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Oil Spill’s Blow to BP’s Image May Eclipse Costs

The Giant Noodle

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What an ass-clown!!! :2mad: BP's CEO, who made $5 million last year and whose company opposed new safety regulations by Congress last year: "What the hell did we do to deserve this?"



HAMMOND, La. — BP says that the offshore drilling accident that is spewing thousands of barrels of oil a day into the Gulf of Mexico could cost the company several hundred million dollars.
Nobody really knows whether the London-based oil giant is being too conservative about the cost for the April 20 accident, which some experts say could end up as the biggest oil spill in history. The 1989 grounding of the Exxon Valdez off Alaska, for example, cost Exxon Mobil more than $4.3 billion, including compensatory payments, cleanup costs, settlements and fines.
But regardless of the out-of-pocket costs, the long-term damage to BP’s reputation — and possibly, its future prospects for drilling in the Gulf of Mexico — is likely to be far higher, according to industry analysts.
The magnitude of the Deepwater Horizon disaster seems to be finally sinking in with investors. BP’s stock plunged more than 8 percent Thursday in American trading in an otherwise strong day for stocks. Since the accident, the American depositary receipts of the company have fallen about 13 percent, closing Thursday at $52.56.

CONTINUED: Oil Spill?s Blow to BP?s Image May Eclipse Its Cost - NYTimes.com
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Last year, when the federal Minerals Management Service proposed a rule that would have required companies to have their safety and environmental management programs audited once every three years, BP and other companies objected. The agency is also investigating charges by a whistle-blower that the company discarded important records from its Atlantis Gulf platform.

Once the final assessment comes in, I would be interested to see if this would have helped prevent what happened.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

A little insight into what may have happened:

Oil services contractor Halliburton Inc. said in a statement Friday that workers had finished cementing the well's pipes 20 hours before the rig went up in flames. Halliburton is named as a defendant in most of the more than two dozen lawsuits filed by Gulf Coast people and businesses claiming the oil spill could ruin them financially. Without elaborating, one lawsuit filed by an injured technician on the rig claims that Halliburton improperly performed its job in cementing the well, "increasing the pressure at the well and contributing to the fire, explosion and resulting oil spill."

Remote-controlled blowout preventers designed to apply brute force to seal off a well should have kicked in. But they failed to activate after the explosion.

Scott Bickford, a lawyer for several Deepwater Horizon workers who survived the blast, said he believes a "burp" of natural gas rose to the rig floor and was sucked into machinery, leading to the explosion.
Rig Had History Of Spills, Fires Before Big 1 - National News Story - WDIV Detroit

Haliburton? Haliburton? Hmmm... now where have I heard that name before? And what politician were they in bed with? Hmmm... more to come on how deregulating the energy industry may have contributed to this soon-to-be worst ecological disaster in American history...
 
Re: BP's CEO who opposed new safety regulations: Why US?!

BP is a scapegoat. It was Haliburton that screwed up.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

BP is a scapegoat. It was Haliburton that screwed up.
Seems more probable that they both screwed up, and their particular degrees of contributory responsibility will be determined via Congressional hearings and the legal system. There may eventually be criminal charges filed also. Stockholders are already quite unhappy. I imagine their respective insurers will be unhappier still.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Seems more probable that they both screwed up, and their particular degrees of contributory responsibility will be determined via Congressional hearings and the legal system. There may eventually be criminal charges filed also. Stockholders are already quite unhappy. I imagine their respective insurers will be unhappier still.

It was Haliburton employees that were capping the rig when the accident happened. It is a Haliburton owned and operated rig that is leased by BP to pump up oil.

Only thing BP is guilty off is maybe not reacting fast enough, but then again that all depends on the information BP got from the site.

This stinks of nationalism gone mad, just as blaming the only French guy for the whole Goldman Sachs thing.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Seems more probable that they both screwed up, and their particular degrees of contributory responsibility will be determined via Congressional hearings and the legal system. There may eventually be criminal charges filed also. Stockholders are already quite unhappy. I imagine their respective insurers will be unhappier still.

While Haliburton may well be covered by Insurance, BP are not covered by external (to BP) Insurance.
Instead BP prefer to cover all contingencies themselves out of their own profits.
They have over a number of years set aside monies to cover unexpected events.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

What an ass-clown!!! :2mad: BP's CEO, who made $5 million last year and whose company opposed new safety regulations by Congress last year: "What the hell did we do to deserve this?"



HAMMOND, La. — BP says that the offshore drilling accident that is spewing thousands of barrels of oil a day into the Gulf of Mexico could cost the company several hundred million dollars.
Nobody really knows whether the London-based oil giant is being too conservative about the cost for the April 20 accident, which some experts say could end up as the biggest oil spill in history. The 1989 grounding of the Exxon Valdez off Alaska, for example, cost Exxon Mobil more than $4.3 billion, including compensatory payments, cleanup costs, settlements and fines.
But regardless of the out-of-pocket costs, the long-term damage to BP’s reputation — and possibly, its future prospects for drilling in the Gulf of Mexico — is likely to be far higher, according to industry analysts.
The magnitude of the Deepwater Horizon disaster seems to be finally sinking in with investors. BP’s stock plunged more than 8 percent Thursday in American trading in an otherwise strong day for stocks. Since the accident, the American depositary receipts of the company have fallen about 13 percent, closing Thursday at $52.56.

CONTINUED: Oil Spill?s Blow to BP?s Image May Eclipse Its Cost - NYTimes.com


I say take part of the cost of the clean-up effort out of that CEO's bonus check.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

"Nobody really knows whether the London-based oil giant is being too conservative about the cost for the April 20 accident, which some experts say could end up as the biggest oil spill in history."

Is the NYT retarded?

The Biggest Oil Spills in History - By Kayvan Farzaneh | Foreign Policy

If current estimates for the Deepwater Horizon oil leak in the Gulf of Mexico are correct, the massive spill could eventually dwarf that of Exxon Valdez spill of 1989 -- previously the largest in U.S. history -- by as much as three times. At a rate of 5,000 barrels a day, for an estimated 90 days, well over 20 million gallons of crude could be pumped out onto the Louisiana coastline. Even then, it might only crack the top 15 largest oil spills in world history. Here are the top five.

Location: Persian Gulf

Date: Jan. 21, 1991

Amount: Between 160 million and 420 million gallons



THE IXTOC 1 OIL WELL

Location: Gulf of Mexico

Date: June 3, 1979 - March 23, 1980

Amount: 138 million gallons

etc.

Hey, keep beating that drum guys.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

It was Haliburton employees that were capping the rig when the accident happened. It is a Haliburton owned and operated rig that is leased by BP to pump up oil.

Only thing BP is guilty off is maybe not reacting fast enough, but then again that all depends on the information BP got from the site.

This stinks of nationalism gone mad, just as blaming the only French guy for the whole Goldman Sachs thing.

Um... Hallitburton does not "own" or "operate" the rig, not sure where you got that from.

Transocean owned the rig, and BP operated it.

Interestingly, Transocean actually posted a profit from losing the rig, as it was ensured for more than it was actually worth at this point. I believe they made something like $200 million out of the whole thing from insurance.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

It is a Haliburton owned and operated rig that is leased by BP to pump up oil.

Only thing BP is guilty off is maybe not reacting fast enough, but then again that all depends on the information BP got from the site.

It's gotten to the point that you're so eager to place blame on one left-wing target that you're actually (erroneously) excusing another, somewhat less-potent, left-wing target.

As has been explained to you, the rig was neither owned nor operated by Halliburton.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

What an ass-clown!!! :2mad: BP's CEO, who made $5 million last year and whose company opposed new safety regulations by Congress last year: "What the hell did we do to deserve this?"



HAMMOND, La. — BP says that the offshore drilling accident that is spewing thousands of barrels of oil a day into the Gulf of Mexico could cost the company several hundred million dollars.
Nobody really knows whether the London-based oil giant is being too conservative about the cost for the April 20 accident, which some experts say could end up as the biggest oil spill in history. The 1989 grounding of the Exxon Valdez off Alaska, for example, cost Exxon Mobil more than $4.3 billion, including compensatory payments, cleanup costs, settlements and fines.
But regardless of the out-of-pocket costs, the long-term damage to BP’s reputation — and possibly, its future prospects for drilling in the Gulf of Mexico — is likely to be far higher, according to industry analysts.
The magnitude of the Deepwater Horizon disaster seems to be finally sinking in with investors. BP’s stock plunged more than 8 percent Thursday in American trading in an otherwise strong day for stocks. Since the accident, the American depositary receipts of the company have fallen about 13 percent, closing Thursday at $52.56.

CONTINUED: Oil Spill?s Blow to BP?s Image May Eclipse Its Cost - NYTimes.com

Why do people get upset when playing hindsight 20-20?
 
Re: BP's CEO who opposed new safety regulations: Why US?!

I say take part of the cost of the clean-up effort out of that CEO's bonus check.

How does the CEO bonus check come into play exactly?
 
Re: BP's CEO who opposed new safety regulations: Why US?!

How does the CEO bonus check come into play exactly?

Since his sorry ass didn't want to take the proper saftey mesaures ... he bears 100% responsibility. He can pay for part of the clean-up effort out of his own pocket.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Since his sorry ass didn't want to take the proper saftey mesaures ... he bears 100% responsibility. He can pay for part of the clean-up effort out of his own pocket.

So tell me, at what point do safety measures become too expensive for the benefit? Do you think that anyone wanted this to happen? How do any of those companies gain from this situation?
 
Re: BP's CEO who opposed new safety regulations: Why US?!

"Nobody really knows whether the London-based oil giant is being too conservative about the cost for the April 20 accident, which some experts say could end up as the biggest oil spill in history."

Is the NYT retarded?

The Biggest Oil Spills in History - By Kayvan Farzaneh | Foreign Policy



Hey, keep beating that drum guys.


No one really know how much is spewing into the Gulf of Mexico, but it could very well be much more than 5,000 barrels a day, the NOAA low-end estimate.

Other estimates are far more grim. The New York Times reported that BP told members of Congress the rate could be much, much higher:

In a closed-door briefing for members of Congress, a senior BP executive conceded Tuesday that the ruptured oil well could conceivably spill as much as 60,000 barrels a day of oil, more than 10 times the estimate of the current flow.

A barrel of crude oil contains roughly 42 gallons. In a follow-up story, the Times talked to a BP spokesman for more on the estimate:

"The rate could go up to that," Mr. Suttles of BP said, when asked to verify a report in The Times. "It's not the situation we have at this moment, but it's not impossible."

How Much Oil Has Leaked Into the Gulf of Mexico? | The Rundown News Blog | PBS NewsHour | PBS
 
Re: BP's CEO who opposed new safety regulations: Why US?!

No one really know how much is spewing into the Gulf of Mexico, but it could very well be much more than 5,000 barrels a day, the NOAA low-end estimate.



How Much Oil Has Leaked Into the Gulf of Mexico? | The Rundown News Blog | PBS NewsHour | PBS

Even if it were actually to reach 25k barrels/day, the other number I've heard thrown around as a current top estimate (as opposed to a possible future number), that's a far cry from the 3-10m barrels from the largest historical oil spill.

Edit: The times actually pointed this out a few days later:

http://www.nytimes.com/2010/05/04/us/04enviro.html
 
Last edited:
Re: BP's CEO who opposed new safety regulations: Why US?!

Uh-oh. Tricky Dickie is implicated again....

Who's to blame for the oil spill? Dick Cheney

The Gulf of Mexico oil spill could end up being the worst American man-made environmental catastrophe of this generation. With the oil still spilling and investigations into the causes yet to come, it's too early to neatly assign blame to any one person. But for now, let's hold Dick Cheney personally responsible for the whole thing.

Here's the evidence: The Wall Street Journal reports that the oil well didn't have a remote-control shut-off switch. The reason it didn't have a thing that it seems every single offshore drilling rig should have? According to environmental lawyer Mike Papantonio, it's because Dick Cheney's energy task force decided that the $500,000 switches were too expensive, and they didn't want to make BP buy any.

Is that not enough reason to blame the former Dark Lord of the Naval Observatory? Guess what: Halliburton is involved, too! The Los Angeles Times reports that BP contracted Dick Cheney's old company to cement the deepwater drill hole. Cementing the hole was, according to the U.S. Minerals Management Service, "the single most-important factor in 18 of 39 well blowouts in the Gulf of Mexico over a 14-year period." And Hallburton is already under investigation for faulty cementing in an Australian well last year.

The spill will very likely destroy the fragile economies of at least five states and it could even plunge the nation back into a recession. So thanks, Dick. Nice work.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Uh-oh. Tricky Dickie is implicated again....

Oh, well if a fauxhemian dbag from Gawker says it's true, it MUST be!
 
Re: BP's CEO who opposed new safety regulations: Why US?!

Oh, well if a fauxhemian dbag from Gawker says it's true, it MUST be!

I don't know if it's true or not, and never claimed such. :confused:
 
Re: BP's CEO who opposed new safety regulations: Why US?!

I don't know if it's true or not, and never claimed such. :confused:

So easy for you to imply, so easy for you to back out of your claim.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

If you're looking for an answer to how or why this happened look no farther; it happened because of our dependence on oil. No dependence, no problems with spills.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

We're never going to be independent of oil. Get that pipe dream out of your head. Oil is somewhere in the process of making basically everything today.
 
Re: BP's CEO who opposed new safety regulations: Why US?!

So easy for you to imply, so easy for you to back out of your claim.

What claim have I made? :roll:
 
Re: BP's CEO who opposed new safety regulations: Why US?!

You implied that Cheney was responsible from that nice little story you posted. The little comment that you posted with the story only implies that you agreed with the article.
 
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