BP

Judge rules Obama deepwater drilling ban “arbitrary and capricious”

by Marlo Lewis on June 23, 2010

in Global Warming, Legal, Natural Resources, Odds & Ends

Yesterday, Judge Martin Feldman of the Eastern Louisiana District Court lifted the Obama administration’s six-month moratorium on all oil and gas drilling in the Gulf of Mexico in waters over 500 feet in depth. 

Feldman held that the moratorium was ”arbitrary and capricious” and would do “irreparable harm” to businesses that own, operate, and service vessels used to support offshore drilling — an industry critical to the region’s economy.

Department of Interior Secretary Ken Salazar imposed the moratorium on May 28 in response to the BP Deepwater Horizon blowout and oil spill. Judge Feldman found the moratorium to be “arbitrary and capricious” on several grounds.

First, it was based on “misrepresentation.” In a Report issued the day before imposing the moratorium, Salazar claimed his policy had been “peer-reviewed by seven experts identified by the National Academy of Engineering.” Not so, says Feldman:

As the plaintiffs, and the experts themselves, pointed observe, this statement was misleading. The experts charge it was a “misrepresentation.” It was factually incorrect. Although the experts agreed with the safety recommendations contained in the body of the main Report, five of the National Academy experts and three of the other experts have publicly stated that they “do not agree with the six month blanket moratorium” on floating drilling. They envisioned a more limited kind of moratorium, but a blanket moratorium was added after their final review, they complain, and was never agreed to by them.

Second, the agency’s decision is not supported by the evidence on which it was ostensibly based. The Report notes that “the risks associated with operating in water depths of 1,000 feet are significantly more complex than in shallow water,”  yet the moratorium would apply to all floating rigs – i.e. all rigs operating at depths greater than 500 feet. The agency makes no effort to explain why it set the cutoff at 500 feet rather than 1000 feet.

Third, “There is no suggestion that the Secretary considered any alternatives: for example, an individualized suspension of activities on target rigs until they reached compliance with the new federal regulations said to be recommended for immediate implementation.”

Fourth, the agency provided no “analysis of the asserted” hazards posed by the 33 deepwater rigs already permitted and operating in the Gulf. Rather, Interior “seems to assume that because one rig failed and although no one yet fully knows why, all companies and rigs drilling new wells over 500 feet also universally present an imminent danger.” This is like assuming that all oil tankers are like the Exxon Valdez. “That sort of thinking seems heavy-handed, and rather overbearing.” 

Feldman’s ruling is unlikely to go unchallenged. According to Greenwire, David Guest, an attorney with EarthJustice who represented environmental groups in the case, opined that, “the Department of Justice will file an immediate motion for a stay and seek expedited review in the 5th Circuit Court of Appeals.”

Obama Administration Blocks Clean-Up of Oil Spill by Louisiana and Foreign Allies By Imposing Red Tape

by Hans Bader on June 18, 2010 · 5 comments

in Agriculture, Economy, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Labor, Legal, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Trade, Zeitgeist

The Obama Administration recently used red tape to force Louisiana to stop using 16 barges that were cleaning up the Gulf of Mexico by sucking thousands of gallons of oil out of Louisiana’s oil-soaked waters.

Earlier, it delayed the clean-up of the Gulf of Mexico by months, by blocking foreign crews from operating sophisticated clean-up vessels.  The Jones Act bans foreign vessels and crews from working in U.S. waters, but it gives the president the authority to completely waive that ban if he wishes.  Obama refused to lift the ban, even though American shippers who generally support the ban said they wouldn’t object to lifting it to fight the spill.  As a result of the ban, the U.S. has rejected a lot of foreign aid from counties with expertise in fighting oil spills, and accepted only a small amount of foreign equipment to fight the spill.

Even Democrats are now criticizing the Obama administration for refusing to waive the ban to allow America’s allies to clean up the oil spill:

“Rep. Corrine Brown (D-Fla.) said it was unacceptable that her state couldn’t utilize foreign vessels for skimming. She held up pictures of skimmers available in Mexico and Norway that could help.  ‘We are in emergency mode and we need skimmers,’ Brown said. ‘We need the big ones. I understand they’re available in other countries, including Mexico and Norway. What is the process for the state to utilize these vessels from other countries? … We’re talking about protecting Florida’s coast.’ . . .Deputy Maritime Administrator David Matsuda confirmed there has been one Jones Act waiver request for a foreign deck barge to operate within three miles of the U.S. coast. That request was denied . . . .Of course, the Obama administration could eliminate the bureaucratic delay entirely by simply following the precedent set by the Bush administration, which waived the Jones Act in the aftermath of Hurricanes Katrina and Rita in 2005 to transport oil and gasoline throughout the Gulf region. Homeland Security Secretary Janet Napolitano has the legal authority to suspend the law.”

“The BP clean-up effort in the Gulf of Mexico is hampered by the Jones Act. This is a piece of 1920s protectionist legislation, that requires all vessels working in U.S. waters to be American-built, and American-crewed. So” the U.S. Coast Guard ”can’t accept, and therefore don’t ask for, the assistance of high-tech European vessels specifically designed for the task in hand.”

The law itself permits the president to waive these requirements, and such waivers were “granted, promptly, by the Bush administration,” in the aftermath of hurricanes and other emergencies. But Obama refused to do so after the spill, notes David Warren in the Ottawa Citizen.  Instead, Obama rejected a Dutch offer to help clean up the spill, noted Voice of America News:

“The Obama administration declined the Dutch offer partly because of the Jones Act, which restricts foreign ships from certain activities in U.S. waters.  During the Hurricane Katrina crisis five years ago, the Bush administration waived the Jones Act in order to facilitate some foreign assistance, but such a waiver was not given in this case.”

“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.’” But for Obama, politics always comes first: “The explanation of Obama’s reluctance to seek this remedy is his cozy relationship with labor unions. . . ‘The unions see it [not waiving the act] as … protecting jobs. They hate when the Jones Act gets waived.’”

(The Obama Administration belatedly accepted some foreign equipment for use in fighting the spill, although it still blocked ships with foreign crews from working in U.S. waters.  As Voice of America notes, although ”the Netherlands offered help in April,” such as providing ”sophisticated” oil “skimmers and dredging devices,” the Obama Administration blocked their crews from working in U.S. waters, and as a result, this crucial ”operation was delayed until U.S. crews could be trained” in June.  “The Dutch also offered assistance with building sand berms (barriers) along the coast of Louisiana to protect sensitive marshlands, but that offer was also rejected, even though Louisiana Governor Bobby Jindal had been requesting such protective barriers.”)

In April 2009, the Obama administration granted BP, a big supporter of Obama, a waiver of environmental regulations.  But after the oil spill, it blocked Louisiana from protecting its coastline against the oil spill by delaying rather than expediting regulatory approval of essential protective measures.  It has also chosen not to use what has been described as “the most effective method” of fighting the spill, a method successfully used in other oil spills.  Democratic strategist James Carville called Obama’s handling of the oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

Obama is now using BP’s oil spill to push the global-warming legislation that BP had lobbied for.  Obama’s global-warming legislation expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply.  Ethanol makes gasoline costlier and dirtier, increases ozone pollution, and increases the death toll from smog and air pollution.   Ethanol production also results in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

Obama Uses Oil Spill to Push Failed Energy Policies

by Hans Bader on June 16, 2010

in Agriculture, Economy, Employment, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Legal, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Stimulus to Nowhere, Trade, Zeitgeist

In his speech last night, President Obama used the massive oil spill in the Gulf of Mexico to push his failed energy policies, such as a “green jobs” program that has replaced American jobs with foreign “green” jobs, and a climate-change bill that includes ecologically-devastating ethanol subsidies.  Meanwhile, Louisiana residents rated Obama’s inept response to the oil spill as worse than Bush’s much-criticized response to Hurricane Katrina, in a public opinion poll–perhaps because Obama delayed the clean-up of the oil spill by blocking assistance from many foreign experts.

Obama used the oil spill to push for more so-called “green jobs” programs, deceptively boasting that “over the last year and a half,” the government has subsidized the so-called “clean energy industry.”  This was a reference to the February 2009 stimulus package, which contained so-called “green jobs” funding, 79 percent of which went to foreign firms, replacing American jobs with foreign green jobs.  (The administration never bothered to define what a “green job” is, and some so-called “green jobs” turn out to be harmful to the environment.)  The stimulus package also contained regulations that destroyed jobs in America’s export sector.

In his speech, Obama also used the spill to push the so-called “comprehensive energy and climate bill” passed by the “House of Representatives” late “last year.”  That bill expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply.  Ethanol makes gasoline costlier and dirtier, increases ozone pollution, and increases the death toll from smog and air pollution.   Ethanol production also results in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

Obama said nothing about waiving the Jones Act, a law that bans foreign ships from working in the U.S. waters unless the President waives the ban.  Past presidents have waived the ban after hurricanes to allow foreign experts to assist the U.S., and speed shipping of relief to hurricane victims.  But Obama refused to do so after the spill, report Voice of America News, the Washington Examiner, and Canadian, Australian, and European newspapers, even though it would make obvious sense to accept help from oil-producing, maritime countries like Norway that have big fleets and expertise in handling oil-drilling and oil-spill issues.   As a result, the Obama administration rejected various offers of assistance from Norwegian, Belgian, Dutch, and Mexican firms.

(The Obama administration has belatedly accepted some foreign equipment for use in fighting the spill, although it continued to block ships with foreign crews, delaying the foreign equipment’s use.  As Voice of America notes, although ”the Netherlands offered help in April,” such as providing ”sophisticated” oil “skimmers and dredging devices,” the Obama administration blocked their crews from working in U.S. waters, and as a result, this crucial ”operation was delayed until U.S. crews could be trained” in June.  “The Dutch also offered assistance with building sand berms (barriers) along the coast of Louisiana to protect sensitive marshlands, but that offer was also rejected, even though Louisiana Governor Bobby Jindal had been requesting such protective barriers.”)

In April 2009, the Obama administration granted BP, a supporter of Obama, a waiver of environmental regulations.  But after the oil spill, it blocked Louisiana from protecting its coastline against the oil spill by delaying rather than expediting regulatory approval of essential protective measures.  It has also chosen not to use what has been described as “the most effective method“ of fighting the spill, a method successfully used in other oil spills.  Democratic strategist James Carville called Obama’s handling of the oil spill “lackadaisical“ and “unbelievable“ in its “stupidity.”

BP Supported Obama Stimulus Package, Global Warming Bill, and Corporate Welfare; BP Bankrolled Obama Campaign

by Hans Bader on June 9, 2010

in Agriculture, Bailout Watch, Deregulate to Stimulate, Economy, Employment, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Stimulus to Nowhere, Trade, Zeitgeist

Columnist Tim Carney notes that BP, responsible for the massive oil spill, is “a close friend of big government whenever it serves the company’s bottom line.” It lobbied for President Obama’s $800 billion stimulus package, the “cap-and-trade” global-warming bills backed by Obama, and “the Wall Street bailout” that Obama voted for.  “BP has more Democratic lobbyists than Republicans.”  Obama is the biggest recipient of campaign cash from BP executives.

Obama’s global warming legislation expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply, and also result in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

The $800 billion stimulus package is using taxpayer subsidies to replace U.S. jobs with foreign green jobs. It is also destroying jobs in America’s export sector.

Obama falsely claimed that the stimulus package was needed to prevent “irreversible decline,” but the Congressional Budget Office admitted that it would actually shrink the economy “in the long run.”  Unemployment has skyrocketed past European levels, as big-spending countries have fared worse than thrifty ones.  As the Examiner notes, “If his stimulus program was approved, Obama promised, unemployment would not go above 8 percent . . . The reality is that it passed 10.3 percent.”  In 2008, Obama promised a “net spending cut,” but as soon as he was elected, he proposed massive spending increases.

Obama’s global warming legislation would also drive jobs overseas, since it would impose a costly cap-and-trade carbon rationing scheme on American industry, while leaving foreign plants operated by multinational corporations unregulated.  That’s one reason why many big companies with plants overseas are lobbying for the global-warming legislation, which would give them an advantage over competitors that make their products largely in America.  The legislation would result in a tax increase for American consumers of up to $200 billion a year or $1,761 per household.

Unlike other oil companies, which have good records of safety and avoiding spills when it comes to oil drilling, BP has a bad record, earning it the label of “serial environmental criminal” from critics.  The Obama administration granted BP a waiver of environmental regulations in April 2009, yet it blocked Louisiana from protecting its coastline against the oil spill by delaying rather than expediting regulatory approval of essential protective measures.  It has also chosen not to use what has been described as “the most effective method” of fighting the spill, a method successfully used in other oil spills.  Democratic strategist James Carville called Obama’s handling of the oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

Obama is now using BP’s oil spill to push the global-warming legislation that BP had lobbied for.

Global-Warming Bill Contains Ethanol Subsidies, Which Cause Famine, Hunger, Food Riots, and Political Unrest

by Hans Bader on June 7, 2010

in Agriculture, Deregulate to Stimulate, Economy, Energy, Environment, Ethanol, Global Warming, International, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Trade, Zeitgeist

People across the world “are being battered by surging food prices that are dragging more people into poverty, fueling political tensions and forcing some to give up eating meat, fruit and even tomatoes,” reports the Associated Press. High food prices are partly the result of “demand for crops to use in biofuels” like ethanol, which the government subsidizes.

Food prices will rise even further if the global warming legislation backed by President Obama passes, since it expands ethanol subsidies that reward big corporations for turning food into fuel. Ethanol subsidies damage the environment by wiping out forests, polluting water supplies, and eroding the soil. By converting food into fuel, they cause famines and food riots in the world’s poorest countries.  That fuels Islamic extremism in Afghanistan and the Middle East.

President Obama, the biggest recipient of campaign cash from BP, is using BP’s oil spill to push for a global warming bill that is chock full of corporate welfare and environment-destroying ethanol subsidies. The bill was crafted by lobbyists for big companies like BP: “For years, BP has lobbied for climate change legislation, until recently running around with the U.S. Climate Action Partnership.” BP has a much worse safety and environmental record than most oil companies, which drill safely and avoid oil spills.

Democratic strategist James Carville, who was raised in Louisiana, called Obama’s handling of the BP oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

Until recently, the Obama administration ignored the pleas of Louisiana’s governor to allow Louisiana to build barrier islands to contain the damage from the oil spill, citing bureaucratic procedures. Yet the Obama administration granted BP a waiver from environmental regulations in April 2009. ABC News reports that the “top recipient of BP-related donations during the 2008 cycle was President Barack Obama himself, who collected $71,000.”

The global warming legislation backed by President Obama would drive jobs overseas, since it would impose a costly cap-and-trade carbon rationing scheme on American industry, while leaving foreign plants operated by multinational corporations unregulated. Companies with plants overseas are lobbying for the global warming legislation, which would give them an advantage over American competitors. The legislation Obama backs may perversely increase pollution by driving industry overseas to places with fewer environmental regulations.

Obama Uses BP Oil Spill to Push Corporate-Welfare-Filled Global Warming Bill That BP Once Lobbied For

by Hans Bader on June 4, 2010 · 1 comment

in Agriculture, Deregulate to Stimulate, Economy, Employment, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Legal, Mobility, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Trade, Zeitgeist

Talk about chutzpah.  President Obama, the biggest recipient of campaign cash from BP, is using BP’s oil spill to push for a global warming bill that is chock full of corporate welfare and environment-destroying ethanol subsidies.  And the bill is one crafted by lobbyists for big companies like BP: “For years, BP has lobbied for climate change legislation, until recently running around with the U.S. Climate Action Partnership.”

The Obama Administration has done little about the oil spill, even though “BP’s oil gusher is in federal waters, on seabed leased from the federal government,” giving the government the moral responsibility to do something to stop the spill.  Instead, it is adding insult to injury for suffering Gulf Coast residents by imposing a ban on oil drilling that will wipe out at least 20,000 jobs in the Gulf, and perhaps more, according to Louisiana’s governor.

The ban doesn’t apply just to BP, a company with an unusually bad safety record which has been described as a “serial environmental criminal.”  Instead, it applies to the oil industry generally, including the vast majority of oil companies that make safety a priority in drilling (and whose oil wells did not spill even during hurricanes).

Democratic strategist James Carville, who was raised in Louisiana, called Obama’s handling of the oil spill “lackadaisical“ and “unbelievable“ in its “stupidity.”

Until recently, the Obama administration ignored the pleas of Louisiana’s governor to allow Louisiana to build barrier islands to contain the damage from the oil spill, citing bureaucratic procedures.  Yet the Obama administration granted BP a waiver from environmental regulations in April 2009. ABC News reports that the “top recipient of BP-related donations during the 2008 cycle was President Barack Obama himself, who collected $71,000.”

The global warming legislation backed by President Obama would also drive jobs overseas, since it would impose a costly cap-and-trade carbon rationing scheme on American industry, while leaving foreign plants operated by multinational corporations unregulated.  Companies with plants overseas are lobbying for the global-warming legislation, which would give them an advantage over American competitors.  The legislation Obama backs may perversely increase pollution by driving industry overseas to places with fewer environmental regulations.

BP: A “Serial Environmental Criminal” With Close Ties To The Obama Administration

by Hans Bader on June 2, 2010

in Agriculture, Economy, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Natural Resources, Personal Liberty, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Stimulus to Nowhere, Trade, Zeitgeist

BP, which is responsible for the terrible oil spill in the Gulf of Mexico, has a safety record infinitely worse than other oil companies, which make safety a priority in drilling for oil.  ABC News reports that “BP ran up 760 ‘egregious, willful’ safety violations, while Sunoco and Conoco-Phillips each had eight, Citgo had two and Exxon had one comparable citation.”  Exxon, the oil company most critical of global warming hysteria, had the best safety record.  BP’s record is so bad that it has been described as a “serial environmental criminal.”

While other companies have invested money in safety, BP has “invested heavily” in an environmentally-conscious advertising campaign that brands the company as “Beyond Petroleum,” and until recently spent money lobbying for the global-warming bill backed by the Obama administration, a bill full of  corporate welfare dressed up as “green energy.”   The company’s advertising campaign successfully duped consumers into viewing it as “the greenest oil company.”

Earlier, the Obama administration ignored the pleas of Louisiana’s governor to allow Louisiana to build barrier islands to contain the damage from the oil spill, insisting that any such islands should be built, if at all, only after a slow and complicated regulatory process that could take years.

Democratic strategist James Carville, who was raised in Louisiana, called Obama’s handling of the oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

The Obama administration granted BP a waiver from environmental regulations in April 2009.  Obama received lots of campaign contributions from BP.  ABC News reports that the “top recipient of BP-related donations during the 2008 cycle was President Barack Obama himself, who collected $71,000.”

The $800 billion stimulus package is using taxpayer subsidies to replace U.S. jobs with foreign green jobs. Its regulations are destroying jobs in America’s export sector.

The global warming legislation backed by President Obama would also drive jobs overseas, since it would impose a costly cap-and-trade carbon rationing scheme on American industry, while leaving foreign plants operated by multinational corporations unregulated.  That’s one reason why many big companies with plants overseas are lobbying for the global-warming legislation, which would give them an advantage over competitors that make their products largely in America.

Although Obama and other backers of this “cap-and-trade” concept claim it will cut greenhouse gas emissions, it may perversely increase them by driving industry overseas to places with fewer environmental regulations, resulting in dirtier air, and damage to forests and water supplies.   It would enrich politically-connected corporations, and result in massive destruction of the world’s forests.

By expanding ethanol subsidies and mandates, it would cause enormous “damage to water supplies, soil health and air quality.” Ethanol subsidies have already resulted in forests being destroyed in the Third World.

The Washington Examiner earlier explained how the global warming bill would cause deforestation by expanding ethanol subsidies, and thus increase greenhouse gas emissions in the long run.  Obama’s so-called “cap-and-trade” bill is full of pay-offs for special interests.

Chris Horner on Offshore Oil and Obama Energy Policy

by Richard Morrison on April 30, 2010

in Video, Zeitgeist

[youtube:http://www.youtube.com/watch?v=UGt3YheyE4E 285 234]

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