tag:blogger.com,1999:blog-6867343265106830137.post3829729189935159082..comments2023-07-19T05:26:41.766-07:00Comments on RYviewpoint: Trying to Size the BP DisasterRYviewpointhttp://www.blogger.com/profile/06689453255540643963noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6867343265106830137.post-66368848816487580532010-05-05T10:45:33.913-07:002010-05-05T10:45:33.913-07:00Thomas: Thanks for the link to the video.
It is g...Thomas: Thanks for the link to the <a href="http://readersupportednews.com/video/4-video/1639-dick-cheneys-role-in-oil-catastrophe" rel="nofollow">video</a>.<br /><br />It is good to see the "drill, baby, drill" chant replaced by the more realistic "spill, baby, spill". That is a needed toning down from the Cheney et al, enthusiasts.<br /><br />But I do worry that Obama's message at 1:05 into the video is lost: "I continue to believe that domestic oil production is an important part of our overall strategy for domestic security".<br /><br />That is key. The fanatics on one side go "drill, baby, drill" and on the other side they want to "shut it down". The oil is needed.<br /><br />Domestic oil production is needed to prevent dollars flowing to the Middle East and into terrorist hands.<br /><br />So people need to be realistic and accept the need to drill, but drill responsibly. The good news is this video "officially" takes this responsible view, but it <b>caters</b> to the crazies who want to "shut it down".<br /><br />It is useful to point out that there was an automatic shutoff that wasn't used and Cheney was the facilitator of this "budget saving" strategy through the idiotic <b>deregulation</b> pushed by the Bush administration on Wall Street, in oil fields, in food safety, etc.<br /><br />But I can assure you that after this $30 billion accident, no oil company will ever try ocean drilling without an automatic blowout preventer. Nobody running a major oil corporation will ever take this "shortcut" again.RYviewpointhttps://www.blogger.com/profile/06689453255540643963noreply@blogger.comtag:blogger.com,1999:blog-6867343265106830137.post-55581965123597875622010-05-05T05:05:30.056-07:002010-05-05T05:05:30.056-07:00RY;
I read this morning that a backup shutoff sys...RY;<br /><br />I read this morning that a backup shutoff system is required in other countries and would have cost only $500,000. <a href="http://readersupportednews.com/video/4-video/1639-dick-cheneys-role-in-oil-catastrophe" rel="nofollow">Here</a> is a link to that story.. Good ole Dick Cheney had his hand in this disaster, too.Anonymoushttps://www.blogger.com/profile/18066585661702469034noreply@blogger.comtag:blogger.com,1999:blog-6867343265106830137.post-21546838764265238672010-05-04T09:27:43.772-07:002010-05-04T09:27:43.772-07:00Thomas: You are right. Management should have trea...Thomas: You are right. Management should have treated their exploration cautiously and backed it up with insurance. But rather than simply buy a policy, they needed to invest in the best possible drilling and safety practices. Deep sea drilling is not a well-established practice so there are unknowns. BP has now discovered this. But management should have realized the risks. I guess that over the next year or two insider tales will leak out and we will get an idea of their thinking.<br /><br />I'm expecting heads to roll in the company. This was a big expensive mistake. A lot of shareholders are not going to be happy to see that 17% of their investment just "went up in smoke" because of a bad, bad management decision to cut corners.<br /><br />Maybe management can fend off the shareholders by explaining that they did the best technically feasible. But if that is so, that will mean governments will stop deep sea drilling. The costs are too high for the benefits expected.<br /><br />Ordinary citizens don't get a direct say in how BP behaves. Shareholders supposedly control it, but it is indirect via annual voting where the board decides who to put up as candidates. This makes typical political elections look like real democracy.<br /><br />But over time, this impact will find its way into the boardroom. Shareholders will vote their unhappiness. Even more important, governments will vote their unhappiness by layering on more regulation and restriction and costs.RYviewpointhttps://www.blogger.com/profile/06689453255540643963noreply@blogger.comtag:blogger.com,1999:blog-6867343265106830137.post-9872090500253696562010-05-03T21:28:47.232-07:002010-05-03T21:28:47.232-07:00One thing that comes to mind is that they should h...One thing that comes to mind is that they should have acted like an insurance company and assessed the risks and costs of a disaster like what is unfolding right now. I think everyone involved should have looked at it from a perspective of "what if the most unlikely thing happens" and planned on the financial burdens and of course the disaster plans would have been nice. That is why companies have insurance; for the things that might happen... Going forward, I am sure that these companies that do this will have this event in mind and will plan for paying for the liabilities. This disaster, if it goes the worst of possibilities will be a burden for all of us for many years to come. But, it also brings to light the real and potential costs of getting our oil from deep sea drilling.Anonymoushttps://www.blogger.com/profile/18066585661702469034noreply@blogger.com