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Archive for the ‘BP’ Category

Congressional Bill May Limit BPs’ Ability to Pay for Damages

Posted by Steve Markowitz on September 3, 2010

The New York Times today published a story that offers a simple lesson in economics, which all but the Progressives in Washington would already understand.  In a kneejerk reaction typical of politicians, the Congress is trying to punish BP in a way that may inhibit its ability to pay for damages caused by their oilrig explosion in the Gulf of Mexico.

With great fanfare, President Obama brought BP executives to the White House on June 16 and got the Company to commit to putting $20 billion into an escrow fund to pay for damages to individuals and businesses affected by the disaster.  But, there are strings to this plan.  First, BP doesn’t have that cash available.  They must sell assets to get some of it.  In addition, the funds are to be placed in the escrow amount over four years. These funds are to come from Company’s future earnings.  Obviously if BP doesn’t have the earnings, they will not be able to pay this bill.

Now comes Progressive Congressman George Miller, Democrat of California and close ally of House Speaker Nancy Pelosi.  He has added a provision to a drilling bill being considered by Congress that would bar companies from drilling in the Gulf if that company had more than 10 fatalities and/or was penalized with fines of $10 million or more in a seven-year period.

The Miller amendment would only bar one company, BP, from drilling in the Gulf.  Since BP gets 11 percent of its global oil and about $6 billion of its annual profits from its Gulf oil, the effects on BP’s finances will be substantial and likely impact its ability to pay the bill.

The opposing directions being taken towards BP are typical of inept governments.  Each agency or division within a government has its own interests that they focus on and this results in tactical polices that cause more overall harm than benefit.  In this case, Obama focused on getting BP to pay for damages and his Democrat alley in the Congress, Miller, wants to punish them in a way that hinders Obama’s goals.

Remarkably, the repeated stories of inept government continue to be ignored by Progressives.  In fact, they watch the failures and still demand even more government.  If Einstein was correct when he defined insanity as “Doing the same thing over and over again and expecting different results”, then these Progressives are indeed insane.

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Posted in BP, Government Ineptness, Oil Spill | Tagged: , , , , , , , , , , , , , , | Leave a Comment »

Energy Secretary Chu Claimed BP will Help Save World

Posted by Steve Markowitz on June 23, 2010

President Obama publically referred to Energy Secretary Chu’s Nobel Prize in Physics as a proof statement that the President and his team are on top of the oil spill crisis in the Gulf of Mexico.  Given that the Noble Prize folks gave Obama the Peace Prize when he created no peace makes this claim dubious.

More troubling is Chu’s words in 2007 when he claimed that a partnership of Chu’s University of California laboratory and BP, with BP’s $500 million, would “help save the world”.  Hmmmm….  See the incredible video below.

Posted in BP, Oil Spill | Tagged: , , , , , , , , | 1 Comment »

Obama Tramples on Constitution

Posted by Steve Markowitz on June 18, 2010

One narrative crafted by the Leftist media during the presidential campaign was Obama’s high intelligence and expertise of Constitutional Law.  If indeed he has this expertise Obama has used it to trample on the Constitution, not to protect it, as he was sworn to do.

While the President should have spent the last 60 days focusing on stopping the oil leak and cleaning up the mess in the Gulf States, his most visible action has been to beat up on BP, i.e. looking for an “ass to kick”.  While BP deserves much blame and liability, this Country is suppose to be run by the rule of law, even when there seems to be clearly culpable parties such as BP.  But that is not good enough for a President who acts more like a king than a protector of the Constitution.

This week President Obama arm-twisted BP to put aside $20 billion as a down payment for its liabilities for the oil spill.  Forget for a moment that BP currently has less than half that amount in cash, under what authority did the President take the action?  Just as troubling, Obama put one of his political cronies, his Pay Czar, to manage this fund.  As we saw with the TARP money being used for items never approved by the Congress, these BP funds too will end up being spent on non-related projects and to pay off political cronies.

This is not the first time President Obama overstepped his Constitutional authorities:

  • Obama greatly expanded the use of Czars in order to place people at cabinet level positions while bypassing Congress’s Constitutional right of consent, even though both house were already controlled by his own Party.
  • Obama bailed out and then took control of General Motors.  In the forced bankruptcy he then changed the precedent of GM debtors, taking rights from some and giving them to others, specifically his union allies.  Then he summarily dismissed its chief executive.
  • Obama forced Chrysler into a merger.
  • Obama had the government take charge of executive compensation for any firm that received government bailout money.

Where does in the Constitution is the president given such powers?  The answer is nowhere!

There are those who will say that BP and GM debt holders got what’s coming to them.  That, however, is an argument that does not belong in a discussion of the rule of law or Constitutional rights.  A government that will trample on the rights of any of its citizens or corporation will ultimately trample on all of our rights.

Obama is taking this country down a slippery and dangerous slope.  And the folks on the Left are scared of Sarah Palin!

Posted in BP, Constitution, President Obama | Tagged: , , , , , , , , , , , , , , , , | 5 Comments »