Tuesday the BP oil leak got into the political arena when top oil business executives testified at a Hearing before the Senate Energy and Natural Resource Committee in New York. As the oil spill within the Gulf of Mexico 2010 continued, suits from BP, Transocean and Halliburton each blamed the other guy for the disaster within the Senate hearings. Based on a 5,000 barrels a day estimate, the BP oil leak has expected to have leaked a total of 105,000 barrels to date. That is a total of 4.4 million gallons and a lot more is coming.
BP oil leak circle of blame
In the Senate Hearing responsibility for the reason for the gulf oil spill was passed around the oil company executives like an instant loan. CNNMoney.com reports that BP had blamed Transocean, owners of Deepwater Horizon, the rig that sank on April 20, leaving 11 oil workers dead. Transocean in turn blamed BP for setting specifications for the well and called out Halliburton, the company that built the well’s cement casing. Halliburton completed this circle by blaming BP once more.
Gulf oil spill update
The oil spill within the Gulf of Mexico 2010 is wreaking much havoc. Accuweather.com reports that winds from the southeast threaten to push the gulf oil spill toward a lot more of the Louisiana coastline during the next few days. Winds into Thursday could push the gulf oil spill northwestward, either closer to or onto a large part of the coastline. The areas with probably the most risk to the oil slick are from Atchafalaya Bay to Louisiana’s southeastern most point. Places northwest of Breton Sound will even be threatened. There are numerous concerns deepening about hurricanes and also the possible drift of the BP oil leak in the Gulf of Mexico Loop Current, which passes through the Florida Straits into the Atlantic Ocean.
Shareholders sue as BP stock tanks
Thanks to the 2010 oil spill within the Gulf of Mexico, BP stock is tanking. The Wall Street Journal reported on May 3 that BP’s stock price has lost 14 percent given that the oil rig it leased exploded and sank — about $20 billion in market value. The New York Times has reported that BP will take a hit on future earnings if it has to hold off on future exploration and drilling when it deals with the spill, which may cost BP at least $8 billion. The Associated Press reports that a BP stock holder has filed suit against the corporation’s top executive accusing them of pursuing their own cost-cutting measures at the expense of safety, while lobbying government authorities to decrease all of the safety regulation.
Finger points within the BP oil leak
Executives testifying to lawmakers about the BP oil leak sought to absolve themselves from responsibility. Chairman and President of BP American Lamar McKay said, in blaming Transocean, Transocean was responsible for the safety of drilling operations. It was reported by CNNMoney.com that McKay tried to divert the lawmakers’ attention to the blowout preventer valve that failed, saying it was owned by Transocean. In written testimony, Transocean said there was likely a failure of the well’s cement casing that was installed by Halliburton. Halliburton says it was either Transocean’s fault for a faulty blowout preventer or BP’s fault because of their well specifications.
The Gulf oil spill and BP’s poor safety record
Based upon off of BP’s horrible safety record, the oil spill within the Gulf of Mexico was bound to happen. The Guardian reports that BP has a recent history of disasters stemming from incomplete maintenance and faulty equipment, including a blast at a refinery in Texas City, Texas, in 2005 that killed 15 workers. A spill occurred in Alaska in 2006 just after BP was warned of a corroded pipeline. BP pleaded guilty to both of these incidents. In just the last few years BP has paid around $485 million in fines and settlements to the U.S. government for environmental crimes, neglect of worker safety rules and penalties for manipulating energy markets.
Resources
CNNMoney.com reports
http://money.cnn.com/2010/05/11/news/companies/BP_hearings/?npt=NP1
Accuweather.com
http://www.accuweather.com/
Associated Press reports
http://blog.al.com/press-register-business/2010/05/bp_shareholder_sues_executives.html
Guardian reports
http://www.guardian.co.uk/environment/2010/may/05/congressman-bp-safety-oil-spill
