tag:blogger.com,1999:blog-3704399.post3113761572420739897..comments2023-10-26T04:53:21.986-05:00Comments on <a href="http://huckupchuck.blogspot.com">The Huck Upchuck</a>: Governmentalizing the Gulf Spill ResponseHuckhttp://www.blogger.com/profile/15878450464298055466noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3704399.post-54546213800628631242010-05-24T12:46:14.059-05:002010-05-24T12:46:14.059-05:00Eric - All good points. No real disagreements fro...Eric - All good points. No real disagreements from me. Just a couple of follow-up comments. First, it does merit consideration that what it in BP's interest in dealing with the spill and with the US public's interest may not neatly coincide. There are some who speculate that BP's interests are in attempting to end the spill without damaging the well so that it can continue to tap into this well at a future date. These critics argue, not without some merit, I think, that the well could have been plugged long ago. This would have ended the leak, but also effectively sealed off the well for good. And that "radical" solution so early on was not what BP wanted to do. So it doesn't necessarily hold that the most efficient solution to the problem (depending on how you define the problem) is best carried out by private industry.<br /><br />Second, you mention the fact that BP has huge profits and can thus absorb the costs of the spill as if that is something surprising. We liberals don't begrudge businesses their rights to profit (and to profit handsomely), but we do think that businesses do have some obligation to pay an equitable amount of taxes relative to the privileges and benefits they receive from the government.Huckhttps://www.blogger.com/profile/15878450464298055466noreply@blogger.comtag:blogger.com,1999:blog-3704399.post-39283183015181914622010-05-24T10:20:52.346-05:002010-05-24T10:20:52.346-05:00Great points, Huck,and I agree with you somewhat. ...Great points, Huck,and I agree with you somewhat. I think BP should be in charge of the clean-up and responsible for the financial fallout, and what's more I think that is the cheapest most efficient and most effective way to get the problem solved (which isn't to say it will be exceedingly cheap, efficient, or effective... but certainly moreso than turning the entire effort over to government). Because they take so much money from the oil companies in the form of taxes (which detracts from their resources to respond to this problem) the federal, state, and local governments should help out when they can, and as directed by BP, and should be compensated by BP for these costs (that this could be done without protracted litigation is not outside the boundaries of reason, but if lawyers are what it takes then bring on the lawyers). <br /><br />As to the question of who is responsible for the defective equipment, I think it's pretty clear that BP has to take responsibility (and they seem to be doing so). Perhaps the quality control failure that caused the blowout can eventually be traced back to Trancocan or Halliburton, but even if that was known to be the case, since BP was operating the lease they would still be responsible for cleanup, and have the option to go after those other parties for financial damages after the fact. <br /><br />I'd also point out that if you really want the spill cleaned up, leaving responsibility and liability in the hands of private industry is likely to produce that outcome faster and cheaper than making the government responsible for it. If we all agree that BP is responsible for the cost, then it becomes clear that every day this passes without them stopping the leak and progressing on the cleanup hurts them financially. Government ultimately bears little responsibility for failing to produce results, in fact just getting government agencies to look at problems from a 'results' orientation as opposed to a 'process and procedures' orientation takes a Herculean effort. In the oil business, people are used to dealing with the bottom line. <br /><br />Which brings up another point: Oil companies are routinely criticized for making large profits. At times like this, we should be glad that a $15 Billion problem is being handled by a company that has the financial resources to deal with it. Had we squeezed BP out of every penny of profit over the last decade, they would not be in a position where paying for the clean-up and damages are a viable option. Ultimately, if paying for the cleanup were to put them out of business, such are the consequences and risk involved with operating deep water wells... but I think we can all agree that if they can operate such wells while making enough profit to stay in business after cleaning up a massive spill of this size, that is preferable to them going broke and out of business before managing to complete the clean-up.ericnoreply@blogger.com