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Tue, 2014-02-25 05:00Farron Cousins
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Gulf Of Mexico: Open For Dirty Energy Exploitation Again

It has been nearly four years since BP’s Deepwater Horizon oil rig explosion and oil disaster in the Gulf of Mexico, and neither the dirty energy industry nor politicians in Washington, D.C. have learned anything from that tragedy.  Even with new evidence showing that the entire ecosystem in the Gulf has been disrupted as a result of the oil spill, companies are about to receive a massive gift in the form of new oil drilling leases.

Both the Interior Department and the Bureau of Ocean Energy Management (BOEM) have agreed to lease 40 million acres of water space in the Gulf of Mexico next month to support President Obama’s “all of the above” energy policy, which is quickly beginning to look more like a “drill, baby, drill” policy.  The leases will be good for five years’ worth of exploration in the Gulf.

Fri, 2014-02-14 11:00Farron Cousins
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Oil Industry Profited Off Polluting Oil Spills, Fraud Investigation Underway

When an oil company’s negligence leads to an oil spill, the financial costs incurred by the company can be crippling.  They have to pay clean up costs, federal fines, and, in many cases, settlements to victims who have been affected by the spill.  Since these costs can be such a burden to the multi-billion dollar industry, they’ve figured out a way to recoup some of their losses by deceiving all the players involved.

Of course, these aren’t the massive oil spills that we’ve seen from Exxon and BP; these are the smaller ones that most people don’t hear about that typically occur when storage containers leak.  That’s where the industry has learned that oil spills can actually be good for their bottom line.

The scheme is known as “double dipping,” and it involves oil companies receiving both insurance funds for spill cleanup along with state funds to clean up oil leaks from underground tankers.  This allows the company to use funds for cleanup, and usually have a little left over to put in their pockets.

A new report by Reuters succinctly captures the essence of what’s happening in a single quote:  “When I first saw these cases, I thought this is kind of incredible,” said New Mexico assistant attorney general Seth Cohen, who handled the lawsuit for the state. “The oil companies have, in effect, profited off polluting.”

Fri, 2013-12-20 05:00Farron Cousins
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BP Attempts To Misdirect Public With Claims Of Fraud

Oil giant BP is again attempting to convince the public that the oil spill settlement process for their destruction of the Gulf of Mexico resulting from the 2010 Deepwater Horizon oil rig explosion and leak, is completely riddled with fraud.

The company filed a fraud lawsuit earlier this week to stop payments on the claim process while investigators look into the fraud allegations. According to BP, one of the law firms representing oil spill victims has been submitting and receiving payment for claimants who don’t actually exist. 

The specific payments that BP is hoping to stop come from the Seafood Compensation Fund, a fund that was set up to pay fishermen and others who rely on the seafood industry as their source of income. The company says that Louisiana attorney Mikal Watts has filed 648 claims on behalf of seafood industry workers, and that 8 of those have been verified as accurate with 17 more still pending approval. 

Watts’ attorney has fired back at BP, saying that Watts did nothing illegal during the spill process, and submitted the appropriate documentation for every spill claim that he has filed. BP insists that at least half of Watts’ clients don’t exist.

Mon, 2013-12-16 14:56Caroline Selle
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Carbon Emissions And Financial Risk Concentrated In 90 Top Emitters Responsible For 60% Of Emissions

A survey released last week indicates many major institutional investors, such as retirement funds and insurance companies, are putting their investments at risk by neglecting to address the negative financial impacts posed by climate change.

It’s no wonder that some of these investments are dicey when you consider the findings of another paper released last month, which indicated 90 companies are responsible for two-thirds of manmade carbon emissions. That’s not just a huge concentration of carbon emissions — it’s a concentrated dose of financial risk.

Published in the journal of Climatic Change, the report, “Tracing anthropogenic carbon dioxide and methane emissions to fossil fuel and cement producers, 1854–2010,” uses public records and data from the U.S. Department of Energy to calculate emissions based on the companies’ entire supply chains.

All but seven of the 90 companies identified are part of the fossil fuel industry.

Nearly 30 percent of emissions were produced by just the top 20 companies. Together, ExxonMobil, Chevron, BP, Royal Dutch Shell, ConocoPhillips and Peabody Energy, all investor-owned companies, are responsible for more than 13 percent of manmade carbon emissions.

These companies also have a disproportionate amount of political influence in North America. In the United States alone, ExxonMobilChevron and BP have contributed more than $12 million to lawmakers since 1999.

Half of the emissions traced by the report were produced in the last 25 years, when awareness of global warming was increasing. Concerted efforts to deny climate science and halt climate policy began in the early 1990s. As an updated Greenpeace report released in September 2013 shows, the climate denial machine has its roots in Exxon’s funding of front groups.

Mon, 2013-12-02 10:25Steve Horn
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Tar Sands' Next Frontier: Shipments on the Great Lakes

Great Lakes Tar Sands

The Great Lakes, drinking water source for over 40 million North Americans, could be the next target on tar sands marketers' bullseye according to a major new report out by the Chicago-based Alliance for the Great Lakes.

The 24-page report, “Oil and Water: Tar Sands Crude Shipping Meets the Great Lakes?unpacks a new looming threat to the Great Lakes in the form of barges transporting tar sands along the Great Lakes to targeted midwestern refinery markets. As the report suggests, it's a threat made worse by an accompanying “Wild West”-like regulatory framework.

“The prospect of tar sands shipping on the Great Lakes gives rise to fundamental social and economic questions about whether moving crude oil by vessel across the world’s single largest surface freshwater system is a venture this region wants to embrace, despite the known risks,” the report says early on.

Calumet Specialty Products Partners LP is one of the major corporations hedging its bets on moving tar sands along the Great Lakes — and oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin — and may begin doing so as early as 2015.   

“[I]ndustry observers and consultants speculate this crude could travel from Wisconsin across Lake Superior to Lake Michigan, and on to refineries in Whiting, Ind., Lemont, Ill., and possibly Detroit, Mich. near Lake Erie,” the report details. “Other potential destinations include Sarnia, Ontario on Lake Huron, or even an East Coast refinery.”

As a recent GasBuddy.com article explained, BP's Whiting, Indiana refinery - capable of refining far more tar sands crude with its Modernization Project - will soon open for business.

“Sources say that BP's modernization of the company's 405,000-b/d Whiting, Ind., refinery is on schedule with all units now operating,” the article explained. “That includes a brand new 105,000-b/d coker that will eventually allow the plant to use about four times as much heavy sour Canadian crude compared with it had used previously.”

Wed, 2013-10-23 05:00Julie Dermansky
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Gulf Shrimper Dean Blanchard of Grand Isle Sets the Record Straight About BP's Failed Cleanup

The second phase of hearings in the legal battle over the BP oil disaster in the Gulf of Mexico ended on October 17th. Following two weeks of testimony by the U.S. Department of Justice and BP, U.S. District Court Judge Carl Barbier will determine what quantity of oil was spilled into the Gulf. He will also decide whether BP was simply negligent or grossly negligent.

The Justice Department claims 176 million gallons of oil were spilled; BP argues that it only spilled 103 million gallons. Under the Clean Water Act and the Oil Pollution Control Act, Judge Barbier can fine BP and its partners $1,100 per barrel should he find they were negligent in their actions leading up to the spill and in the cleanup afterwards. The fine would rise to $4,300 per barrel if he finds the companies were grossly negligent or acted with willful misconduct, as the State Department alleges.

Using the State Department’s numbers, the fine could be $18 billion; if BP’s numbers are accepted, the fine could be $10.5 billion. 

The outcome of the case will play a role in all subsequent litigation around the BP disaster, including the case of Dean Blanchard, owner of Dean Blanchard Seafood, the largest shrimp buyer and wholesaler in the Gulf region. Blanchard's company in Grand Isle, Louisiana is all but shut down now. Blanchard keeps a small fraction of his staff employed – more of them than he needs to keep his dwindling operation going. He doesn't have the heart to make further cuts.

Blanchard estimates his company’s loss at over $100 million. He estimates that his business is now 15 percent of what it was before the spill. He keeps his doors open only because he can't bring himself to close down. He recently moved part of his business to a different area where some shrimpers are still able to harvest product, but he faces an uphill battle against BP, and an uncertain future, along with many other Gulf fishermen.

Dean Blanchard talks about the use of the chemical dispersant Corexit during the BP oil spill:

Tue, 2013-10-15 11:00Farron Cousins
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Justice Delayed For Mayflower Oil Spill Victims

As the government shutdown enters its third week, new and disturbing side effects are beginning to surface.  These adverse affects are arising from the U.S. court system, where federal prosecutors are unable to perform their day-to-day activities in many cases due to a lack of federal funding.

While this is bad news for American citizens, it is great news to oil giant ExxonMobil.  The federal prosecutors handling the case against Exxon for their Pegasus pipeline tar sands spill have been forced to request that the judge overseeing the lawsuits against Exxon delay the suit until government operations resume.

The U.S. attorneys and environmental investigators from the Justice Department and EPA are unable to work on the case due to the lack of funding.  According to the Associated Press, these workers are not even able to work on the case on their own time without pay, since it is a federal, not civil, suit.

In addition to the federal lawsuit, Exxon is currently facing at least $1.7 million in federal fines for the tar sands spill.  But again, as long as the government remains partially shut down, there is not enough staff to go around, and those fines will remain unpaid.  It is estimated that at least 94% of the entire EPA staff is currently furloughed as a result of the government shutdown.

This news is particularly disturbing for the residents of Mayflower, Arkansas, as they had worked very hard to get the lawsuit fast-tracked in the wake of the spill earlier this year.  The longer the shutdown lasts, the longer it will take for justice to be served against Exxon.  It also means that residents will go even longer without relief from the dangers affects of the diluted bitumen.

Mon, 2013-09-30 11:25Julie Dermansky
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Oil Blights Louisiana's Coast as Second Phase of BP Oil Spill Trial Begins

The toxic mess left in the wake of the BP Deepwater Horizon oil disaster continues to negatively impact Gulf Coast ecosystems as the second phase of the BP trial begins in New Orleans. 

Billions of dollars
are on the line in the trial following the explosion of the Macondo well that took 11 lives and damaged the Gulf Coast’s economic and environmental health.  

On September 27th, Plaquemines Parish Coastal Zone Director P.J. Hahn took a trip to survey some of the areas most devastated by the oil spill, including Bay Jimmy and Cat Bay. Oil remains in the marsh, and coastal erosion continues at an accelerated rate.  

Coastal erosion, a major environmental challenge even before the spill, became a bigger problem when oil washed onto the barrier islands, killing the roots of marsh grass and mangrove trees that helped to hold the land together.

Since the spill, Hahn has been documenting two barrier islands in Cat Bay that had active bird rookeries. The rookeries had been host to spoon bills, egrets and brown pelicans, the Louisiana state bird that only recently was taken off the endangered species list.

Wed, 2013-09-18 13:57Farron Cousins
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Whether Approved Or Not, Keystone XL Has Been A Victory For Lobbyists

For the past six years, lobbyists in Washington have made a killing shilling either for or against the Keystone XL tar sands pipeline.  And with no clear end in sight, the folks on K Street will continue to see a flurry of cash headed in their direction.

During last year’s heated presidential race, groups spent close to $16 million directly related to the Keystone XL pipeline, with most of that money coming from industry and other proponents of the pipeline.  While opponents of the pipeline spent a few million last year – with at least one million pledged this year to fight against KXL – the lion’s share of the money spent on lobbying comes from the dirty energy industry.

Bloomberg reported the following on how intense the lobbying showdown has been in recent years:

Sat, 2013-09-14 10:29Farron Cousins
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Republican Congressman Says Syrian Conflict A Boon For Keystone XL

Will the turmoil in the Middle East surrounding Syria expedite approval of the Keystone XL pipeline?  North Dakota Republican Senator John Hoeven believes it will.

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