Tuesday, 1 June 2010

This oil spill isn't just an ecological disaster - with everything from pensions to petrol prices impacted, it's a catastrophe for us all.

The continued eruption of oil from the bottom of the Gulf of Mexico is an unmitigated catastrophe, with incalculable economic and ecological consequences; and when I think about it this black gold that companies such as BP hunger after, now chucking up and spewing-out killing and polluting, make’s me feel glad that when I was young I decided that learning to dive and owning a car was not for me!

From my council flat here in Canning Town I have a great view of the A13 and the constant flowing traffic, moving back and forth to Tilbury and Southend 24/7 non-stop. Despite my close proximity; I do love the fast moving scene, a moving-picture show that spellbinds my thoughts on the modern pace of life in this the 21st century.

With each passing day, more is revealed about the way in which BP deliberately cut corners on safety, facilitated by the federal Minerals Management Service (MMS), which rubber-stamped all of BP’s actions up to the day of the explosion. Despite ample warnings of an impending disaster—including leaks in the blowout preventer, the failure of which has cut off attempts to cap the eruption—BP was determined to push ahead with the drilling. At the same time, additional safety measures and backups were not installed, with the oil industry unwilling to pay the extra costs.

This disaster is nothing more than a demonstration of the way in which global society is vulnerable to the destructive operations of privately owned corporations such as BP whose guiding principle is profit and the enrichment of private shareholders.

Today I learnt that the giant that is BP may eventually go under, that its market price shares fell by 17% as it lost £7 billion, now the real losers may be the thousands of ordinary working people who have money tide-up in pension funds?

BP is a key stock for pension funds, and it is suggested that it accounts for one in every six pension pounds invested.
Funds have traditionally chosen BP because its shares were seen as a relatively 'safe' bet in the long-run, gaining solidly each year and most importantly providing a regular and robust dividend.

But the crisis in the Gulf of Mexico has dramatically changed that outlook.

With oil spill problems set to rumble on, many expect BP shares to tumble further, wiping huge chunks from retirement savers' pots. And the big fear for pension funds ongoing performance is that BP may not be able to sustain its high dividend payments, with the shares currently yielding more than 7.5%.
This oil spill isn't just an ecological disaster - with everything from pensions to petrol prices impacted, it's a catastrophe for us all.

the efforts by British Petroleum to bring to an end the disastrous oil spill from the Deepwater Horizon project in the Gulf of Mexico have been found wanting.

Ever since a deadly explosion triggered the spill on April 20 all BP's attempts to stem the flow have failed. The latest 'top kill' technique - firing mud, golf balls and other debris into the well - has now proved as hapless as the other techniques it has employed without success.

There are now fears that it may take until August to finally stem the black tide that is bubbling out of the ocean floor. And with each passing day BP, once Britain's largest industrial company, comes closer to financial implosion.

I give BP just months, and then it’s over and out!

1 comment:

Chris H said...

A catastrophe indeed. And who gets to pay? Yup, Joe Public and Mother Earth.

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