News has leaked that Obama will impose and/or continue a 7-year ban on drilling in the eastern part of the Gulf of Mexico in response to the BP (NYSE:BP) oil spill.
The announcement should officially come from Ken Salazar sometime soon.
This is a continuation of the assault upon drilling for oil of the coast of the United States, and in essence keeping the oil moratorium going, even though it has allegedly been lifted.
The fact that there are no permits being allowed shows the ban is effectively still in place, even though it has "officially" been lifted.
Showing posts with label BP Obama. Show all posts
Showing posts with label BP Obama. Show all posts
Wednesday, December 1, 2010
Friday, November 12, 2010
Jindal Blasts Obama over BP (NYSE:BP) Oil Spill in Book
In a book released by Louisiana Governor Bobby Jindal named "Leadership and Crisis," he blasted Barack Obama for being more concerned about his image than he was about fixing the problems associated with the BP (NYSE:BP) oil spill.
Jindal called the response of the Federal Government "lackadaisical" in the book, repeating what he said many times in press conferences during the oil crisis.
"The White House seemed to focus on the wrong things. I felt like we needed to be on a wartime footing against the oil, and the president was wondering, why is everybody criticizing me," Jindal said.
"You would think following the withering criticism of President Bush during Hurricane Katrina that the federal response this time would have been swift and sure .... You would have thought that a White House so concerned about its image would have been all over this," he added.
Other topics covered by the conservative Jindal in the book includes health care reform and deficit spending, which Jindal also takes aim at Obama and the administration over.
Jindal called the response of the Federal Government "lackadaisical" in the book, repeating what he said many times in press conferences during the oil crisis.
"The White House seemed to focus on the wrong things. I felt like we needed to be on a wartime footing against the oil, and the president was wondering, why is everybody criticizing me," Jindal said.
"You would think following the withering criticism of President Bush during Hurricane Katrina that the federal response this time would have been swift and sure .... You would have thought that a White House so concerned about its image would have been all over this," he added.
Other topics covered by the conservative Jindal in the book includes health care reform and deficit spending, which Jindal also takes aim at Obama and the administration over.
Monday, October 25, 2010
BP (NYSE:BP) Shares Hurt by Moratorium
Being the largest energy company operating in the Gulf of Mexico, BP (NYSE:BP) was hit hard by the oil drilling moratorium imposed by the Obama administration. Their next quarter will reflect that with lower revenue and earnings.
Expectations for the performance of BP for the last quarter are being lowered, as it looks like they'll be generating a profit of $4.8 billion, down from $5.4 billion in profits last year in the same quarter.
This will be measured against BP's peers, who are expected to have improved quarters, and which will put the pressure on new CEO Bob Dudley to do something to improve the performance of the company and reinstate the dividend.
Most industry observers say if BP doesn't reinstate the dividend soon, they will probably incur a loss of major shareholders like pension funds who have held onto their shares in light of hopes of the dividend being instated soon; the only reason they invest in BP in the first place.
BP has historically paid out more than their competitors in dividends.
BP will report their earnings on November 2.
Expectations for the performance of BP for the last quarter are being lowered, as it looks like they'll be generating a profit of $4.8 billion, down from $5.4 billion in profits last year in the same quarter.
This will be measured against BP's peers, who are expected to have improved quarters, and which will put the pressure on new CEO Bob Dudley to do something to improve the performance of the company and reinstate the dividend.
Most industry observers say if BP doesn't reinstate the dividend soon, they will probably incur a loss of major shareholders like pension funds who have held onto their shares in light of hopes of the dividend being instated soon; the only reason they invest in BP in the first place.
BP has historically paid out more than their competitors in dividends.
BP will report their earnings on November 2.
Thursday, October 21, 2010
Worst of BP (NYSE:BP) Oil Spill Over Says Government
At the annual Clean Gulf Conference, government officials and executives from the oil industry said the worst of the BP (NYSE:BP) Gulf of Mexico oil spill in now behind us.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Wednesday, October 13, 2010
BP (NYSE:BP): Oil Moratorium Lifted by Obama
The decision to lift the controversial oil drilling moratorium in the deep waters of the Gulf of Mexico as a result of the BP (NYSE:BP) oil spill, was for the most part irrelevant, and the time it was in place and the added regulations in essence effectively keep the ban in place even though it has been officially lifted.
This doesn't mean there won't be the resumption of drilling for oil in the deep waters of the Gulf, just that it'll take a long time to vet the process and jobs will continue to be scarce for some time in the region.
Shallow-water drilling is experiencing that very thing now, as the permitting process has slowed things way down from normal, and is being used as a tool in place of an actual moratorium, which would have generated even more of an outrage from the region.
We at Dripping Oil thought Obama was going to wait a little longer to lift the moratorium because of politics and the election, but this is still a political move in that it would have remained in place into November, but there still won't be much activity through that time, making it more symbolic than useful.
It'll take a long time to get things ramped up again and people back to work. And there's no guarantee oil companies will be able to quickly have everything in place to pass the new regulations, which the Interior Department promises will increase as time goes on.
This doesn't mean there won't be the resumption of drilling for oil in the deep waters of the Gulf, just that it'll take a long time to vet the process and jobs will continue to be scarce for some time in the region.
Shallow-water drilling is experiencing that very thing now, as the permitting process has slowed things way down from normal, and is being used as a tool in place of an actual moratorium, which would have generated even more of an outrage from the region.
We at Dripping Oil thought Obama was going to wait a little longer to lift the moratorium because of politics and the election, but this is still a political move in that it would have remained in place into November, but there still won't be much activity through that time, making it more symbolic than useful.
It'll take a long time to get things ramped up again and people back to work. And there's no guarantee oil companies will be able to quickly have everything in place to pass the new regulations, which the Interior Department promises will increase as time goes on.
Tuesday, October 12, 2010
BP (NYSE:BP): Decision on Oil Moratorium Approaching
The highly controversial decision by the Obama administration to impose a deepwater oil drilling moratorium for the Gulf of Mexico after the BP (NYSE:BP) oil spill may be coming to an end, although it's doubtful whether it'll help to get people who lost their jobs as a result back to work anytime soon.
White House Press Secretary Robert Gibbs said he believes the process will be over fairly quickly.
Gibbs said, "I believe this process will wrap up very soon." He didn't say what type of time-frame is being dealt with.
New regulations for shallow-water drilling are having an effect of a moratorium as well, as it has slowed down significantly the permitting process, which has cost a lot of jobs in the region as well.
So if the moratorium is lifted and the same misguided permitting process is left in place, the Obama administration gets to make it look like they dropped the moratorium before the elections, while essentially holding back the entire region in connection to the oil and gas industry.
It would be surprising to see the moratorium still be in place after the elections. More than likely several days before the voting the announcement will be made.
White House Press Secretary Robert Gibbs said he believes the process will be over fairly quickly.
Gibbs said, "I believe this process will wrap up very soon." He didn't say what type of time-frame is being dealt with.
New regulations for shallow-water drilling are having an effect of a moratorium as well, as it has slowed down significantly the permitting process, which has cost a lot of jobs in the region as well.
So if the moratorium is lifted and the same misguided permitting process is left in place, the Obama administration gets to make it look like they dropped the moratorium before the elections, while essentially holding back the entire region in connection to the oil and gas industry.
It would be surprising to see the moratorium still be in place after the elections. More than likely several days before the voting the announcement will be made.
Monday, October 11, 2010
Official Opinion on BP (NYSE:BP) By White House Committee to be Formulated
A committee formed to create an official opinion by the White House on the BP (NYSE:BP) oil spill will start meeting on Wednesday of this week.
Dubbed the White House Oil Spill Commission, the seven-member commission will meet on Capitol Hill to go over the even and ultimately make some type of recommendation which will be put in a report to be released sometime in January 2011.
Near the end of the meetings some public comment may be solicited.
A website has been established to allow people to view the proceedings.
BP is down in trading today, falling to $41.25, dropping $0.67, or 1.60 percent as of 11:14 AM EDT.
Dubbed the White House Oil Spill Commission, the seven-member commission will meet on Capitol Hill to go over the even and ultimately make some type of recommendation which will be put in a report to be released sometime in January 2011.
Near the end of the meetings some public comment may be solicited.
A website has been established to allow people to view the proceedings.
BP is down in trading today, falling to $41.25, dropping $0.67, or 1.60 percent as of 11:14 AM EDT.
BP (NYSE:BP) Fund Not Helping Obama Moratorium Victims
Victims of the oil moratorium in the Gulf of Mexico, imposed by the Obama administration in response to the BP (NYSE:BP) oil spill, aren't going to get any help from the compensation fund of the oil giant, as it's disguised as a permitting process for shallow water drilling, rather than the “de facto shallow-water drilling ban," as described by Sen. Mary Landrieu (D-LA).
BP had set up a Rig Worker Assistance Fund of $100 million, which wasn't tapped into that much because many companies were keeping their workers on payroll even though they were shut down.
Because there is no official oil moratorium for shallow water drilling, that fund and the $20 billion compensation fund, doesn't pay for people out of work because of the Obama oil moratorium.
What the Obama administration has done is imposed draconian restrictions on shallow water oil drilling to the point it is effectively a moratorium.
To give an idea how much it has strangled the industry, only 53 new wells have been permitted this year, while last year 96 passed through the process.
Either shallow water drillers must also keep workers on payroll while seeing if they eventually are permitted, a very expensive decision, or they must let the workers go, which is what is happening at this time.
Industries indirectly related to the oil industry have been dramatically affected as well, with an unknown number of jobs and revenue lost because they served the oil workers no longer working.
BP had set up a Rig Worker Assistance Fund of $100 million, which wasn't tapped into that much because many companies were keeping their workers on payroll even though they were shut down.
Because there is no official oil moratorium for shallow water drilling, that fund and the $20 billion compensation fund, doesn't pay for people out of work because of the Obama oil moratorium.
What the Obama administration has done is imposed draconian restrictions on shallow water oil drilling to the point it is effectively a moratorium.
To give an idea how much it has strangled the industry, only 53 new wells have been permitted this year, while last year 96 passed through the process.
Either shallow water drillers must also keep workers on payroll while seeing if they eventually are permitted, a very expensive decision, or they must let the workers go, which is what is happening at this time.
Industries indirectly related to the oil industry have been dramatically affected as well, with an unknown number of jobs and revenue lost because they served the oil workers no longer working.
Wednesday, October 6, 2010
Inaccurate Estimates of BP (NYSE:BP) Gulf Oil Flow Affected Plugging
The release of a report from a federal commission investigating the BP (NYSE:BP) oil spill found the Obama administration made a number of mistakes throughout the ordeal.
One was the estimates proffered by the government which were far less than later estimates. Original oil flow estimates out of the damaged well were from 1,000 to 5,000 barrels a day, while later estimates were up to 62,000 barrels a day.
On that the report concluded, “By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the Gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem. It is possible that inaccurate flow-rate figures may have hindered the subsea efforts to stop and to contain the flow of oil at the wellhead.”
While the report is accurate on its assessment of the oil flowing into the Gulf, it's not clear at all that government estimates of the remaining oil in the Gulf is inaccurate, as followup studies have confirmed much of what they originally said.
There's always going to be the so-called scientists who are going to dispute the amount of oil left in the Gulf because of private agendas and hopes of securing research money.
As far as the effect of the amount of oil being released into the Gulf being understated, the report said it could have disrupted the efforts of BP to stop the flow.
One was the estimates proffered by the government which were far less than later estimates. Original oil flow estimates out of the damaged well were from 1,000 to 5,000 barrels a day, while later estimates were up to 62,000 barrels a day.
On that the report concluded, “By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the Gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem. It is possible that inaccurate flow-rate figures may have hindered the subsea efforts to stop and to contain the flow of oil at the wellhead.”
While the report is accurate on its assessment of the oil flowing into the Gulf, it's not clear at all that government estimates of the remaining oil in the Gulf is inaccurate, as followup studies have confirmed much of what they originally said.
There's always going to be the so-called scientists who are going to dispute the amount of oil left in the Gulf because of private agendas and hopes of securing research money.
As far as the effect of the amount of oil being released into the Gulf being understated, the report said it could have disrupted the efforts of BP to stop the flow.
Obama Blocked BP (NYSE:BP) Worst-case Scenario Estimates Release
A report from the presidential commission looking into the BP (NYSE:BP) oil spill found the Obama administration blocked the release of worst-case scenario estimates on how much oil was flowing into the Gulf of Mexico.
Reportedly the National Oceanic and Atmospheric Administration (NOAA) wanted to publicize what some of the models describing the worst-case scenarios which could happen over the long term, and the White House's Office of Management and Budget denied the request.
The commission said, "Staff was told that the Office of Management and Budget denied NOAA's request."
Reportedly the National Oceanic and Atmospheric Administration (NOAA) wanted to publicize what some of the models describing the worst-case scenarios which could happen over the long term, and the White House's Office of Management and Budget denied the request.
The commission said, "Staff was told that the Office of Management and Budget denied NOAA's request."
Wednesday, September 29, 2010
Shell (NYSE:RDS-A) Expanding in Gulf Even in Tough Environment
Even though the BP (NYSE:BP) oil spill has created a tough environment to work in for the oil industry in the Gulf of Mexico, that isn't stopping Royal Dutch Shell Plc (NYSE:RDS-A) from focusing on significant expansion in the region.
According to Marvin Odum, who directs exploration and production at Shell in North and South America, by 2015 and further down the road, he sees the company increasing production by over 250,000 barrels of oil equivalent a day in the Gulf.
Odum said, “In the Gulf of Mexico we’ve increased our efforts in the deepwater in recent years with encouraging results. The longer-term outlook for deepwater remains positive, despite the current drilling moratorium.”
Shell CFO Simon Henry concurs with that, saying the company has six oil discoveries they made recently which could “extend production to the 250,000 barrels a day level for quite some time to come.”
The company said the oil moratorium by the Obama administration has resulted in close to 8,000 barrels of oil less in production a day.
According to Marvin Odum, who directs exploration and production at Shell in North and South America, by 2015 and further down the road, he sees the company increasing production by over 250,000 barrels of oil equivalent a day in the Gulf.
Odum said, “In the Gulf of Mexico we’ve increased our efforts in the deepwater in recent years with encouraging results. The longer-term outlook for deepwater remains positive, despite the current drilling moratorium.”
Shell CFO Simon Henry concurs with that, saying the company has six oil discoveries they made recently which could “extend production to the 250,000 barrels a day level for quite some time to come.”
The company said the oil moratorium by the Obama administration has resulted in close to 8,000 barrels of oil less in production a day.
BP (NYSE:BP) Negotiating with Feds Over Oil Fines
BP (NYSE:BP) has entered into negotiations with the Obama administration over coming to some type of settlement over fines related to the Gulf of Mexico oil spill.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
Friday, September 17, 2010
Bp (NYSE:BP), Obama Connection Comment Results in TV Anchor Being Fired
TV anchorman Doug McKelway was fired for his comments concerning the connection between Barack Obama and BP (NYSE:BP). McKelway said Obama had received the largest BP campaign contribution in history, $77,051.
The story centered around a small demonstration on Capital Hill, which McKelway was covering. He noted it was a representation of "far-left environmental groups," adding it could "be a risky strategy because the one man who has more campaign contributions from BP than anybody else in history is now sitting in the Oval Office, President Barack Obama, who accepted $77,051 in campaign contributions from BP."
News director and general manager, Bill Lord, didn't like McKelway talking about Obama that way, or about Democrats in general, noting the cap-and-trade bill would increase everyone's utility bills, and Democrats wouldn't pass it before November elections.
Lord confronted McKelway about the broadcast, and after a yelling match, he was put on indefinite suspension in the latter part of July.
Incredibly, McKelway was fired by WJLA-TV, citing citing insubordination and misconduct.
The story centered around a small demonstration on Capital Hill, which McKelway was covering. He noted it was a representation of "far-left environmental groups," adding it could "be a risky strategy because the one man who has more campaign contributions from BP than anybody else in history is now sitting in the Oval Office, President Barack Obama, who accepted $77,051 in campaign contributions from BP."
News director and general manager, Bill Lord, didn't like McKelway talking about Obama that way, or about Democrats in general, noting the cap-and-trade bill would increase everyone's utility bills, and Democrats wouldn't pass it before November elections.
Lord confronted McKelway about the broadcast, and after a yelling match, he was put on indefinite suspension in the latter part of July.
Incredibly, McKelway was fired by WJLA-TV, citing citing insubordination and misconduct.
Monday, September 13, 2010
BP (NYSE:BP): Extremist anti-Palin Environmental Group Got Government No-bid Contract
Extremist environmental group Defenders of Wildlife, who via its political arm, the Defenders Action Fund, attacked Sarah Palin for her battle against the over-population of wolves in Alaska, which were devastating the food supply of the native population, was rewarded a no-bid contract of $216,625 from the Obama administration.
The extremist group didn't like the way Palin was having the wolf population culled, which was by the use of aircraft to hunt them down and kill them; as if it mattered how they were killed.
Democrat Jamie Rappaport Clark, the executive vice president of the group, and prior director of the Fish and Wildlife Service under former President Bill Clinton, asserted, "I just truly believe there are no dots to connect," concerning the appearance of impropriety.
Defenders of Wildlife made the amazing claim that no politics played a role in the decision in the no-bid contract.
They've obsessed so much over Palin that they're attempting to pressure Discovery Communications to stop the proposed reality TV series called "Sarah Palin's Alaska."
The Fish and Wildlife Service paid out the money to study how the BP oil spill affected ocean birds.
The extremist group didn't like the way Palin was having the wolf population culled, which was by the use of aircraft to hunt them down and kill them; as if it mattered how they were killed.
Democrat Jamie Rappaport Clark, the executive vice president of the group, and prior director of the Fish and Wildlife Service under former President Bill Clinton, asserted, "I just truly believe there are no dots to connect," concerning the appearance of impropriety.
Defenders of Wildlife made the amazing claim that no politics played a role in the decision in the no-bid contract.
They've obsessed so much over Palin that they're attempting to pressure Discovery Communications to stop the proposed reality TV series called "Sarah Palin's Alaska."
The Fish and Wildlife Service paid out the money to study how the BP oil spill affected ocean birds.
Thursday, September 2, 2010
Transocean (NYSE:RIG) Moves Oil Rig, Jobs, Out of Gulf
One of the oil rigs left with nothing to do in the Gulf of Mexico because of the Obama administration moratorium on deepwater drilling, has been moved by Transocean (NYSE:RIG) - along with the jobs it would have provided - to Nigeria.
The rig is contracted out to ENI from Italy, which left the region last week.
Thousands of jobs are at stake as the oil moratorium continues to take its toll on oil workers and those who serve the industry.
A federal judge allowed the lawsuit against the moratorium to go forward today, saying the second moratorium was in essence no different from the first, and based on no new data.
Protests are spreading across the nation, beginning in Texas, as the oil industry and oil workers express their outrage toward the Obama administration for refusing to halt the moratorium, even after a federal judge had said they had to after the first moratorium.
That led to the disingenuous second moratorium, which the judge ruled on Wednesday.
The rig is contracted out to ENI from Italy, which left the region last week.
Thousands of jobs are at stake as the oil moratorium continues to take its toll on oil workers and those who serve the industry.
A federal judge allowed the lawsuit against the moratorium to go forward today, saying the second moratorium was in essence no different from the first, and based on no new data.
Protests are spreading across the nation, beginning in Texas, as the oil industry and oil workers express their outrage toward the Obama administration for refusing to halt the moratorium, even after a federal judge had said they had to after the first moratorium.
That led to the disingenuous second moratorium, which the judge ruled on Wednesday.
Chevron (NYSE:CVX), Conoco (NYSE:COP), Shell (NYSE:RDS-A) Workers Protest Moratorium, Job Losses
The heavy cost of the oil moratorium, energy taxes, and other proposed measures by the Obama administration have workers in the energy sector up in arms and those from companies like Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell (NYSE:RDS-A) started protests off in three Texas cities, and will spread to other parts of the nation over the next couple of weeks.
Thousands of oil workers showed up at the Houston convention center to launch things off, with Port Arthur and Corpus Christi being the other two Texas cities having protests today.
The major, immediate concern was the loss of more jobs as the moratorium lengthens. There has been frustration over the second oil moratorium, which was a ploy used by the Obama administration to circumvent the ruling against the ban on the first moratorium.
Other than the shutting down the deepwater offshore oil business and jobs, another major issue is the attempt of the Obama administration to cut tax incentives the industry has used for years.
If they were to be removed, the government would siphon off about $36.5 billion over a 10-year period from the private sector and waste it in the public sector.
Sen. Bill Nelson, D-Fla. has introduced a proposal which would rescind a current tax break for domestic manufacturing which allows oil companies to cut taxable income by 6 percent. That would affect the top five largest U.S. oil companies, but would hurt their hundreds of thousands of workers.
Other protests are planned in Illinois, Ohio, Colorado and New Mexico over the next couple of weeks.
Thousands of oil workers showed up at the Houston convention center to launch things off, with Port Arthur and Corpus Christi being the other two Texas cities having protests today.
The major, immediate concern was the loss of more jobs as the moratorium lengthens. There has been frustration over the second oil moratorium, which was a ploy used by the Obama administration to circumvent the ruling against the ban on the first moratorium.
Other than the shutting down the deepwater offshore oil business and jobs, another major issue is the attempt of the Obama administration to cut tax incentives the industry has used for years.
If they were to be removed, the government would siphon off about $36.5 billion over a 10-year period from the private sector and waste it in the public sector.
Sen. Bill Nelson, D-Fla. has introduced a proposal which would rescind a current tax break for domestic manufacturing which allows oil companies to cut taxable income by 6 percent. That would affect the top five largest U.S. oil companies, but would hurt their hundreds of thousands of workers.
Other protests are planned in Illinois, Ohio, Colorado and New Mexico over the next couple of weeks.
Friday, August 13, 2010
Did BP (NYSE:BP) Kill Well with 'Top Kill' on Purpose?
Some may wonder why it matters if BP (NYSE:BP) attempted to permanently kill the oil well on purpose with the 'top kill.' Technically it doesn't matter, as the goal is to permanently plug the well, not the methodology used.
But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.
If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.
For about a week BP and the government have given indications permanently plugging the well may not be the way to go.
Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.
If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.
Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.
If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.
While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.
There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.
But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.
If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.
For about a week BP and the government have given indications permanently plugging the well may not be the way to go.
Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.
If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.
Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.
If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.
While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.
There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.
Tuesday, July 13, 2010
Obama's Moratorium Results in Diamond Offshore (NYSE:DO) Moving Rig Out of Gulf to 'Republic of Congo'
Diamond Offshore (NYSE:DO) announced today it is moving its oil rig Ocean Confidence out of the Gulf of Mexico to the Republic of Congo, and has suspended a contract in the region to make the rig available.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
Wednesday, June 23, 2010
Growing Outrage over Obama's Oil Moratorium
Other than his radical environmental pals, and his Democrat buddies, very few people or businesses support the overreaction of Obama to impose a six-month moratorium on drilling for oil in over 500 feet of water in the Gulf of Mexico, as businesses serving the industry, as well as the industry itself, get financially crushed from Obama's misguided decision.
A judge lifted the moratorium, saying it was unprecedented in history, with no parameters or guidelines other than completely shutting everything down involved in the decision of Obama.
The arrogant president of the United States doesn't care, and immediately went on the offense against the people and businesses in the Gulf region by appealing the ruling of the federal judge.
A number of people say it could do more damage than the disaster itself to the people of the Gulf.
A judge lifted the moratorium, saying it was unprecedented in history, with no parameters or guidelines other than completely shutting everything down involved in the decision of Obama.
The arrogant president of the United States doesn't care, and immediately went on the offense against the people and businesses in the Gulf region by appealing the ruling of the federal judge.
A number of people say it could do more damage than the disaster itself to the people of the Gulf.
Friday, June 18, 2010
Romney on Obama's Mishandling of BP (NYSE:BP) Oil Spill
Obama's inexperience has tragically revealed itself, and the country is paying for it dearly as oil from the BP (NYSE:BP) disaster continues to pour into the Gulf of Mexico, while no one to this day seems to be in charge.
Mitt Romney is the latest to address the mishandling of the crisis by Obama and his administration.
Romney said about Obama's failure, "In this kind of a crisis situation, the president's response should have been to step in, bring in the experts, people from various oil companies, from leading institutions, academic and engineering firms and look at the options for actually capping this oil spill and then actually making those decisions."
Others who have actual management experience have stated similar things. Obama's enlisting of clueless college professors and government scientists has been blasted by many of those viewing the situation as well, saying Obama should have gone out and recruited experienced people who have dealt with similar circumstances.
Obama wouldn't even accept the help of nations with oil skimmers which could have extracted oil from the Gulf almost immediately, because of his catering to unions who would have thrown a fit because he allowed foreign boats in the area which hadn't been built in the country. President Bush trumped the draconian law which was implemented in 1920, and allowed ships in to help with Katrina, which the majority say he did a better job of managing.
Mitt Romney is the latest to address the mishandling of the crisis by Obama and his administration.
Romney said about Obama's failure, "In this kind of a crisis situation, the president's response should have been to step in, bring in the experts, people from various oil companies, from leading institutions, academic and engineering firms and look at the options for actually capping this oil spill and then actually making those decisions."
Others who have actual management experience have stated similar things. Obama's enlisting of clueless college professors and government scientists has been blasted by many of those viewing the situation as well, saying Obama should have gone out and recruited experienced people who have dealt with similar circumstances.
Obama wouldn't even accept the help of nations with oil skimmers which could have extracted oil from the Gulf almost immediately, because of his catering to unions who would have thrown a fit because he allowed foreign boats in the area which hadn't been built in the country. President Bush trumped the draconian law which was implemented in 1920, and allowed ships in to help with Katrina, which the majority say he did a better job of managing.
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