Investigation

Wed, 2012-12-12 12:05Farron Cousins
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Internal BP Emails Could Expose Extent Of Corporate Cover-Up Of Gulf Oil Disaster

Attorneys for Kurt Mix, a former engineer for BP, claim that a spate of previously unreleased emails will “exonerate” their client in the current criminal case being pursued against Mix. Mix is the first person in the wake of the Deepwater Horizon oil rig explosion and leak to be brought up on criminal charges for his role in the cover-up of the extent of the oil leak in the Gulf of Mexico.

Earlier this year, the U.S. Department of Justice formally charged Mix with obstruction of justice for allegedly destroying evidence, specifically text messages, relating to how much oil was flowing from the broken wellhead in the Gulf.  The amount of oil flowing into the Gulf waters determined the size of the fines that BP would face from the federal government, so the company could have benefited substantially from under-reporting the true volume of the flow rate.

The new emails that will be released during Mix’s criminal trial allegedly show that Mix repeatedly warned his superiors at BP that they were under-reporting the true scope of the spill to the government and the media, undermining the federal government’s case against Mix.  While these emails could show that Mix did the right thing in one arena, it is unlikely that it will “exonerate” him, as his attorneys claim.  After all, the charges against Mix are for deleting text messages related to the disaster, which were evidence.

The one thing that is almost guaranteed from these emails, assuming they exist in the form that Mix's attorneys are claiming, is that they could expose the cover-up by BP executives, and tell the story of how they intentionally misled everyone about the nature of their oil geyser. And given what we already know, it seems incredibly likely that the oil giant's leadership knew from the start how much oil was flowing from the broken wellhead.

Wed, 2012-05-30 08:35Brendan DeMelle
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What Chesapeake Energy's Financial Scandals Mean For The Rest of Us

Given radioactive wastewater, earthquakes, and flammable tap water, one might think that drilling and fracking could not possibly have any more dirty secrets. But here’s the biggest secret of all: it’s expensive.

With natural gas at historic low prices – the Wall Street Journal ran a column recently suggesting that the price of gas might even sink to negative numbers, so that producers would need to pay buyers to take it off their hands – it may seem odd to think that fracking is costly. But it’s true. Not just in terms of its environmental footprint, but also in terms of its financial costs.

And everyone should care about how expensive gas is, especially those concerned about energy security and the environment, because the answer will determine the fate of renewables, the way we use land and water, and whether our nation’s energy policies are fundamentally sound.

To understand what’s going on, you need to look at Chesapeake Energy, the second largest producer of natural gas in the US, the company described by its founder and CEO Aubrey McClendon as the “biggest frackers in the world.”

For 19 of the past 21 years, the company has operated at what investors call “cash flow negative” – last year by $8.547 billion dollars – meaning that Chesapeake has consistently spent a whole lot more than it earned. For decades.

To fund all that fracking, the company has been flipping land, engaging in so many financial transactions that it’s been said to resemble a hedge fund more than a gas driller.

McClendon's company has become the environmental Enron, with Chesapeake's accountants creating some of the most labyrinthine and impenetrable books since Enron, according to some investors.

Tue, 2012-04-24 13:08Farron Cousins
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Justice Department Files First Criminal Charges In BP Oil Disaster Probe

The U.S. Department of Justice has filed its first criminal charges into their investigation into the cover up of BP’s oil geyser in the Gulf of Mexico. The charges have been filed against Kurt Mix, a former engineer for BP, for allegedly destroying evidence related to the oil flow estimates from BP following the Deepwater Horizon oil rig explosion.

The investigation has been ongoing since August 2011, when the Justice Department announced that they would be looking into the series of abnormalities related to BP’s estimates of exactly how much oil was flowing from their broken well head on the bottom of the Gulf floor. Official estimates say that close to 5 million gallons of oil were released as a result of the Deepwater Horizon explosion.

Mix is accused of deleting messages that federal officials had requested during their investigation. Mix was a member of the team working on the official flow estimates at BP, meaning he had access to all of the information regarding the spill as it was occurring. BP officials claim that they told Mix to retain all his messages, but he deleted them anyway in October 2010. From CNN.com:

Thu, 2011-11-17 19:22Farron Cousins
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Brazilian Officials Investigating Chevron Oil Spill Off Coast

Law enforcement agencies in Brazil announced today that they would begin investigating the cause of an oil spill that occurred off the coast. Chevron's Frade Well off the coast of Brazil has been leaking for more than a week. From the start, Chevron tried to downplay the significance of the spill, suggesting it had natural causes, but Brazilian officials are now saying that Chevron did, in fact, cause an oil spill.

Mike G at The Understory lays out the story:

Brazil’s Federal Police agency has announced that it is investigating the spill, and said in a statement that those responsible could be facing up to 5 years in prison…After Chevron tried to blame it on natural seepage for a week, officials have confirmed that the oil spill off the Brazilian coast is in fact the result of Chevron’s operations at its Frade well.

Echoing last year’s Gulf of Mexico oil disaster and BP’s defensive and often misleading public communications during that disaster, Chevron has continuously downplayed and underestimated the amount of oil that has leaked out of their well (which, according to the company, was sealed today). The oil giant claims that the amount of oil leaked out of the Frade well was somewhere between 400 and 650 barrels of oil, with only about 65 barrels worth of oil remaining on the surface of the water after a week of natural dissipation and the application of chemical dispersants.

However, independent analyses performed by organizations tell a different story.

Wed, 2011-01-19 18:19Farron Cousins
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New Congress Wastes No Time Undoing Climate Progress

We all knew that the new Republican majority in the House of Representatives wasn’t going to be friendly to the environment, but none of us expected the fight to start so soon. Rep. Fred Upton (R-Mich), the new Chairman of the House Energy and Commerce Committee, announced today that his committee will be taking on the EPA with gusto.

In a document making its rounds among Republican lawmakers, Upton claims that the EPA has put a “chokehold” on businesses by regulating their emissions and pollution. The Hill obtained a copy of the document titled “Key Issues before the Committee on Energy and Commerce 112th Congress [PDF], which contains the following:

“We believe it critical that the Obama administration ‘stop’ imposing its new global warming regulatory regime, which will undermine economic growth and U.S. competitiveness for no significant benefit…The EPA is regulating too much too fast without fully analyzing the feasibility and economic and job impacts of the new rules.”

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