The recent oil spill off the coast of Louisiana seems to ill timed just as the government lifted a decades ban on off-shore drilling. There seems to be more to this story than meets the eye. BP, an oil-industry stalwart, who has an impressive safety track record and touts itself among the cleanest and best in terms of environmental safety has just been a total disaster.
The political fallout will be huge, especially since there`s a considerable amount of voice and opposition to off-shore drilling. Its not conceivable to think a crippling "sabotage" took place at this specific time. Its well within the realm of possibility, not doubt about the it. Safety records and practices, equipment and training have vastly improved environment and personal safety in the oil business and the point well an entire oil platform would just caught on fire and get destroyed is just mind-boggling.
Now, last week's explosion on a deepwater rig finishing a well for BP left 11 workers missing, presumably dead, and a subsequent oil slick that now covers about 28,600 square miles (74,000 sq. km) and could not have come at a worse time for the oil industry. This is a PR nightmare for BP, especially since it touted itself for its impeccable safety track in the oil industry. This has smeared it`s image and must to restore it to begin anew.
After a decades-long moratorium on drilling in most areas outside the Gulf of Mexico, the Obama administration last month unveiled a limited expansion plan.
The Obama administration has stood by its proposal for new offshore oil drilling in the wake of the accident and seems unlikely to change course on the issue any time soon. The president's plan was already a fairly modest, opening only parts of the U.S. Atlantic coast and Alaska to drilling.
A lot will depend on the cause and severity of the oil spill, but the outcome could undermine supporters of more oil drilling and embolden lawmakers, particularly from Florida, who dislike the expansion plans.If the oil reaches land, damaging coastlines and disrupting sensitive ecosystems, public sentiment could turn against the offshore drilling and make it difficult for lawmakers to call for a significant increase in drilling.
Regardless of how quickly the spill is contained, it will undoubtedly add clout to the arguments of offshore drilling opponents. Lawmakers in coastal states dependent on tourism are already using the accident to question the safety of the offshore oil industry.
