Monday, June 14, 2010

Even in the face of new flow estimates, Obama Admin attempts to minimize report of BP oil flow

Andre Damon with WSWS writes:
Even in the face of the new estimates, Obama administration officials are seeking to minimize the rate of flow to the extent possible. On Sunday, Allen put the flow rate at about 40,000 barrels a day, and claimed absurdly that the true rate will only be known “when we have it completely capped, control the flow, can actually measure” it.

At the same time, Allen defended BP, saying that earlier estimates “were never BP’s figures. They were our figures. We have several different methods of trying to establish the flow rate, from taking overhead satellite imagery of the oil on the water to using very high resolution video to try to assess the volume of the flow and velocity at which it’s rising.”

What Allen did not mention is that earlier independent figures based on these methods—and in the face of attempts by BP to block access to imagery of the leak itself—conform to the current high estimates. Weeks before the government increased its initial estimate, independent experts analyzed a video of the spill to conclude that the well was leaking 70,000 barrels per day.

The Alabama Press-Register reported on a video released by the National Oceanic and Atmospheric Administration (NOAA) showing scientists discussing a rate of spill of 64,000 to 110,000 barrels per day.

The Obama administration is scrambling to respond to a growing political crisis and contain popular anger. Obama will be traveling to the Gulf of Mexico Monday, after which he will deliver a public address at the White House on Tuesday evening. The following day he will meet with BP executives in the attempt to reach an accommodation with company.

Obama is calling for the creation of an escrow account to pay out claims from residents and workers. Leading Democrats suggested a figure of $20 billion for this account—a tiny fraction of the damage caused by the spill. A study released by Earth Economics, a Seattle-based environmental group, estimates the economic value of the Gulf of Mexico environment at $1.3 trillion, implying that the economic damages of the spill could in reality amount to hundreds of billions of dollars.

BP is seeking assurances that its liabilities will be limited. Obama spoke with UK Prime Minister David Cameron on Friday, reassuring him that he had no intention of “undermining” the stock market value of BP. More...

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