ENVIRONMENT An Oil-Driven Disaster On Tuesday, a sudden explosion at the Deepwater Horizon oil drilling rig, located 40 miles off the shore in the Gulf of Mexico killed 11 workers. The rig is owned by a Switzerland-based company, Transocean Ltd, and leased to British Petroleum (BP). Following the evacuation of 115 other crewmembers, emergency responders immediately began trying to contain the emerging ecological and public health disaster posed by the massive outpouring of nearly 210,000 gallons of crude oil a day from the sea floor. "It may be two or three months before they can stop the discharge," said Michael Sole, head of Florida's Environmental Protection Department. As thousands of gallons of oil rush towards the U.S. coastline, federal officials are scrambling to contain it before the damage devastates entire ecosystems. White House senior adviser David Axelrod told ABC's George Stephanopoulos today that no "additional drilling has been authorized and none will until we find out what happened here and whether there was something unique and preventable here." As workers seek to mitigate the damage caused by the spill, policymakers must note the regulatory failures that helped contribute to the disaster and examine the dangers of offshore drilling while reasserting our intention to transition away from an oil-driven economy.
'WORST ENVIRONMENTAL DISASTER IN DECADES': Although BP originally stated that the spill amounted to 42,000 gallons of oil a day, the company later agreed with the U.S. Coast Guard's figure of 210,000 gallons a day. The nonprofit SkyTruth, which specializes in analyzing satellite and aerial data, also warns that the spill may be releasing as much as 850,000 gallons a day. There were also concerns that the hundreds of thousands of gallons of oil surging from the spill would rush towards the "mouth of the Mississippi River, which runs up the middle of the country," and threaten "the wetland areas of the river that are home to hundreds of species of wildlife and near some oyster grounds." "As it is now, it's already looking like this could be the worst oil spill since the Valdez," John Hocevar, oceans campaign director for Greenpeace USA, told MSNBC. "In terms of total quantity of oil released, it seems this will probably fall short of Exxon Valdez. But because of the habitat, the environmental impact will be worse." Yesterday morning, Louisiana Gov. Bobby Jindal (R) declared a state of emergency. President Obama has already promised to deploy "every single resource" to try to contain the environmental disaster, deploying officials from the Department of Homeland Security, Department of the Interior, and Environmental Protection Agency. Meanwhile, the Navy is deploying 66,000 feet of inflatable boom and several skimming systems to Gulfport, MS, to try to contain the incoming oil. As of this morning, the oil spill has reached "the mouth of the Mississippi River" and the coast of Louisiana, threatening to become "America's worst environmental disaster in decades, threatening hundreds of species of fish, birds and other wildlife in one of the world's richest marine environments."
BP'S BAD BEHAVIOR: While the cause of the fire and explosion on Deepwater Horizon is still uncertain, one thing is clear: BP, which was in charge of operating the rig, has a history of fighting tough regulations and safety inspections, misleading federal authorities about the dangers of a potential oil spill, and actively advocating for more relaxed safety standards -- much like Massey Energy Co. repeatedly fought tougher regulation of mines. Following a March 2005 explosion at a BP refinery, the company assembled a blue-ribbon panel to examine the company's safety practices. The commission concluded that "the oil company skimped on spending and failed to take other steps" that would have prevented the explosion, writing that "BP had not learned from a long string of past accidents, had 'a false sense of confidence' about safety, 'did not always ensure that adequate resources were effectively allocated to support or sustain a high level' of safety in the industrial process and rotated refinery chiefs too quickly." "BP gets it, and I get it too," chief executive John Browne said following the commission's report. "I recognize the need for improvement." However, a Wall Street Journal investigation found that BP "was one of several companies that opposed efforts to tighten up safety procedures offshore." These efforts, led by the U.S. Minerals Management Service (MMS), would have "required lessees and operators to have their safety and environmental management system programs audited at least once every three years by either an independent third party or by qualified personnel designated within the company," replacing the "voluntary approach" adopted in 1994. In a September 2009 letter to the MMS, BP said that it is "not supportive" of additional regulation of the industry and instead supported "voluntary programs" to secure the safety of its sites. New MMS guidelines had not yet been implemented, and the $600 million rig had "passed three federal inspections, the most recent on April 1," suggesting that the federal government needs to take a more robust approach to site inspection. Additionally, BP's oil exploration plan, which "allowed it to avoid filing a more detailed site-specific plan," mapped out a worst-case scenario that a spill would release 162,000 gallons a day -- which pales in comparison to the volume of the current spill. Meanwhile, as a Center for American Progress report notes, BP's Q1 profits rose 133 percent from just a year ago, while consumers were gouged at the pump. Unfortunately, other oil companies have joined BP in opposing tougher regulation. Chevron and Exxon Mobil both also submitted comments in opposition to the new MMS rule. Responding to the disaster, Louisiana shrimpers have filed a lawsuit against BP, Transocean, Cameron International Corp., which "supplied the rig's blow-out prevention equipment," and Halliburton Energy Services Inc., which was responsible for "engaging in cementing operations of the [rig's] well and well cap." The suit alleges that the companies' negligence and are responsible for the massive economic disaster.
THE DANGERS OF 'DRILL BABY DRILL': The disaster at the BP rig underscores the dangers of pursuing the simplistic, oil-driven energy policy proposed by right-wing figures. Former Alaska governor Sarah Palin summed up this policy during the 2008 presidential campaign with the slogan "drill baby drill," which ended up being a chant at the 2008 Republican National Convention. Since then, conservatives and the oil industry have joined hands to continue to push oil as the answer to our energy problems. In 2008, Newt Gingrich began American Solutions for Winning the Future (ASWF), the casino-funded 527 that used the slogan "Drill Here, Drill Now, Pay Less" to promote the false idea that new offshore drilling could lower gas prices. On its website, ASWF is continuing its petition for offshore drilling, and other oil-industry front groups -- American Petroleum Institute, Energy Tomorrow, Institute for Energy Research, Americans for Prosperity, Heritage Foundation, and the Institute for 21st Century Energy -- are still promoting increased drilling and attacking green economy legislation that would reduce our dependence on oil. Meanwhile Weekly Standard editor Bill Kristol continues to insist that offshore drilling is "quite safe." When Obama was asked a recent town hall meeting about his move toward approving "significant oil and gas exploration off America's coasts," he claimed that "oil rigs today don't generally cause spills" and said that "even during Katrina, the spills didn't come from the oil rigs." Yet the truth is that Hurricanes Katrina and Rita actually caused 124 offshore spills totaling 743,700 gallons of oil and condensate from platforms, rigs, and pipelines. As J.R. Tolbert of Environment Virginia writes, "Every day that the U.S. Senate fails to pass clean energy and climate legislation, we are putting our environment and economy at risk." CAP has warned repeatedly of the economic dangers to our dependence on oil, and of the need to accelerate our shift to the clean energy economy to create more jobs and preserve the health of our planet from the ravages of climate change.
HEALTH CARE -- SCHWARZENEGGER BECOMES THE FIRST REPUBLICAN GOVERNOR TO SUPPORT HEALTH CARE REFORM: California Gov. Arnold Schwarzenegger (R), who had previously described national health care reform as "health care to nowhere" infected with "bribes, deals and loopholes," announced Thursday that California will fully comply with the new law. In a news conference at the University of California at Davis Medical Center, Schwarzenegger broke with the host of Republican governors and attorneys general attempting to sue the federal government over the law, saying, "California is not part of this fight, and I'll tell you why. When you don't have health insurance and you go to the hospital, you are forcing other people to pay for your healthcare." While saying the plan is "not without flaws," the governor nonetheless called it "a good law," adding that "it is the time for California to move ahead with it, thoughtfully and responsibly." Schwarzenegger's endorsement makes him the first Republican governor to publicly support health reform, delivering a major victory for Health and Human Services Secretary Kathleen Sebelius, who been trying to make clear how the law is beneficial to the states. In fact, Schwarzenegger attempted a similar reform of California's health care system in 2007. His plan would have required Californians -- even undocumented immigrants -- to purchase health insurance coverage, mandated businesses with 10 or more employees to offer insurance or pay a fee, and expanded public health programs. Schwarzenegger's proposal would also have prohibited insurers from denying coverage to individuals with pre-existing conditions and required companies to spend at least 85 percent of their premium proceeds on patient care.
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The U.S. economy grew at 3.2 percent annual rate in the first quarter of this year, marking three straight quarters of growth. "Consumer spending growth has remained solid thanks to more hiring and better financial conditions," said Aaron Smith, a senior economist at Moody's Economy.com. White House senior adviser David Axelrod told ABC News today that President Obama will not allow any new offshore oil drilling "until we find out what happened" in the Gulf of Mexico spill. Axelrod said no new drilling will proceed until "there is an adequate review of what happened here and what is being proposed elsewhere." Louisiana health officials have ordered air quality testing after a "pungent fuel smell" blanketed "much of coastal Louisiana" and New Orleans. People along Florida's Gulf Coast also noticed an "oily odor" that "leaves a bitter taste in your mouth" permeating the air. Officials say the smell could be from the massive oil spill in the Gulf of Mexico and are warning that people may experience "nausea, vomiting or headaches." Rep. Ed Markey (D-MA) is calling on top officials from ExxonMobil, ConocoPhillips, Chevron, BP, and Shell to testify before a House committee on energy and climate change to address the Gulf of Mexico oil spill and climate change legislation. "From the health of our economy to the health of our environment, it's time for the American public to hear from the oil companies," Markey said. Major League Baseball's annual All-Star game is scheduled to be played in Phoenix this year. But Arizona's passage of an extreme anti-immigrant law is jeopardizing the state's hosting rights. "I think Major League Baseball, with 40 percent Latino ballplayers at all levels, should make a statement that it will not hold its All-Star Game in a state that discriminates against 40 percent of their people," said Rep. José Serrano (D-NY).
Lawsuits were filed in Phoenix and Tucson yesterday challenging Arizona's new immigration law. "This law sanctions police officers to use racial profiling in dealing with the immigrant community," said National Coalition of Latino Clergy and Christian Leaders chairman Miguel Rivera. A Tucson city patrol officer said the law "would seriously impede law enforcement investigations." Top Senate Democrats led by Sen. Chuck Schumer (D-NY) laid out the contours of a proposed immigration reform bill and invited Republicans to join them in pursuing it. The outline includes enhancing border security, creating a fraud-proof Social Security card, and allowing undocumented immigrants to stay legally after admitting wrongdoing, paying fees and taxes, and passing a criminal background check. A Center for Responsive Politics review of recently filed lobbying reports indicates that "companies, trade associations, unions and other groups spent nearly $1 billion on lobbying during the first three months of 2010." The $903 million spent in the first quarter "is larger than overall lobbying expenses in three out of four quarters last year, and it represents an 11 percent increase" from the first three months of 2009. "Federal prosecutors have opened an investigation into trading at Goldman Sachs, raising the possibility of criminal charges against the Wall Street giant." The preliminary investigation by prosecutors for the Southern District of New York comes two weeks after the Securities and Exchange Commission filed a civil fraud suit against the Wall Street firm. And finally: U.S. troops in Afghanistan remake Lady Gaga and Beyonce's hit song "Telephone."
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"[The financial reform bill] gives incentives for irresponsibility by, in effect, guaranteeing banks' survival by establishing a $50 billion rescue fund."
-- Conservative commentator Dick Morris, 4/29/10
VERSUS
"[T]he bill makes it clear that the money [from the fund] must be used to liquidate -- not keep alive -- failing firms."
-- PolitiFact.com, 3/25/10
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