Spill Baby Spill!

[SirSaxa]

Big Oil Executives Turn on BP During Congressional Hearing

Excerpt
Executives from other major oil companies turned on BP and defended their own drilling practices during a U.S. congressional hearing Tuesday as they sought to stave off new government regulations in the wake of BP's oil spill in the Gulf of Mexico.

"This incident represents a dramatic departure from the industry norm in deepwater drilling," [Exxon CEO] Tillerson said.

One oil industry official, speaking on condition of anonymity, said Shell, Exxon Mobil and the other oil companies had no choice but to turn against BP at the hearing and demonstrate how they operate more safely than BP. "They shouldn't be punished for BP's actions," the official said.

[SirSaxa]

Listening to these CEO's of other Big Oil companies, they are all throwing BP under the bus. It sure sounds pretty damning because everyone else is saying how differently they operate - -far more safety procedures, more thorough testing throughout the process, etc.

However, no one has any other ideas on what to do if something goes wrong. No one has any plans for what to do if a disaster occurs. Much better procedures to avoid disaster in the first place, but no plans for what to do if something goes really really wrong.

Along with all these CEOs, the US President of BP is also there -- getting grilled by Congressmen. Not surprisingly, he doesn't look very comfortable at all.

Another bit of interesting news I was unaware of, Chinese oil companies are drilling off the coast of Cuba -- in the Gulf of Mexico -- right now. And obviously there is no way the US can regulate what they do.

[jerseyhoya34]

Thanks, Saxa. Important insight that nobody knows how to stop this thing right now. The Jindal idea - a good one - is only the latest in a series of efforts to contain the spill. The orange booms, cap, etc. have all failed despite reasonably good thought behind them all in an effort to fix BP's mess.

I am on the ground in Louisiana and can report that seafood prices have gone up somewhat significantly, but the grub is still safe and delicious. New Orleans had a seafood festival this past weekend that was apparently well-attended. There are job programs and seminars to assist shrimpers, oyster shuckers, and the like as they consider their options long-term. Healthcare appears to be less of a worry, but hopefully they'll have access to advice as to how to make the most of their legal rights in that area as the law is phased in.

[kchoya]

Jun 15, 2010 11:08:36 GMT -5 @jerseyhoya34 said:

Thanks, Saxa. Important insight that nobody knows how to stop this thing right now. The Jindal idea - a good one - is only the latest in a series of efforts to contain the spill. The orange booms, cap, etc. have all failed despite reasonably good thought behind them all in an effort to fix BP's mess.

I am on the ground in Louisiana and can report that seafood prices have gone up somewhat significantly, but the grub is still safe and delicious. New Orleans had a seafood festival this past weekend that was apparently well-attended. There are job programs and seminars to assist shrimpers, oyster shuckers, and the like as they consider their options long-term. Healthcare appears to be less of a worry, but hopefully they'll have access to advice as to how to make the most of their legal rights in that area as the law is phased in.

What's healthcare have to do with the oil spill?

[jerseyhoya34]

It relates to how best to provide relief to those who will be unemployed or underemployed as a result of the spill if they aren't already. My hunch is that many of these folks will be able to access health insurance as a result of the new law when such opportunities would not otherwise be available under these circumstances.

Whether that is positive or negative depends on your perspective as does the issue of whether the federal government should do anything for the folks affected on the Gulf Coast or victims of Hurricane Katrina, who remain in woeful shape. However, to the extent you oppose something like the healthcare law, you oppose it as it applies to Louisiana fishermen.

[Boz]

Wait, how is Obamacare helping people in the Gulf right now?

And if you didn't mean right now, but over the long term, well then, I reject that completely. There are number of long-term alternatives to this law that could provide people in such circumstances with assistance and insurance. To say, "well, if you oppose that law, you oppose helping these people" is pretty frickin' weak.

[TC]

Jun 15, 2010 10:54:20 GMT -5 SirSaxa said:

Listening to these CEO's of other Big Oil companies, they are all throwing BP under the bus. It sure sounds pretty damning because everyone else is saying how differently they operate - -far more safety procedures, more thorough testing throughout the process, etc.

Is it damning or is it just another sign that Exxon and Shell know that this spill is a catastrophe that is going to affect the entire industry - and their offshore operations as well?

I think you highlighted the wrong sentence for emphasis :


One oil industry official, speaking on condition of anonymity, said Shell, Exxon Mobil and the other oil companies had no choice but to turn against BP at the hearing and demonstrate how they operate more safely than BP. "They shouldn't be punished for BP's actions," the official said.

[Boz]

Jun 15, 2010 14:14:08 GMT -5 TC said:

Jun 15, 2010 10:54:20 GMT -5 SirSaxa said:

Listening to these CEO's of other Big Oil companies, they are all throwing BP under the bus. It sure sounds pretty damning because everyone else is saying how differently they operate - -far more safety procedures, more thorough testing throughout the process, etc.

Is it damning or is it just another sign that Exxon and Shell know that this spill is a catastrophe that is going to affect the entire industry - and their offshore operations as well?

I think you highlighted the wrong sentence for emphasis :


One oil industry official, speaking on condition of anonymity, said Shell, Exxon Mobil and the other oil companies had no choice but to turn against BP at the hearing and demonstrate how they operate more safely than BP. "They shouldn't be punished for BP's actions," the official said.

I certainly think that's exactly what they're doing, trying to protect themselves.

Be honest: can you blame them? They're not exactly facing a veiled threat here.

[AustinHoya03]

Will the federal government also be questioning members of its incompetent oversight committee, or will all blame be loaded on the shoulders of British Petroleum?

[TC]

Jun 15, 2010 14:18:38 GMT -5 Boz said:

I certainly think that's exactly what they're doing, trying to protect themselves.

Be honest: can you blame them? They're not exactly facing a veiled threat here.

Nope - my only point is that I'm not sure I really believe that BP's attitude towards safety was anything different than the industry norm. The other execs are saying what they have to.

[SirSaxa]

Jun 15, 2010 14:55:38 GMT -5 TC said:

Jun 15, 2010 14:18:38 GMT -5 Boz said:

I certainly think that's exactly what they're doing, trying to protect themselves.

Be honest: can you blame them? They're not exactly facing a veiled threat here.

Nope - my only point is that I'm not sure I really believe that BP's attitude towards safety was anything different than the industry norm. The other execs are saying what they have to.

Listening to the testimony by CEO's of EXXON, SHELL, CHEVRON, etc... it sure sounded like BP takes a very different route when it comes to safety. If we have a petroleum engineer or oil industry guy on the board, perhaps they can add more. But the CEO's were giving many specific things they do differntly -- double casing on wells, cementing the connection area before taking the next steps, never operating their wells at 100% capacity to keep pressures down, lots and lots of specifics.

Separetly, I have also read (can't remember where, sorry) that BP has been cited for over 750 instances of safety issues, while the next most cited company had 8. Yes, that's right. 750 to 8. They also had a deadly explosion at a facility in Texas a few years ago and a big problem with the pipeline in Alaska. BP's safety record seems to be significantly different from other major oil companies.

And I think I did highlight the most damning testimony - not from a Congressman or other Pol, but from the CEO of EXXON.

[EasyEd]

The real culprit is the U.S. government that will not allow drilling on land or in shallow water, forcing deep water drilling.

As someone else said, if the U.S. will not allow U.S. companies to drill, foreign countries will do so in international waters near our shores and there is nothing we can do about it.

Lastly, Congressional hearings are a farce by both parties.

[TBird41]

So, can someone who has more legal experience than just having taken a torts class explain how, exactly, Obama is going to be able to follow through on his promises to make BP pay for everything in light of the economic loss doctrine and the fact that BP's probably not going to turn over control of the claims payments just b/c Obama asks nicely? What's the legal basis going to be? New legislation?

[MassHoya]

BP will probably voluntarily agree with a third party administering the payment provided they can get a cap amount on what they will have to pay. It won't be BP saying no or handing out small checks. That way they do not have to figure out who or how much to pay and when the fund is exhausted, that's the limit to their exposure. Whether this is done by means of some retroactive legislation remains to be seen.

[TBird41]

Jun 16, 2010 7:44:24 GMT -5 MassHoya said:

BP will probably voluntarily agree with a third party administering the payment provided they can get a cap amount on what they will have to pay. It won't be BP saying no or handing out small checks. That way they do not have to figure out who or how much to pay and when the fund is exhausted, that's the limit to their exposure. Whether this is done by means of some retroactive legislation remains to be seen.

Ok. That was how I figured it was going to work, but that wasn't really the impression I got from Obama .

[SFHoya99]

Jun 15, 2010 19:00:39 GMT -5 EasyEd said:

The real culprit is the U.S. government that will not allow drilling on land or in shallow water, forcing deep water drilling.

As someone else said, if the U.S. will not allow U.S. companies to drill, foreign countries will do so in international waters near our shores and there is nothing we can do about it.

Lastly, Congressional hearings are a farce by both parties.

Aah, yes, that evil US government, forcing BP to ignore their own people in claiming things were dangerous. If we just let them do what they wanted anywhere, nothing like this would ever happen!

It's like when the Indian Government caused the Union Carbide chemical explosion -- because if they could just let the chemicals go where ever, they never would have built up!

[SirSaxa]

BP Agrees to $20 Billion Fund For Spill Victims

Excerpt
BP has agreed to finance a $20 billion fund to pay the claims of people whose jobs and way of life have been damaged by the devastating Gulf Coast oil spill.

The independent fund will be led by lawyer Kenneth Feinberg, who oversaw payments to families of victims of the Sept. 11, 2001, terrorist attacks.

Pretty expensive penalty. I think we can be pretty sure that neither BP, nor any other major oil company, will be taking any more chances with safety issues in their drilling activities.

[kchoya]

The Hill with an editorial yesterday calling for Feinberg to be the special master for the BP fund:

thehill.com/opinion/editorials/103421-kenneth-feinberg-for-spill-czar

[rosslynhoya]

Jun 16, 2010 11:34:54 GMT -5 SirSaxa said:

BP Agrees to $20 Billion Fund For Spill Victims

Excerpt
BP has agreed to finance a $20 billion fund to pay the claims of people whose jobs and way of life have been damaged by the devastating Gulf Coast oil spill.

The independent fund will be led by lawyer Kenneth Feinberg, who oversaw payments to families of victims of the Sept. 11, 2001, terrorist attacks.

Pretty expensive penalty. I think we can be pretty sure that neither BP, nor any other major oil company, will be taking any more chances with safety issues in their drilling activities.

Wow, $20 billion sure is a lot of money.

Wait a minute, doesn't BP stand to make five times that amount if a cap-and-trade scheme is passed?

This could be the start continuation of a beautiful friendship.

[hoyainspirit]

Jun 15, 2010 14:24:09 GMT -5 AustinHoya03 said:

Will the federal government also be questioning members of its incompetent oversight committee, or will all blame be loaded on the shoulders of British Petroleum?

Birnbaum already forced out(someone had to be sacrificed), MMS to be reorganized in an effort to change the culture of the Agency. bit.ly/awtaS2 Yes, MMS is a mess.


That said, BP deserves all the blame heaped its way, and more.
nyti.ms/bFr07L
bit.ly/d55mSz
bit.ly/bPK1QO

Having worked for Exxon as a drilling engineer intern in college, I witnessed the pressure to complete wells on time and within budget, but BP's actions appear criminal to me.