The Truth Shall Set You Free…It might piss you off first, but it will set you free.

Playing the Blame Game

Posted by politicalmonkey2010 on May 11, 2010

“We will pay all costs” – anybody remember that quote from BP when the oil spill first occured?  Well, it has been modified, to “we are going to pay all legitimate claims” – define legitimate?   Lost revenue from fishing?  Lost tax revenue because of loss of business?

Who are the players?

BP owns the oil that is spewing into the Gulf of Mexico.

The safety device that was supposed to cut oil flow on the ocean floor in the event of a well blowout did not perform its function. “That was to be the fail-safe in case of an accident,” says Lamar McKay, chairman of BP America, adding that the blowout protector–like the rig itself–was owned by Transocean.”

Let’s review, in Feb. 2010 BP Group chief executive Tony Hayward said 2009 had been a “very good” year for BP, exceeding many of the expectations he had set out for the company at the beginning of the year, despite the weak external environment. “These results provide the clearest demonstration of the progress we have made and the momentum we have established in growing our business and making it more efficient,” Hayward said.  Fourth quarter profits jumped 70%. Mr. Hayward went on to say “2009 has been one of the best years for BP and its shareholders since the merger with Amoco. But we are not resting on our laurels. There’s a lot more to be done.” Yes there is Mr. Hayward.

Transocean owns and operates the deep sea rig the Deepwater Horizon and was contracted by BP. Transocean’s prepared testimony for Tuesday’s hearings pins the explosion on the failure of this cementing or casing to plug the underwater well.

“The one thing we know with certainty is that … there was a sudden, catastrophic failure of the cement, the casing or both,” according to  prepared remarks.

Let’s review:  The Switzerland-based company first-quarter net of $677 million, or $2.09 per share, revenue of $2.60 billion.  The posted  quarterly profit on Wednesday  topped analysts’ expectations, and its shares rose.

Let’s review: Halliburton’s first-quarter net profit reported of $206 million on revenue of $3.76 billion , or 23 cents per share. Excluding a $31 million charge from Venezuela’s currency devaluation and a $10 million tax-related charge there, earnings per share were 28 cents.

As we watch this disaster unfold, where are those who cried “drill baby drill, drill here, drill now”?

Letterman sums it up the best with his top ten list…

David Letterman’s “Top Ten Things Overheard At BP Headquarters”

10. ‘Huh?’
9. ‘Happy Cinco de Mayo. ‘Nother margarita?’
8. ‘We got a nice thank you note from the Toyota people’
7. ‘Any way we can pin this on the Times Square bomber?’
6. ‘We just got a nice thank you note from the Goldman Sachs people.’
5. ‘I hope they get Robert Wagner to play me in the TV movie.’
4. ‘One day, 10,000 years from now, we’ll be able to look back on this and laugh.’
3. ‘Let me tell you something, you can’t buy this kind of publicity.’
2. ‘Tell everybody it’s our free oil giveaway bonanza.’
1. ‘Everyone gets a bonus.’


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