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.

Sunday, May 30, 2010

The People, Polls, Tea Party and The Media

The news media in general have all been reporting that the people are fed up with our elected officials and intend to do something about it in the November elections. One poll by USA Today in the May 28 edition shows 60% of those polled would vote for some one who has never been in congress before. One person polled said, "We are just going to clean house."

It seems obvious to this writer that some people just never learn. Changing elected officials will not change a thing until money and the special interest groups are taken out of the equation. Changing elected officials have already proven that. The tea party people and others who are really interested in change should direct their anger and actions to getting money out of the political arena instead. So called tough talk about voting elected officials out of office is about as effective as Bush's tough talk about terror prior to 9/11. The voting public has a right to vote for who they choose but they also have a duty to be responsible.

The special interest groups with their wealth who control our elected officials laugh all the way to the bank when the voters vent their anger at politicians instead of the special interest groups. That says it all.

U.S. Representative Steve Scalise: Another Embarrassing Moment

Steve Scalise whose oral pronouncements seem to indicate he is a student of Newt Gingrich and the far right is at it again. In an editorial in USA Today dated May 28 he uses the whole editorial to condemn President Obama's action concerning the BP oil spill in the Gulf of Mexico. His ditto head mentality of playing the blame game fits right in with the conservative record of zero accomplishments.

Scalise was part of the Bush administration in Washington that gave the green light to the oil and gas industry to drill baby drill without oversight. After the worst oil spill in the Gulf, Scalise says he is concerned for Louisiana's ecosystems, environment and economy. In Scalise's whole editorial not once does he mention BP or its responsibility for the leak and the resulting damage to the Louisiana coast, ecosystems, environment or the economy. What we see is the typical anti-American ideology Scalise and many other republicans preach.

This is how Scalise ends his editorial. There is no place in this crisis for inaction or partisan politics. We want action, not finger pointing from our commander in chief. That last paragraph actually describes hypocrite Scalise himself and what his editorial was all about. Its pretty hard to think of any other Louisiana representative who served in the U.S. House that was so incompetent. That says it all.

Tuesday, May 25, 2010

The BP Spill And The Blame Game

British Petroleum and the oil industry's lack of an emergency plan to deal with the explosion and release of oil in the waters of the Gulf and their inability to clean up the oil before it reaches shore has brought out the worst in the news media, governor Jindal and parish officials in Louisiana. Even members of congress who represent Louisiana have joined the chorus.

That chorus is now the blame game they are playing and their target is the federal government and President Obama. Jindal and other Louisiana officials have dropped the ball concerning BP's responsibility and their own responsibility to protect the Louisiana coast and are geared in full mode to blame Washington. During hurricane Katrina, a natural disaster, Louisiana officials sandbaged many of our coastal areas before Katrina came ashore and did not seek approval from the federal government to do so. But now they want to pass the buck to Washington before they do anything.

A lot of the focus has been on Grand Isle. Well Jindal does not need permission to sand bag Grand Isle's beaches to stop oil from washing up. He can give the order himself. Those elected officials who play the blame game along with the news media have no character or courage. The blame game is another reminder how America is loosing its leadership qualities and why very little is done to make the quality of life a little better for the people.

Those people in Louisiana who are leading the charge in the blame game will cozy back up to the same oil industry who created the BP mess after it is all over and done with. They will continue to be attached to the industry's massive campaign contributions and do the oil companies bidding. Some of Louisiana political leaders are already leading the charge to lift the ban on drilling in shallow waters in the Gulf that was the subject of a previous commentary just a few days ago. BP can't stop the leak and oil from spilling in the Gulf on this well yet these elected officials are ready to commit to the same mistake in shallow waters which are closer to our shore.

The news media and those who are a part of it have failed to serve the people and have become political in nature themselves. Their failure to put the responsibility where it belongs on BP is just another gash in their stated purpose of bringing the American people the facts. The cable TV networks are the worst. They have so much air time on their hands to fill, very little of their pronouncements arenews worthy. Talk radio is right behind.

One can only hope there are enough good people who can think for themselves and be rational about what is going on. Leaders who play the blame game need to be held in check and accountable for their actions or lack thereof and rational people are the only ones who can do that.

Sunday, May 23, 2010

The BP Oil Spill: Another First For Politidose

This writer has several commentaries concerning the spill since the rig explosion on April 20 in the Gulf of Mexico and the resulting oil spill in the waters of the Gulf. It was pointed out that the real story no one wanted to talk about, especially the news media, was the fact that BP and the oil industry had no emergency plan or equipment on hand to timely stop the leaking oil into the Gulf and the removal of the spilled oil into the waters even though offshore drilling has been going on for over 40 years.

Finally, now comes two stories published in the Times Picayune of May 23 that deals with this issue. One by Bob Marshall in the editorial section and one by Rebecca Mowbray in the Money section. Rebecca pointed out that Lisa Jackson, administrator of the United States EPA told congress, the ability to get this oil out of the ground has far surpassed our ability to respond to the worst-case scenario. Also in a sub heading were the following remarks. Deepwater Horizon oil spill reveals an industry ill-prepared to deal with a "black swan" event.

Mr. Marshall wrote about what causes contributed to the accident and named several things that have been pointed out in "politidose" over the past two years many times. Marshall also reported, we always knew accidents would happen but what this event teaches us is the industry has no effective way to prevent a mishap from becoming a catastrophe.

The news media, the governor and parish officials should be talking about the failure of BP and the oil industry in general for not having a plan and equipment to deal with the situation. Instead we see governor Jindal and parish officials blaming the federal government for a slow response. This accident was man made by BP, the drilling company involved and a service company. They actually alluded to that themselves when they blamed each other for the blow out and explosion while testifying before congress. This was no natural disaster and BP has the burden to live up to their responsibility. The oil industry has drilled in deeper waters than 5000 feet so BP should have been prepared for anything.

Bob Marshall and Rebecca Mowbray took the news media where it should have been long ago with their articles and the news media in general should keep up the pressure on BP. If they don't the oil industry will continue to get a free ride at the expense of the environment and the people. We know oil company operations are responsible for the major destruction of our wet lands and coastal erosion and that they do not pay their fair share to restore those area's. Our elected officials do not have the courage to faced the problem.

As former governor David Treen said long ago, "It is time to get well with CWEL.

Shallow Water Drilling Off Louisiana's Coast.

In a report dated 5/21/10 in the Times Picayune by Jonathan Tilove, oil industry representatives would like the moratorium lifted on drilling in shallow waters of the Gulf that was placed by the Obama administration to new offshore drilling until investigators find out what went wrong with the BP well explosion. According to the report, Louisiana U.S. Senators Landrieu and Vitter, and U.S. representatives Melancon and Scalise support the industry move.

They pointed out that shallow water drilling is safe for several reasons but no one pointed out that any explosion and leak would be much closer to the Louisiana shore line and spilled oil in the water of the Gulf would hit our shores much quicker than the BP spill. Also not pointed out was the fact that the BP spill happened over a month ago and the oil industry still has no equipment or method available to timely clean up the spilled water in the Gulf or stop the leaking of oil.

Scalise was quoted as saying, Secretary Salazar needs to understand the stark difference between deep water drilling and shallow water drilling. The problem is that Scalise and the oil industry who push deep water drilling as being safe never took into consideration those stark difference we are finding out in the BP spill. Scalise also took the position that the moratorium would result in thousands more jobs and billions more dollars being shipped to middle east countries that don't like us. Scalise needs a dose of truth serum. A record number of jobs and billions of dollars were sent to middle east countries on Bush's watch while Scalise was in congress with the record price of $150/barrel oil and $4.00/gallon gasoline.

One would think our delegation in congress would be pushing the oil industry to have a workable plan and equipment available to timely clean up any leaked oil in the waters of the Gulf and a way to cap off any leak timely. That does not exist today, even in shallow waters.

Wednesday, May 19, 2010

British Petroleum and The Oil Industry

As of this writing oil has been leaking into the waters of the Gulf of Mexico for the past 30 days from the BP well that exploded. BP does not know how many barrels of oil is leaking into the Gulf each day and has yet to clean up and collect the oil that is in the water. That spill is still a danger to the coast, industries along the coast and related industries and BP still has no effective response. In fact they are asking outsiders for suggestions. That may be good PR for them but with 40 plus years of offshore drilling the oil industry is flying blind.

BP and the suppliers involved in drilling the well all passed the buck of blame on each other when their company spokesperson testified before Congress. Typical for an industry who has no shame and want to dodge their liability. Wealth is what turns the oil industry on and any challenge to that wealth because of liability does not sit well with the industry.

The BP spill and its aftermath proved beyond any doubt BP was not prepared for what happened and one can guess neither was the oil industry as a whole. If they were, they would have rushed equipment and expertise to deal with the matter timely. The state of Louisiana and the federal government needs to think this thing through before they allow any new offshore drilling in state or federal waters. The states and federal government need to find out how this story ends in terms of cost to life, the destruction to property, the environment, the business community and a way of life.

Jonathan Tilove reported in the Times Picayune that the $75 million liability cap on oil spill damages is being revisited by Congress and U.S. Senator Robert Menendez introduced legislation that would raise that figure to $10 billion. U.S. Senator James Inhofe blocked Menendez effort to bring the bill to the floor. President Obama urged Senate Republicans to stop playing special interest politics and join in a bipartisan effort to protect taxpayers and demand accountability from the oil companies.

Tilove also reported U.S. Senator David Vitter has offered a counter proposal that would set the liability cap at $150 million or a company's last year profits, which ever is greater. This writer's understanding is that the spill has already cost BP over $400 million so Vitter's $150 million cap is a crude joke on the people. As for using a company's last years profit to determine liability that is a mega cruel joke on the people since businesses can come up with all kinds of expenses to reduce profits.

President Obama, Louisiana Governor Bobby Jindal and the Congress have an opportunity and the responsibility to make sure the BP and the oil industry is held accountable for this spill and any future ones with clear regulations and laws that get the job done for the people. Time will tell if all three live up to their responsibility.

Saturday, May 15, 2010

Defense Secretary Robert Gates And Spending Cuts

In a speech at the Eisenhower Presidential Library and Museum, Secretary Gates said he was looking for at lease $10 billion in annual savings by paring of the military bureaucracy according to a report out of the Associated Press. Gates said he had come to the conclusion about the urgent need for big cuts in light of the recession.

If the readers of Gates comment are confused, they have reason to be. Mr. Gates has been Secretary of Defense for almost 4 years and has presided over increased defense spending ever since. He supported the big expenditures for the continued war in Iraq and his actions has contributed to the doubling of Defense spending since Bush took office. Defense spending is now over $600 billion a year and was over $300 billion a year when Bush took office. There has been no cold war opponent for some time and no other super power but the war machine drives the debate. What an unnecessary price to pay to fight terrorism.

President Eisenhower was right about the military industrial complex that is the driving force behind this massive expenditure. If Mr. Gates was sincere he would show those people the door. To those that pay attention, the U.S. can secure its safety at a far less cost. The problem is Mr. Gates failure to bite the bullet.

It is also telling that Mr. Gates said one reason for wanting to cut $10 billion is the recession. The recession has actually come to an end. If Mr. Gates was sincere, he would have been cutting spending while the recession was in full swing. Where is the leadership?

Tuesday, May 11, 2010

Another Good Jobs Report For April

The U.S. Department of Labor reported that the economy added 290,000 jobs in April, the largest monthly total in four years. The job gains were widespread. Unemployment rose from 9.7% in March to 9.9% in April, mainly because a flood of 805,000 job seekers, feeling better about their prospects resumed their searches for work.

The Labor Department sketched out a picture of a healing jobs market, growing consumer confidence and an economy picking up momentum per the Associated Press. President Obama welcomed the good news but said there is still much to be done to put all Americans back to work and that he would continue to be active in doing so. A stark contrast from the previous administration.

The President and Congress need to continue to answer the call on the economy and do what is necessary to continue economic expansion and put the country in a position of a sustained economy and job creation. They should also see to it that what ever actions they believe have to be taken will have the effect of reducing the federal deficit and debt. There is still a precedent for doing that and it is called the Clinton Administration.

History can indeed repeat itself for the better if we learn from the past. The past is still the key to the future.

Monday, May 10, 2010

It Is Time For The Louisiana Legislature To Act On CWEL

The on going oil spill in the Gulf of Mexico by British Petroleum should open the eyes of any sane person, especially our elected officials. Coupled with the dire situation of Louisiana's budget woes and the states cost to mobilize to protect our shore line and coastal area's now is the time for the legislature to introduce CWEL, Coastal Wetlands Environmental Levy.

The late former Governor Dave Treen was in favor of CWEL and wrote an article concerning it in the Times Picayune dated 3/9/09. CWEL contains a levy on the transport of oil and gas across Louisiana's coastal zone, which is an area federally recognized as needing protection from coastal erosion. According to the former Governor, the impact on Louisiana would be negligible since 85% of the consumers are out of state. The passage of CWEL would raise substantial revenue for the state. Mr. Treen's full article will be shown below in Note l.

Governor Treen was a conservative republican but did not wear his conservatism on his sleeve as the present conservatives do. He did not govern by ideology and was not afraid to meet challenges with action and realities that work. The present governor Jindal and the state legislature would do well to take up the issue of CWEL. It has been established beyond a doubt that oil and gas pipe lines and the canals that are dug for oil and gas exploration and production are the primary cause of coastal erosion and the loss of wet lands. And as of the present, the oil and gas industry does not pay its fair share to clean up their mess and reverse the erosion. The enactment of CWEL would change that. It would also help the state on any future oil spills where the state has to mobilize to protect the states interest.

The Times Picayune also carried an article about a pipeline volume levy dated 9/19/09 by J. Ronald Eldridge to a Senate committee September 18, 2009. Mr. Eldridge pointed out how much revenue might be produced. Some have described the levy as a pure tax, an excise tax or a fee and that is supposed to back everyone away. Politicians like to declare no new taxes and then get into the average citizens pocket in 100 different ways by other actions and all the while oil companies are given tax breaks and special treatment while the coastal area's are eroding and wet lands are disappearing because of their operations. It is up to the governor of Louisiana to step up to his responsibility and have the oil and gas industry pay their fare share.

As former governor Treen said in his article, It is time to get well with CWEL.

Note l:

Tax Transport Of Oil and Gas

With all the anguish about budget cuts the state will have to make, including massive cuts to education and health care, it is time to get well with CWEL.

CWEL, the Coastal Wetlands Environmental Levy, could be enacted by the Legislature at the coming session. The levy is on the transport of oil and gas across Louisiana's Coastal Zone, which is an area federally recognized as needing protection from coastal erosion.

The levy is not on the oil and gas. It is a levy on the movement of oil and gas across the coastal zone. This levy would also apply to oil and gas produced in Louisiana, which is transported across the coastal zone.

If the levy is passed on to the consumers of oil and gas, the impact on Louisiana will be negligible, since 85 percent of the consumers are out of state.

With gas at approximately $4 per MCF and oil at $50 or more per barrel, a few pennies on each would produce substantial revenue with the impact on Louisiana hardly noticeable.

End to letters to the editor by former Governor David Treen

Note 2: By Governor Treen's letter to the editors, he showed just how far out front he was on the subject matter long ago. Where have all our leaders gone?