Tuesday 11 May 2010

City Slickers?


The continuing tale of the BP oil disaster in deep water in the Gulf of Mexico off Louisiana shows no sign of an early end (http://www.reuters.com/article/idUSTRE64A3QW20100511) and has now apparently started to threaten the company itself with a take over (its share price has fallen dramatically). In spite of enormous efforts, the oil has reached the coast where it is threatening fishing (both deep sea and around the shores), wild birds and holiday lets as far away as Florida. It seems to be the liabilities under US law (the clean up and compensation could amount to a considerable figure) that are causing the market pressures on the oil company. One should firstly comment that this location was always likely to be extremely problematic in the event of a spill and there has been an encouraging of such drilling to make the US more independent of world oil markets. I am not sure whether such drilling is any more acceptable than oil pipe-lines in Alaska or extraction from tar sands in Canada. Perhaps we need to redouble our efforts to wean ourselves away from a dependence on oil? It might even help reduce greenhouse gas emissions?

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