BP holds US to ransom – demands new drilling permits or not payouts

Predictable. As I have said countless times, when the tables are turned this is how the corporate world reacts. Whether it’s Big Oil or Wall Street, they will gladly accept a handout when it’s there (massive tax breaks, bailouts, etc) without strings. Naturally when someone else is asking them for something in return it’s always with strings attached. In the case of BP, they are reneging on a previous deal to payout those financially impacted by the oil spill. No strings were ever attached. The US government could have radically changed the terms of the deal by making links to government contracts since BP relies so heavily on business with the US government, but they didn’t.

BP is as oily as the slick they left in the Gulf of Mexico and can never be trusted. Maybe it’s time for Washington to play hardball with this company instead of once again playing nice. BP has yet to show they can behave responsibly so why tolerate this behavior?

Is BP saying that they have not yet added the $20 billion into the escrow account? If that’s the case Washington should start rounding up single contract with BP and start blocking all payments until this issue is resolved. Freeze their accounts as we’ve done for states such as Iran until the issue is settled. The US holds an enormous upper hand here so to let BP make an attempt at dictating payment terms should not be allowed. No apologies are required for asking BP to hold up their end of the bargain. None at all.

BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf of Mexico.

The company says a ban would also imperil the ambitious Gulf Coast restoration efforts that officials want the company to voluntarily support.

BP executives insist that they have not backed away from their commitment to the White House to set aside $20 billion in an escrow fund over the next four years to pay damage claims and government penalties stemming from the April 20 explosion of the Deepwater Horizon drilling rig. The explosion killed 11 workers and spewed millions of barrels of oil into the gulf.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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