Friday, June 18, 2010

Ten things you need (but don't want) to know about the BP oil spill

***NOTE FROM ANITA! I am tired of hearing this catastrophe termed a "spill." This is no where near that. A spill can be cleaned up. This is more like an underwater volcano.****

Some of these angles have avoided the radar during the envrionmental crisis

by Daniela Perdomo

More than eight weeks have come and gone since BP's offshore oil rig, Deepwater Horizon, exploded in the Gulf of Mexico. Since then, crude oil has been hemorrhaging into ocean waters and wreaking unknown havoc on our ecosystem — unknown because there is no accurate estimate of how many barrels of oil are contaminating the Gulf.

Though BP officially has admitted to only a few thousand barrels spilled each day, expert estimates peg the damage at up to 60,000 barrels or over 2.5 million gallons daily. (Perhaps we'd know more if BP hadn't barred independent engineers from inspecting the breach.) Measures to quell the gusher have proved lackluster at best, and unlike the country's last big oil spill — Exxon-Valdez in 1989 — the oil is coming from the ground, not a tanker, so we have no idea how much more oil could continue to pollute the Gulf's waters.

The Deepwater Horizon disaster reminds us what can happen — and will continue to happen — when corporate malfeasance and neglect meet governmental regulatory failure.

The corporate media have been tracking the disaster with front-page articles and nightly news headlines every day (if it bleeds, or spills, it leads!), but the under-reported aspects to this nightmarish tale paint the most chilling picture of the actors and actions behind the catastrophe. In no particular order, here are 10 things about the BP spill you may not know and may not want to know — but you should.

1. Oil rig owner has made $270 million off the oil leak

Transocean Ltd., the owner of the Deepwater Horizon rig leased by BP, has been flying under the radar in the mainstream blame game. The world's largest offshore drilling contractor, the company is conveniently headquartered in corporate-friendly Switzerland, and it's no stranger to oil disasters. In 1979, an oil well it was drilling in the very same Gulf of Mexico ignited, sending the drill platform into the sea and causing one of the largest oil spills by the time it was capped ... nine months later.

This experience undoubtedly influenced Transocean's decision to insure the Deepwater Horizon rig for about twice what it was worth. During a conference call to analysts in May, Transocean reported making a $270 million profit from insurance payouts after the disaster. It's not hard to bet on failure when you know it's somewhat assured.

2. BP has a terrible safety record

BP has a long record of oil-related disasters in the United States. In 2005, BP's Texas City, Texas, refinery exploded, killing 15 workers and injuring another 170. The next year, one of its Alaska pipelines leaked 200,000 gallons of crude oil. According to Public Citizen, BP has paid $550 million in fines. BP seems to particularly enjoy violating the Clean Air and Clean Water Acts, and has paid the two largest fines in the Occupational Safety and Health Administration's history. (Is it any surprise that BP played a central, though greatly under-reported, role in the failure to contain the Exxon-Valdez spill years earlier?)

With Deepwater Horizon, BP didn't break its dismal trend. In addition to choosing a cheaper — and less safe — casing to outfit the well that eventually burst, the company chose not to equip Deepwater Horizon with an acoustic trigger, a last-resort option that could have shut down the well even if it was damaged badly, and which is required in most developed countries that allow offshore drilling. In fact, BP employs these devices in its rigs located near Great Britain, but because the United States recommends rather than requires them, BP had no incentive to buy one — even though they only cost $500,000.

http://www.Seizebp.org estimates that BP makes $500,000 in less than eight minutes.

3. Oil spills are just a cost of doing business for BP

According to the Harte Research Institute for Gulf of Mexico Studies, approximately $1.6 billion in annual economic activity and services are at risk as a result of the Deepwater Horizon disaster. Compare this number — which doesn't include the immeasurable environmental damages — to the current cap on BP's liability for economic damages like lost wages and tourist dollars, which is $75 million. And compare that further to the first-quarter profits BP posted just one week after the explosion: $6 billion.

BP's chief executive, Tony Hayward, has solemnly promised that the company will cover more than the required $75 million. On May 10, BP announced it had already spent $350 million. How fantastically generous of a company valued at $152.6 billion, and which makes $93 million each day.

The reality of the matter is that BP will not be deterred by the liability cap and "pity payments" doled out to a handful of victims of this disaster because they pale in comparison to its ghastly profits. Indeed, oil spills are just a cost of doing business for BP.

This is especially evident in a recent Citigroup analyst report prepared for BP investors: "Reaction to the Gulf of Mexico oil leak is a buying opportunity." (But BP's stock has fallen sharply since the beginning of the crisis.)

See the rest of the article here:
http://www.csindy.com/colorado/boiling-point/Content?oid=1746370
Daniela Perdomo is a staff writer and editor at AlterNet. Follow Daniela on Twitter or write her at danielaalternet@gmail.com

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