13) OIL: GREED AND PROFIT IN THE GULF
(The following
article is from the July 1-31, 2010 issue of People's Voice,
Canada's
leading communist
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By Rob Gowland,
The Guardian (weekly paper of the Communist Party of Australia), June
16, 2010
On that curious show The View the
other day the panel were venting their collective spleen on the CEO of
BP, who had been appearing in TV commercials reassuring Americans that
BP would fix the oil spill that was threatening to ruin the Gulf of
Mexico and the people who lived there.
Whoopi
Goldberg and her fellow
panellists clearly did not trust BP's boss one inch. "Slimy" was the
word they used to describe him.
BP obviously
hopes its efforts
to plug the oil leak and clean up the environmental damage, less than
half-measures though they are, will be enough to prevent any
significant action against it by US authorities. Meanwhile it goes on
making money from its other US and US-linked enterprises.
Despite BP
executives'
oft-repeated assertions before the media and Congressional committees
that "we will pay all legitimate claims" (there's an important caveat
if I ever saw one), the fact is that BP's liability for economic
damages - loss of income by tourist businesses, damage to
the
fishing industry, etc. - is presently capped at a trifling US$75
million.
For the
record: BP posted a
first-quarter profit of US$6 billion just one week after the Deepwater
Horizon rig exploded. Horizon and BP between them have a long history
of oil spills and other disasters. BP appears to operate on the
well-known capitalist principle that it is cheaper to pay any fines
than to spend money on safe working methods.
According to
the US group Public
Citizen, BP has paid US$550 million in fines, including the two largest
fines in the history of the US Occupational Safety and Health
Administration. As Prensa Latina
notes, "BP seems to particularly enjoy
violating the Clean Air and Clean Water Acts."
And why not?
As Prensa Latina
also notes, MMS, the US Minerals Management Service, "the agency within
the Interior Department that oversees offshore drilling, routinely
accepted gifts from oil companies and even considered itself a part of
the oil industry, rather than part of a governmental regulatory agency".
With MMS
inspectors being flown
around in oil company executive jets, it is hardly surprising that
Deepwater Horizon was given a regulatory exclusion by MMS, is it? Or
that, of 27 new drilling sites, MMS has granted regulatory exemptions
to 26? (Boy that 27th must have been a shocker to get knocked back - or
perhaps they skimped on the bribe they were prepared to pay.)
Meanwhile,
BP is going around to
survivors and others eligible for compensation and getting them to sign
away their right to sue, presumably on promises of uncontested
compensation from BP (and of course an oil company would never renege
on a promise, now would it?).
BP initially
played down the
scope of the disaster, claiming only a "few thousand" barrels of oil
were spilling into the Gulf every day. In fact it was closer to sixty
thousand barrels a day (that's more than 2.5 million gallons).
It has been
obvious for years
that off-shore oil wells have tremendous potential for causing severe
environmental damage. Hence the sense of shock on the part of some US
legislators when they discovered that BP had no real clean-up plan.
One of the
things that so peeved
the panellists on The View was the fact that BP's most noticeable
response to the ramifications of the Deepwater Horizon disaster was to
run a series of new TV commercials. For the oil company, the explosion
and consequent oil leak was clearly a PR problem for which the answer
was a TV commercial.
But for most
of the US Congress,
much of the US media and also much of the US public, this is far more
than a mere PR problem.
Cuban
journalist Elsy Fors
Garzon reports that even after BP eventually caps the damaged oil well,
"experts say the best cleanup scenario is to recover twenty percent of
the spilled oil.
"Millions of
gallons of oil will
remain in the ocean, ravaging the underwater ecosystem, and 100 miles
of Louisiana coastline will never be the same." Not to mention the
adverse environmental effects of the chemical "dispersants" that have
been indiscriminately sprayed all over the oil-affected waters.
"The
explosion has released
tremendous amounts of methane from deep in the ocean, and research
shows that methane, when mixed with air, is the most powerful
greenhouse gas - 26 times worse than carbon dioxide," writes Elsy Fors
Garzon.
"Here's the
reality of the
matter - for as long as off-shore drilling is legal, oil spills will
happen. Coastlines will be decimated, oceans destroyed, economies
ruined, lives lost.
"Oil
companies have little to no
incentive to prevent such disasters from happening, and they use their
money to buy government regulators' integrity."
And it's no
use appealing to the
commonsense or humanity of oil company bosses. Like the corporate heads
of all giant capitalist enterprises, if they had any humanity they
would never rise to the top of such ruthless corporate entities in the
first place.
For your
capitalist, the lure of
profit is very strong. Oil companies, however, make huge profits, and
they are an irresistible lure. As the rate of profit climbs, the
capitalist is more and more willing to ignore or sacrifice moral
principles, family, even the safety of the planet itself.
And that is
a fact that we should never forget.