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Thread: You thought ours was the ONLY huge oil disaster

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    Default You thought ours was the ONLY huge oil disaster

    Here's another. In a third-world country where government is small, just like the "libertarians" like it. It's what happens when laws are lax.

    http://www.newsweek.com/2010/07/18/o...ica.print.html

    Oil’s Shame in Africa

    In Nigeria, spills are weekly events.


    It was hard to believe BP when it announced oil had stopped gushing into the Gulf of Mexico on Thursday, July 15. It had taken 87 days. There was relief but little jubilation: it will take many years to clean the shores and the birds, and for the sea to begin to repair itself from the onslaught of poisonous oil. Surely we can no longer call it a “spill”—it seems too light and trite a word.

    What’s even more troubling is that in Nigeria, the country that has arguably suffered most from oil drilling, oil “accidents”—large and small—occur almost weekly, and we hear little about it. A lethal combination of sloppiness, corruption, weak regulation, and lack of accountability has meant that each year since the 1960s, there has been a spill the size of the Exxon Valdez’s into the Niger Delta. Large purple slicks cover once fertile fields, and rivers are clogged with oil leaked decades ago. It has been called the “black tide”: a stain of thick, gooey oil that has oozed over vast tracts of land and poisoned the air for millions of Africans. In some areas fish and birds have disappeared: the swamps are silent.

    Americans consume a quarter of the world’s oil—and 10 percent of the oil we consume comes from Nigeria. Why are we not worried and angry about this? Or at least demanding global accountability from companies we support? Especially now that we can see how destructive it is for those who depend on the sea for their livelihood, how foul the impact is, and how devastating the results of poor decisions and ill-equipped response teams are.

    Many Nigerians watched, amazed, as Americans berated BP for the Deepwater Horizon spill, then saw progress: our president visited the site and demanded immediate action and compensation. Not so in Africa. According to a group of independent experts, between 9 million and 13 million barrels of oil have been spilled in the Niger Delta since drilling began in 1958. Cleanups have been halfhearted, and compensation has been paltry. The Nigerian government estimates that 7,000 “spills,” large and small, occurred between 1970 and 2000. Locals complain of sore eyes, breathing problems, and lesions on their skin. It’s sickening stuff: a 2009 Amnesty International report found many have lost basic human rights—health, access to food, clean water, and an ability to work. Today about 2,000 oil-polluted sites still need cleaning up.

    Eco Catastrophes
    There are many reasons this has occurred: sabotage, faulty equipment, corroded infrastructure. The regulations are weak, rarely enforced, and there are few punitive measures to ensure that spills are managed, monitored, and cleaned up. The oil companies are, effectively, asked to self-regulate. The new Nigerian president, aptly named Goodluck Jonathan, has promised to hold them accountable, but the regulatory agencies are toothless, weakened by decades of rule by corrupt dictators who acted in concert with oil companies and siphoned off much of the oil wealth (80 percent of the state’s revenue comes from oil). The money that has come from oil drilling in Nigeria—$600 billion so far—has gone to very few; most Nigerians live in extreme poverty.

    So this has been happening, in Africa, for decades, as our motors purr and air conditioners hum, and we have barely blinked. As Prof. Rebecca Bratspies from CUNY School of Law says, “Problems associated with oil production are usually invisible to those of us who consume vast quantities. We don’t see how dirty it is. [The gulf] is a more extreme version of daily events in Nigeria, where the oil companies have had a complete and total disregard for the environmental implications of their actions.”

    Obama asked that $20 billion be set aside to cover cleanup costs in the gulf. Will it be enough? How much would companies like Shell and ExxonMobil have to pay if Africa were well regulated and proper compensation demanded for the loss of livelihoods, illness, and damage to the environment?

    This is the perfect time to assess oil-industry practices. America should lead a push to ensure global scrutiny and monitoring of oil drilling, on- and offshore. It’s messy and will never be entirely safe, but why should we accept different standards for countries with less money and clout? Global companies should develop adequate global response and compensation mechanisms.

    One simple but clever idea from Bratspies is that we, through worldwide coordination, ensure that oil companies cannot drill unless they have the proven technology and capacity to respond to leaks, saboteurs, and explosions. If we made it a requirement, it would lead to a “tremendous spur in innovation in clean-up technology.” That’s something every country would benefit from, rich or poor.
    <end>
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    Ya know, lowering cost to consumers by lack of control over big corporations doesn't just lead to lowered prices; there are also large environmental and human effects. Large corporations make their profits by exploiting everything they are allowed to exploit. If profit is the ONLY motive, everything else will take a back seat to just that. Too bad that we wealthy people do not acknowledge that fact.

    Maybe, to a few of us, seeing the devastation caused by the BP disaster will cause us to think about just how much cheap prices really cost.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Banned Melonie's Avatar
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    Default Re: You thought ours was the ONLY huge oil disaster

    I have been posting Gulf Oil Spill related stuff in the lounge, because the economic aspect fell short of the Dollar Den's 50% minimum . But yes there are large number of costs involved with the concept of shifting oil production out of the Gulf and into African / other countries.

    To begin with, when a barrel of oil is pumped from the Gulf, both the US gov't and a state gov't receive some portion of the $70 per barrel or whatever price the oil carries. Thus when a US consumer purchases gasoline / heating oil produced from that domestic barrel, some portion of the US consumer's dollars flow to the US gov't and a state gov't. In contrast, when a barrel of oil is pumped in Nigeria, the US gov't and state gov'ts don't receive a nickel. And when a US consumer purchases gasoline / heating oil produced from that imported barrel, the vast majority of the US consumer's dollars flow to an African quasi-dictator, corrupt African politicians, as well as global oil companies.

    I would also point out that every oil rig that relocates from the Gulf to the African coast also means the loss of hundreds of US jobs ... both in direct well operations employees and for companies that offer support services. And the US federal gov'ts repeated attempts to ban offshore drilling in the Gulf are already having the predicted effect ...

    (snip)"WASHINGTON — Diamond Offshore announced Friday that its Ocean Endeavor drilling rig will leave the Gulf of Mexico and move to Egyptian waters immediately — making it the first to abandon the United States in the wake of the BP oil spill and a ban on deep-water drilling.

    And the Ocean Endeavor's exodus probably won't be the last, according to oil industry officials and Gulf Coast leaders who warn that other companies eager to find work for the now-idled rigs are considering moving them outside the U.S.

    Devon Energy Corp. had been leasing the Endeavor to drill in the same region of the Gulf as BP's leaking Macondo well, which has been gushing crude since a lethal blowout April 20.

    But Diamond announced Friday it will lease the rig through June 30, 2011, to Cairo-based Burullus Gas Co., which plans to send the Endeavor to Egyptian waters immediately."(snip)

    from

    Thus ostensibly preventing additional environmental damage to the Gulf will ultimately result in the loss of tens of thousands of high paying US jobs and many billions of dollars in additional foreign trade deficit as domestic oil production drops forcing additional US purchases of foreign oil. And as exemplified by Nigeria, it is probable that MORE environmental damage will occur on a global basis, because 3rd world production is far less encumbered by environmental / worker safety / other gov't regulations than US production was / is. Thus the only 'important' difference is that such environmental damage / unsafe working conditions etc. would be taking place on the other side of the world instead of on US nightly news !


    And on the subject of the US gov't attempting to 'control' multinational corporations, in reality all the US gov't can do is make the 'costs of doing business' in the US so high that these corporations decide to move operations ( and jobs ) beyond US jurisdiction. Short of a 'New World Order' with some sort of global governance and uniform laws / codes / restrictions applying equally around the globe, this is NOT going to change.

    ~
    Last edited by Melonie; 07-18-2010 at 10:19 AM.

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    Default Re: You thought ours was the ONLY huge oil disaster

    ^^ This is the problem with over-penalizing companies for these spills. And that is exactly the reason for anticipating huge spills/leaks and developing/testing effective techniques of recovering/capping etc.

    This preparation, though, is precisely what they oil companies have not done individually, and that is why the current Gulf disaster has lasted so long. We can expect with some regularity similar disasters in every oil region; things do not go perfectly well all the time and mistakes/sabotage/whatever will continue to occur. For this reason, the industry world-wide should be forced, if necessary, to do whatever is necessary to develop/test/implement such a systematic response team for every under-sea active oil region, through an industry-wide consortium.

    I have seen a couple of very recent hints that the concept is beginning to be considered. I hope I'm not the only one who promotes this idea into reality.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    For this reason, the industry world-wide should be forced, if necessary, to do whatever is necessary to develop/test/implement such a systematic response team for every under-sea active oil region, through an industry-wide consortium.
    Since this is a VERY economic subtopic, let's keep going ...

    Arguably such an industry-wide consortium was already in existance at the time of the BP well blowout. For example, the Dutch Gov't and Shell Corp. offered America the use of a whole bunch of North Sea based specially equipped skimmer / sucker / fire boom ships THREE DAYS after the blowout. The US gov't rejected this offer, and other offers of internationally based aid, for TWO MONTHS.

    The gov'ts basis for rejecting this promptly offered and badly needed assistance was the US federal 'Jones Act' ... which requires that only US flagged ships and US based crews ( and contractors ) be allowed to operate in US territorial waters. In other words, by insisting that the 'Jones Act' be followed to the letter ( despite a ton of precedent i.e. GWB waiving it for Hurricane Katrina relief ), the gov't chose to protect US union jobs at the risk of greatly exacerbating the eventual environmental damage to the Gulf and eventual economic damage to to non-union fishermen, tourist related US service workers, etc. Of course, the gov't also expects that BP will 'pick up the tab' for the latter.

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    Default Re: You thought ours was the ONLY huge oil disaster

    Yes, this was one of the big mistakes of our government leading up to the present situation;it was short-sighted apparently because of the lack of belief that a precedent that this could turn into such a huge disaster. Well, the precedent is now set so that is no excuse any longer.

    My point is that every oil region (North Sea, Gulf, Alaska, Kuwait, California etc)) should have a fast response system. In that case the Jones Act would be of no consequence unless more assistance is required than was available in that particular region. This of course would include legal provisions for assistance covering such obstacles as the Jones Act and whatever FTC obstacles are in the way as offshoots of the pricing collusion of the late 50s (Westinghouse, GE etc) and foreign laws. To my way of thinking laws are made to serve mankind, not mankind serving it's laws, so that rescindments and waivers should be allowed for huge disasters.

    Each region should have enough bailments held to assure that there are no financial hindrances in the response system. Further, regions should readily be able to share resources, unless they are committed to another oil disaster in that region. This would be similar to electric utilities sharing repair crews when one service area is inundated with a huge disaster such as hurricanes, ice storms, tornadoes etc.

    The one good thing about this disaster is that it may prepare the world for improving its response capability for future disasters.

    In the long run this concept will save a lot of money, likely much more than its cost. and it will send a message to other industries (eg refineries, chemical plants) that they need to develop comprehensive emergency plans and be aware of potential safety problems in their plants. It is only now for the Bhopal disaster in India, which cost Union Carbide its existence, that prosecutions are becoming active. Industry has a long way to go to become responsible for its errors because we irresponsibly allow it ao much leeway.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    ^^^ nice in theory but can't happen in the real world. If the US gov't forces oil companies to pony up billions of their own money to equip and staff 'rapid response' teams that produce no revenue, the oil companies will take those billions and invest them in new caribbean island refineries / african oil wells instead. This would solve the problem of future US spills ... by transferring all of the spill risk to the caribbean islands and african oil wells ! And obviously such a move would trade high paying US jobs at refineries and oil rigs for lower paying similar jobs on caribbean islands and in africa, as well as trading expensive US environmental compliance costs for marginal environmental compliance costs on caribbean islands and in africa ! Thus instead of pumping and refining it's own domestic oil, America would be importing refined gasoline / diesel fuel / heating oil ( at even higher prices).

    In very simple terms, the regulations you are proposing will exert the same pressures on the US oil industry that similar regulations already exerted on ( what's left of ) the US manufacturing industry - with a high probability of a similar end result.

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    Default Re: You thought ours was the ONLY huge oil disaster

    It certainly would take world-wide cooperation. Now that the disaster is hot news, now is the time to start this process.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    ^^^ some of the most ardent 'liberals' aren't yet ready to support the one world government concept necessary to implement such a plan by force. And China, India etc. have very vocally rejected the possibility of 'co-operating' if it means that 'co-operation' involves losing their cost advantage ( made possible by environmental nastiness / relatively unsafe working conditions etc. ). Thus in a real world scenario, as long as there is some corner of the world available that offers economically favorable conditions ... be it oil drilling or manufacturing or taxation ... that corner will become 'crowded'

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    Default Re: You thought ours was the ONLY huge oil disaster

    Apparently big corporations love low-cost irresponsible governmental policies.

    Is it any mystery that many people loathe big, protected corporations?
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    It doesn't take a one-world government to get cooperation between countries. That's just a negative attitude going to an extreme to justify itself.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: You thought ours was the ONLY huge oil disaster

    ^^^ yeah well, explain that to the Swiss, for example - who have repeatedly rejected the US / German driven pressure to throw bank secrecy overboard ! Tell that to India and China - who have repeatedly rejected the US / Western European pressure to adopt global warming mitigation. The inconvenient truth here is that there are many, many countries who do not see 'eye to eye' with the US / Western European countries on a wide range of issues.

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    Default Re: You thought ours was the ONLY huge oil disaster

    Last time I looked at a world map Switzerland was no closer to the sea or any other oil reserves than the first time I ever looked at such a map. (Swiss banks, what an obvious sham.) China and India are extremely self-concerned with their huge population pressures and opportunities for politicians to enrich themselves. But pressure can be brought to bear.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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