The $ 20 billion/$100 million solution–Gulf oil crisis

 

President Obama is determined to place the full blame for the tragic oil
rig explosion and the consequent disastrous oil leak in the Gulf of
Mexico totally on the back of BP. But Obama does not stop there. He also
has demanded that BP be liable for the lost salaries and wages of
workers employed on rigs that were shut down by his arbitrary and capricious
moratorium on drilling operations. After a meeting involving President Obama and
the Chairman of BP on June 16,2010 in the White House, BP agreed to the "$20
billion/ $100 million solution", and agreed to waive dividend payments for the
remainder of the year. Under this agreement the $20 billion would be used as
financial reparations to those harmed in the Gulf by the oil spill.  The $100
million would be used to compensate for lost salaries and wages for those whose
jobs are idled by the drilling moratorium imposed by President Obama. In
agreeing to these arrangements BP has been every bit a responsible citizen, and
has shown a remarkable willingness to reach beyond the limits of one’s normal
corporate responsibility in these matters.
 
On the other hand, the President is incapable of connecting events and
allocating clearly the causes and consequences of the actions of the different
parties to this fiasco.  In retrospect the feds, by failing in their regulatory
responsibilities, and prohibiting drilling on land and in shallow
waters, shoulder a good deal of the blame for the ultra risky
environment that is at the heart of this crisis. In future days, it would be
beneficial if this fact were to become more evident to the public and for the
citizenry to push hard for reforms in government policies that would permit for
expanded drilling and production on land and in shallower waters.
 
The unrealistic demands of environmental zealots and the related federal
environmental restrictions on drilling are chief factors which drove
the operations into water depths of a mile and more deep where solutions
to operational problems became extraordinarily more complex and difficult.
Ironically,moments before the explosive events started, the Deepwater Horizon’s
crew was assembling for the celebration of seven years without a single injury. 
As someone who has been involved in drilling operations on an oil rig, this is
an amazing feat given the risky nature of drilling operations.
 
Not only does Obama refuse to honestly conceptualize the nature of the
disaster, assess the root causes and allocate blame accordingly,but  by failing
in this regard he appears to be on a certain mission to cast the entire blame on
BP,and to crush BP’s cash reserves,market value and BP’s investors.
 
Obama also grossly misleads the American people and politicizes the crisis
by rebuking oil as being a crucial source of fuel to our energy future. Green
renewable energy sources will not fill up the gas tanks for the next generation
of Americans–only oil based fuel will do that. At best Obama is unrealistic. At
worst he is intentionally and wrongfully manipulating the present Gulf crisis to
advance his unpopular "cap and trade" policy.  
 
Obama has made his position clear in the past that he is no friend of
capitalism, the profit motive and large corporations which he instinctively
relishes punishing and blaming for the ills of society.
 
Certainly BP must make good on its obligations to remedy this terrible
tragedy , conditioned by BP’s sense of social responsibility and the
applicable laws that govern these obligations. BP must balance its social
responsibilities to the environment and individuals which have been harmed by
this disaster with its responsibility to its investors and it own corporate
survival.
 

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