Big Oil Responsibility

In light of the oil companies continuing to rake in billions of dollars in profits, two pieces of news will take on added significance this month. Firstly, BP has allowed a pipeline in Alaska to corrode to the point that 16 miles of it will need to be replaced and--more importantly will be closed for several months. What are the oil companies doing with all that money? (And what are the implications of this news for drilling in AMWAR?)

Secondly, the US government will be signing over drilling rights to large swathes of the Gulf of Mexico to the oil companies for a pittance. This is a similar agreement to that that led to drilling in Alaska. While it is clear that prospecting for gas and oil is an expensive business requiring significant investment, the US should negotiate to get a percentage in royalties. This is how Saudi Arabia and the other OPEC countries get to be so rich. These are our natural resources that the government is giving away. From a national security perspective, even if the oil companies don't pay royalties, shouldn't we expect them to at least maintain the infrastructure that allows them to sell it. The irony is that this failure profits the same oil companies that can't sell the product because the increase in oil prices will offset any losses. What are the oil companies doing with all that money?

Governor Blanco has threatened not to sign off on the Gulf of Mexico deal. I'd love to see her do it, so Louisiana gets its fair share of the resources off of its coast. This seems equitable since the government abandoned the state after Katrina. Why should we hand over our resources to the oil companies when the government can't manage to offer even the most minimal help in our hour of need? Unfortunately, I doubt Blanco has the guts to withold her assent.