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Sat, 2014-12-06 07:00Farron Cousins
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Contrary To BP PR, Most Oil Spill Claims Are Legit

For more than a year, oil giant BP has waged a massive public relations battle to convince Americans that the company has been bamboozled by the oil spill claims process relating to the 2010 Deepwater Horizon oil rig blowout.

This BP PR campaign has involved full-page newspaper ads paid for by the company suggesting it is being swindled by Gulf Coast residents who were not affected by the oil spill. BP spokesepeople have appeared in the media to argue that the claims process has been “absurd.” And evidence even suggests that the company has employed online “trolls” to attack legitimate victims on social media websites.

BP has spent hundreds of millions of dollars on this PR blitz, all because they want to avoid paying out any more claims to Gulf Coast residents. But the problem the company is running into now is that independent investigations have shown that the claims process is not rife with fraud, as BP has claimed.

At least 99.5% of the claims that have been filed are legitimate, according to an audit.

Mon, 2014-12-01 16:10Steve Horn
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State Department Keystone XL Contractor ERM Bribed Chinese Agency to Permit Project

Environmental Resources Management (ERM Group), the consultancy selected by TransCanada to conduct the environmental review for Keystone XL's northern leg on behalf of the U.S. State Department, is no stranger to scandal.

Exhibit A: ERM once bribed a Chinese official to ram through major pieces of an industrial development projectERM was tasked to push through the project in Hangzhou Bay, located near Shanghai.

Accepting the bribe landed Yan Shunjun, former deputy head of the Shanghai Municipal Environmental Protection Bureau, an
11-year prison sentence.

Yan “allegedly took bribes of 864,000 yuan (126,501 U.S. dollars), 20,000 U.S. dollars and 4,000 euros from seven contractors,” explained Xiuhuanet. “Yan was also accused of illegally setting up a channel to speed up environmental impact assessment processes, which are essential for companies wanting to build factories.”

BP, one of the companies standing to gain if Keystone XL North receives a presidential permit from the Obama administration as a major Alberta tar sands producer, was also mired in the Chinese ERM Group scandal. 

“Two firms on ERM's bluechip client list, BP and Sinopec, are big investors in a petrochemical complex on the site, but the Chinese authorities apparently saw no conflict of interest in awarding the environmental evaluation to ERM,” explained London's Sunday Times.

In a sense, history has repeated itself.

Wed, 2014-11-12 06:26Kyla Mandel
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Sacked Environment Secretary Dodges Question on Whether he Will Challenge Conservative Party Leadership

Owen Paterson dodged questions last night on whether he’s organising a challenge to the Conservative Party leadership in the run-up to next May’s general election.

The sacked environment secretary simply answered “it’s a private dinner, you better ask the organisers,” as he left an event discussing the future of the free market economy.

Wed, 2014-10-29 22:25Farron Cousins
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BP’s Bathtub Ring Of Gulf Oil Uncovered

Less than a week after Politico allowed BP communications vice president Geoff Morrell the space to tell Americans that there are no lingering effects from the BP oil spill in the Gulf of Mexico, scientists and researchers have brought in new evidence to show that Morrell’s claims are completely fabricated.

According to the peer-reviewed Proceedings of the National Academy of Science, millions of gallons of BP from the 2010 Macondo well blowout have settled along the floor of the Gulf of Mexico, creating a “bathtub ring” of oil around the site of the blowout.

How much oil are they talking about? Think Progress reports that about 10 million gallons of coagulated crude sits on the Gulf floor, blanketing an area of more than 1,235 square miles. To put that into perspective, Think Progress says that the oil on the floor is enough to completely cover the city of Houston, Texas, or the entire state of Rhode Island.

Wed, 2014-10-22 12:52Farron Cousins
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Politico Allows BP Exec To Mislead Public About Gulf of Mexico Oil Spill Impacts

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Geoff Morrell, the senior vice president of communications at BP, wants the whole country to know that the company’s negligence that led to the Deepwater Horizon oil geyser has not destroyed the Gulf of Mexico. And all of those fears about lost revenue and declining tourism along the Gulf Coast? That never happened, according to Morrell.

Politico allowed the BP executive to use its platform to spread some of the most egregious and misleading information about the health of the Gulf of Mexico that we’ve seen to date.

Granted, it is Morrell’s job as VP of communications to put a positive spin on such a negative story for BP, but his op-ed in Politico goes far beyond whitewashing the problem. Morrell has completely fabricated a story that those of us who live along the Gulf Coast spot just as easily as we can spot the BP tar balls that still wash up on our shores.

Tue, 2014-10-14 13:35Steve Horn
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Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Thu, 2014-10-02 00:45Brendan Montague
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How Lawson Sold BP - And How An Arab State Almost Got Control

Lord Lawson is a patriot. He believes himself to be a very wise man indeed. But his sale of BP to the private sector nearly handed the oil company to an Arab state and this means that today, governments cannot control carbon emissions.

The Hayek-inspired revolution was about to be completed as British Petroleum (BP) would be sold into private ownership.

BP had long been a sponsor of the Institute of Economic Affairs (IEA) which was crucial in raising Thatcher and Lawson to the crowning heights of the British state.

They would return the favour by now selling off the company, loosening it from the control of bureaucrats.

Ironically, the way Lawson conducted the sale would prove so controversial that BP itself would object and accuse the government of failing to get the best deal for the taxpayer.

Fri, 2014-09-05 12:00Mike Gaworecki
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Federal Judge: BP's "Willful Misconduct," "Gross Negligence" Led To Deepwater Horizon Disaster

A federal judge in New Orleans minced no words in handing down a ruling this week that found BP's “willful misconduct” and “gross negligence” caused the worst offshore oil spill in U.S. history.

The ruling is the result of a jury-less trial to determine who was at fault for the 2010 Deepwater Horizon disaster and oil spill. The trial was held by District Judge Carl Barbier in New Orleans.

A blowout at BP's ultra-deepwater Macondo well in the Gulf of Mexico on April 20, 2010 caused an explosion that took the lives of 11 workers on the Deepwater Horizon rig, which then sank to the bottom of the Gulf, some 5,000 feet below, leaving the well to spew oil for 87 days until it was capped.

Barbier rejected BP's assertion that Transocean, which leased the Deepwater Horizon rig to BP, and Halliburton, which was contracted by BP to do cement work on the well, deserved equal shares of blame. “BP's conduct was reckless,” Barbier wrote in his 153-page ruling. “Transocean's conduct was negligent. Halliburton's conduct was negligent.”

The judge assigned 67 percent of the fault to BP, 30 percent to Transocean, and 3 percent to Halliburton. According to Bloomberg, this makes BP liable for as much as $18 billion in fines. Having been found merely negligent, Transocean and Halliburton aren't facing such hefty punitive damages.

Sun, 2014-08-31 08:00Steve Horn
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Legal Case: White House Argues Against Considering Climate Change on Energy Projects

Just over a month before the United Nations convenes on September 23 in New York City to discuss climate change and activists gather for a week of action, the Obama White House Council on Environmental Quality (CEQ) argued it does not have to offer guidance to federal agencies it coordinates with to consider climate change impacts for energy decisions.

It came just a few weeks before a leaked draft copy of the Intergovernmental Panel on Climate Change's (IPCC) latest assessment said climate disruption could cause “severe, pervasive and irreversible impacts for people and ecosystems.”

Initially filed as a February 2008 petition to CEQ by the International Center for Technology Assessment, the Sierra Club and the Natural Resources Defense Council (NRDC) when George W. Bush still served as President, it had been stalled for years. 

Six and a half years later and another term into the Obama Administration, however, things have finally moved forward. Or backwards, depending on who you ask. 

NEPA and CEQ

The initial February 2008 legal petition issued by the plaintiffs was rather simple: the White House's Council for Environmental Quality (CEQ) should provide guidance to federal agencies it coordinates with to weigh climate change impacts when utilizing the National Environmental Policy Act (NEPA) on energy policy decisions. 

A legal process completely skirted in recent prominent tar sands pipeline cases by both TransCanada and Enbridge, NEPA is referred to by legal scholars as the “Magna Carta” of environmental law.

Magna Carta; Photo Credit: Wikimedia Commons

CEQ oversees major tenets of environmental, energy and climate policy. It often serves as the final arbiter on many major legislative pushes proposed by Congress and federal agencies much in the same way the White House's Office of Information and Regulatory Affairs (OIRA) does for regulatory policy. 

Thu, 2014-08-28 11:06Steve Horn
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Obama Opened Floodgates for Offshore Fracking in Recent Gulf of Mexico Lease

In little-noticed news arising out of a recent Gulf of Mexico offshore oil and gas lease held by the U.S. Department of Interior's Bureau of Ocean Energy Management, the floodgates have opened for Gulf offshore hydraulic fracturing (“fracking”).

With 21.6 million acres auctioned off by the Obama Administration and 433,822 acres receiving bids, some press accounts have declared BP America — of 2010 Gulf of Mexico offshore oil spill infamy — a big winner of the auction. If true, fracking and the oil and gas services companies who perform it like Halliburton, Baker Hughes and Schlumberger came in a close second.

Gulf of Mexico Oil Lease Map August 2014
Map Credit: U.S. Bureau of Ocean Energy Management

On the day of the sale held at the Superdome in New Orleans, Louisiana, an Associated Press article explained that many of the purchased blocks sit in the Lower Tertiary basin, coined the “final frontier of oil exploration in the Gulf of Mexico” by industry analysts.

“The Lower Tertiary is an ancient layer of the earth's crust made of dense rock,” explained APTo access the mineral resources trapped within it, hydraulic fracturing activity is projected to grow in the western Gulf of Mexico by more than 10 percent this year, according to Houston-based oilfield services company Baker Hughes Inc., which operates about a third of the world's offshore fracking rigs.”

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