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Three more reasons for the President to take over BP’s Gulf operation

Robert Reich, professor of public policy | June 8, 2010

1. Why hasn’t BP moved more of its rigs and tankers to the site? Because BP’s first responsibility is to maximize shareholder value, and moving more rigs and tankers would be too expensive. Coast Guard Admiral Thad Allen, the government’s man on the scene, said BP planned to move another rig to the spill site June 14, which would enable the company to boost its capacity to collect oil from the ruptured well to 28,000 barrels (1.18 million gallons/4.45 million liters) a day.

2. Why isn’t BP leveling with the American people about how many barrels of oil is gushing into the Gulf? Because BP’s first responsibility is to its shareholders, and a bigger leak means more liability. Government scientists estimate the leak spews 12,000-19,000 barrels a day, with one estimate as high as 25,000 barrels. BP says it’s not nearly this much.

3 Why isn’t BP acknowledging a huge plume of oil developing deep under water? Ditto. On Tuesday, National Oceanic and Atmospheric Administration researchers reported subsurface oil as far as 142 miles from the leaking Gulf well, the first clear confirmation of such a plume. On Wednesday, BP rejected the report, insisting that it has not found any significant concentration of crude under the surface. “We haven’t found any large concentrations of oil under the sea. To my knowledge, no one has,” BP Chief Operating Officer Doug Suttles said on NBC’s TODAY show.

This article was originally published in Robert Reich’s blog.

Comments to “Three more reasons for the President to take over BP’s Gulf operation

  1. It really is a sorry state of affairs – rest assured that just because BP has British in their name their views are not supported by the British public. We are appalled by their treatment of the situation.
    On a personal note we run sailing courses off UK coast and in the Solent should something like this happen there, it could be disastrous for us. I hope that the businesses affected get properly compensated.

  2. Why didn’t the President allow the Dutch skimming equipment to be brought in on the third day when it was offered? He’s mad only that his poll numbers are suffering.

    I don’t think all the blame has to go on BP’s shoulders. Remember the President said he is in control of this situation!
    This could have happened to any of the oil companies.

  3. What do we need? Oil; When do we need it? Now; Why isn’t the President “Mad as H… and not going to take it any more”? Because he and many of us understand the government has a poor record of getting anything done. Like most addicts we tend to worry about our next fix, weather that be a tank of gas, flight to Disneyland or cold beer with dinner and we don’t want to p… off our pushers. We need BP, Exxon, Chevron, Valero more than they need us because the rest of the world represents a market yet to be exploited. The current spill is a regional disaster that to will pass, lets not get too crazy and grease the goose (industry) that gave us the golden eggs of fertilizer, plastics,chemicals,heat, cool,freedom to travel, the ability to live in the burbs and to hope that EBI will figure out how to make more product for us before Mother Nature’s cupboard is bare.

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