U.S. District Judge Martin Feldman granted a preliminary injunction prohibiting the government from enforcing the six month drilling ban in the Gulf. The action was a result of a suit filed by Hornbeck Offshore Services, L.L.C., etal. The White House reported it would appeal the decision to the Fifth Circuit Court of Appeals in New Orleans.
A number of elected officials applauded the judge's decision to lift the drilling ban and some urged the President not to appeal the decision. The Times Picayune in its editorial of 6/23 said, The administration's determination to fight the preliminary injunction is disappointing. The same day another full page ad appeared in the TP by BP which has been ongoing.
Hopefully the President will follow through with his appeal and stay on the side of those 11 workers who were killed and the resulting hardships placed on their families. Those elected officials who continue to accept money from oil industry lobbyist during this sad time and continue to blame the President and federal government for the resulting fall out have no character. They continue to be the mouth piece for BP and the oil industry.
Those elected officials and the editors of the TP should be well aware that executives of BP and other oil companies recently testified before congress under oath and said they still did not know what caused the explosion, still don't not know how to timely cap such a blow out and still have no equipment available to timely remove any spilled oil from the waters of the Gulf. And in fact they had no model to test on.
The Times Picayune and elected officials who are against the moratorium should address their rhetoric to the people responsible for the spill to compensate any workers that were harmed. They should think more about the workers killed and their families, that it is over two months since the explosion and the oil industry still has no answers. Louisiana has let the oil industry off the hook with the damage they have done to the wet lands, coastal erosion and the environment and now that industry wants to cut and run with the threat to move their rigs over seas.
I wrote a previous post that when all is said and done with this spill it will be business as usual between the oil industry and elected officials. Money from lobbyist will continue to flow to elected officials and nothing will have been learned. I have seen nothing since the explosion that could lead me to change my mind. Hopefully President Obama will stand tall. He represents the people's last hope in this matter.
Thursday, June 24, 2010
Louisiana Governor Jindal, The State Legislature and Balanced/Unbalanced State Budgets
Louisiana is required by law to balance the state budget and every year since Jindal became governor the state has balanced its unbalanced budgets only to become unbalanced again before the fiscal year is over. And the current fiscal year was no exception.
Now Jindal and the legislature has come up with a $26 billion budget for the next fiscal year and he and the legislature already know it will be out of balance and in deficit before the fiscal year is over and in fact many in the legislature has already predicted the deficit will be the larger than in the past.
Once again the state and its people have been high jacked by a republican conservative ideology that gets into the average persons pocket a 100 different ways under the disguise of smaller government. As pointed out by Edward Ashworth, director of the Louisiana Budget Project in a recent comment in the Times Picayune, approximately $7 billion in the states budget is for tax exemptions that don't show up in the states budget and receive almost no scruting. Of course, most people realize those billions of dollars of exemptions go to businesses, the least who need them because the tax code is already stacked in their favor. Those exemptions take revenue from the budget that should be used to improve the quality of life for the people.
The billion dollar surplus that Jindal and the legislature inherited from the previous administration was quickly blown away by a conservative ideology and every year since then deficits have shown up that had to be plugged by cutting the budget. But the $7 billion or so tax exemptions have never been touched. Fiscal conservatives? It does not exist in this administration just like it never existed on the federal level under Reagan, Bush 41 and Bush 43. Their rhetoric sounds good but their actions and lack of leadership and courage speaks loud and clear.
Now Jindal and the legislature has come up with a $26 billion budget for the next fiscal year and he and the legislature already know it will be out of balance and in deficit before the fiscal year is over and in fact many in the legislature has already predicted the deficit will be the larger than in the past.
Once again the state and its people have been high jacked by a republican conservative ideology that gets into the average persons pocket a 100 different ways under the disguise of smaller government. As pointed out by Edward Ashworth, director of the Louisiana Budget Project in a recent comment in the Times Picayune, approximately $7 billion in the states budget is for tax exemptions that don't show up in the states budget and receive almost no scruting. Of course, most people realize those billions of dollars of exemptions go to businesses, the least who need them because the tax code is already stacked in their favor. Those exemptions take revenue from the budget that should be used to improve the quality of life for the people.
The billion dollar surplus that Jindal and the legislature inherited from the previous administration was quickly blown away by a conservative ideology and every year since then deficits have shown up that had to be plugged by cutting the budget. But the $7 billion or so tax exemptions have never been touched. Fiscal conservatives? It does not exist in this administration just like it never existed on the federal level under Reagan, Bush 41 and Bush 43. Their rhetoric sounds good but their actions and lack of leadership and courage speaks loud and clear.
Thursday, June 17, 2010
The Oil Industry And The Times Picayune, Part II
The Times Picayune in its double editorial of June 9th called for President Obama to speed up the work on naming the full commission that will investigate the BP oil spill, speed up the investigation itself and reduce the 6 month moratorium called for by the President.
The TP joins the oil industry and Louisiana's elected officials and some business leaders who do not like the 6 months moratorium. They all think it is too long but are silent on how long they think it should take. They dare not stick their neck out. Here is how the TP put it. But the government can take measures to speed up the review and end the deep water moratorium earlier, at least for some rigs. The editorial writer lacks the courage and knowledge to explain how the review can be shortened.
As for the editorial talking about the loss of rigs and jobs associated with the moratorium it was pointed out in Part I no one seemed to care or talk about the 76% reduction in offshore rigs working between 2000 and 2009 as published by the TP on 1/17/10. Like Mr. Beer, the TP is more interested in the oil and gas industry then the long range welfare of the people, the environment, the coast and the seafood industry. President Obama needs to see that the investigation is done properly before lifting the moratorium despite the pressure he is getting to let it slide.
As for Louisiana elected officials, they will continue to take large sums of money from the special interest groups working with the oil industry and will continue to cater to them despite the disaster in the Gulf. And the TP will continue to hang onto every word BP says in its full page ads they are taking our in the TP.
Hang tough Mr. President.
The TP joins the oil industry and Louisiana's elected officials and some business leaders who do not like the 6 months moratorium. They all think it is too long but are silent on how long they think it should take. They dare not stick their neck out. Here is how the TP put it. But the government can take measures to speed up the review and end the deep water moratorium earlier, at least for some rigs. The editorial writer lacks the courage and knowledge to explain how the review can be shortened.
As for the editorial talking about the loss of rigs and jobs associated with the moratorium it was pointed out in Part I no one seemed to care or talk about the 76% reduction in offshore rigs working between 2000 and 2009 as published by the TP on 1/17/10. Like Mr. Beer, the TP is more interested in the oil and gas industry then the long range welfare of the people, the environment, the coast and the seafood industry. President Obama needs to see that the investigation is done properly before lifting the moratorium despite the pressure he is getting to let it slide.
As for Louisiana elected officials, they will continue to take large sums of money from the special interest groups working with the oil industry and will continue to cater to them despite the disaster in the Gulf. And the TP will continue to hang onto every word BP says in its full page ads they are taking our in the TP.
Hang tough Mr. President.
A Lack Of Wisdom: The Root Of The Problem
The BP rig explosion, the resulting oil leak and spillage into the waters of the Gulf is not just a Louisiana problem. According to the location map in the paper each day, BP's well site is located almost directly south of the Mississippi-Alabama state line. The site is closer to Louisiana's land only because South Louisiana extends out into the Gulf some 100 plus miles farther than Mississippi and Alabama.
Mother nature (wind direction, tides, Gulf current and etc.) will determine where most of the oil finally lands. This past week, because of mother nature most of the oil slick has been directly south of Mississippi, Alabama and the Florida panhandle. It is possible for those three states to wind up with more oil on their land than Louisiana, so the spill is not just a Louisiana problem like our elected officials would like us to believe.
The governor's of the four gulf states are looking out for their own interest and will naturally be in conflict with the Presidents responsibility of looking out for the country's best interest. Louisiana and Mississippi governors do not support the Presidents 6 month moratorium. The governors of Alabama and Florida have not taken a hard position on the subject. All four governors support more offshore federal sharing.
Louisiana officials always talk about the risk of offshore drilling because most takes place offshore Louisiana. Louisiana claims it just wants its fair share for its contribution of taking such risks. However the most harm done to our wetlands, marshes and coastal erosion comes from onshore drilling in South Louisiana, yet our elected officials in La., have refused to address the issue even though onshore drilling is regulated by the state. There is no wisdom, courage or leadership among our elected officials in La. to confront the problems caused by onshore drilling. Instead they want to pass the buck to the federal government. Every one knows they want no part of big bad federal government except when they do not have the character to stand up and be counted.
Governor Jindal and other elected officials who continue to play the blame game do not need to possess ESP to know that BP and the oil industry in general are laughing out loud with the blame being put on the federal government instead of where it rightfully belongs, on BP and the industry. Those political contributions are doing just what they are supposed to do, influence our elected officials. And that says it all.
Mother nature (wind direction, tides, Gulf current and etc.) will determine where most of the oil finally lands. This past week, because of mother nature most of the oil slick has been directly south of Mississippi, Alabama and the Florida panhandle. It is possible for those three states to wind up with more oil on their land than Louisiana, so the spill is not just a Louisiana problem like our elected officials would like us to believe.
The governor's of the four gulf states are looking out for their own interest and will naturally be in conflict with the Presidents responsibility of looking out for the country's best interest. Louisiana and Mississippi governors do not support the Presidents 6 month moratorium. The governors of Alabama and Florida have not taken a hard position on the subject. All four governors support more offshore federal sharing.
Louisiana officials always talk about the risk of offshore drilling because most takes place offshore Louisiana. Louisiana claims it just wants its fair share for its contribution of taking such risks. However the most harm done to our wetlands, marshes and coastal erosion comes from onshore drilling in South Louisiana, yet our elected officials in La., have refused to address the issue even though onshore drilling is regulated by the state. There is no wisdom, courage or leadership among our elected officials in La. to confront the problems caused by onshore drilling. Instead they want to pass the buck to the federal government. Every one knows they want no part of big bad federal government except when they do not have the character to stand up and be counted.
Governor Jindal and other elected officials who continue to play the blame game do not need to possess ESP to know that BP and the oil industry in general are laughing out loud with the blame being put on the federal government instead of where it rightfully belongs, on BP and the industry. Those political contributions are doing just what they are supposed to do, influence our elected officials. And that says it all.
Thursday, June 10, 2010
The Oil Industry and The Times Picayune: Part I of II
In the editorial section of the New Orleans Times Picayune dated 6/8 a triple play was sought against President Obama for his moratorium concerning offshore drilling in the Gulf of Mexico. In two commentaries by the TP under the heading "our opinion" and one by Kenneth Beer listed as the Chief Financial Officer of Stone Energy Corp, both oppose the President's moratorium. Part I will deal with Mr. Beer's commentary which is an open letter to the President titled, "Shutdown a Costly Mistake."
That title says a lot about Mr. Beer because the most costly mistake was not the "shutdown" but the death of 11 workers and the family they leave behind. Mr. Beer said nothing about those 11 workers in his entire article. Mr. Beer said there are tens of thousands of workers who will be affected by the moratorium but is silent on asking BP for compensation. I guess he would not like to see a precedent set for future oil spills.
Mr. Beer also says and I quote from his article: On May 27, you received a report from a group of experts that identified the key recommendations to enhance the safety and redundancy of drilling in the deep water. These steps would be more than sufficient to prevent a repeat of the Deepwater Horizon explosion. Every deep water rig has been thoroughly inspected since the April 20 explosion. The rigs and crews are ready to drill and would obviously have an even higher sense of safety. It is time to put them back to work. Mr. Beer is silent as to when offshore drilling should resume but his last sentence seems to say right now.
Mr. Beer went on to say: A senate panel is not needed; neither is a room full of political advisers. You should listen to the engineering experts and follow their operational recommendations. And the experts did not call for an arbitrary six-month moratorium. It is of note Mr. Beer does not like investigations. It should also be noted that the President did listen to the experts when just last month opened up vast new areas for offshore drilling. This was before the explosion.
Mr. Beer goes on to say: In south Louisiana we have certainly had more than our fair share of catastrophes over the past five years. Do not add another one by implementing this moratorium. What about the period before the last five years in south Louisiana Mr. Beer, like the previous 40 plus years where oil drilling and their related operations has had a catastrophic affect on the loss of wetlands, the marshes and coastal erosion that the taxpayers have been paying for.
What we have is an oil company executive who skirted around the real issue here. While reading the article I was expecting to come upon the part where Mr. Beer explains the real story, the lives of 11 workers killed and their family grief and the fact as of this moment Mr. Beer's industry has no equipment or team available to timely plug such a blow out or to remove the spilled oil from the waters of the Gulf before that oil comes ashore. Today is day 50 since the explosion and spill. (No where being timely) And to think this industry has been drilling offshore for over 40 years.
The article was also silent on the fact that President Obama has no problem if the commission finishes its work in less that 6 months and the moratorium can be lifted. Mr. Beer tried to make a comparison between 9/11 and the moratorium. A very curious statement from left field.
I wrote a previous commentary pointing out that offshore drilling activity in the Gulf of Mexico decreased 76% between 2000 and 2009. The yearly average of rigs working in the Gulf in 2000 was 145 and only 35 in 2009. (Source TP article of 1/17/10 and Baker Hughes.) The oil industry now says the moratorium will shut down 35 rigs in the Gulf and workers will be laid off or the rigs and crews will go out of the country. "Question" where did all the rigs and crew members go between 2000 and 2009, that 76%. Did they lose their jobs and did the rigs and crews go out of the country. I do not remember the oil industry or any elected official in Louisiana talking about this. Could it be because an oilman was President for 8 or those years, a time when the price of oil and gasoline was at record levels. That says it all.
The interest of Mr. Beer is his company and the oil and gas industry. The President's interest is the whole country. Mr. Beer is in no position to support his narrow view on the issue alluded too in his letter to the President. And that really says it all.
Part II coming soon.
That title says a lot about Mr. Beer because the most costly mistake was not the "shutdown" but the death of 11 workers and the family they leave behind. Mr. Beer said nothing about those 11 workers in his entire article. Mr. Beer said there are tens of thousands of workers who will be affected by the moratorium but is silent on asking BP for compensation. I guess he would not like to see a precedent set for future oil spills.
Mr. Beer also says and I quote from his article: On May 27, you received a report from a group of experts that identified the key recommendations to enhance the safety and redundancy of drilling in the deep water. These steps would be more than sufficient to prevent a repeat of the Deepwater Horizon explosion. Every deep water rig has been thoroughly inspected since the April 20 explosion. The rigs and crews are ready to drill and would obviously have an even higher sense of safety. It is time to put them back to work. Mr. Beer is silent as to when offshore drilling should resume but his last sentence seems to say right now.
Mr. Beer went on to say: A senate panel is not needed; neither is a room full of political advisers. You should listen to the engineering experts and follow their operational recommendations. And the experts did not call for an arbitrary six-month moratorium. It is of note Mr. Beer does not like investigations. It should also be noted that the President did listen to the experts when just last month opened up vast new areas for offshore drilling. This was before the explosion.
Mr. Beer goes on to say: In south Louisiana we have certainly had more than our fair share of catastrophes over the past five years. Do not add another one by implementing this moratorium. What about the period before the last five years in south Louisiana Mr. Beer, like the previous 40 plus years where oil drilling and their related operations has had a catastrophic affect on the loss of wetlands, the marshes and coastal erosion that the taxpayers have been paying for.
What we have is an oil company executive who skirted around the real issue here. While reading the article I was expecting to come upon the part where Mr. Beer explains the real story, the lives of 11 workers killed and their family grief and the fact as of this moment Mr. Beer's industry has no equipment or team available to timely plug such a blow out or to remove the spilled oil from the waters of the Gulf before that oil comes ashore. Today is day 50 since the explosion and spill. (No where being timely) And to think this industry has been drilling offshore for over 40 years.
The article was also silent on the fact that President Obama has no problem if the commission finishes its work in less that 6 months and the moratorium can be lifted. Mr. Beer tried to make a comparison between 9/11 and the moratorium. A very curious statement from left field.
I wrote a previous commentary pointing out that offshore drilling activity in the Gulf of Mexico decreased 76% between 2000 and 2009. The yearly average of rigs working in the Gulf in 2000 was 145 and only 35 in 2009. (Source TP article of 1/17/10 and Baker Hughes.) The oil industry now says the moratorium will shut down 35 rigs in the Gulf and workers will be laid off or the rigs and crews will go out of the country. "Question" where did all the rigs and crew members go between 2000 and 2009, that 76%. Did they lose their jobs and did the rigs and crews go out of the country. I do not remember the oil industry or any elected official in Louisiana talking about this. Could it be because an oilman was President for 8 or those years, a time when the price of oil and gasoline was at record levels. That says it all.
The interest of Mr. Beer is his company and the oil and gas industry. The President's interest is the whole country. Mr. Beer is in no position to support his narrow view on the issue alluded too in his letter to the President. And that really says it all.
Part II coming soon.
Monday, June 7, 2010
The Moratorium In The Gulf of Mexico
We have an oil spill in the Gulf of Mexico that has turned into a major disaster, still of unknown consequences, maybe far into the future. It is 48 days since the explosion and spill and the spilled oil in the waters of the Gulf has yet to be removed timely. The plugging of the well by the drilling of two relief wells will not take place until August we are told by BP officials. Mean while the oil industry still has no method to cap the well and stop the spillage.
Yet many of Louisiana's elected officials, oil industry representatives, other Louisiana industries and other leaders are questioning President Obama's moratorium on offshore drilling on the basis of lost jobs in the oil industry and the state because of such shut down. Those people want it both ways. What elected officials and business leaders should be doing is telling the oil and gas industry to direct their drilling activities to the millions of acreage they own, rent or lease onshore Louisiana and else where in the USA that are sitting idle so they can keep their workers busy and on the job until the moratorium is canceled. Any loss of jobs is of the oil companies making and they themselves should take care of their own employees and other industries who have been harmed by the spill.
I can see where all this is leading to. When all is done with this spill it will be business as usual between Louisiana's elected officials and the oil and gas industry. We will have learned nothing because of the corrupting influence that wealth has on our elected officials. President Obama is the only one who can change that and hopefully he will be up to the task.
Yet many of Louisiana's elected officials, oil industry representatives, other Louisiana industries and other leaders are questioning President Obama's moratorium on offshore drilling on the basis of lost jobs in the oil industry and the state because of such shut down. Those people want it both ways. What elected officials and business leaders should be doing is telling the oil and gas industry to direct their drilling activities to the millions of acreage they own, rent or lease onshore Louisiana and else where in the USA that are sitting idle so they can keep their workers busy and on the job until the moratorium is canceled. Any loss of jobs is of the oil companies making and they themselves should take care of their own employees and other industries who have been harmed by the spill.
I can see where all this is leading to. When all is done with this spill it will be business as usual between Louisiana's elected officials and the oil and gas industry. We will have learned nothing because of the corrupting influence that wealth has on our elected officials. President Obama is the only one who can change that and hopefully he will be up to the task.
Thursday, June 3, 2010
Offshore and Onshore Drilling In Louisiana: Two Sides Of The Same Coin.
State and Parish officials in Louisiana have known and documented for many years that oil industry operations in Louisiana are the major cause of coastal erosion, the loss of wet-lands and destruction of the marshes. They even know that through the years the state and federal governments have picked up the lions share of the cost in repairing the damage. The loss of land puts any hurricane closer to our populated cities and result in greater property damage. Some inland parishes are no longer inland very much.
This onshore drilling is regulated by the state, not the federal government but the states record of regulating the oil industry is no better than the federal governments MMS on the drilling that comes under their control. In an article in the Times Picayune of 5/30 staff writer Jen DeGregorio reported as follows: Louisiana also has a history of accommodating the industry even when it comes to a matter as serious as coastal erosion, which devours the equivalent of a football field of the state's wetlands every 38 minutes. Any pipeline, oil well or other energy development in Louisiana's 19 parish coastal zone needs a state permit, a stamp of approval saying the work results in "no net loss" of wetlands. State regulators are supposed to weigh a project's environmental risks against its economic benefits, but the balance is tipped overwhelmingly in favor of oil and gas. It is obvious that the "no net loss" of wetlands is not being enforced.
On the other side of the coin is offshore drilling and the BP spill now in its 43rd day as of this writing. The oil spill has already damaged the marsh, the coast and the fishing community. BP and the oil industry after 43 days still has no equipment, plan or program to remove the spilled oil timely from the waters of the gulf before the oil hits land. Ditto the equipment or means to stop the leak timely. (Timely action has already left this spill behind) Any capping of the well now will be welcomed but the damage has already been done. It will be months or years before we find out the real damage to our land and way of life.
State and parish leaders like to remind us how vital the oil and gas industry is to La., but conveniently forget to remind the people what it is costing the taxpayers because of the destruction to the environment. Our state and parish leaders, the oil companies and their industry associations are now complaining about the loss of jobs if the moratorium placed on new drilling by the President takes place. Never mind about the BP accident that took 11 lives and the livelyhood of the Louisiana fishermen and the seafood distribution system in general. Never mind about the oil industry's negligence that is the real reason for those job losses if it happens. Never mind about the oil industry wanting favors to cut corners. Elected officials like to play the blame game and the industry will try to pass the buck from themselves and the cause of any future job losses. They are the cause so they need to look in the mirror and have a talk with themselves.
James Gill in his editorial of 6/2 in the Times Picayune titled: "Louisiana Was Big Oil's Best Friend" shed more light on the subject and said. The scale of the catastrophe, and the reasons for it, have been known for as long as anyone can remember. When he was governor 30 years ago, Dave Treen proposed a tax on energy companies to mitigate the harm they did to the environment. Had he succeeded Louisiana would certainly have been healthier, and would probably have been more prosperous, today. But big oil owned the Legislature.
It should be noted former Governor Treen's proposal, known as CWEL was the subject of several commentaries posted here on politidose. Perhaps that was the reason Mr. Gill understands the merit of Mr. Treen's position on the issue and mentioned his proposal. I am happy Mr. Gill must have taken the time to log onto politidose. It is time for our political leaders in La., to get the message, show courage and leadership, step up to the plate and act on CWEL.
This onshore drilling is regulated by the state, not the federal government but the states record of regulating the oil industry is no better than the federal governments MMS on the drilling that comes under their control. In an article in the Times Picayune of 5/30 staff writer Jen DeGregorio reported as follows: Louisiana also has a history of accommodating the industry even when it comes to a matter as serious as coastal erosion, which devours the equivalent of a football field of the state's wetlands every 38 minutes. Any pipeline, oil well or other energy development in Louisiana's 19 parish coastal zone needs a state permit, a stamp of approval saying the work results in "no net loss" of wetlands. State regulators are supposed to weigh a project's environmental risks against its economic benefits, but the balance is tipped overwhelmingly in favor of oil and gas. It is obvious that the "no net loss" of wetlands is not being enforced.
On the other side of the coin is offshore drilling and the BP spill now in its 43rd day as of this writing. The oil spill has already damaged the marsh, the coast and the fishing community. BP and the oil industry after 43 days still has no equipment, plan or program to remove the spilled oil timely from the waters of the gulf before the oil hits land. Ditto the equipment or means to stop the leak timely. (Timely action has already left this spill behind) Any capping of the well now will be welcomed but the damage has already been done. It will be months or years before we find out the real damage to our land and way of life.
State and parish leaders like to remind us how vital the oil and gas industry is to La., but conveniently forget to remind the people what it is costing the taxpayers because of the destruction to the environment. Our state and parish leaders, the oil companies and their industry associations are now complaining about the loss of jobs if the moratorium placed on new drilling by the President takes place. Never mind about the BP accident that took 11 lives and the livelyhood of the Louisiana fishermen and the seafood distribution system in general. Never mind about the oil industry's negligence that is the real reason for those job losses if it happens. Never mind about the oil industry wanting favors to cut corners. Elected officials like to play the blame game and the industry will try to pass the buck from themselves and the cause of any future job losses. They are the cause so they need to look in the mirror and have a talk with themselves.
James Gill in his editorial of 6/2 in the Times Picayune titled: "Louisiana Was Big Oil's Best Friend" shed more light on the subject and said. The scale of the catastrophe, and the reasons for it, have been known for as long as anyone can remember. When he was governor 30 years ago, Dave Treen proposed a tax on energy companies to mitigate the harm they did to the environment. Had he succeeded Louisiana would certainly have been healthier, and would probably have been more prosperous, today. But big oil owned the Legislature.
It should be noted former Governor Treen's proposal, known as CWEL was the subject of several commentaries posted here on politidose. Perhaps that was the reason Mr. Gill understands the merit of Mr. Treen's position on the issue and mentioned his proposal. I am happy Mr. Gill must have taken the time to log onto politidose. It is time for our political leaders in La., to get the message, show courage and leadership, step up to the plate and act on CWEL.
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