Will White House Make BP Pay For Obama's Moratorium Disaster?
Posted by Jim Hoft on Tuesday, June 15, 2010, 5:44 AM
On May 27, President Obama instituted a six-month moratorium on all drilling in water depths greater than 500 feet and stopped work on 33 Gulf deepwater exploration rigs, except under special circumstances. The president’s decision will force tens of thousands of Gulf Coast employees to lose their jobs.
EnergyTomorrow Blog posted this information on the disastrous moratorium:
Several organizations have offered estimates of the drilling moratorium’s impact on consumers, the U.S. oil and natural industry, and the nation’s energy security:
- Adam Sieminski of Deutsche Bank predicted that U.S. oil production could fall by 160,000 barrels of oil per day by next year. (Financial Times)
- Bernstein Research said delays from the moratorium and rising costs stemming from new safety regulations are likely to raise the marginal cost of deepwater production by about 10 percent. (Financial Times)
- Paul Cheng of Barclays Capital warned that the higher costs could eliminate small independent companies who compete for drilling projects against the majors. (Financial Times) He also predicted an 11 percent drop in deepwater oil production. (Houston Chronicle)
- The Houston Chronicle reports that two large oil-services companies are relocating workers from the Gulf of Mexico to onshore North America drill sites and Brazil.
- The National Ocean Industries Association (NOIA) predicts that relocation is just part of the pain to be suffered by energy workers. Burt Adams, NOIA’s chairman, said in a statement, “the [president's] order will be felt by the families of tens of thousands of offshore workers who will be unemployed.”
Last week it was reported that the Obama Administration misrepresented a study to push for their oil drilling moratorium. Of course, the state-run media has so far completely ignored this White House scandal.
Tonight Barack Obama will ask BP to set up an independently managed fund to cover economic and ecological damage claims.
CBS reported:
Mr. Obama will use his first Oval Office address to outline plans to streamline the BP claims process, a source of aggravation for many people affected by the spill. The administration wants BP to establish an independently managed fund to cover economic and ecological damage claims.
White House Spokesman Robert Gibbs told CBS News’ “The Early Show” this morning Mr. Obama will discuss a strategy to “take the claims process away from BP” if the oil company does not establish “an independent entity.” Gibbs said the president “possesses the legal authority” to do that.
Legal observers say while that authority may be open to debate, the White House clearly has the political power to force BP’s hand. It was unclear whether the administration would allow BP to choose a third party administrator to oversee the fund but a private legal source told CBS News the company has already interviewed some potential choices for the position.
So, the question is…
Will Obama force BP to pay the salaries of the unemployed oil workers who are out of work due to the president’s reckless decision?
If he does, BP should refuse. It’s not their fault the oil workers are sitting at home and that oil rigs are being transferred to Brazil.
It’s Obama’s.
Related… Governor Bobby Jindal called for an end to Obama’s moratorium yesterday.
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neomom commented:
My gradmother once said “you can’t get blood from a turnip” Obama will destroy the Gulf oil industry and BP. He will leave the taxpayers with the bill for clean-up. Probably another gas/energy tax. The only thing transparent about this admin. is the admins motives. They know exactly what they are doing, anyone affected is collateral damage, the means that justifies the end.
katablog.com commented:
what is really important is what is excluded from the moratorium! BP’s largest well also known to be “troubled” and not up to standards!
myohmy commented:
The only winner here is George Soros. His puppet Obama is doing the heavy lifting for him. Who cares for millions of americans losing their jobs?
Joanne commented:
Obama is all about creating jobs…..NOT!!!
I can’t wait for his speech to-night, so I can watch the psychotic Liar-in-Chief spin his web of deceit. I would love for Bobby Jindal to give his rebuttal afterwards….would just love it.
Betsy Ross commented:
Captain kick-@ss has got to know that the moratoriam will accelarate economic doom…the only conclusion is that he WANTS economic failure…
HandyBill commented:
I wont be watching this idiot grandstand on the TV. I have grass that I need to watch grow.
mark commented:
Obama rejected other solutions from BP early on and also rejected help offered by Denmark. Obama is responsible for getting in the way and stopping cleanup efforts.
Obama’s administration is also responsible for ensuring the oil rigs are safe. All of them. (Dept of Minerals Management or whatever they are called,) are supposed to be inspecting and certifying. Isn’t that their job? (or is it watching porn?)
Somehow, just somehow, the Obama Oil Spill is going to be blamed on Bush.
John commented:
This president is like someone posing for one of those character sets for still photographs. “Sit here in the oval office, put on this jacket, and we’ll take your picture. For $20, your picture will say President Obama. Show it to your friends.” Well Mr. Obama, you’ve had your turn…next in line.
AuntieMadder commented:
Don’t worry about BP; the US taxpayers will foot the bill.
Taxpayers could be on the hook for billions of dollars from BP’s still-gushing spill in the Gulf of Mexico unless Congress can retroactively change a law that limits a company’s liabilities for oil spills – and experts say it will be tough.
(snip)
But if the spill contaminates large parts of the Gulf Coast, the real cost is likely to be in the form of prolonged commercial losses to the fishing and tourism industries. Under the Oil Pollution Act of 1990, which was passed in response to the Exxon-Valdez oil spill one year earlier, oil producers are liable for all cleanup and environmental restoration costs that stem from a spill.
But they are only liable for $75 million in claims for commercial and business losses, which could easily run into the billions. If BP and its partners don’t pay, Congress will be under just as much pressure to provide help as it was in the case of natural disasters like Hurricane Katrina. If the oil spill gums up a thousand miles of Gulf coast, the commercial losses would almost certainly run into the billions.
http://www.thefiscaltimes.com/Issues/The-Economy/2010/05/14/BP-Oil-Spill-Taxpayers-Could-Pay-Billions-in-Damages.aspx
Tammy commented:
Auntie Madder:
And BP will follow the letter of that law. In other words, they won’t have to pay.
Obama WANTS this crisis. He makes big business(oil) the devil.
He allows the oil to destroy lands(he doesn’t care)
and PURPOSELY is slow to allow clean up.
Why?
He wants to pass Cap and Trade. This is a perfect set-up.
I wouldn’t even doubt if the oil explosion itself was done on purpose.
Gas will be $10 a gallon before this man is out of office.
Unemployment will be 15%.
This is the plan.
Anyone can teach commented:
If I were the leader of Great Britain I would consider it an act of war if the assets of my people were raided in this fashion. BP can pay for clean-up and legitimate loss of income that resulted from THEIR actions. However, loss of income due to some idiot in the White House having a conniption and closing down all of the other wells in the gulf is just extortion.
Obama will precipitate another crisis and then use it as an excuse to impoverish even more people.
bill-tb commented:
Yes you can blame the accident on MMS and BP, regulatory failure and negligence on BP’s part — But containment and cleanup, BY LAW THAT IS Obama’s cross to bear …
I have just spent some time picking through news reports of the start of this massive big government failure of an oil spill, and it is heart breaking what has happened to our Gulf of Mexico because of Obama incompetence and big government failure. And all according to the experts, preventable if only one thing had happen … fire booms had been available for immediate use, the spill could have likely been largely contained offshore.
It’s too big to post here — Read about it here … http://10ksnookers.blogspot.com/2010/06/despite-plan-not-single-fire-boom-on.html
Let’s see if the people buy the change of focus to cap and tax tonight, instead of sticking with fixing the problems, and there is a whole lot of fixing that needs doing.
Swifty commented:
Gulf Coast Petitition to lift drilling moratorium
http://www.crt.state.la.us/GEST/Petition.aspx
Catherine commented:
Well last time I cked 9/11 was an attack on the USA and her financial industry.
and we found that most of those who supported bho said it was an inside job?
Move on . org run by sorors Van Jones and others??
So when they are saying the oil spill is like 9/11 are they saying that we have been attacked again or that it was an inside job?
just the facts and some crazy thinking?
http://www.bloomberg.com/apps/news?pid=20601086&sid=aFHPjfeUvtl8
Soros Hedge Fund Bought Petrobras Stake Worth $811 Million
By Jeb Blount and Miles Weiss
Aug. 15 (Bloomberg) — Billionaire investor George Soros bought an $811 million stake in Petroleo Brasileiro SA in the second quarter, making the Brazilian state-controlled oil company his investment fund’s largest holding.
http://www.gurufocus.com/news.php?id=66288
George Soros Buys Petroleo Brasileiro S.A.Petrobras, AutoZone Inc., InterOil Corp., Sells Arch Coal Inc., Public Service Enterprise Group, PPL Corp.
Aug. 15, 2009
http://www.foxnews.com/politics/2009/03/12/report-rep-maxine-waters-helped-steer-bailout-funds-bank-family-ties/
Report: Rep. Maxine Waters Helped Steer Bailout Funds to Bank With Family Ties
Published March 12, 2009
Rep. Maxine Waters, D-Calif., helped steered millions of dollars in bailout funds to a bank on whose board her husband served, the New York Times reported Thursday.
OH HOW DID THAT GET IN THERE
http://www.cnbc.com/id/37684965
Chevron’s Oil Spill Hasn’t Reached Great Salt Lake
Published: Monday, 14 Jun 2010 | 9:45 AM ET
AP
Emergency workers believe they have stopped a 21,000-gallon oil leak from reaching the environmentally sensitive Great Salt Lake
but then you have to look at all the so called accidents that started in February 2010 first in Conn. so is this attacks on the USA like some want to make this bhos 9/11??
And with the rigs now on their way to South America was it an inside job?
Catherine
olm commented:
Bp should tell Obama to go pound the oil soaked sand.
Obama owns this baby, and whether this was on purpose to begin with or not, he clearly wanted this to become a crises. And it is becoming the total destruction of the southeastern states.
I’m sure Soros is proud of his boy.
bg commented:
++
Charlie “green” Christ
PBS NewsHour, June 14, 2010
Escrow Fund & Basis in Law
White House Authority in Oil Claims Assessed
[put it on the government [.] i don’t see anything [.] requires them to set
up this escrow or trust fund [.] not sure there’s something in the law..]
Green Tech Demands Scarce ‘Rare Earth’ Minerals
[China: 'look out for yourselves']
==
Kevin P commented:
Moving the rigs may be the right thing to do – based on “Worst Case” scenarios that were posted yesterday – I can’t find the link now – but it was on oildrum.com.
If the breach is below surface – the upcoming oil is eroding the seabed. Very bad news. This could cause the Gulf floor to collapse – and other oil rigs could be at risk.
If Gulf floor collapses – 2.5 BILLION barrels of oil almost “immediately” escape into the Gulf. Along with Oil is natural gas.
This also explains the no-fly zone above the Gulf. If the floor were to collaps – large amounts of methane could be released – destabilizing the air above the Gulf – causing airlines to crash.
This is one theory of “The Devil’s Triangle”. Methane vents cause both water and air to become so diluted that they can no longer support watercraft and aircraft.
I’m not an EXPERT – so don’t take my word for it. But it does make sense of two rather non-sensical moves from the White House. Banning all deepwater drilling and the no-fly zone – but only if the President truly has best interests (othter than his own) in mind.
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