U.S. Government blocked scientists on spill estimate...clearly there is no transparency with oil!

President Barack Obama's senior energy adviser went on

national TV and mischaracterized a government analysis

by saying it showed most of the oil was "gone."

The analysis actually said it could still be there.

By: Dina Cappiello
10/6/10
WASHINGTON (AP) -- The Obama administration blocked efforts by government scientists to tell the public just how bad the Gulf oil spill could become and committed other missteps that raised questions about its competence and candor during the crisis, according to a commission appointed by the president to investigate the disaster.

In documents released Wednesday, the national oil spill commission's staff describes "not an incidental public relations problem" by the White House in the wake of the April 20 accident.

Among other things, the report says, the administration made erroneous early estimates of the spill's size, and President Barack Obama's senior energy adviser went on national TV and mischaracterized a government analysis by saying it showed most of the oil was "gone." The analysis actually said it could still be there.

"By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the Gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem," the report says.

The administration disputed the commission findings, saying senior government officials "were clear with the public what the worst-case flow rate could be."

In a statement Wednesday, National Oceanic and Atmospheric Administration chief Jane Lubchenco and White House budget director Jeffrey Zients pointed out that in early May, Interior Secretary Ken Salazar and Coast Guard Adm. Thad Allen told the public that the worst-case scenario could be more than 100,000 barrels a day, or 4.2 million gallons.

For the first time, the documents -- which are preliminary findings by the panel's staff -- show that the White House was directly involved in controlling the message as it struggled to convey that it, not BP, was in charge of responding to what eventually became the biggest offshore oil spill in U.S. history.

Citing interviews with government officials, the report reveals that in late April or early May, the White House budget office denied a request from NOAA to make public its worst-case estimate of how much oil could spew from the blown-out well. The Unified Command -- the government team in charge of the spill response -- also was discussing the possibility of making the numbers public, the report says.

The report shows "the political process was in charge and science really does not have the role that was touted," said Christopher D'Elia, dean of environmental studies at Louisiana State University. Complete article

Great blog that has been all over the oil spill since the explosion: Washingtonsblog

Sunday Comics

Ahhhhh Ben, what exactly did you mean...

outlook for the U.S. economy is "unusually uncertain"?

I went on record stating,

"You're seeing private investment expand again,

job growth starting to come back.

And that's very encouraging"

SEC's New Protocol for assessing fines

on companies accused of fraud and

or accounting improprieties.

No changes to "no ask no tell" policy

on admission of wrongdoing.

...and no one every does jail time...

Hey Charlie Rangel, Maxine Waters wants to read

it before returning to the library

Standard SEC issue since passage of

Financial Reform. SEC is now "selectively" exempt

from Freedom of Information Act.

Likely number of politicians who read the

financial reform bill prior to voting.

BP's legal strategy...offer a one time payment and

you promise not to sue us...trust us to do the right thing

Alan Greenpan: economy is having a modest recovery,

but right now there's a "pause" in that recovery,

 so it feels like a "quasi-recession."

Alan Greenspan: a rising stock market will do more to

stimulate the economy than any of the remedies

now being discussed.

 

BP Oil Spill Costs Estimated To Cut Tax Bill By $10 Billion (Zero Hedge)

Zero Hedge:
Paging Alanis Morisette: BP just pulled the ironic rug from right under the feet of the US and UK - the company is now expected to pay $10 billion less in taxes as a result of oil spill costs and associated expenses. As the FT reports, "BP is forecast to pay about $10bn (£6.7bn) less tax over the next four years as it meets the costs of its huge oil spill in the Gulf of Mexico, hitting the revenues of Britain and the US that receive hundreds of millions of dollars from the company each year.

The shortfall, representing a drop of more than a quarter in BP’s tax payments, is a particular concern for the British government attempting to cut the country’s budget deficit." It turns out the bulk of the tens of billions in associated costs will be tax deductible, in essence impairing primarily the government of the US and the UK at the marginal tax rate.

And yes, both governments are in dire need of tax revenues, although the UK much more so, as the US apparently can print $30 billion on a day like today at a rate of just over 1%. It appears the endgame will be a truly poetic gesture with an extended middle finger by BP's treasurer. Of course once the UK realizes it is about to see billions see in taxes, the response will be yet another series of Obama bashing headlines, just like when it was made public that Scotland's widows are among the biggest losers in the stock price collapse.

From Financial Times:
If BP manages to seal the leaking well as planned by August, analysts have estimated that its total spending in the Gulf region could be about $30bn. That would represent about $10bn of clean-up costs and $20bn compensation for losses suffered by fishing, tourist and other industries, covered by the fund agreed with the US administration last month.

With a tax rate on profits of 33 per cent in a typical year, that would cut BP’s tax bill by about $10bn.

BP paid $8.4bn in worldwide tax on profits last year, down from $12.6bn in 2008 because of the fall in oil and gas prices.

Of that 2009 payment, £930m went to the British government: about as much as is paid by the UK’s entire transport and communications industries.

The company does not give a full geographic breakdown of its taxes, but its payments to the US are likely to have been of a similar size.

Irene Himona, an analyst at Exane BNP Paribas, estimated that before the Deepwater Horizon accident, BP was set to pay about $37.5bn in tax during 2010-13, but the costs of the disaster would cut that to $27bn

Sunday Comics: Happy Father's Day Edition

Vatican: "A Catholic Classic", 2 thumbs up

Nancy Pelosi's initial reaction to the BP Oil spill

when grandpa reminded her that she voted for the
Oil Pollution Act of 1990 that included a

$75 million cap on behalf of oil companies

Nancy Pelosi's reaction to BP's

$20 Billion escrow account

(even Nancy knows $20 bil is 267 times greater than $75 mil)

Barney Frank's initial response to grandpa's email

reminding him that not only did he vote to cap the

oil companies liability at $75 million, he co-sponsored

the bill with Nancy Pelosi

Just released photo of British Petroleum's

oil spill 1st responders

I see 20,000 dead people receiving U.S. government 

 checks totaling more than $180 million

"We're making sure that payments no longer go to the

deceased... it sounds ridiculous even to say it,"

Happy Father's Day

Footprints

"Walk a little slower, Daddy,"

said a child so small.
"I'm following in your footsteps
and I don't want to fall.

Sometimes your steps are very fast,
Sometimes they're hard to see;
So walk a little slower, Daddy,
For you are leading me.

Someday when I'm all grown up,
You're what I want to be;
Then I will have a little child
Who'll want to follow me.

And I would want to lead just right,
And know that I was true;
So, walk a little slower, Daddy,
For I must follow you."

~ Author Unknown

Friday Funnies

Ms. Schapiro, the head-hunter from

Hedge Fund Associates is here to pick

up the employee recommendation letters

Members of Congress Prepping for BP Testimony

(overnight they became cement experts)

Way more qualified to represent America

during BP hearings

Alabama Republican Candidate Rick Barber

"Gathering his Armies"

Uh Oh...about the meatballs

British Petroleum's Short List to Replace

current CEO Tony Hayward

Grandpa's short list to replace current members on the

Committee On Energy and Commerce

BP Agrees to Set Aside About $20 Billion for Spill Claims (NYT)

WOW! $20 billion which will cover what? Seven weeks ago our government estimated the spill at 1,000 barrels per day. Yesterday the same dart throwing experts estimated the leak at 35-60,000 barrels per day.

New York Times
By JACKIE CALMES

Published: June 16, 2010

WASHINGTON — BP tentatively agreed on Wednesday to create a $20 billion fund to pay claims for the worst oil spill in American history. The fund will be independently run by Kenneth Feinberg, the mediator who oversaw the 9/11 victims compensation fund, according to two people familiar with the deliberations.

The agreement was not final and was still being negotiated when President Obama and his top advisers met Wednesday morning with BP’s top executives and lawyers. Its preliminary terms would give BP several years to deposit the full amount into the fund so it could better manage cash flow, maintain its financial viability and not scare off investors.

The talks have been complicated by the fact that BP’s ultimate liabilities for the cleanup and lost business are unknowable since the two-month-old leak of its well in the Gulf of Mexico could well be spewing some oil for months more. To date, BP has spent more than $1 billion on containment, cleanup and claims from the Coast Guard, fishermen, oil workers and other businesses from Louisiana to Florida.
Link to complete article

Grandpa: News breaks and the U.S. equity market commences with a rally. A $20 billion down payment placed in an escrow account enhances our economy in what way...?? The equity market manipulation continues and the CNBC permabulls wonder when the retail investor will come back into this manipulative and fraud laden U.S. equity market.....Maybe at a time when the government provides real, unmassaged data, publically traded companies cease their accounting gimmicks and CNBC enters a zone of unbiased and factual information.

I guess the return of the retail linvestor will be a while... 

Sunday Comics...Grandpa's 500th post edition

Mr. Feinberg, as Pay Czar, describe your overall

impact on Wall Street bonuses to date...

General Motors Heated Washer Fluid System Recall Fix

Pres. Obama's perceived venue for meeting with

British Petroleum's Chairman and Executives

Bodyguard candidates for French President Sarkozy

after he reportedly banned tall security personnel

 from applying to be his personal bodyguards

Recommended attire when test driving the iPad

Apple defends the cleanliness of its stores and

remains committed to creating a healthy

environment for their customers

What Carly Fiorina reads between interviews

Did you hear the one about Bernanke stating that

he believes AIG will pay back all their TARP money...

Obama does not simply sit around talking to experts..he is planning on kicking a*s

President Obama: "I was down there a month ago before most of these talking heads were even paying attention to the Gulf," adding he has talked to a variety of "experts" on the oil spill, as well as the fishermen.

"I don't sit around just talking to experts because this is a college seminar, we talk to these folks because they potentially have the best answers so I know whose a*s to kick".

In addition to fisherman and oil spill experts, Obama has consulted with known a*s kickers and he will be accompanied by several of the following when he visits British Petroleum's CEO Tony Hayward.

Tony Hayward's Defense Team

Sunday Comics

British Petroleum's Next Plan

Richard "pretty sure I was in Vietnam" Blumenthal's

favorite childhood toy

My name is Mark Kirk, U.S. Senate Candidate

from IL and I play a Navy Intelligence Officer

of the Year on TV

In addition to being named Navy Intelligence Officer

of the Year, I was the "only member of Congress

to serve in Operation Iraqi Freedom"

 and was Abe Lincoln's personal photographer

"Growth friendly" is my new slogan and

I came up with it all by myself.

No one knows what it means...that's the beauty

Common reaction to Christina Romer's assessment

of the May Payroll Report

Christina Romer: “it is important not to read too much

into any one monthly report, positive or negative. …

Emphasis should be placed on persistent trends

rather than month-to-month fluctuations.”

McDonald's New Promotion

Purchase a Shrek Value Meal and

return 12 Cadmium Shrek Glasses......

Jon Stewart on BP Oil Spill, British Petroleum...the company with 760 willfull safety violations over 3 years

Jon Stewart on BP Oil Spill, British Petroleum...the company with 760 willfull safety violations over 3 years

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Cenac - The Spilling Fields - Oil Leak Containment Ideas
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