Oil, everywhere

The oil spill in the Gulf of Mexico has become the  issue of the day for many news organizations.  Well, that and the bomb found in Times Square.  To me, the spill tops the bomb. 

Our country continues to drill for oil to feed its insatiable need for fossil fuel.  I was around in the seventies.  At that time, I remember the push to find and/or conserve energy in order to move away from the use of these fuels.  Thirty years later, we continue to be dependent on oil, necessitating the search for new sources, and drilling in areas not previously considered for drilling.  The oil rig was placed close to our valuable fishing, wildlife, and tourist areas, and we are now dealing with what may become the biggest oil spill yet. 

The audacity of the US is amazing.  When you hear that plaintive cry, “Why do they hate us?”, think of this as an example of why.  We refuse to change our way of life, then when we must deal with the consequences of that refusal, we don’t stand up and take responsibility for our inaction. 

When reading about this oil disaster, I learned that British Petroleum does not have insurance to cover the cost of this clean up and the attempts to stop the continued pumping of oil into the ocean.  Apparently, the risk analysis experts in that company determined that the risk of an accident were small and the cost of the insurance too high to justify the expense.  Further, the company had declined to purchase or install a piece of equipment which would have prevented this problem  Of course, neither liability insurance nor this piece of equipment were apparently required by any regulation in order to be able to drill in this area-almost all regulation having been ignored in favor of the free market system favored by some in power.   Guess who’s going to lose this bet? 

The lack of insurance means that the costs being incurred by BP will have to come from their cash reserves, or if that gets low, from their revenues.  Want to be how those expenses will be recouped?  Watch for gas prices to go through the ceiling over the summer.  Goodbye summer travel.  Goodbye economic recovery.  

These predictions are just my personal thoughts.  I have nothing, except my own cynicism to back them up.  It would be wonderful if I am wrong.  I doubt that I will be, however.  If so, I will apologize.  Which is more than I expect from BP, the “drill, baby, drill” contingency, or the oil industry.

Advertisement