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Apr 28, 2010

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Brent

HL, this may or may not cost taxpayers anything, maybe. What's the end cost to OUR environment and other industries which may lose jobs?

Goverment regulations vs oil rigs that spill $430,000 of oil a day. Prices will go up either way... just in time for summer. Have they switch to the BS "summer blend" yet?

S Rank

Sounds like a great time to cut the U.S. Coast Guard Budget doesn't it???? NOT! After the Earth Quake in Hatti, and now this..... where the U.S. Coast was first on scene like always (always ready) maybe the President should reconsider cutting their forces and budget. Maybe stop the hire of more Administrators for the DHS....at the cost of the U.S. Coast Guard man power and equipment......? What you think?

stanleyk

The growth of renewable energy will reduce jobs in some sectors...but it will create far more. Fossil fuel advocates are increasingly in the position of buggy-whip makers at the dawn of the automotive industry. It's not completely that way yet, but we'll get there soon. The regulations BP has been resisting--including having safety inspectors annually examine equipment like the Deepwater Horizon's failed blow-out preventor--were argued against on the same grounds you mention: "will increase the already enormous costs associated with drilling and production."

The estimated cost of compliance with those regulations was $8 million/year. The cleanup/containment for the current spill is costing $6 million/DAY. Replacing the Deepwater Horizon is estimated at $700 million.

So, who is increasing operating costs, which will (as you say) get passed on to the pump?

Solar and wind don't spill. They don't run out. And all though the equipment costs, the fuel is free--forever. Add in geothermal, hydroelectric, biomass from algae or grasses that can grow on non-food-producing land...there's the potential for FAR more energy than we currently use, without being economic hostages to hostile foreign powers, without using up a limited resource...do the math. Fossil fuel has been great for us, but we're rapidly approaching the point (if we haven't already passed it) where it's not worth it anymore.

HL

This will initially cost taxpayers nothing other than the costs of the coast gaurd rescue and assistance, which may in the end be charged back to BP.

Oil companies carry extremely large insurance policies on these rigs for all kinds of circumstances e.g. hurricanes, sub-sea mud slides, fires, boat collisions etc.

As for the royalties that would have been paid for the oil, the fines that will be charged for the spill to BP by the MMS and EPA will be several times more than what they would have paid to lease that particular block from the government.

Out of an estimated 100,000,000 barrels of oil in that resevoir the well is gushing just over 1,000 barrels a day. At that rate, it would take over 27 years for all the oil to leak out.

Besides, as I type, BP is planning to drill 2 relief wells that will plug the current well and they will eventually, probably produce those wells and pay royalties/lease fees for it.

What will likely happen will be more regulations issued by the government which will increase the already enormous costs associated with drilling and production. And in turn increase the price we pay at the pump.

And/Or, we will see a renewed push for "green engergy" by the left which will raise taxes on current energy sectors, lose jobs (and income tax) in those sectors, see contracts and mineral rights be sold to foreign governments, and we'll get to buy our own oil back from Russia while we try to put potato chips and popcorn into our gas tanks.

Either way, the government will screw us.

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