U.S. Government to blame for Oil spill
May 22nd 2010 14:57
Last Month’s oil spill in the Gulf of Mexico was really the fault of the U.S. Government. Let me show you the facts, and you can decide if you agree with me or not. In 1990, Congress passed a law that did 2 bad things. First, it capped oil company liability for spills at $75 million. Second, it created a fund, paid for by the oil companies, to pay for the rest of the cleanup. Basically, this is a government run oil spill insurance program, but without the risk management provided by real insurance companies. This whole scheme came about as a direct result of the rich oil companies lobbying Congress to get themselves some protection and someone to share the risks for offshore oil drilling.
Now this fund has been used a whopping 51 times to pay for spill cleanups, meaning 51 times the costs have exceeded the cap. That alone should have raised a red flag and caused Congress to rethink the whole idea. But because of the liability cap, BP may have been less cautious than it would have been if only it’s own money was at stake.
And everyone will say that we need to regulate them more, but in reality that doesn’t work and I’ll you why. Government regulators don’t have the profit and loss incentive that private insurance companies do. They also tend to impose one size fits all rules that don’t work as well as the site specific requirements that private insurance companies would impose. Worst of all , government regulators tend to act as partners in the industry they regulate, not as watchdogs.
If we had a free market in energy, then oil companies would be responsible for ALL the damage they cause, which would compel them to seek liability insurance in the private market. This would be great because then the insurance companies would do the 2 things that are not being done now. First, they would demand the strictest standards to prevent accidents and spills, because they, unlike government regulators, would be financially responsible for any accidents. Second, if the risks were too great they would deny coverage and the drilling would most likely not be done. If offshore drilling is too risky, then that means no one in a free market would invest in it. This would then provide a huge incentive to entrepreneurs to develop less risky energy alternatives. The bottom line is less government regulation and true free market in energy would actually reduce accidents and create a cleaner environment.
And everyone will say that we need to regulate them more, but in reality that doesn’t work and I’ll you why. Government regulators don’t have the profit and loss incentive that private insurance companies do. They also tend to impose one size fits all rules that don’t work as well as the site specific requirements that private insurance companies would impose. Worst of all , government regulators tend to act as partners in the industry they regulate, not as watchdogs.
If we had a free market in energy, then oil companies would be responsible for ALL the damage they cause, which would compel them to seek liability insurance in the private market. This would be great because then the insurance companies would do the 2 things that are not being done now. First, they would demand the strictest standards to prevent accidents and spills, because they, unlike government regulators, would be financially responsible for any accidents. Second, if the risks were too great they would deny coverage and the drilling would most likely not be done. If offshore drilling is too risky, then that means no one in a free market would invest in it. This would then provide a huge incentive to entrepreneurs to develop less risky energy alternatives. The bottom line is less government regulation and true free market in energy would actually reduce accidents and create a cleaner environment.
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Comment by quickfingers
Parenting Issues
However, I disagree with you in regard to the regulations and/or regulators. We must have regulations, and those who enforce those regulations, in order to make sure businesses aren't trying to 'get away with something,' because, let's face it, they will most certainly try if they think they can get away with it.
It's like the normally 'honest person' that does something dishonest, because no one is looking. Companies are the same way. If regulators are not watching them with a hawk-eye, they may think that they can get away with it, thus causing a potentially hazardous problem.
Whether the regulators are shady or not, is a different topic altogether. Let's try not to lump the two issues in to the same reason why this happened. It's not the 'regulator position' that is the problem, it is that particular regulator. The job serves a purpose, but some people become 'tied up' in the monetary mafia that is big business.
Comment by Libertyislife
Liberty is Life
Comment by quickfingers
Parenting Issues
You yourself said:
"Worst of all , government regulators tend to act as partners in the industry they regulate, not as watchdogs."
Essentially what you are saying is that the regulators are NOT doing their job the way it was intended. This means that you DO agree that regulators serve a valid purpose; if you thought differently you wouldn't have said "Worst of all. . . "
I assumed you would've been a little more intellectually responsive; that is what I get for assuming. You are simply running your mouth, and I have wasted my time trying to use any intellectual thought to engage you in conversation. I had plenty more to say on the problems that face us, which are directly caused by Reagan's policies of deregulation, but it's fairly obvious that you will continue calling names and blabbing without actually saying anything.
Comment by Libertyislife
Liberty is Life
Comment by quickfingers
Parenting Issues
Comment by Libertyislife
Liberty is Life
Comment by Anonymous
An intelligent person wouldn't have to continually try to convince everyone that they are intelligent, people just know from speaking to them and you have a very low intelligence.
Stop watching Fox news and listening to all their propoganda and use your own brain by researching the topic on which your are speaking, that will help raise your intelligence level.
Anyone who resides on this planet and backs corporations over the people are idiotic.
Businesses of all types should have regulations enforced by regulators that look out for the interests of the people who pay their salaries through government tax dollars.
If a business can't operate within the guidelines set up for the safety and well-being of the people they are not qualified to run a business in the first place.
An intelligent person would be calling for the heads of any politician that sells their country or the people down the drain for campaign contributions and if you spend your time fighting to help corporations then you don't love this country anyway.
Instead of calling people names and attacking them on personal level try doing something real for the United States of America before she disappears and our whole way of life along with her.
Comment by Libertyislife
Liberty is Life
Comment by Anonymous
You love to scream about the semantics of words and of course like every spoiled child no one listens to you or understands what you are saying. You have no reasonable or logical response to any one just name calling and fit throwing.
GROW UP
Comment by Libertyislife
Liberty is Life
Comment by Anonymous
Name calling is all you have. You can't insult me because I care not what your opinion of anything is but I notice you are still having a childish fit and it is obvious that you have anger issues so you continue to try to insult me and I will continue to make you mad so that you can have a baby fit.
Sounds fair to me.
Comment by quickfingers
Parenting Issues
This response does not surprise me, because Liberty is Life is just a typical, run of the mill robot for the Republican party. The robot does what it is told to do; what it is programmed to do. That is all it can do, because it knows nothing else.
You are that robot Liberty. You probably always will be.
Comment by Libertyislife
Liberty is Life
Yours in Liberty!
Comment by quickfingers
Parenting Issues
Comment by Libertyislife
Liberty is Life
Comment by Anonymous
When you did all this registering did you have your Mommy fill the papers out for you.
The governments one and only purpose is to protect the people and the peoples rights. No one on here except maybe you has claimed anything else.
Libertarians are idiots because if things were run the way they wanted there would be ANARCHY.
Like I said before GROW UP.
Comment by Libertyislife
Liberty is Life
Comment by quickfingers
Parenting Issues
You will never get anywhere in life mouthing off the way you do. Until you learn to control your emotions, your life will continue to be that of someone who lost. Just like you did in your last to "campaigns."
Comment by Anonymous
Actually I have rather large eyes that aren't beady but I guess that wouldn't occur to someone with your intelligence level.
The truth has already come out but because you have an aversion to the truth you haven't been able to see it.
Not to worry though because when you do finally grow up you will realize how stupid you really sound.
Anyone who advocates Anarchy cannot possibly have an intelligence at all.
Comment by Libertyislife
Liberty is Life
Comment by Anonymous
I know you hope and wish like crazy that the libertarian ideas are coming into power now but they can't win because of their extreme views. Just because a nut won the Republican nomination in Kentucky doesn't mean much.
The electorate as a whole will not elect a nut.
The anti-establishment fervor that has taken over the country is directed towards incumbents not any particular party.
Comment by quickfingers
Parenting Issues
The owner of the rig, Transocean Ltd., was leasing the oil rig to BP. Transocean Ltd. had a similar incident in 1979 in which a rig caught on fire and sank in to the ocean which caused one of the largest spills (up to that point) in history.
Transocean, realizing their pricey loss of an oil rig, insured the oil rig in question for about twice what the rig is worth. After the current disaster, Transocean has actually profited off of this disaster due to this insurance payout.Their profit margin: 270 million dollars.
Now I understand you think the insurance company is the best regulatory body, but let's face it: when corporate interest meets corporate interest, nobody else's interests are taken in to account.
Comment by Libertyislife
Comment by Libertyislife
Comment by quickfingers
Parenting Issues
Our government doesn't want insurance companies to look bad; the senators and representatives make way to much money off of the oil industry AND the insurance industry.
Near the bottom. The insurance claim was 560mil, but Transocean was paid 401 mil.
Crooks and liars link.
Business Times Online.
Florida website
Take your pick man. I could post these links all day long, but I'm not going to.
The thing about me is that I have been hard-wired from college papers. I NEVER make a claim unless I can back it up with sources.
Comment by quickfingers
Parenting Issues
Huffington Post
NPR
Literally, the list could go on for a long time.