vibrant public such as we have here in the United States. There have been vigorous reactions throughout the USA, and reactions have not been limited to the Gulf Coast states. Denouncing BP has been by every American and as such, it has been an equal opportunity event.

The BP disaster-catastrophe is speedily and quickly laying a precedent and the reactions by the American government, the oil industry, nongovernmental organizations, scientists, sundry experts and environmentalists etc and the world is acutely observing and keenly watching and the implications, the reverberations are substantial and significant, these are matters for global considerations.