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Deepwater Horizon oil spill Archive

Wednesday

20

April 2011

0

COMMENTS

Death of Gulf of Mexico Greatly Exaggerated

Written by , Posted in Energy and the Environment

In the midst of the BP oil spill, hysterics were common place. Even though the Gulf had survived a previous such oil spill decades earlier, the BP spill was all but portrayed as the coming of the apocalypse. It would take decades to recover. Things would never be the same. We must stop drilling for oil, now and forever!

Of course, things were bad. There’s no denying that the spill severely disrupted Gulf coast economies and harmed the environment. But it wasn’t nearly as bad as many claimed. In other words, the environmental reactionaries did their usual overreaction:

After BP’s Macondo well in the Gulf of Mexico blew out a year ago today, many feared that the resulting oil spill would turn the Gulf into a dead sea, destroy its beaches, kill its vibrant seafood and tourism industries and mortally wound the economies of states from Florida to Texas.

The spill’s long-term effects on the environment are still a serious question, but the Gulf turned out to be surprisingly resilient, and so far the news has been unexpectedly good. Most of the oil is gone. Fishing has resumed, the beaches are clean (with some exceptions), tourist bookings are up and Gulf seafood is safe to eat.

Let’s keep this in mind as they move on to preach environmental doom elsewhere.

Friday

12

November 2010

0

COMMENTS

Government: Capitalism Not To Blame For Oil Spill After All

Written by , Posted in Free Markets

BP didn’t “cut corners:”

The White House oil spill commission said on Monday it found no evidence to support accusations that the largest offshore oil spill in U.S. history happened because workers for BP Plc and its partners cut corners to save money, mostly blaming the accident on a series of on-site misjudgments.

“To date we have not seen a single instance where a human being made a conscious decision to favor dollars over safety,” the commission’s Chief Counsel Fred Bartlit said at a meeting exploring the causes of the Gulf of Mexico spill.

Bartlit said the panel agreed with about 90 percent of the findings of BP’s internal investigation of the accident released this summer. BP’s report assigned much of the blame for the accident to its drilling partners.

Many on the left took the spill as an excuse to attack capitalism, throwing out thoughtless platitudes about decision making that elevated “higher profits” over all other considerations.  At the same time, they ignore the obvious financial incentives not to spill oil all over the place. But now even the government is saying that is a baseless charge.

This is not to absolve BP of responsibility. Regardless of the specific technical reasons behind the spill, which I am in no position to judge, and what their partners did or did not do, the buck ultimately stops with BP, as it was their well.  But the idea that an accident is an indictment of capitalism is childish nonsense that needs to be, and now hopefully has been, put to rest.

Tuesday

13

July 2010

1

COMMENTS

“Price Gouging” Laws Compound Natural Disasters with Political Disaster

Written by , Posted in Economics & the Economy, Energy and the Environment, Government Meddling, The Nanny State & A Regulated Society

Florida Senator Bill Nelson is seizing on the BP oil spill as an excuse to pass federal “price-gouging” legislation.  It’s certainly nothing new to see anti-market politicians stirring up populist rage with these so-called “price gouging” laws.  Many states already have them on the books, and politicians are quick to warn greedy capitalists against “exploiting” disasters by raising prices.  But these laws are really nothing more than price controls and, like all price controls, they distort markets and harm consumers.

“Price-gouging” laws generally prohibit “excessive” or “unconscionable” prices – both unconstitutionally vague concepts –   immediately following disaster declarations.  Prosecutions typically follow hurricanes, floods or other major events that knock out power and stress the availability of goods like ice and power generators.

Under normal circumstances, sudden increases in demand result in similarly sudden spikes in prices.  As prices go up, entrepreneurs in nearby areas are motivated to buy goods at their cheaper local prices, transport them into the disaster area, and then sell them for a handsome profit.  This is how price signals work to indicate where goods are most needed.  The entrepreneurs make enough money to justify their efforts, and people in the disaster area are able to get the extra supplies they need.  Yet despite the fact that everyone wins, many politicians have criminalized this behavior.  Rather than cheering the entrepreneurs for bringing relief  supplies that would not otherwise arrive to post-disaster areas, state government officials often prosecute, fine and even jail them.

Not satisfied with the fact that a majority of states already have these misguided price controls on the books, federal politicians have repeatedly tried to have them enacted nationally.  A bill that would have criminalized charging market prices for needed goods passed the House in 2007, but failed to get the 2/3rd votes necessary to override President Bush’s threatened veto.  Now, with a more sympathetic President Obama in office, such legislation could potentially return, and pass.

Bill Nelson’s state of Florida already unnecessarily perpetuates shortages after hurricanes and other disasters with misguided price controls.  He shouldn’t force similar pain on the 20 or so states without price gouging laws.

Tuesday

1

June 2010

0

COMMENTS

Robert Reich Wants To Takeover BP

Written by , Posted in Energy and the Environment

The left has one solution for everything: government control.  Whatever the problem, simply call for government to takeover and it will magically be solved. That’s their thinking, as demonstrated in this case by Robert Reich:

It’s time for the federal government to put BP under temporary receivership, which gives the government authority to take over BP’s operations in the Gulf of Mexico until the gusher is stopped. This is the only way the public know what’s going on, be confident enough resources are being put to stopping the gusher, ensure BP’s strategy is correct, know the government has enough clout to force BP to use a different one if necessary, and be sure the President is ultimately in charge.

Let’s consider the benefits he sees to government control.

1) It’s the only way the public knows what is going on. Last time I checked, government was a hotbed of secrecy, spin and misinformation.  Despite running on a campaign of transparency, Obama has run one of the most opaque administration’s in history.  The idea that government control will help the public know better what is going on is laughable.

2) The public will be confident enough resources are being put to stopping the leak. Perhaps Robert Reich missed the memo, but confidence in government is at historic lows, and for good reason.  While it’s technically true that the government has more resources than BP, there is no indication that BP’s problem up to this point is a lack of resources.  Even if it was, they can be made available without a government takeover.

3) Government will ensure BP is using the correct strategy, and force them to change if they are not. What, exactly, gives government the expertise to determine what the “correct” strategy is?  How many wells does government operate, again?  How many similar leaks have they solved?  Let’s put aside the kindergardenish notion that being in government makes one an expert in everything.  It doesn’t.  This is, after all, the same government that is turning to James Cameron for “expert” advice.  The best and brightest oil men aren’t in government, they’re in the oil industry.  Let’s leave the clean-up to the professionals, and not a bunch of hacks trying to exploit it for political gain.

4) We can be sure the President is ultimately in charge. Again, what is the thinking here? What the hell does Barack Obama know about stopping oil leaks?  He’s a two-bit Chicago thug whose career consists of nothing more than agitating “community organizing” and campaigning.  What fool will be comforted by having him in charge of the operation? Robert Reich, that’s who.

Sunday

2

May 2010

0

COMMENTS

Oily Politics

Written by , Posted in Energy and the Environment

Whenever big disasters strike, opportunists jump at the chance to lampoon their political opponents. In response to the oil spill in the Gulf, we’re seeing just that as many on the right begin to construct the narrative that Obama’s response was slow or deficient. In so doing they are following the playbook successfully executed against Bush after hurricane Katrina.

There may well turn out to be faults in Obama’s response to the oil spill.  No doubt there will be investigations, inquiries and fact-finding panels aplenty after things have settled down. Right now, however, I’m concerned that critics of the administration are falling into a big government trap.

It may well be that they can do the kind of harm to Obama that Katrina helped liberals do to Bush. But this is only a short-term benefit. In the long run their critiques only feed the view that government should be responsible for all things, and that the President is essentially a King who must only snap his fingers and see his will done.

Far more productive for small government advocates would be to point out that, as we saw with Katrina, government simply cannot and should not be counted on to respond with quickness and efficiency in the event of catastrophe. Bureaucracies are simply not well designed for the purpose, and blaming Obama only spreads the myth that with the right kind of interventionist President, government can be made into something it is not.

The incompetence of FEMA was not primarily the fault of Bush and any incompetence in wake of the oil spill is likely not the fault of Obama. It’s the fault of all Presidents and Congresses that have contributed to the growth of such a behemoth government in the first place, and the fault of all of us here perpetuate the idea that the first place to look for assistance in time of crisis is the federal government.