In a sense, this was always the case. BP makes their money from drilling for, and selling, oil, and so their continued viability in running that business affects whether they have the cash available to pay out the $20 escrow fund for compensation to those hit by the oil disaster. But the deal between BP and the government apparently makes that explicit, and in particular their Gulf of Mexico drilling operations:
The Obama administration and BP PLC are close to a deal to use future revenues from the oil giant’s Gulf of Mexico operations to guarantee its $20 billion cleanup and compensation fund, a move that would give both sides an incentive to continue production in the Gulf, scene of the U.S.’s worst-ever offshore oil spill [...]
BP has said it expects to be able to make the required payments to the $20 billion fund through its ongoing operations and asset sales. However, the administration wanted security in the form of collateral in the event that BP couldn’t meet its obligation due to financial or legal problems.
The issue of collateral is the last detail to be ironed out. It is a prickly political issue because it could make the administration and BP partners of sorts in developing the Gulf.
Such a deal could provoke a backlash on Capitol Hill, where some lawmakers are moving to bar BP from operating in the Gulf. Legislation approved by the House of Representatives in July would effectively prohibit the government from issuing new offshore oil leases or drilling permits to the oil company by adding a roster of requirements BP couldn’t satisfy.
That ban on BP or any company with a substandard safety record from Gulf drilling actually passed the House in the CLEAR Act two weeks ago. So BP cleverly wants to use future drilling sales as collateral to basically force their doors open for more exploration.
That undermines the new safety regime that the Administration claims to support, and amounts to keeping the lights on for offshore and deepwater drilling in a way that almost looks like bribery. BP has operations all over the planet, there doesn’t seem to be any reason why their escrow payments must be linked to Gulf of Mexico exploration.
No Democrats have spoken out about this as of yet, but I’d expect that to happen shortly.



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So BP, the despoiler of the Gulf of Mexico has to be allowed the opportunity to possibly further despoil the Gulf of Mexico in order to pay for having despoiled the Gulf of Mexico.
Hmmm-kay. Car 54 where are you-uuu?
Probably another back room deal with industry from the Obama administration.
Well, I hate to sound like some kind of professional leftist but this is the kind of snookering shim sham that we’ve been talking about, aside from getting our paychecks from whatever Hard Red Leninist faction that pays us all that money…whereever it is.
It’s not just that he doesn’t do what we’d like. He does the worst thing possible, sometimes its a thing that even Republicans couldn’t come up with. I doubt they would have the imagination to even pull this off. Sure, they would apologize, but to structure even this oil fund as a giveaway for more drilling. Look, we’ve been had. I thought this was what Hillary would do but why do I get this sinking feeling that she would have gotten a decent stimulus and a decent health care plan, at least. Perhaps that’s why the power elite didn’t like her. We would have gotten crumbs, at least.
I might remind Mr. Gibbs that its not just one or two things: we’ve lost on every single issue of importance. I’m terrified about net neutrality because I’ve seen this movie before….it ends up with me getting the worst possible deal…
Obama needs to be primaried. I think I’m ready for Kucinich. He at least has some core values…he would fight for a few things. His slogan: “Hey, we tried the pretty one.”
Philip Shropshire
http://tiny.cc/clt5p
PS: Jessica Centers is not credible!
Fuck you, Obama. Fuck. You.
Does this include production from Macondo?
Good question. It’s where the negotiation is at, not a finalized deal, so I don’t think there’s actual language yet.
heads up
http://www.huffingtonpost.com/2010/08/10/carl-barbier-gulf-oil-spill-lawsuits-judge_n_677686.html
I believe one definition of insanity is: making the same mistake over and over again and expecting different results.
I was going to bring up the absolute cluelessness of Gibbs, but SteelyDan3 said it better.
I get more furious with each passing day. The cuts to the food stamp program today was especially galling. Somehow depriving a child of food in an attempt to educate the child seems self defeating.
What a bunch of corrupt bullshitters.
Yes, that was galling.
Particularly considering one group that makes up a significant percentage of those on food stamps.
Assholes.
Again i find myself asking, where is the Obama I actually voted for? With the Democrats acting like Republicans these days giving the country away to corporate interests, who do we vote for in the future? This is crazy.
All this and it turns out that “static kill” did indeed fail in being a kill although it served its primary purpose of generating lots of static.
More pressure tests have been ordered for the BOP and that almost certainly means that the leaks at the wellhead are from the reservoir via the annulus.
If they’d have just finished drilling the relief well and killed the blowout as is SOP it could well have been all over with by now.
But that would have meant letting the well flow unrestricted into the Gulf for a short while while the actual, real kill proceeded. A flow that would have been carefully monitored and thus would have put the lie to the Obministration’s lowballed numbers.
All this bullshit, all these risks taken just to save BP the billion$ more that they’d actually owe U.S. taxpayers if accurate measurements had been obtained…
Same story, different decade. The poor fight the wars while the rich get richer from war profiteering. I’m thinkin’ there aren’t any independent contractors utilizing food stamps. This is just so damn wrong.
My son found a job today after 20 months of unemployment. The pay is a skootch above what he made 25 years ago making pizzas in high school. Thanks Mr. President for all those good paying green jobs, renegoiating NAFTA, stopping outsourcing, passing EFCA, and taking care of main street instead of wall street. It’s damn hard to rebuild a life on wages from 25 years ago.
And I’m the one that needs drug tested?
And for those people who find it so difficult to believe that the Obministration would side with corporate interests against the public good…
http://www.propublica.org/blog/item/scientists-allege-federal-govt-tried-to-muffle-plume-findings
As one of those “professional leftists” and “fucking r*****s”, I won’t be wasting my time voting. It seems to be just an exercise in futility.
Always vote – write in Jane rather than not voting.
I like that – it felt weird not voting in the Brown election as a protest
Meanwhile why does Obama not order future drilling to include a mandatory 2nd drilling of a relief well? Other countries (Canada and Norway) have such a rule.
Or is Obama so sold out to the corporations that he needs their permission to do anything?
Ha!ha! ha!I remember saying right here on FDL when the WH was boasting how it had secure 20bln & that “bufoon” on MSNBC,Ed Shultz was prattling on how masterful the Prez was…..that when the fine print is gone over that this 20bln would not be worth a damn.well now we see why.
And how about Gibbs going off on the “professional left”…was it to distract from this or the fact that many people are willing to go on the record now that the WH is lying with regards to the Gulf cleanup….
Regardless the Gulf disaster has dropped off the radar….eventhough we know it’s still not safe to eat sea food from the Gulf.
You expect democrats to speak out about this ?
Obviously you haven’t been paying attention for the last couple of years.