Obama “Let the World’s Most Dangerous Oil Company Get Away with Murder”

June 11th, 2010

Via: Rolling Stone:

On May 27th, more than a month into the worst environmental disaster in U.S. history, Barack Obama strode to the podium in the East Room of the White House. For weeks, the administration had been insisting that BP alone was to blame for the catastrophic oil spill in the Gulf – and the ongoing failure to stop the massive leak. “They have the technical expertise to plug the hole,” White House spokesman Robert Gibbs had said only six days earlier. “It is their responsibility.” The president, Gibbs added, lacked the authority to play anything more than a supervisory role – a curious line of argument from an administration that has reserved the right to assassinate American citizens abroad and has nationalized much of the auto industry. “If BP is not accomplishing the task, can you just federalize it?” a reporter asked. “No,” Gibbs replied.

…

Most troubling of all, the government has allowed BP to continue deep-sea production at its Atlantis rig – one of the world’s largest oil platforms. Capable of drawing 200,000 barrels a day from the seafloor, Atlantis is located only 150 miles off the coast of Louisiana, in waters nearly 2,000 feet deeper than BP drilled at Deepwater Horizon. According to congressional documents, the platform lacks required engineering certification for as much as 90 percent of its subsea components – a flaw that internal BP documents reveal could lead to “catastrophic” errors. In a May 19th letter to Salazar, 26 congressmen called for the rig to be shut down immediately. “We are very concerned,” they wrote, “that the tragedy at Deepwater Horizon could foreshadow an accident at BP Atlantis.”

Tim Dickinson blogs about all the news that fits, from the Beltway and beyond on the National Affairs blog.

The administration’s response to the looming threat? According to an e-mail to a congressional aide from a staff member at MMS, the agency has had “zero contact” with Atlantis about its safety risks since the Deepwater rig went down.


Oil Spill May Cost $4.3 Billion in Property Values

June 11th, 2010

Via: Bloomberg:

BP Plc’s oil spill may drive down the Gulf Coast’s shore-area property values by 10 percent for at least three years, according to CoStar Group Inc.

Losses may total $4.3 billion along the 600-mile (966- kilometer) stretch from the Louisiana bayous to Clearwater, Florida, the property-information service estimates.

“It’s just another blow to an already depressed real estate market,” Norm Miller, CoStar’s vice president of analytics, said yesterday in a telephone interview from San Diego. “The best thing you can do if you’re in real estate in this area is bide your time, don’t panic and don’t try to sell in this environment.”

Falling real-estate values are one consequence of the worst environmental disaster in U.S. history as oil keeps gushing from a BP well once pumped by the Deepwater Horizon rig. An April 20 explosion there killed 11 workers. Oil washing ashore will further harm property values in an area where Moody’s Economy.com estimates prices fell as much as 34 percent from the peak of the U.S. residential real estate market in 2006.


Musical Chairs with Peter Sutherland

June 11th, 2010

Goldman Sachs Sold $250 Million of BP Stock Before Spill:

The brokerage firm that’s faced the most scrutiny from regulators in the past year over the shorting of mortgage related securities seems to have had good timing when it came to something else: the stock of British oil giant BP.

According to regulatory filings, RawStory.com has found that Goldman Sachs sold 4,680,822 shares of BP in the first quarter of 2010. Goldman’s sales were the largest of any firm during that time. Goldman would have pocketed slightly more than $266 million if their holdings were sold at the average price of BP’s stock during the quarter.

If Goldman had sold these shares today, their investment would have lost 36 percent its value, or $96 million. The share sales represented 44 percent of Goldman’s holdings — meaning that Goldman’s remaining holdings have still lost tens of millions in value.

The sale and its size itself isn’t unusual for a large asset management firm. Wall Street brokerages routinely buy and sell huge blocks of shares for themselves and their clients. In light of a recent SEC lawsuit arguing that Goldman kept information about a product they sold from their clients, however, the stock sale may raise fresh concern among Goldman’s critics. Goldman is also a frequent target of liberals and journalists, including Rolling Stone’s Matt Taibbi, who famously dubbed the firm a “vampire squid.”

Via: Trilateral Commission:

Peter Sutherland is chairman of BP plc (1997 – current). He is also chairman of Goldman Sachs International (1995 – current). He was appointed chairman of the London School of Economics in 2008. He is currently UN special representative for migration and development. Before these appointments, he was the founding director-general of the World Trade Organisation.


“These Are Company Towns”

June 11th, 2010

Via: ABC News:

Reporting is often about access, but journalists along the Gulf Coast covering the BP oil spill have had some trouble getting it.

As BP faces more pressure from the government and from its own shareholders unhappy with the company’s falling stock price, it seems to be clamping down on who can talk to reporters.

Despite company statements that anyone on cleanup crews can share their views, ABC’s Matt Gutman reports that’s not necessarily the case. Today during a “World News” Conversation, he saw firsthand how a BP manager took pains to keep workers away from the press.

While preparing for a video chat on his laptop from a public beach in Alabama, Gutman was hassled by the manager of a nearby crew, asking Gutman why he was on the beach.

“You mind if I ask why you’ve set up a camera right here while my guys are working?” the man asked. After Gutman explained that he was a reporter for ABC News, the manager responded, “I find it interesting.”

For Gutman and other journalists along the Gulf, it’s tough to report when so many are barred from talking.

“It’s incredibly frustrating working here because of those conditions,” Gutman told ABC’s Dan Harris. “Everywhere you go, you find police barricades, people telling you, you can’t do this, you can’t do that, or you can’t talk to these people. We’re not exactly sure why that is.”


Experts Double Estimate of BP Oil Spill Size

June 11th, 2010

Experts also tell us what the unemployment numbers are. So, double or triple it again and maybe we’ll be in the ballpark.

Via: BBC:

As many as 40,000 barrels (1.7m gallons) of oil a day may have been gushing out from a blown-out Gulf of Mexico well, doubling many estimates.

The US Geological Survey says that flow rate could have been reached a capping device was put on the well on 3 June

BP’s chairman has been invited to meet President Barack Obama next week, as concerns grow over the effect of the spill on US-UK ties.

UK Prime Minister David Cameron is to speak with Mr Obama at the weekend.

Oil has been leaking into the Gulf since the Deepwater Horizon rig exploded on 20 April and sank off the coast of the US state of Louisiana, killing 11 workers.

BP said the device placed on the well collected 15,800 barrels of oil on Wednesday – slightly up on the 15,010 barrels collected in the previous 24-hour period.


Coast Guard Admiral Sees Game Changer as Oil Awaits Atlantic Hurricanes

June 10th, 2010

Via: Bloomberg:

Coast Guard Rear Admiral Mary E. Landry was up early on Saturday, April 24, preparing to brief news reporters on the deadly explosion at the Deepwater Horizon drilling rig when BP Plc called with bad news: The well was leaking oil into the Gulf of Mexico, 5,000 feet below the surface.

She dashed off an e-mail to inform several admirals about the leak that was destined to become the biggest offshore oil spill in U.S. history. In the subject line she typed, “GAME CHANGER.”

After serving 42 days as the coordinator of the U.S. government’s response to the undersea gusher, Landry is now preoccupied with planning for a second potential game-changing event: the Atlantic hurricane season that began June 1. The government forecasts more storms than normal, increasing the risk of delays and complications in a response effort already pockmarked with failures.

…

“This adds a new dimension of complexity that nobody anticipated,” said Landry, 53, head of the Coast Guard’s Eighth District, a command that spans 26 states and is located in New Orleans.

A direct hit by a hurricane could spread more widely an oil spill that has already surpassed the Exxon Valdez in volume and was described by President Barack Obama as “the worst environmental disaster of its kind in our nation’s history.”

…

A category III hurricane with winds between 111 and 130 miles per hour could blow coastal water as much as 12 feet above normal, according to a Coast Guard hurricane readiness plan.

Such storm surges “may carry oil into the coastline and inland as far as the surge reaches,” according to an information sheet from the National Oceanic and Atmospheric Administration, which forecasts weather in addition to other duties. NOAA predicts a 70 percent chance that 14 to 23 named storms, including as many as seven major hurricanes, will form in the Atlantic in the next six months. The seasonal average is 11 named storms and two major hurricanes.

While the agency doesn’t predict the likelihood of storms in the Gulf, all active hurricane seasons have produced at least one named storm there. In half the busy hurricane seasons on record, at least one major storm has hit the Gulf in June or July.

Unpredictable Situation

Timing is crucial. BP isn’t slated to finish drilling a relief well aimed at permanently ending the leak until August at the soonest. Oceanographers are loath to predict what might happen if a hurricane hit the spill.

“We’ve never been in this situation before,” said Robert H. Weisberg, a professor of oceanography at the University of South Florida at St. Petersburg. “If anyone tells you they know what’s going to happen, they’re full of crap.”


Images of Missile and Cluster Munitions Point to U.S. Role in Fatal Attack in Yemen

June 10th, 2010

Via: Amnesty International:

Amnesty International has released images of a US-manufactured cruise missile that carried cluster munitions, apparently taken following an attack on an alleged al-Qa’ida training camp in Yemen that killed 41 local residents, including 14 women and 21 children.

The 17 December 2009 attack on the community of al-Ma’jalah in the Abyan area in the south of Yemen killed 55 people including 14 alleged members of al-Qa’ida.

“A military strike of this kind against alleged militants without an attempt to detain them is at the very least unlawful. The fact that so many of the victims were actually women and children indicates that the attack was in fact grossly irresponsible, particularly given the likely use of cluster munitions,” said Philip Luther, Deputy Director of Amnesty International’s Middle East and North Africa Programme.

The Yemeni government has said its forces alone carried out the attack on al-Ma’jalah, the site of an alleged al-Qa’ida training camp in al-Mahfad district, Abyan Governorate.

Shortly after the attack some US media reported alleged statements by unnamed US government sources who said that US cruise missiles launched on presidential orders had been fired at two alleged al-Qa’ida sites in Yemen.

“Based on the evidence provided by these photographs, the US government must disclose what role it played in the al-Ma’jalah attack, and all governments involved must show what steps they took to prevent unnecessary deaths and injuries,” said Philip Luther.

The photographs enable the positive identification of damaged missile parts, which appear to be from the payload, mid-body, aft-body and propulsion sections of a BGM-109D Tomahawk land-attack cruise missile.

This type of missile, launched from a warship or submarine, is designed to carry a payload of 166 cluster submunitions (bomblets) which each explode into over 200 sharp steel fragments that can cause injuries up to 150m away. An incendiary material inside the bomblet also spreads fragments of burning zirconium designed to set fire to nearby flammable objects.

A further photograph, apparently taken within half an hour of the others, shows an unexploded BLU 97 A/B submunition itself, the type carried by BGM-109D missiles. These missiles are known to be held only by US forces and Yemeni armed forces are unlikely to be capable of using such a missile.


Britain: Thousands of Anti-Terror Searches Were Illegal

June 10th, 2010

Via: BBC:

Thousands of people across the UK might have been stopped and searched illegally, figures released by the Home Office suggest.

Powers under Section 44 of the Terrorism Act were used in “error” after the proper authorisations were not given.

In one example, for April 2004, the Met Police wrongly stopped 840 people.

Dozens of other examples from across the UK have been uncovered before rules were tightened in 2008.


Efforts to Limit the Flow of Spill News

June 10th, 2010

Via: New York Times:

When the operators of Southern Seaplane in Belle Chasse, La., called the local Coast Guard-Federal Aviation Administration command center for permission to fly over restricted airspace in Gulf of Mexico, they made what they thought was a simple and routine request.

A pilot wanted to take a photographer from The Times-Picayune of New Orleans to snap photographs of the oil slicks blackening the water. The response from a BP contractor who answered the phone late last month at the command center was swift and absolute: Permission denied.

“We were questioned extensively. Who was on the aircraft? Who did they work for?” recalled Rhonda Panepinto, who owns Southern Seaplane with her husband, Lyle. “The minute we mentioned media, the answer was: ‘Not allowed.’ ”

Journalists struggling to document the impact of the oil rig explosion have repeatedly found themselves turned away from public areas affected by the spill, and not only by BP and its contractors, but by local law enforcement, the Coast Guard and government officials.

To some critics of the response effort by BP and the government, instances of news media being kept at bay are just another example of a broader problem of officials’ filtering what images of the spill the public sees.


“Indefinite Incarceration” Over $300 Lumber Yard Debt?

June 10th, 2010

Via: Star Tribune:

You committed no crime, but an officer is knocking on your door. More Minnesotans are surprised to find themselves being locked up over debts.

As a sheriff’s deputy dumped the contents of Joy Uhlmeyer’s purse into a sealed bag, she begged to know why she had just been arrested while driving home to Richfield after an Easter visit with her elderly mother.

No one had an answer. Uhlmeyer spent a sleepless night in a frigid Anoka County holding cell, her hands tucked under her armpits for warmth. Then, handcuffed in a squad car, she was taken to downtown Minneapolis for booking. Finally, after 16 hours in limbo, jail officials fingerprinted Uhlmeyer and explained her offense — missing a court hearing over an unpaid debt. “They have no right to do this to me,” said the 57-year-old patient care advocate, her voice as soft as a whisper. “Not for a stupid credit card.”

It’s not a crime to owe money, and debtors’ prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found.

Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals. Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington, driven by a bad economy, high consumer debt and a growing industry that buys bad debts and employs every means available to collect.

Whether a debtor is locked up depends largely on where the person lives, because enforcement is inconsistent from state to state, and even county to county.

In Illinois and southwest Indiana, some judges jail debtors for missing court-ordered debt payments. In extreme cases, people stay in jail until they raise a minimum payment. In January, a judge sentenced a Kenney, Ill., man “to indefinite incarceration” until he came up with $300 toward a lumber yard debt.


« Previous Page — Next Page »