The Gulf Of Mexico Oil Spill

As the Gulf of Mexico oil spill crisis enters a third month, the economic impact of this environmental nightmare is starting to become clearer.  The truth is that the “oil volcano” spewing massive amounts of oil into the Gulf has absolutely decimated the seafood, tourism and real estate industries along the Gulf coast.  Not only that, but energy industry insiders are now warning that the chilling effect that this crisis will have on offshore drilling could precipitate a new 1970s-style energy crisis.  Considering the fact that the U.S. economy was already on incredibly shaky ground even before the oil leak, the last thing we needed was a disaster of this magnitude.  But it has happened, and the reality is that the long-term effects of this crisis are potentially going to reverberate for decades. 

The American people certainly have a negative view on the impact that this oil spill will have on the economy.  According to a new poll, about eight out of every 10 Americans expect the oil spill to damage the U.S. economy and drive up the cost of gas and food.

But is a new 1970s-style energy crisis really a possibility?

Could we actually soon be headed for blackouts and gas lines?

Well, former Shell executive John Hofmeister believes that is exactly what we are headed for….

“Within a decade I predict the energy abyss looks like brownouts, blackouts and gas lines.” 

In fact, Hofmeister claims that some of his fellow energy industry insiders expect things to be even worse than he is projecting in the years ahead.

Why?

Hofmeister says that the problem is the U.S. government….

“Our federal government, when it comes to energy and the environment, is dysfunctional, it’s broken, and it’s unfixable in its current form.”

Without a doubt, the oil spill will have a chilling effect on offshore drilling.  But does that mean that we are going to be facing a shortage of oil in the future?

Well, that is what the advocates of peak oil would have us believe. 

But the truth is that there are actually a TON of untapped reserves throughout the United States that could provide everything that we need for decades and more.

Nobody is really supposed to talk about it, but the reality is that there are massive deposits of oil in Alaska, the Colorado Rockies and in the Bakken formation in Montana and the Dakotas that are larger than anything found in Saudi Arabia. 

So we will only have an “energy crisis” if that is what oil industry insiders and the U.S. government want.

You see, the oil industry likes to keep the supply of oil down because it means much larger profits for them, and these days the folks in Washington D.C. like anything that causes the U.S. public to use less oil, so higher energy prices are just fine with them.

In fact, rather than focusing on getting the crisis in the Gulf solved, Barack Obama has been exploiting this oil spill to really push his economy-killing climate bill.  It seems like Barack Obama would do just about anything to foist his “cap and trade” carbon tax scheme on the American people. 

Energy issues aside, the impact that this oil spill is having on other areas of the Gulf coast economy is very significant.

For example, the Gulf oil spill is absolutely playing havoc with real estate prices in the region.

Real estate agent Linda Henderson recently put it this way….

“I can tell you that things have pretty much dropped to dead.”

After all, who is going to pay top dollar for beachfront property down there at this point?

Nobody.

Not only that, but obviously the oil spill is devastating the seafood industry in the Gulf as well.

The Wall Street Journal recently reported that the average wholesale price for Gulf brown shrimp has jumped by more than half since the crisis began.

In addition, oyster prices are up 33% since the beginning of the oil spill, and as oil continues to spew into the Gulf of Mexico the price increases are only going to become more dramatic.

In fact, many are wondering if the seafood industry in the Gulf will ever recover from all of this.

The truth is that fishermen in Cordova, Alaska are still struggling 21 years after the 1989 Exxon Valdez oil spill devastated the fishing industry in that area.

Some local shrimpers in Louisiana are already predicting that it will be seven years before they can set to sea again, but even that actually may prove to be too optimistic.

Some scientists are warning that the massive quantities of methane that are being spewed into the Gulf of Mexico from the “oil volcano” could create “dead zones” where oxygen is so depleted that literally nothing lives.

So if the oil continues to flow for several more months could very large portions of the Gulf of Mexico become dead zones?

That is a legitimate question at this point.

In addition, the oil spill in the Gulf of Mexico is completely destroying tourism along the Gulf coast.

The truth is that nobody wants to visit places where the beaches are coated with oil and where breathing the air makes your kids want to gag.

Public Service Commissioner Benjamin Stevens recently described what this is going to mean for beaches in his area….

“You get hit by a hurricane and you can rebuild. But when that stuff washes up on the white sands of Pensacola Beach, you can’t just go and get more white sand.”

Hotel Owner Dodie Vegas was even more blunt in describing what this crisis means for her business….

“It’s just going to kill us. It’s going to destroy us.”

But not everyone has been ruined economically by this oil spill.

In fact, it turns out that BP CEO Tony Hayward cashed in about a third of his BP stock one month before the well on the Deepwater Horizon exploded.

Not only that, it has been revealed that Goldman Sachs sold 58% of its shares in BP between January and March of this year.

Isn’t it amazing how the elite always seem to have such perfect timing?

Even if Tony Hayward resigns as a result of this crisis, he is going to get a 10.8 million pound ($16 million) golden parachute.

No, the true losers in all of this are going to be those living along the Gulf of Mexico who have had their lives, their businesses and the beautiful environment around them destroyed.

We are literally watching an entire region of America slowly die, and Barack Obama still refuses to accept any of the international assistance that is being offered. 

If what is happening in the Gulf of Mexico is not enough to get the American people angry, then what will?  This crisis has been so badly mismanaged that it is absolutely mind blowing.  Let’s just hope that someone can find a way to stop the oil soon.

As the crisis in the Gulf of Mexico enters a third month, many are now asking how in the world Barack Obama can keep refusing offers from other countries to help clean up the oil spill.  The truth is that cleaning up oil spills is not rocket science.  There have been massive oil spills in other areas of the world before and there are some folks that have some real expertise when it comes to cleaning them up.  But Barack Obama and BP have been stumbling around as if they are trying to reinvent the wheel.  So exactly what in the world is going on here?  When it comes to Obama’s approach to this crisis, there are really two options.  Either this is one of the most extreme examples of presidential incompetence in modern American history, or Barack Obama is using this crisis for a particular purpose (such as advancing a particular agenda).  In either event, Obama’s actions during this crisis have been completely and totally unconscionable.

The truth is that 13 different countries have offered to help clean up the oil in the Gulf of Mexico.

Barack Obama turned all 13 of them down.

So let’s get this straight….

We are dealing with the greatest environmental disaster in U.S. history by far, and yet we completely refuse any assistance?

What kind of insanity is that?

In fact, it is being reported that just three days after the Deepwater Horizon sank to the floor of the Gulf of Mexico the Dutch government contacted Barack Obama and offered to loan BP ships outfitted with special oil-skimming booms.  In addition, the Dutch had a plan to quickly build sand barriers to protect the vulnerable marshlands along the Louisiana coast.

Needless to say, those plans were not implemented.

According to one Dutch newspaper, the European oil companies that offered to help said that they could have completely cleaned all of the oil from the Gulf of Mexico in just four months.

But now Obama is telling us that the crisis in the Gulf of Mexico could last for years.

So what would keep Barack Obama from accepting international offers of help?

Well, Obama is using something called “the Jones Act” as an excuse.

Howard Portnoy recently described what is going on this way….

In order to accept the offers, which have come from Belgian, Dutch, and Norwegian firms that claim to possess some of the world’s most advanced oil skimming ships, Obama would need to waive the Merchant Marine Act of 1920 (P.L. 66-261). Also known as the Jones Act, the law requires essentially that all commercial acts conducted in U.S.-controlled waters be performed by “U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.”

So why not simply waive the act? Other presidents have under similar circumstances. George W. Bush waived the Jones Act following Hurricane Katrina, allowing foreign ships into Gulf waters to aid in the relief effort.

The truth is that the Jones Act is not a barrier to receiving assistance at all and Barack Obama knows this.

There would be absolutely no problem with waiving the Jones Act in these circumstances.

So Barack Obama has no excuse.

Either he is completely and totally incompetent or he has been trying to make this crisis worse than it should be.

You see, this is not the first catastrophic oil spill in the history of the world.  There have been others, and we have learned quite a bit about cleaning up oil from those events.  Anthony G. Martin recently described what happened during one particularly brutal oil spill in 1993 and 1994….

In 1993 and ’94 the Saudis faced an oil spill of historic proportions in the Arabian Gulf as four leaking tankers and two oil gushers threatened to spur a catastrophic event that was 65 times worse than the Exxon-Valdez spill. 

An American engineer, Nick Pozzi, was part of a task force charged with developing a solution to the looming disaster.

Pozzi had used various methods to clean up oil spills prior to this event.  However, the time was short, and an effective solution was needed post-haste.

That’s when Pozzi decided that the huge, empty oil tankers, sitting in the dock, could be used to simply vacuum up the oil right off of the top of the water.

The result was that 85% of the oil was recovered.

In a recent interview with Esquire, Pozzi explained that cleaning up the oil in the Gulf of Mexico should not be that complicated….

Keep in mind that what supertankers typically do is they sit in the middle of the ocean waiting for all the traders to come up with the right price. When they feel that the price is right, the tankers that are full, they take off, and they can be anywhere in the world in a few days. Right now there are probably 25 supertankers, waiting for orders, full of oil. So all they got to do is come to Texas, in the Gulf, unload the oil, and then turn around and suck up all this other stuff and pump it onto shore into on-shore storage. It’s not rocket science. It’s so simple.

So why won’t Barack Obama and BP implement the “supertanker method”?

When asked about it they just brush it off.

Are they that incompetent?

Or is something else going on?

If this crisis had been handled properly, oil would not currently be blanketing our pristine Gulf coast beaches.

An increasing number of Gulf coast residents have become so frustrated that they have decided to take it upon themselves to stop the oil that is headed towards their homes and businesses.

But BP and the Obama administration have been running around trying to keep anyone else other than themselves from doing anything about this oil spill.  In fact, Barack Obama has authorized the deployment of more than 17,000 National Guard members along the Gulf coast to be used “as needed” by state governors, and BP is being allowed to use private security contractors to keep the American people away from the oil cleanup sites.

If they used as much energy cleaning up the oil as they are in keeping the American people away from the spill they might actually be accomplishing something.

Meanwhile, CBS News is reporting that there could be as much as 1 billion barrels of oil under the damaged BP oil well in the Gulf of Mexico and that it could keep flowing for more than a decade.

Apparently BP made one of the biggest oil discoveries in history, but the problem is that oil is now coming out of there at such high pressure that we simply do not have the technology to control it.

In addition, experts have discovered a massive gas bubble which is estimated to be 15 to 20 miles across and “tens of feet high” under the floor of the Gulf of Mexico.

So what in the world is going to happen if that thing blows?

Also, there are reports of fissures and cracks appearing on the ocean floor around the damaged wellhead.

If this thing goes from a “leak” to an “eruption” it could be a catastrophe beyond anything any of us could even imagine.

So let’s hope that nothing like that happens.

But there is another very serious threat that we need to keep an eye on.

Some environmentalists are now warning that North America could be facing years of toxic rain because of the highly toxic chemical dispersants that BP is using to control the Gulf of Mexico oil spill.  Because it is so poisonous, the UK’s Marine Management Organization has completely banned Corexit 9500, so if there was a major oil spill in the UK’s North Sea, BP would not be able to use it.  So BP really needs to start explaining why they are dumping so much of it into the Gulf of Mexico – especially since so much of it could end up raining down on us.

Meanwhile, Barack Obama and Joe Biden are busy playing golf and BP chief executive Tony Hayward has been busy watching his yacht race.

Well, considering the fact that Tony Hayward is set for a massive 10.8 million pound ($16 million) payout if he chooses to step down, perhaps he is not too concerned about exactly how things turn out.

As for Barack Obama, his main concern in all this seems to be advancing his climate agenda.  During a recent interview, Obama directly compared the current crisis in the Gulf to 9/11, and indicated that he believed that it would fundamentally change the way that we all look at energy issues from now on.  But the truth is that cleaning up the oil in the Gulf has nothing to do with the “cap and trade” carbon tax scheme that Obama is trying to foist on all of us.

What Obama needs to do is to accept all the help that is being offered, get everybody working together on cleaning up this mess, and find a way to stop all that oil from coming out of the ground. 

Until he makes some progress on those things, the American people are not likely to want to hear the first thing about all of the new taxes, rules and regulations that he is so eager to impose on all of us.

The Gulf of Mexico is literally being destroyed, and already this disaster has been so horrific that the effects will be felt for decades.  If Barack Obama cares one ounce about the American people he needs to start doing his job instead of playing politics with this crisis.

There is one question that I would really like an answer to.  Who died and made BP king of the Gulf of Mexico?  In recent weeks, BP has almost seemed more interested in keeping the American people away from the oil spill than in actually cleaning it up.  Journalists are being pushed around and denied access, disaster workers are being intimidated and abused and now BP has even go so far as to hire an army of private mercenaries to enforce their will along the Gulf coast.  Are we suddenly living in occupied Iraq?  How in the world did a foreign oil company get the right to start pointing guns at the American people?  The last time I checked, BP did not own the Gulf of Mexico and did not have the right to tell the American people where they can and cannot go.  The truth is that BP could have avoided all of this by running an open, honest and transparent operation from the start.  They could have welcomed help from all sources, they could have tried to be open with the media, and they could have tried to be fair with the volunteers and rescue workers.  But instead BP has been conducting this whole thing as if we are living in a totalitarian dictatorship and they are the dictators.

Over the last several weeks, members of the mainstream media attempting to cover the oil spill in the Gulf of Mexico have been yelled at, harassed, kicked off public beaches and threatened with arrest.  The Obama administration keeps promising “to improve media access”, but so far their promises haven’t seemed to make much difference.  In fact, a recent AP report detailed several recent highly disturbing incidents of journalist intimidation….   

But it is not just the media that are being pushed around.  The Louisiana Environmental Action Network is reporting that BP is actually threatening to fire fishermen hired to help with the oil spill cleanup for using respirators and other safety equipment that wasn’t provided by the company.

Seriously.

The workers say that they are only using their own safety equipment because BP has not provided what they need.  It is a fact that a large number of rescue workers have already gotten sick enough to be admitted to the hospital, so it certainly makes sense that those working to clean up the oil would want to do whatever they can to stay safe.

But no, BP has to be a bunch of jerks about the whole thing.

Even the EPA says that workers need to be careful.  Hugh Kaufman, a senior policy analyst at the EPA’s office of solid waste and emergency response, made the following statement during an interview on Thursday….   

“There’s no way you can be working in that toxic soup without getting exposures.”

It’s not just the oil that is the problem.  The chemical dispersants that BP is using in the Gulf are even more toxic than the oil.  In fact, because it is so extremely toxic, the UK’s Marine Management Organization has completely banned Corexit 9500, so if there was a major oil spill in the North Sea, BP would not be able to use it. 

But the Obama administration has allowed BP to dump over a million gallons of Corexit 9500, Corexit 9527 and other highly toxic dispersants into the Gulf of Mexico.

Apparently the truth is that BP would rather disperse the oil so that the spill doesn’t look so bad even if it means creating an ecological disaster of nightmarish proportions.

You see, these days BP does what it wants, and anyone who doesn’t like it gets pushed out of the way. 

Monique Harden, the co-director and attorney at the New Orleans-based Advocates for Environmental Human Rights, is so outraged over BP’s behavior that she recently made the following statement….

“BP should not be running the Gulf region like a prison warden, and we’ve got to stop that.”

But rather than becoming more open and taking responsibility for their actions, BP has now hired private security contractors to keep the American people away from the oil cleanup sites.

In other words, BP has brought in a horde of private mercenaries (just like the U.S. uses in Iraq and Afghanistan) to muscle the American people around.

Yeah, we are really going to appreciate that.

Doesn’t BP understand that the American people do not respond well to this kind of nonsense?

In fact, it is being alleged that BP has actually attempted to manipulate the search results on sites like Google and Yahoo.

They seem absolutely obsessed with controlling what we see and think.

Perhaps what BP should be obsessed with is stopping the oil from shooting out of the ground.

Meanwhile, BP execs are busy testifying in front of Congress and making half-hearted apologies. 

Carl-Henric Svanberg, the BP chairman, has even apologized for referring to those affected by the Gulf of Mexico oil spill as “small people”.

Isn’t that nice of him?

While all of this is going on, BP is already trying to ensure that things go their way legally.  Back in May, BP requested that one particular judge be assigned to preside over all lawsuits related to the spill.  Well, it turns out that this particular judge gets tens of thousands of dollars a year in oil royalties and is paid travel expenses to attend oil industry conferences.

Isn’t that convenient?

But that is how the game is played these days.

Meanwhile, the “oil volcano” on the bottom of the Gulf of Mexico continues to pump out a nightmarish amount of oil every single day.  BP is even admitting that oil is escaping from the leak at such high pressure that if they try to cap it the entire well may blow.

So this crisis may keep getting worse for months.

By the time this is over, will anything in the Gulf be left alive?

Even now, hordes of dolphins, fish, sharks, crabs, rays and other sea creatures find themselves trapped between the rapidly advancing oil and the shore.  Unprecedented numbers are showing up just off the Gulf coast in an attempt to escape certain death, but once the oil reaches shore there will be nowhere else for them to go.  The tragedy will be unspeakable.

Things did not have to turn out this way.  BP and the Obama administration could have done things much differently.  But they didn’t. 

Now we all have to live with the results.

#11) Senator Bill Nelson of Florida says that there are reports that there are additional ruptures in the sea floor from which oil is leaking.  If there are quite a few of these additional ruptures, then how in the world does BP expect to completely stop this oil leak?

#12) Why are scientists finding concentrations of methane at up to 10,000 times normal background levels in Gulf waters?

#13) At some testing stations in the Gulf of Mexico, levels of benzene have been detected at over 3000 parts per billion, and levels of hydrogen sulfide have been detected as high as 1192 parts per billion.  Considering that these levels would be highly toxic to humans, why hasn’t the general public been warned?   

#14) Why are so many Gulf oil spill disaster workers showing up at local hospitals complaining of a “mysterious illness”?

#15) If “70% or 80%” of the protective booms are doing absolutely nothing at all to stop the oil, then what is going to stop the millions of gallons of oil in the Gulf from eventually reaching shore?

#16) It is being reported that the deepsea oil plumes are creating huge “dead zones” where all creatures are dying as they are deprived of oxygen.  If this oil spill continues to grow could the vast majority of the Gulf of Mexico become one gigantic “dead zone”?

***UPDATE***

A reader named Stacy has posted a very alarming comment regarding what is happening in her area down in Florida that we wanted to share with everyone….

We live in the navarre, florida area and in the past week almost every family we know has had vomiting and diarreha. This could just be anecdotal – maybe we just have a stomach bug circulating, but it is strange. We had a huge storm the week before it happened that blew in from the gulf so who knows.

Also, the city of destin, florida has taken it upon themselves to close the destin pass with their own purchased boom and barges. This is an elite destination and they are not waiting around for bp and their hired prison workers to clean the beaches. Apparently, the coast guard was at the meeting and told the locals that they will face criminal prosecution, but they don’t care. They are protecting their million dollar properties.