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The BP Oil spill was one of the worst natural disasters to take place in US history. The resulting drilling moratorium that was imposed on the oil industry has only doubled the economic impact that the tragedy has had on those gulf state residents who rely on this industry to make their living and provide for their families. Permits for new drilling have only just begun and things are moving slowly. BP is not living up to its promises and the policies in place are only making things tougher on those affected by the tragedy.
One Gulf state resident, Thomas Clements the owner of Oilfield CNC Machining, in Broussard, LA has been outspoken about the impacts the BP spill and resulting moratorium have had on his small business. Mr. Clements recently did a piece that he has given permission to repost here so that he can express a firsthand account of this continuing tragedy to us. It is BP that should be held responsible and punished not people like Mr. Clements.
Punish BP, Not U.S. Energy Production and Economic Growth
By Thomas Clements
The President's Oil Spill Commission co-chairs will testify before Congress this week on their findings. Commission chief counsel Fred Bartlit released a report last month on the sinking of Deepwater Horizon in which he characterized the April 20 incident as "an entirely preventable disaster." His conclusions confirm what many have suspected all along: that BP has been an irresponsible safety outlier in American energy production for decades.
Mr. Bartlit's report details what personnel described as a "by the seat of our pants" mentality onboard the Deepwater Horizon. Employees were feeling pressure to hurry operations on a project already 38 days behind schedule and $58 million over budget. The report made clear that BP was more focused on finishing their assignment than with implementing standard safety protocols, or providing employees the training and information they needed to safely drill and operate the well.
This revelation of irresponsible, potentially criminal behavior by BP should act to acquit the rest of the oil and gas industry, and put the Gulf back to work. Yet the Obama Administration has issued only two deepwater permits, and to add insult to injury, one went to a well BP stands to substantially profit from as the majority owner. BP was also allowed to drill two relief wells after the spill in the Gulf, meaning they've played a part in all Gulf water drilling following the spill, while permits remain frozen for the safe and responsible players in the industry. While they profit, the future of Gulf businesses and others who appear to have been deemed collateral damage of the spill remain in limbo.
Now, this company which caused the worst environmental disaster in U.S. history appears primed to skirt any real accountability.
At a Houston Conference, BP CEO Bob Dudley apologized on behalf of the entire energy industry, trying to clean up their image by dragging everyone else into the mud. After the spill, instead of owning up to their responsibilities, BP invested $100 million in an image campaign to "Make it Right". Yet, despite these claims, it demonstrated callousness towards desperate workers and small business owners by forcing them to waive their rights to sue for paltry payouts of as little as $5,000 in hush money and refusing to compensate those affected by the moratorium altogether.
Unfortunately, instead of recognizing this blatant pandering and neglect by isolating the outlier for punishment, the federal government's industry-wide moratorium is costing our entire country jobs and economic activity. In fact, scrapped plans to develop additional U.S. energy resources following the spill will cost the country 250,000 jobs and $500 billion in economic activity; completely separate of the moratorium damages. Now, with the growing uncertainty in places like Egypt and Libya, the policies enacted as a response to the spill are jeopardizing our energy security as well.
Fuel prices are now near $3.50 a gallon across the country, yet potential production of 1.5 million barrels per day in areas already 'technically' open to exploration remain under federal lock and key. Instead of shrinking the energy industry, policymakers should be seeking ways to expand it. Increasing domestic production adds to the world supply of oil, ensuring that the international oil market does not experience extreme price fluctuations when a relatively minor producer faces political turmoil. And the benefits extend to the government as well.
A recent study by the research firm Wood MacKenzie suggests expanding offshore drilling has the potential to increase government revenue by up to $150 billion over five years. With all the debate in Washington regarding the deficit, the idea of more funding without higher taxes should be welcomed with open arms. Yet the disaster in the Gulf has ensured that these beneficial plans are off the table for the next half decade.
Lawmakers and regulators must finally end this saga of unnecessary damage to the economy by lifting the ban on energy workers and domestic energy development in the Gulf, and instead impose a drilling moratorium where it belongs: on BP.
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