Just a year after the BP oil spill, America is on the verge of a new golden era of oil exploration and production — unless President Obama and his environmentalist friends get their way.
Arthur Herman is a visiting scholar at the American Enterprise via ibloga.blogspot.com
THE TECHNOLOGY DRIVEN OIL BOOM? This surge in domestic production would leave Iran, Kuwait and the Arab emirates combined in the rear-view mirror”July 16, 2011
BP said safety systems on Transocean’s Deepwater Horizon rig had failed.
Separately, BP also sued the maker of the rig’s blowout preventer, alleging the device failed to stop the huge oil spill that followed the explosion.
Both lawsuits were filed on Wednesday on the first anniversary of the explosion, which killed 11 workers.
Overnight on 20 April 2010, Transocean’s Deepwater Horizon burst into flames while drilling a well for BP.
In the months that followed, more than 200 million gallons (780 million litres) of oil flowed in the Gulf of Mexico from the well, soiling hundreds of miles of coastline in the worst US oil spill in recent history.
In federal court in New Orleans on Wednesday, BP said Swiss-based Transocean and Cameron International, the Houston company that supplied the blowout preventer (BOP), should help it pay for tens of billions of dollars in liabilities resulting from the spill, which include clean-up and compensation costs.
BP also wants the court to declare that Cameron caused or contributed to the disaster.
“The Deepwater Horizon BOP was unreasonably dangerous, and has caused and continues to cause harm, loss, injuries, and damages to BP (and others) stemming from the blowout of Macondo well” and resulting spill, the BP lawsuit said.
Cameron has filed counter-claims and defended the integrity of its products. Transocean did not immediately comment on the BP lawsuit but has also requested court judgements against BP, Cameron and others.
BP has estimated its liability at $40.9bn, but could face tens of billions more in fines and penalties.
it is important to find the real cause of this disaster. I support petroleum, but it is important that this kind of disaster is diverted in the future. I feel the same way about other forms of energy development.
Five weeks ago Escambia County officials requested permission from the Mobile Unified Command Center to use a sand skimmer, a device pulled behind a tractor that removes oil and tar from the top three feet of sand, to help clean up Pensacola’s beaches. County officials still haven’t heard anything back. Santa Rosa Island Authority Buck Lee told The Daily Caller why: “Escambia County sends a request to the Mobile, Ala., Unified Command Center. Then, it’s reviewed by BP, the federal government, the U.S. Army Corps of Engineers and the Coast Guard. If they don’t like it, they don’t tell us anything.” Keeping local governments in the dark is just one reason why the frustration of residents in the Gulf is so palpable. State and local governments know their geography, people, economic impacts and needs far better than the federal government does. Contrary to popular belief, the federal government has actually been playing a bigger and bigger role in running natural disaster responses. And as Heritage fellow Matt Mayer has documented, the results have gotten worse, not better.
And when the federal government isn’t sapping the initiative and expertise of local governments, it has been preventing foreign governments from helping. Just three days after the Deepwater Horizon explosion, the Dutch government offered to provide ships outfitted with oil-skimming booms and proposed a plan for building sand barriers to protect sensitive marshlands. LA Gov. Bobby Jindal (R) supported the idea, but the Obama administration refused the help. All told, thirteen countries have offered to help us clean up the Gulf, and the Obama administration has turned them all down.
According to one Dutch newspaper, European firms could complete the oil spill clean up by themselves in just four months, and three months if they work with the United States, which is much faster than the estimated nine months it would take the Obama administration to go it alone. The major stumbling block is a protectionist piece of legislation called the Jones Act which requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens. But in an emergency this law can be temporarily waived as DHS Secretary Michael Chertoff did after Katrina. Each day our European allies are prevented from helping us speed up the clean up is another day that Gulf fishing and tourism jobs die.
And then there are the energy jobs that the Obama administration is killing with its over-expansive ban on offshore energy development. Experts–who were consulted by Interior Secretary Ken Salazar before he issued his May 27 report recommending a six-month moratorium on all ongoing drilling in waters deeper than 500 feet–now tell The New Orleans Times-Picayune that they only supported a six-month ban on new drilling in waters deeper than 1,000 feet. A letter from the experts protesting the use of their names to support a ban they actually oppose reads: “A blanket moratorium is not the answer. It will not measurably reduce risk further and it will have a lasting impact on the nation’s economy which may be greater than that of the oil spill. We do not believe punishing the innocent is the right thing to do.”
And just how many innocent jobs is Obama’s oil ban killing? An earlier Times-Picayune report estimated the moratorium could cost Louisiana $2.97 billion in revenue and 7,590 jobs directly related to the oil industry. President Obama still has the power to save many of the jobs. He could reverse his decision and lift the ban. But political considerations make that impossible. According to the Center for Responsive Politics, the President was the largest single recipient of campaign contributions from BP and its employees over the past twenty years. Therefore, the President has to put distance between himself and BP, which may be why President Obama has not spoken with BP CEO Tony Hayward one single time since the Deepwater Horizon rig exploded in April. The problem is, vilifying BP’s corporate leadership does nothing to stop the spill or quicken the cleanup.
After the Obama administration refused help from the Netherlands, Geert Visser, the consul general for the Netherlands in Houston, told Loren Steffy: “Let’s forget about politics; let’s get it done.” It’s sound advice, Mr. President. Let’s free local governments to clean up their shores, waive protectionist laws that keep out foreign help, and let the oil workers who can safely do so get back to work. Let’s get it done.
Decreasing Defense No Solution for Debt Disaster
The Democratic Party will launch a national cable television ad campaign today daring Republicans to repeal health care.
A new report by the Troubled Asset Relief Program’s Congressional Oversight Panel blasts the Federal Reserve and the Treasury for creating the too-big-to-fail problem by bailing out AIG.
Federal Reserve Chairman Ben Bernanke testified yesterday that Congress must prepare to address an “unsustainable” level of debt in the federal budget.
As part of their stepped up campaign of assassinations, the Taliban executed a seven-year-old boy in southern Afghanistan after accusing him of spying for the government.
President Obama urged the Israeli government to loosen its blockade of Gaza and promised a $400 million aid package for the West Bank and Gaza.