The BP oil leak made its way into the political arena Tuesday when top oil company executives testified at a Hearing before the Senate Energy and Natural Resources Committee in New York. As the 2010 oil spill within the Gulf of Mexico continued unabated, suits from Transocean, BP, and Halliburton all blamed the other guy for the disaster in the Senate hearings. Depending 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 more is coming.
Oil leak for BP and also the circle of blame
Responsibility for the cause of the gulf oil spill was passed among the oil company executives like an instant loan in the Senate hearings. CNNMoney.com reports that BP ended up blaming Transocean, owners of Deepwater Horizon, the rig that exploded and sank on April 20, leaving 11 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 of blame by then blaming BP.
Gulf oil spill update
The oil spill within the Gulf of Mexico 2010 is wreaking much havoc. Accuweather.com explains that there are winds from the southeast threatening to push the gulf oil spill toward a lot more of the Louisiana coastline during the next few days. The spill may be pushed northwestward which can be either closer to or on the coast land. Areas at greatest risk to the growing oil slick are from Atchafalaya Bay to Louisiana’s southeastern most point. Places northwest of Breton Sound will also be threatened. Concerns are very much deepening about hurricanes and the possible drift of the BP oil leak in the Gulf of Mexico Loop Current, which ends up passing through the Florida Straits to the Atlantic Ocean.
Shareholders sue as BP stock tanks
BP stock has taken a massive hit thanks to the oil spill in the Gulf of Mexico in 2010. The Wall Street Journal reported on May 3 that BP’s stock price has lost at least 14 percent given that the oil rig it leased 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 while 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 that testified to lawmakers about the BP oil leak tried to get from responsibility. In blaming Transocean, chairman and President of BP America Lamar McKay said 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.
BP’s poor safety record
The Gulf oil spill was bound to happen depending on BP’s horrible safety record. The Guardian reports that BP has a history of disasters that stem 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 felony counts within the Texas blast and a misdemeanor charge in the Alaska oil spill. In the last few years BP has paid $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
