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Joe Peyronnin

Joe Peyronnin

Posted: May 3, 2010 10:05 PM

Oil Exploitation

What's Your Reaction:

British Petroleum's Chief Executive, Tony Hayward, was all over the airwaves saying his company accepts responsibility for the disastrous oil spill off the Gulf Coast. At the same time there is a growing chorus of irresponsible and absurd comments from the far right linking the oil leak to possible sabotage.

First, President Barack Obama basher and radio blowhard Rush Limbaugh pointed the finger at "environmentalist wackos." He opined, "What better way to head off more oil drilling, nuclear plants, than by blowing up a rig? I'm just noting the timing here." Then Dana Perino, the former White House Press Secretary under President George Bush, said on Fox News, "You have to wonder whether there was sabotage involved." No Ms. Perino, Americans wonder why you and Limbaugh are so reckless with your comments.

Maybe Americans should wonder if Halliburton had a hand in this "sabotage." You know, the very same company where Vice President Cheney served as Chairman of the Board and Chief Executive Officer from 1995 to 2000. The Wall Street Journal reported, "Scrutiny on cementing will focus attention on Halliburton Co., the oilfield-services firm that was handling the cementing process on the rig, which burned and sank last week." The company says, "It is premature and irresponsible to speculate on any specific causal issues." Apparently Perino and Limbaugh didn't get the memo.

Or maybe Vice President Dick Cheney himself played a role when his energy task force decided against requiring remote-control shut-off switches, at $500,000 apiece, saying they are too costly, ineffective and the rigs had other backup plans. Brazil and Norway require the switches. But the United Kingdom, where BP is based, doesn't require the devices.

Were it not for the oi lrig disaster, BP would have had a fabulous first quarter. They reported their profits had risen 135 percent from the same period a year earlier, to about $6 billion. With 11 oilmen dead and almost unimaginable destruction to wildlife, coastal areas and the devastation to fragile businesses that rely on the Gulf, BP may need every penny.

In a statement BP said it is "Committed to pay legitimate and objectively verifiable claims for other loss and damage caused by the spill -- this may include claims for assessment, mitigation and clean up of spilled oil, real and property damage caused by the oil, personal injury caused by the spill, commercial losses including loss of earnings/profit and other losses as contemplated by applicable laws and regulations."

But one has to wonder just how much BP will actually pay in the end to the families of the dead, to small businesses, to the citizens who live on the Gulf Coast and to the American taxpayers. Especially considering that, while they have publicly accepted responsibility, they have said the accident is not their fault because they contracted with other companies to do the work.

Countless Congressional hearings, investigations and lawsuits will likely drag on for years. But corporate greed, lax regulations, transparency, oversight, and powerful political connections are likely to be at the bottom of this calamity. Sound familiar?

This massive disaster is far from over. The gravity of the destruction has yet to be fully realized. The people of the Gulf Coast are desperate for answers and an end to this nightmare. They must not be exploited for political reasons and personal gain.

 

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HUFFPOST SUPER USER
GrannyForObama
04:01 PM on 05/04/2010
Let's see...environmentalists caused this horrendous environmental disaster...Using that logic, we can also assume that the war in Iraq was actually started by peace activists . I think Buffalo Springfield said it best, "Paranoia strikes deep,Into your life it will creep....I think it's time we stop, children, what's that sound. Everybody look what's going down."
12:29 PM on 05/04/2010
These repubs ability to spew nonsense and crap really is endless.

Come up with an absolutely impossible and whacked out theory with no grounds of support that somehow furthers your myopic world-view and political agenda and then DEMAND that there be an investigation.

Obfuscate, deny, delay, etc.

Here's one for you...

There are some critics that have said the oil spill may have been caused by Rush Limbaugh farting. The acidic residue released could have burned through the floor of his studio and down through the crust of the Earth, seeping into the bedrock where it then may have been able to travel toward the unsuspecting oil rig eating through the metal and causing the leak and eventually the explosion.

This could have happened and I DEMAND a THOROUGH INVESTIGATION that uses TAXPAYER money and gets to the uh, BOTTOM of this.

How can anyone stand these fu(kers?
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HUFFPOST SUPER USER
m1urice
11:15 AM on 05/04/2010
In my opinion, we should nationalize these companies. The moment something goes wrong they claim not to be liable. If the American people own the downside of oil drilling then we should own the upside as well. There is no reason companies should make private money when they work in public waters.
HUFFPOST SUPER USER
loritapaints2
change redux?
11:09 AM on 05/04/2010
of course the conservatives are claiming "sabotage" since the real guilty party is HALIBURTON who cut corners on safety requirements in order to save money. there is a paper trail, and those that work in the industry KNOW what really happened and are waiting for someone to actually tell the real story, rather then following reporting on what is "fed" to you to convolute the REAL problem. don't fall for it.

again, there is a paper trail, please someone follow it, rather then reactionary reporting.
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HUFFPOST COMMUNITY MODERATOR
Amalek
Highly decorated HP warrior
09:53 AM on 05/04/2010
I am going to give the republicans a couple more days of slack before I really come down on them. They are in a pretty deep hole with drill baby drill and it is understandable they will say some really dumb things before they figure out it is time to stop drilling.
This user has chosen to opt out of the Badges program
09:36 AM on 05/04/2010
the idea of sabotage is not because of a left or right agenda. That idea comes from the prospect of the trillions of dollars to be made from trading carbon credits
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HUFFPOST SUPER USER
ClarcKing
Citizen
08:47 AM on 05/04/2010
Sabotage should be investigated; we live in very uncertain times caused by the world financial crisis. Financiers may want more support (submission) from the United States; who knows? The oil rig was constructed with no fail-safe mechanisms.
In 14 th century Europe, populations went crazy, killing each other for years because of the machinations and collapse of the financial system. We see parallels.
The international monetary financier debt based market system is in an unrelenting, accelerating, collapsing operation; it can can not be bailed out, reformed, regulated etc. However that does not staunch the demands for bailout and guarantees from the credit of sovereign nations.
Anyone doing their duty would have to investigate the correlation.
06:53 AM on 05/04/2010
from TeJas gov Perry--the act of God thesis-- to the more legal arguments of Bp--it wasn't our rig, we didn't pour no stinkin' concrete-- a range of it ain't mu fault argument is emerging with Senator two faced Mary Landrieu at the head of the political line. BP wants to have its liability capped at a fraction of the cost needed to clean up its mess and associated impacts on coastal lives, environment, and businesses, which will be the first real test of Obama backbone in the environmental arena. Oil states like Texas and Louisiana will eventually opt for more explosions and spills to keppp the oil money coming in. I wish we could get Oklahoma as interested in oil production safety and cleaner energy as the state is in awful law regarding women's rights. The temptation will be to sweep the Gulf spill away without really accounting for the human --not divine--errors that made the rig, the drilling, and the spill totally unnecessary. The Obama team has so far failed tio inspire with its ability to act for Americans when special interests act against us. i
05:45 AM on 05/04/2010
Oil companies are like puppies they leave a mess everywhere they go. I can hear Cheney now "It'll never happen. A whole rig blow up. Leak an oil spill the size of Louisiana. You're crazy!" They should all be flogged. This is like tobacco companies. Any company that does that much harm to the people should be run out of business by the government. The government should once again be somethng corporations fear, and any company that could do this has NO fear of anything. The proof is in the pudding.
02:58 AM on 05/04/2010
BP's name before name change was the infamous Anglo-Iranian Oil Company. It owes billions of dollars to Iranian people for its decades of theft, misery inflicted, supression of secular democracy. etc. And now we will export "democracy" to Iran....?!

Dr. Mohammed Mossadeqh was the democratically elected prime minister of Iran from 1951 to 1953. Mossadegh was a nationalist and passionately opposed foreign intervention in Iran. He was the architect of the nationalization of the Iranian oil industry which was dominated and exploited by the British through the Anglo-Iranian Oil Company (today known as British Petroleum (BP).

He was removed from power in a CIA orchestrated coup, supported and funded by the British and the U.S. governments. The coup was led by CIA agent Kermit Roosevelt, Jr., the grandson of U.S. President Theodore Roosevelt, and came to be known as Operation Ajax
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HUFFPOST COMMUNITY MODERATOR
Archivist1000
Informed World Citizen
11:19 AM on 05/04/2010
.............. and then the Shah was put/kept in power. He was more brutal to his people than Saddam ever was, but ... he played ball with the USA so he was supported.

When the American Embassy was taken over, Khomeni came back to Iran .... the country was ripe for revolution .... and we have the Iran of today.

Why do they hate us ???? Because 'the west' has treated the Middle East as a storage tank for 'its oil' for decades. When the leaders of those countries are compliant, they are 'allies' but those who decide that their resources are 'theirs' become 'unstable regimes that need to be taken out' or at least treated as mortal enemies.
01:27 AM on 05/04/2010
and yet w. buffet claims it's all just normal business. and the oily ceo was on c. rose's corporate shill game touting how normal and reasonable his corporation's behavior was, and how unlikely the spill was - despite several similar "accidents" in the north sea, another bp area of operation. and other bp executive say out of one side of their mouth they are responsible. and out the other side of their mouth, they claim someone else like the company the platform is rented from or halliburton's to blame - really. also they attempt to limit their liability as this site has detailed. this could easily be another bopal.
11:45 PM on 05/03/2010
"Countless Congressional hearings, investigations and lawsuits will likely drag on for years. But corporate greed, lax regulations, transparency, oversight, and powerful political connections are likely to be at the bottom of this calamity. Sound familiar?"

Dude, stuff happens. Things break. Space craft explode. Cars crash. People catch on fire during surgery. It's complex stuff and things go wrong. People do the best they can at the time.

The Exxon Valdez put the single hull tanker out of business. This rig explosion and spill will force companies to develop better oil well caps. Progress marches on.

If you don't want to drill for oil close to shore just say so. Doesn't seem like a great idea to me either.
12:36 AM on 05/04/2010
Dude, here's a straight up question. Are you more in favor of personalizing the profits, or collectivizing the costs?

Oil exloration can be done safely at all times, just not safely and affordably.
05:56 AM on 05/04/2010
Collectivize the costs. Sounds like communism. Rememeber when you aere a kid and you heard about communism and you thought yeah that sounds like a better idea than everyone fighting over everything. Then you realized AHHHHHH! "I' might be a communists" and so you reconciled the "Love one another " message you were getting in church to the "Dog eat dog" message you were getting in life and you lived in confused misery until you realized it, just like everything else including the Bible, is a line of BS, nothing more, nothing less.
08:24 AM on 05/04/2010
actually, exxon sold the valdez. it's still single hull. still operating in europe. so much for correcting a problem instead of passing it along.

which brings us to point two: things do break. which is why these co's should be pushing for maximum safeguards, instead of fighting regulation
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HUFFPOST PUNDIT
foxbat
Don't jump to conclusions
09:57 AM on 05/04/2010
Agreed. It's also amazing to hear BP talk about this containment box idea that they are now building. The argument for not having one already built was that they didn't think this kind of accident could happen. It seems that if we are going to play roulette with the drilling process then we need to not be playing with the grocery money. If you think about it, it's actually quite silly that the INDUSTRY as a whole wouldn't have even one of these "boxes" already pre-made as a contingency item just in case. Seems like if you spread that cost out amongst the entire set of players in the Gulf, the cost of having one of those boxes, just in case there was a similar disaster, would be quite low for any one company while increasing the safeguards.
11:38 PM on 05/03/2010
While I understand that many people commenting on this issue do not have much, if any, technical knowledge of petroleum extraction, it is nonetheless disappointing to see a professor of journalism making uniformed and incorrect commentary. Any discussion of acoustic switches (the $500,000 remote shut-off device Professor Peyronnin mentions) is largely irrelevant to the current disaster. An acoustic switch is not a shut-off valve in and of itself, but rather is an additional triggering system for the blow-out preventer. In this case, the BOP was triggered successfully but for whatever reason failed to seal the well. Thus, an acoustic switch would not have changed anything about the current situation.
12:14 AM on 05/04/2010
Okay, so the P.R. folks are in on this. That's okay. The bigger question is do we go, or don't we go? And if we do go, where do we go?

In the seventies I roughnecked a field in Utah that had three wells blow out in pretty quick succession. I remember clearly was that no one knew what pressures were going to be found down there until the drills perforated the formation. Where wildcatting was concerned, the principle was to go cheap because if problems arose that pretty much meant that you just found enough oil to pay for all damges and still get rich.

For a well to flow to the surface at 5,000 barrels per day, the math looks like this. 5,000 x 365 x $80 = $146,000,000 per year gross from one hole. Yeah, the rig, etc. was more than that but insurance will cover the rig, and the operating entities will just BK out of any additional liability.

Meanwhile BP just hit a major field that will flow $150 mil for multiple years in the future for every hole drilled. How many holes possible is a secret that BP will go to the mattresses over but smart money would bet on enough to keep the good times rolling. Unless, of course, some political spine is found and BP is forced to do what the law, alone, is clearly insufficient to accomplish.



Full accountability clearly must be compelled.
06:01 AM on 05/04/2010
That's a pretty nice hole.
09:00 AM on 05/04/2010
oldpotsmuggler: I respect your experience in the field but take exception to the comment about PR folks being in on this. FYI I'm a student in chemical engineering at a major research university with an interest in petroleum extraction.

All I'm trying to do is keep discussion centered on accurate, factual information rather than uninformed opinion. Everyone is entitled to his own opinion, but if he is going to discuss technical information, it needs to be accurate. I don't think anyone would argue that point but prove me wrong...
HUFFPOST SUPER USER
littlewitch
losing faith in humanity one vote at a time
06:43 AM on 05/04/2010
You really do not know what happened do you?

Maybe the blow-out preventer was successfully triggered or maybe BP is just saying so because they do not have Acoustic Switches...Obviously something went terribly wrong.

I am no conspiracy nut but excuse me if I don[t want to rely on BP's account of anything right now. They have been wrong about almost everything every step of the way.

Acoustic switches are an added safety tool...They can be activated by remote control sending acoustic pulses through the water to trigger the BOP even if the rig is severely damaged, Just in case BP was mistaken about whether or not the blow out preventer was properly triggered I wish they had the extra shot of using the Acoustic Switch. Why spent 500million on rig and not spend half a million to have every possible tool on hand to avert a major tragedy.
08:55 AM on 05/04/2010
No, I suppose no one "really" knows what happened. But BP has shared their ROV photos of the actuated hydraulic rams with the Coast Guard and at this point it is generally accepted that all the rams have indeed fired. I don't disagree that an acoustic switch would be a good idea (and certainly not an undue expense for a petroleum company) but I just hate seeing the term bandied about as some magic cure-all when in this case it LIKELY (there. just for you littlewitch) would not have had any impact whatsoever.
09:40 AM on 05/06/2010
The volume of oil is way too low for there to have been no triggering of the BOP.
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HUFFPOST SUPER USER
Carl Caroli
Give peace a chance
11:35 PM on 05/03/2010
Our government has failed us miserably. They have let big corporations run a muck, feeding their campaigns with dirty money stolen from the American people. It's time to take back our government. We must eliminate corporate money and lobbyists from determining what is best for the rest of us.
11:50 PM on 05/03/2010
Ya but, corporations are just groups of people selling a product or service, who work at the same place. Unless you work as a free lancer we all work for "corporations" or "special interests." Democracy is founded on the civilized clash of special interests, and, corporations.

The Government is the biggest corporation of all. They write the laws and collect all the taxes. Do you really think a bunch of bureaucrats in Washington surfing the web for porno or elected officials on the 24/7 campaign contribution treadmill are going to do a great job looking out for you and your interests? Dream on.
12:20 AM on 05/04/2010
Government today is the same as private enterprise only because private enterprise owns government today.

Other than that your entire point would be ridiculous.
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HUFFPOST PUNDIT
realitytrumpsbull
two 'alves of coconut!
05:28 AM on 05/04/2010
How do 'big corporations' get big in the first place? Probably because of people like you, that don't connect with the idea that filling up your minivan and hot-lapping the drive-thru helps to contribute to national oil dependency, which puts more pressure on industry and government to try and procure more oil. If people got Really Smart about this issue, we'd be back down to a double-nickel speed limit nationwide, and giving people tax incentives for curtailing their annual highway miles. Waste not, want not, whine and blame whomever you please, but there's cause and effect involved here, if no one was going to buy the oil, no one would be drilling wells, pretty straightforward, I think.
09:47 AM on 05/06/2010
Double nickel would be helpful. Having all all cars get a minimum of 35 mph highway would be helpful. Incentives to hold mileage under 10,000 miles per year would be helpful.

The equation would remain unchanged. We would still need massive amounts of new oil to meet projected demand, much of which will be coming from other countries - where they are just discovering the automobile.
11:33 PM on 05/03/2010
BP will walk just as Exxon did. That will not be good, but history proves otherwise. The question is what are the American people going to do about it.
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HUFFPOST PUNDIT
realitytrumpsbull
two 'alves of coconut!
05:31 AM on 05/04/2010
How about we really go Beyond Petroleum? Instead of building the Mother Of All Oil/Water Separators to clean up the entire gulf of Mexico, how about building hydrogen production stations, or getting behind the Pickens concept of going with CNG/LNG as America's next big fuel source? Electrics are coming along nicely...how bad do we want to make oil obsolete, is the Big Question, here.