The Deepwater Horizon oil spill, which occurred in 2010, is not considered fully cleaned up as of 2024 Residual Oil: Estimates suggest that while approximately 75% of the oil was either removed or degraded, yet a significant portion remains unaccounted for in various forms within the environment. Reports indicate that about 25% of the released oil was actually collected, leaving potentially up to 75% still present in some capacity. That’s about 3.675 million barrels of oil.
The Deepwater Horizon oil spill, also known as the BP oil spill, is recognized as the largest marine oil spill in history, originating from a catastrophic blowout on April 20, 2010, at the Macondo Prospect in the Gulf of Mexico. Over a period of 87 days, approximately 4.9 million barrels of oil were discharged into the ocean before the well was finally capped on July 15, 2010. The disaster resulted in the death of 11 workers and had devastating environmental impacts, affecting numerous species and ecosystems in the region.
As of 2024, BP’s total costs related to the spill—including cleanup efforts, environmental restoration, and fines—have exceeded $54 billion. In July 2015, BP reached a record settlement of $18.7 billion, marking it as the largest corporate settlement in U.S. history. The spill’s aftermath continues to be felt today, with ongoing legal and environmental repercussions.
The Gulf of Mexico is home to over 8,332 species, including 1,270 species of fish, 604 species ofpolychaetes, 218 species ofbirds, 1,456 species ofmollusks, 1,503 species of crustaceans, 4 species of sea turtles, and 29 species of marine mammals. Despite BP’s claims in April 2014 that cleanup was substantially complete, federal agencies indicated that significant work remained to restore affected areas.
The FDA and NOAA eventually reopened fishing waters in November 2010, but this decision was met with both relief and concern. Many stakeholders felt that while economic recovery was essential, it should not come at the expense of public health or environmental safety.
Seafood types to avoid if they come from this area:
- Yellowfin Tuna: This species has been found to have some of the highest levels of polycyclic aromatic hydrocarbons (PAHs) since the spill, making it a significant concern for contamination.
- Golden Tilefish: Known for accumulating high concentrations of PAHs, tilefish are another species you should avoid due to their elevated contamination levels.
- Red Drum: Similar to yellowfin tuna, red drum has also shown increased levels of contaminants and should be consumed with caution.
- Grouper: Various grouper species have exhibited rising PAH concentrations, particularly in areas near the spill. Yellowedge grouper, for example, had a concentration increase of over 800% from 2011 to 2017.
- Crustaceans and Mollusks: Species like shrimp, crabs, and oysters are particularly susceptible to PAH accumulation due to their biological characteristics. They may retain contaminants longer than other seafood types.
Check the Country of Origin Labeling (COOL) and know your seafood before you buy.
- Look for Labels: Most seafood products are required to have a label indicating the country of origin. This includes wild and farm-raised fish and shellfish. If the seafood is labeled as coming from the Gulf of Mexico, it will typically state “Product of the USA” or specifically mention the Gulf region.
- Retailer Invoices: If purchasing from a seafood market or restaurant, ask for invoices or product guides that specify the country of origin. Many retailers, such as Santa Monica Seafood, provide this information upon request.
- Compliance with Regulations: The U.S. Department of Agriculture (USDA) oversees COOL compliance, which mandates that grocery stores and supermarkets identify the origin of covered commodities, including seafood.
The Deepwater Horizon oil spill has since been associated with a range of adverse health effects among both cleanup workers and local populations, highlighting the long-term health implications of such environmental disasters. Following the Deepwater Horizon oil spill in 2010, several health issues and diseases were reported to increase among cleanup workers and local residents in the affected areas. Key findings include:
– Respiratory Problems: A significant number of oil spill cleanup workers developed chronic respiratory conditions, including chronic rhinosinusitis and reactive airway dysfunction syndrome. At a 7-year follow-up, 91% of exposed individuals reported progressive respiratory deterioration, with many experiencing persistent shortness of breath and chronic cough.
– Neurological Symptoms: Cleanup workers and residents reported an increase in neurological symptoms such as headaches, migraines, dizziness, and cognitive difficulties. These symptoms were linked to exposure to crude oil and chemical dispersants during the cleanup process.
– Cardiovascular Issues: There were suggestive associations between oil spill exposure and an increased risk of nonfatal myocardial infarction (MI) among cleanup workers. Those who worked longer durations on the spill cleanup were particularly at risk.
– Mental Health Concerns: The spill also exacerbated mental health issues, including anxiety and post-traumatic stress disorder (PTSD), particularly among those directly involved in the cleanup efforts or living in proximity to the spill. Stress related to the spill’s aftermath, including legal and claims processes, contributed to these mental health challenges.
In the years following the spill, research has highlighted the role of microorganisms in mitigating oil pollution. Microbes capable of breaking down hydrocarbons played a crucial role in reducing the impact of the spill. Biogeochemists have noted that these microbes effectively consumed many of the smaller hydrocarbon molecules present in the oil. However, challenges remain; while some hydrocarbons were degraded rapidly, larger tarlike compounds persisted in the environment.
Recent studies have shown that chemical dispersants used during cleanup efforts may have complicated microbial responses to oil pollution. A study from early 2024 revealed that dispersants intensified stress responses in bacteria essential for degrading hydrocarbons when exposed to sunlight. This finding underscores the need for improved strategies in managing oil spills and highlights ongoing research into effective cleanup methods.
Technological advancements since 2010 have also enhanced spill response capabilities. Innovations include improved skimmer designs that can now collect a higher percentage of oil compared to water and advanced mapping tools that help identify sensitive coastal areas at risk during spills. NOAA continues to lead restoration efforts and monitor long-term ecological impacts from the disaster.
Overall, while significant progress has been made in understanding and responding to oil spills since Deepwater Horizon, challenges remain in fully restoring affected ecosystems and preventing future disasters.
I have daydreams of aliens visiting the Earth and cleaning it up in one big “whoosh,” removing all of the man-made damage from the beginning of the industrial revolution. We probably have to become our own miracle, however. The point of this article is that it will take more than one tool, and we have to be a lot more careful. Killing our oceans will not bode well for the human race.
Luckily there are many ways we can help. One I read recently was that just playing back the sounds of shrimp and other fish from loudspeakers hidden in dead corals attracted fish to those corals and helped to start to rebuild them. Let’s keep working on new ways to bring back the huge web of life on earth which we are only beginning as a species to realize that we need.
Read More
[1] https://www.bbc.com/future/article/20240905-have-we-improved-oil-spill-clean-ups-since-bp-deepwater-horizon
[2] https://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill
[3] https://www.britannica.com/event/Deepwater-Horizon-oil-spill
[4] https://pacmar.com/article/spill-response-recovery-2024-update/
[5] https://www.fisheries.noaa.gov/national/habitat-conservation/10-years-noaas-work-after-deepwater-horizon-oil-spill-timeline
[6] https://ocean.si.edu/conservation/pollution/gulf-oil-spill
[7] https://www.sciencedaily.com/releases/2024/01/240122144353.htm
[8] https://www.epa.gov/enforcement/deepwater-horizon-bp-gulf-mexico-oil-spill
[9] https://www.scientificamerican.com/article/how-microbes-helped-clean-bp-s-oil-spill/
[10] https://www.sciencemag.org/news/2010/04/can-microbes-save-gulf-beaches-challenges-are-myriad
[11] https://pmc.ncbi.nlm.nih.gov/articles/PMC3682604/
[12] https://response.restoration.noaa.gov/five-years-after-deepwater-horizon-oil-spill-gulf-research-reveals-oil-damages-fish-heart:
[15] https://pmc.ncbi.nlm.nih.gov/articles/PMC5932154/
[14] https://pmc.ncbi.nlm.nih.gov/articles/PMC5112119/
[15] https://ehjournal.biomedcentral.com/articles/10.1186/s12940-022-00941-0
[16] https://ehjournal.biomedcentral.com/articles/10.1186/s12940-018-0408-8
[17] https://tos.org/oceanography/article/human-health-and-socioeconomic-effects-of-the-deepwater-horizon-oil-spill-in-the-gulf-of-mexico-1
29 comments
I saw this program once about this special paper some guy had invented that absorbs oil really well but not water. When water was poured on its surface it just beaded up and rolled off. Maybe that stuff could help, if they could get enough.
What would really save the beaches is if Obama would actually do something about it instead of trying to blame it on someone. Blaming solves nothing, the oil is still there. Here are the facts: There is a huge amount of oil accumulating in the Gulf of Mexico, it has the potential to kill thousands of marine animals along the coast. There is a broken well 5,000 feet below the surface of the ocean that is spewing this stuff between 5 and 8 hundred thousand gallons per day. This was caused by a wellhead blowout, an accident. A very VERY uncommon accident. This well needs to be plugged and then the remaining oil needs to be cleaned up by some method. Blaming the oil companies and certain organizations (and of course, Bush. Yes, some people are) is not going to help anything. It’s all politics. They need to put the politics aside and GET GOING on cleanup. It’s infuriating to see this happening.
Cole, nice thoughts.
But, what do you suppose Obama could do, if he wasn’t wasting all his time blaming someone? Seeing how BP is fined by the gallon split into the Gulf I bet they’ve thought of every possibility.
This same kind of accident occurred in the Gulf in 1979 by Mexican Premex Oil, but in shallower water and noone could do anything then. It lasted several months until the source exhausted itself. (Expect the same now, so we are told.)
We just let these industrial giants do just about whatever they want, believing all along they have the appropriate solutions for whatever may arise. Is it no wonder the Native Americans near the arctic aren’t very happy with BP up there, where the same company was caused another spill only a couple of years ago?
Aww, they changed the icons! I’m gonna miss my little purple quilt pattern. 🙁
Well for one, he could actually let all these organizations implement what they are trying. Louisiana wants to set up booms, but the federal government is saying they can’t because of some missing document. People want to send out ships with special filtration pumps. Somehow, they won’t let them do that either.
This is crazy, Obama did all he could to save a TINY, UNIMPORTANT fish by cutting off water supplies to THE RICHEST AGRICULTURAL REGION IN THE WORLD. Now, thousands of fish are at risk and nothing! Where are all the environmentalists now? This guy just fails as a leader.
– Icons: Just trying this out. There are a few other options too. Switching on the monster icons next. Just like the patterns, the face and monster icons are picked at random with one assigned to each email address I believe.
– Also more depths added to replying to comments.
– Got rid of spam comments
Wait, the reason that we could never comment on one continuous thread for more than 3 was that it had to be SET higher? I didn’t realize that was an option. Good call.
Didn’t realize that myself until I started poking around the settings to get rid of the hourly spam that was getting through the filter. Also set a MORE feature that gives multiple pages when there are too many comments on one post. Set that to 50 comments max. You can also have a post closed for comments after x number of days, but I like having people find and comment on old posts.
Sent from my iPhone
Ann,
I agree with you about Obama sitting on his hands doing nothing when he should have accepted foreign help on the third day, when it was offered.. instead of waiting two months to accept foreign help. He also did nothing about mobilizing the 2,000+ American skimmers, instead leaving us with a few dozen skimmers to handle the spill. He also stood in the way of all of our attempts to block the oil from getting into our LA marshes and coastline and still blocks our attempts today.
Now, as far as the 1979 Ixtoc spill in Mexico, it actually lasted for 10 months and there weren’t able to cap the leaking well until after they drilled two relief wells… which is why BP is also drilling the two relief wells. I just wanted to clarify that for you.
BUT… we’ve come a long way in skimming capabilities since 1979 but still needed all 2,000 or at least a large majority of them down here from day one. One FL Senator said that Obama’s excuse that those other areas might need their skimmers in the event of an accident is analogous to not bringing in surrounding fire engines to fight a BIG fire because a fire might happen in one of those surrounding areas. Same with ambulances that come from all over when there’s a major plane or train accident. It’s asinine how Obama is handling this accident and the BP spill will be to Obama what the hostages were to Jimmy Carter… showing just how inept they both are and were.
I agree with all of your third paragraph.
Check out my blog’s series of articles at http://lennyvasbinder.blogspot.com/search/label/BP%20Oil%20Spill for more information and facts.
Well, Cole, I just read that there’s actually miles of booms.
7,500 feet since May 1st.
[Source: Booms readied near Chef Menteur, Ft. Pike, to protect Lake Pontchartrain from Gulf of Mexico oil spill, May 01, 2010
By Bruce Nolan, The Times-Picayune]
And, more than 41 miles of floating booms are being used to contain the oil, with another 58 miles on standby by May 5th:
[Source: Black tide that cost BP ¬£20bn as White House threatens to ‘keep boot on throat’ of British firm over Gulf of Mexico oil spill
5th May 2010
http://www.dailymail.co.uk/news/ ]
But, instead of blaming lost documents and others (like some people say Obama is doing), we might do well listen to an expert:
“Mike Brewer, 40, who lost his oil spill response company in the devastation of Hurricane Katrina nearly five years ago, said the area was accustomed to the occasional minor spill. But he feared the scale of the escaping oil was beyond the capacity of existing resources. ‘You’re pumping out a massive amount of oil. There is no way to stop it,’ he said:
[Source: Oil from massive Gulf spill reaching La. coast April 29, 2010
http://www.msnbc.msn.com ]
I don’t think people really understand the enormity of the problem. (Just as people often don’t seem to comprehend the power and influence of corporations.)
Here a source that gives an explanation of the problem:
May 30, 2010…3:48 pm
Oil Catastrophe Possibly Can’t Be Stopped
http://emsnews.wordpress.com/2010/05/30/oil-catastrophe-possibly-cant-be-stopped/
By the way “THE RICHEST AGRICULTURAL REGION IN THE WORLD” is also responsible for the largest “dead zone” in the world – about 7,500 km long along the Gulf Coast. This occurs every summer since 1992. And, it’s been getting bigger just about every year.
It is because of fertilizers and chemicals from farmlands all along the Mississippi drain into the warm waters of the Gulf every summer.
Environmentalists complained about this for years, but of course the corporate media ain’t going to print that!
Environmentalists are also screaming about the Obama his subservient attitude toward BP. Check any website to any environmental group that’s not owned by America Inc.
What is that a picture of? It’s not any beaches down here in LA, MS, AL or FL. It kind of looks like the beaches of the 1979 Ixtoc spill but the flags flying on the lifeguard stands are NOT Mexican flags so I wonder where that pic is from… and why it’s on a thread about the BP Oil Spill… it’s really a seriously bad misreprensentation.
Here’s my 12 blog so far about the BP Oil Spill…
http://lennyvasbinder.blogspot.com/search/label/BP
“… it‚Äôs really a seriously bad misreprensentation .. (or is that “misrepresentation”)? Loosen up!
Xeno creatively portrays all sorts news items with all kinds of artistic representations. You might want to follow his blog before criticizing.
The BP oil spill is now the worst that ever occurred in the Gulf of Mexico. This means that the annual “dead zone” in the Gulf will be, despite whatever cleanup successes are in store for us, even larger than before, when it was already the largest in the world.
Thank you, BP.
Obama Wimp,
You should be blaming Obama. What happened to BP was an accident… although the steps leading up to the accident were due to BP and MMS approving every step of what BP was doing (See my Timeline Blog).
What Obama is doing.. or rather NOT doing is intentional! He will go down in history as the reason for any major environmental damage to the LA marshes and coastline to those who want to know the truth.
http://lennyvasbinder.blogspot.com/search/label/BP%20Oil%20Spill
BP made a very serious “accident” due to taking short-cuts and cutting costs. These are accepted things that businesses do, when they can get away with it, to make, not a safer product, but quicker profit.
Obama is not any more guilty than any other President or Congress person would be in similar circumstances.
No politician in Washington could even (!) run for office without enormous contributions from corporations – that includes BP, who supported both democrats and republicans. (Just ask Ralph Nader, but he intentionally refused corporate contributions and wanted to win by truly democratic choice. But, of course, he had to fight the entire media, which was paid by corporate-election dollars.)
So, what would you do, if someone helped you get a good-paying and plush job? (We’re not talking Wall Mart here.) Would you turn your back to him or her, if he or she got into some trouble? I don’t think so. Well, BP is in trouble.
But, it’s worse than that, because we end up paying. If our government does anything extra out in the Gulf, because of the spill, we are paying for it, not BP. This has nothing to do with fines that should go to the clean up and helping all those people who are physically affected and who lost jobs or businesses. BP should pay for all this. This is called holding BP accountable.
P-1, mostly agreed. NOT all businesses are inspected MANY times at MANY phases of their work product… and if they are being inspected by a government agency that isn’t doing it’s job or is telling the business that it’s OK to skip those safety steps, then the burden shifts from the business to the government agency that is approving the *new* rules.
P-2. The difference is that Obama IS the president since January 2009 and Democrats have controlled both halls of Congress since 2006… so they have to OWN responsibility for ALL of this regulatory SNAFU’s and cleanup mess. Further, just like the Democrats and many honest Republicans (I live down here in New Orleans burbs) blamed George Bush when FEMA was slow to react to Katrina (although much of the delay blame also lies with our then Democrat Governor Blanco), Obama and the Democrats are to be BLAMED for the MUCH SLOWER response to the post-accident clean-up fiasco. The accident, whether it could have been prevented or not, will always be the fault of BP with corresponding fault on MMS for approving all of the waivers and permits… but the two-month delay in moving the necessary assets down into the Gulf to clean up the oil before it got to shore is ALL Obama’s fault.
P-3. Yes, BP and many other corporations and individuals support various politicians as part of their “free speech”, which I agree with, and while these donations might get doors opened or access to a politician that the rest of us may not have, this doesn’t mean that politicians should commit illegal acts, disregard laws and regulations, etc., just because someone gave a donation.
P-4. I wouldn’t turn my back but I wouldn’t commit crimes or disregard rules/regulations… or if I did, I would then expect that I would be held responsible if my actions contributed to negligence that resulted in an accident… which is what MMS did. BUT Obama’s failure to act has nothing to do with the waivers and permits… but instead because he was in bed with BP (Obama was BP’s biggest recipient of donations in the past 20 years… more than Bush or McCain), he listened to them instead of Governors and others down here on the front lines so Obama’s various agencies followed their *leader* and refused to listen to the Governors (maybe because all of the Governors are Red-State Governors???) and his inactions have resulted in this spill being much more of an environmental issue than it needed to be. If Obama would have accepted foreign assistance from day three and also mobilized hundreds, if not thousands of skimmers from around America, the oil could have been sucked up way out in the Gulf before it had a chance to spread out so much and eventually make landfall into the marshes. The beaches are relatively easy to clean up but the marshes are a much larger problem.
P-5. I hate to burst your bubble and all of the other people’s bubbles that think that “BP should have to pay all of the costs”. Yes, BP will be paying all of the costs up front, but just like any other cost of doing business, whether it’s political contributions or taxes or fines or lawsuit judgments, etc…. it’s the consumer who ultimately pays all of these expenses. And with Oil being publicly traded in a world market, it’s NOT just BP’s customers who will pay. For example, lets say that all of the costs related to this spill causes BP to have to charge $5.00 a barrel more for their product. Do you really think the rest of the thousands of oil companies around the world are going to charge $5.00 less? NOPE… they’re going to charge whatever the market will bear. It’s the nature of any company or product available on the open and free markets. And don’t say, “Well, we should regulate their prices!”, as government regulation of prices has ALWAYS resulted in even higher prices to the consumer. The same thing happens for every government fee, fine, tax, etc… it’s the customers who pay these, not the corporation since ALL costs of doing business are factored into the price of the product or service that business produces.
see below
Oops! that last comment was by Ann, Sorry!
Thanks for the comment, but sorry for my short response:
P-1 My suggestion: Don’t trust a government paid for by corporate dollars. Take for instance McDonald’s and the cadmium found in glasses that it sold recently. The media said “federal regulators” found out about it. That was not true. Few agencies inspect anything and those that do aren’t necessarily good at it. Read about this. All government agencies are underpaid and understaffed, because everyone wants a smaller government. Well, we have a much smaller government than in the 1970s, and it can do just so much. Take the FDA and drug industry! Why do you think so many pharmaceuticals are called off the market so many times, after they had already affected sometimes thousands of people, like the drug Vioxx?
P-2 Let’s talk Bush, Lt. Commander of the largest armed forces in history, not just the world, which is actually the largest industrial military complex in history, not just the world. And, Obama is just as bad (he has accelerated military build up!), both presidents are supporting, through taxpayers’ dollars the ongoing growth of Lockheed Martin, Boeing and all the rest, to further support, in the long run, the petroleum industry. … What? You had a stopwatch and counted how long it took Bush’s efforts after Katrina and compared it with Obama’s retarded moves after the BP fiasco? Come on! Both administrations are not interested in helping anyone, except to make a show of it, at times, for the media. Remember, the media is what is paid for during political campaigns to keep us thinking in certain ways – it’s called propaganda.
P-3 I never said anything was “illegal.” It’s all within the law. … So, I guess you wouldn’t support someone who helped you get into office. But, you sure aren’t like most all politicians. Read about this! (not from bias political trash, both parties do this). The only time politicians don’t support those who make campaign contributions is during issues from which they cannot escape – we’re talking big her. And, that is very, very few of the items to go through Congress et al. parts of government. I don’t think the media, NY Times, LA Times etc., is castigating Obama’s slow response to BP any more or less than it criticized Bush after Katrina.
P-4 See P-3 – nothing is illegal. It’s all within the law. But, we allowed it to happen, unfortunately.
How do you figure we have a smaller government today than in the 70’s? Just look at the budget growth in the past 40 years. In inflation adjusted dollars, federal spending has climbed by 242% since 1970 whereas individual income has only grown by 29%. http://www.heritage.org/BudgetChartbook/growth-federal-spending
Federal spending per household in 1970 was under $15K whereas today, in inflation adjusted dollars, it’s over $30K and CLIMBING FAST!
http://www.heritage.org/budgetchartbook/federal-spending-per-household
Yes, you can find charts and graphs showing the total number of federal employees has not grown proportionately but that is only because there are companies with hundreds of thousands of employees that are virtual government agencies so the feds have merely contracted out much of the work but if those employees are being paid for with federal dollars, IMO, they’re the same as federal employees.
I don’t agree with your conclusion that “It’s all within the law”. Unfortunately, the fox is guarding the henhouse in many of these issues so prosecutions will never occur. Look at Treasury Scty. tax-cheat Tim Geitner, Congressmembers Charlie Rangle, Chris Dodd, etc… and a host of Republicans as well.. who were allowed to serve out their terms or quietly retire without being prosecuted. I seriously doubt that Holder will investigate MMS, etc. for their violation fo their duties in this accident… but they’ll go after BP because so many people are ignorant to the facts about the pathetic permitting, inspection, waivers and pathetic response to the post-accident cleanup.
Sorry, I guess, I should add to P-4;
Like you implied, “Governors and others down here on the front lines” aren’t a worry for Obama; are they? Why should he listen to them any more than Bush listened to the governor of La before, during and after Katrina?
P-5 “they‚Äôre going to charge whatever the market will bear.” Please explain that “market” when it’s controlled by only few giant companies. Oh, but we’re supposed to believe it’s not a monopoly? Nonsense! Few companies, a market does not make. Oh, we’ll end up paying alright, because of that fictitious market that we are told exists.
Actually, Bush did listen to Blanco. He had to under the Constitution and State’s rights… and more particularly, Posse Comitatus. http://en.wikipedia.org/wiki/Posse_Comitatus_Act.
Bush could NOT send federal troops into LA until Blanco asked for them. MS and AL got federal troops right away while Blanco tried to hang on to her power-grab and wanting to stay in control rather than relinquishing control over the the military. She refused to allow federal troops for at least a week after Katrina.
On Sept. 1, 2005, “The Bush administration sent Governor Blanco a proposed legal memorandum asking her to request a federal takeover of the evacuation of New Orleans. Louisiana officials eventually rejected the request after talks throughout the night, concerned that such a move would be comparable to a federal declaration of martial law.” (from Wikipedia timeline http://en.wikipedia.org/wiki/Timeline_of_Hurricane_Katrina)
I don’t recall the exact date but Lt. Gen’l. Russell Honore’ name doesn’t show up in the Wikipedia timeline until September 9th, 2005 and he is the one that took over things for the U.S. Military and brought things back into control down here.
Because of this issue that led to so many delays during Katrina, new laws were passed in 2006-2007, “… The National Guard is an exception, since unless federalized, they are under the control of state governors.[11] This was changed briefly: Public Law 109-364, or the “John Warner Defense Authorization Act of 2007” (H.R.5122), was signed by President Bush on October 17, 2006, and allowed the President to declare a “public emergency” and station troops anywhere in America and take control of state-based National Guard units without the consent of the governor or local authorities.” http://en.wikipedia.org/wiki/Martial_law#United_States_of_America
I do NOT necessarily agree with State’s rights being trampled on like that but it seems like so many other American’s don’t seem to mind. I do… just like with Obamacare’s mandated insurance purchase. Fortunately, my state is one of the 20+ that have filed suit against this illegal mandate.
Blanco screwed things up so badly with Katrina that she didn’t even run for re-election because LA people knew just how pathetic she was…. now, if only Obama had that kind of integrity! 😉
Ooops.. I forgot to try and explain the “market” but I doubt I could explain it here anyhow.
In simple terms, the “market” is based on supply and demand and also what people are willing to pay for a certain product or service. In the case of BP, if their costs/expenses related to this spill results in them having to charge more than the competition in order to still make money, then all that will happen is the competition will likely raise their own prices to just below BP’s price. Competition is what leads to lower prices for consumers.
I disagree with your presumtion that there are only a few giant companies controlling everything. Yes, there are a few giant companies but the commodities market is what determines the price of a barrel of oil, not the companies themselves. OPEC certainly is a BIG factor in determining pricing when they restrict production or increase production as that affects supply and demand and the price that the other oil producing companies can charge in the market. There are hundreds of IOC’s (International Oil Companies) and thousands of NOC’s (National Oil Companies) and then there are dozens, if not hundreds of countries that OWN all oil production in their respective countries… for examply, PEMEX in Mexico and PDVSA in Venezuela. MANY other countries, large and small, own ALL production in their respective countries.
All of these countries and groups of countries control the price of oil FAR MORE than the half dozen BIG oil companies and hundreds and/or thousands of smaller oil companies.
Oops… I reversed my numbers for the NOC’s and IOC’s and then due to snipping a section of my reply, didn’t clearly identify that NOC’s are “National(ized) Oil Companies” meaning they are mostly “state owned” or owned by their respective countries.
These Wiki’s put things back in perspective.
http://en.wikipedia.org/wiki/International_Oil_Company
http://en.wikipedia.org/wiki/National_oil_company
http://en.wikipedia.org/wiki/List_of_petroleum_companies
You’re right it’s not about monopoly. My mistake. It’s about oligopoly.
BP, ExxonMobil, ChevronTexaco, Royal Dutch Shell, and ConocoPhillips control 62% of the US retail gasoline market.
They control control 50% of the refinery capacity in the US, and 48% of the oil production.
But, you’re right again: they control only 14% of worldwide oil production. This is because of the domination of national oil companies in OPEC and elsewhere.
But, whatever happens to U.S. oil prices, I’ll bet they’ll stay low in Venezuela, where it’s nationalized.
Once again, it’s not an oligopy since there are hundreds, if not thousands of oil producing companies, either IOC’s or NOC’s.
As far as the Big 6 controlling 62% of the US retail market, this simply isn’t true either… since the overwhelming majority of the actual gas stations are independently owned and/or franchises and they actually set the retail price based on their own local market conditions. When I was in my early 20’s I managed a local gas station / convenience store and I would drive around every morning and late afternoon checking the competitions prices and go up or down on my prices accordingly since the station’s business plan called for keeping our prices lower than all of the nearby competition. Often, we might sell our gas at cost or just a penny a gallon mark-up in order to keep our “lowest price” policy in effect. While the station was signed as one of the BIG companies back then, we were an independent and could buy our gas from any of the distributors down here in Southern Louisiana, for which there were many distributors, so whichever one gave us the best pricing when we needed a new delivery, that’s who we went with for the most part. Since we were signed as one of the BIG companies, we did have to buy gasoline that had to meet minimum standards but other than that, we were free to buy our gas from either the “signed” distributor or any of the other distributors. I can only hope and pray that government authorized monopolies or oligopies like utilities (electric, gas, cable, etc.) were open to real competition. It’s slowly happening with telephone service due to wireless carriers but for wired service, it’s still very limited which is why the prices are still so high… and why wired service is losing business more and more to wireless companies. I haven’t had wired phone service in more than a decade, although I do have a Skype phone number and a MagicJack phone number so I guess those are technically wired services since they go through the internet.
50% of a market between six companies does NOT constitute a monopoly or oligopy… since the other 50% is controlled by dozens, if not hundreds of companies.
I’m not sure what you mean by your last paragraph. You’re still not getting the reality that U.S. oil prices are the same as any other oil prices around the world depending on the world market price for oil at any given time. Since Venezuela is a dictatorship and has a Nationalized Oil Company, I also do not get how you can compare the U.S. with them… oh wait… maybe since Obama wants to socialize Amerika and become it’s first dictator, that’s why you’re making that comparison. 😉
Hey, Lenny Vasbinder, I forgot, as usual, to cite my source:
Market Domination!: The Impact of Industry Consolidation on Competition, Innovation, and Consumer Choice, Praeger, 2007, by Stephen G. Hannaford
It’s a good reference read. The author has his own website. It shows how competition is less now than before.
Seen any “gasoline price wars” lately?
I explained in my earlier reply, a moment ago, that “gasoline price wars” are usually determined by the local gas stations, not by the BIG 6.
Industry consolidation happens for various reasons, usually due to bad economic times within that industry. Most of the BIG OIL companies that merged did so when times were very tough for them so they consolidated their resources, laid off thousands of employees to get lean and mean again and now they’re enjoying record profits, while still having the same profit margin of only a few pennies per gallon of gasoline. I can only hope and pray that the federal gov’t. would consolidate instead of expanding… and that states that are in trouble should consolidate instead of expand as well.. unfortunately, government ALWAYS grows regardless of whether times are good or bad… which just makes things so much worse for those of us who are forced to support these bloated bureaucracies. Of course, it’s why I went into my own business while in my 20’s so I could start avoiding some of the confiscatory taxes… yes, that means I’m a tax cheat like Obama’s Treasury Secretary, Tim Geitner! LOL
Lenny, this I know for a fact, having very close ties with gas station owners (several years ago). Gas prices are NOT controlled by retailers, not any more. In the past competitors would try to out-sell the competition by lowering prices. And, real competition began – gas price wars were really and truly competitive, real capitalism, all for the benefit of the customer (well they’re usually the ones who ended up benefiting the most). You might read about one or other selling at a low price, today, to get an edge on the market, because it will hit the news, because it is so unusual (and very popular among customers). But they don’t last because of agreements between them and their major suppliers.
Lenny, even if there are “hundreds, if not thousands of oil producing companies” it doesn’t mean much if they control only a small part of the market, does it? Once in the U.S. there were literally thousands of small breweries also, but what happened to them up to the 1980s and 1990s, at least? Larger companies had the wherewithal to take advantage of the market, because of their larger economic resources. Consequently, the smaller companies lost. They couldn’t compete and often gave up and sold out. The same situation occurred in other industries.
Lenny, I lived in several countries for extended periods of time and I know for a fact gas prices are much much cheaper in some countries than others. They are much cheaper in Venezuela than the U.S., which is bit lower than Western, but not Eastern Europe.
Consolidation has been occurring since the early 20th century in all industries. Read about this. And, you missed out what consolidation is all about. Wealth and consequently power becomes concentrated. (Power in the sense of having the necessary resources to fund huge lobbying efforts e.g, etc.) It also means, if Lenny or Ann or any other individual, decided to go out and become an independent business-person in an industry that is controlled by giants, we’d would have problem, if our major competitor wanted to remove us from the competition. This was exactly what happened to breweries, which is a type business as old as … well, they were around in the American colonies.
And, no Lenny, I am not in favor of a smaller, and consequently weaker government at all. I would much favor a strong democratic (emphasis on democratic) government that defends me from business monsters, like McDonald’s that almost poisoned us (or our children) with cadmium laden glasses. But, our government is so weak and small already, its agencies can’t even do their jobs. Lenny, please understand, because we don’t have a strong government for the last 50 years in the U.S., you, me and anyone else has any number of 200+ industrial chemicals running through our blood, some which are definitely carcinogenic. We breathe industrial chemicals and we drink them from our water supplies. Women’s breast and male prostrate cancers has increased in the last 40 years. These things don’t just happen, and it isn’t because of improved detection techniques. After federal laws made it possible for the elimination of the use of DDT in the 1970s, we still today have DDT or its metabolites racing through our blood and stored in the fat cells our bodies, even if we weren’t yet around in the 1980s.
The U.S. is way too influenced by business, the only interest of which is profit, as it should be. Business is the struggle for profit, plain and simple. It should have no part in government, nor science, nor education (except, of course, to teach business in business courses etc). Unfortunately, we don’t have independent democratic government today. We have government – so obvious with the Obama administration, as you pointed out – that is manipulated by big business.
Thanks for sharing ..
P-1 & 2 – Well, if retailers make agreements with certain distributors, that is their right as the business owner… just like it’s your right to make agreements with your bank, credit card companies, landlord, insurance company, etc. There will always be new startups or other companies with more competitive business plans who will come in and start up and either have a better product or lower price to draw customers away from the existing stores. At one time, McDonalds and Burger King had the fast food hamburger market pretty well locked up, then along came Wendy’s, Rally’s, Jack-in-the-Box, etc. Same with other large grocery chains that have come and gone… and down here, one of the biggest chains is NOT a national chain but a local chain that started up out in the boonies of LA, a small city called Houma, down in Bayou or “Coonass” Country and as the big stores would close up stores, Rouses would take them over and now have dozens of stores in the metro New Orleans area. I shop either them or the WalMart SuperCenter… which ever has the lowest prices for what I want/need.
P-3 – You can’t compare *retail* prices between countries since there are often many layers of fees and taxes added on to the retail price and most consumers have no clue just how HIGH they are. The price per barrel is nearly the same world wide although some countries and companies will play the commodities market and hedge their buying power if they think prices will be changing. Southwest Airlines does this to try and keep the lowest prices on jet fuel. You can’t use Venezuela as a comparison for anything since that country is run by a whacko dictator and the oil company is subsidized by the *State* to lower their retail costs… just like the whacko gives away heating oil to some Americans every winter as a way of trying to make himself look good. Anyone that buys into a dictator being good is just as whacko as the dictator himself. These A-HOLES that wear Chavez and Gueverra (Che’) clothing are complete idiots and should be deported to the communist country they believe in… but then they’re allowed their freedom of speech in America so we can’t do it. I’d love to see one of them wear a Bush t-shirt in one of those communist countries and see what prison they end up in. They’re pathetic!!!
P-4 – As a small business owner, I completely disagree with your thought process in this paragraph. Your anti-business or big business leanings come out way too much in your thougt processes in this paragraph. This is AMERICA… where anyone can become as successful as they choose to be!!! God Bless America on this 4th of July… the day, 234 years ago, when we decided to become a GREAT country.. that hudreds of thousands… possibly millions of foreigners risk their lives to come to every year. Unfortunately, we can’t handle all of them so we have to send many back. I don’t see that happening with any other country in the world, unless a neighborhing country is being overrun so their masses flee and become refugees in neighboring countries.
P-5 – Once again, I disagree 100% with your anti-business, pro-big goverment thought process. It sounds like you should be fleeing to a communist country… and make room for one more LEGAL immigrant who will come to America, start up their own little business and work hard to grow it into a BIG business one day. It happens to thousand of Americans and LEGAL immigrants every year. You should strive to grab a piece of the American dream instead of letting the LSM and Obama turn you into a socialist. As far as you thoughts that cancer has increased… it’s the ability to detect cancer that has increased. In the old days, people died of “consumption” or some other generic term when they didn’t really know what killed somebody. Autopsies didn’t really become commonplace until 17th-18th century… and even then, they didn’t understand everything they saw. “Hippocrates believed that the body was composed of four fluids: blood, phlegm, yellow bile and black bile. He believed that an excess of black bile in any given site in the body caused cancer. This was the general thought of the cause of cancer for the next 1400 years. In ancient Egypt, it was believed cancer was caused by the Gods.”
P-6 – Businesses ARE OWNED by people and should have every right to speak, lobby, communicate, etc., with politicians as any other person. Why should a socialist citizen who wants the goverment to give them cradle to grave welfare and pays very little in taxes have more of a voice than an independent person who has their own business and pays the bulk of the taxes that run our goverment? That’s just a mindset I could never agree with… and I’m in pretty good company since the Supreme Court also ruled the same way recently… but now the socialist democrats in Congress are trying to block the Supreme Court ruling with new anti-business, anti-tea party patriots, pro-BIG union (which is just another form of business) legislation that will allow unions to donate money and run commercials but put a damper on businesses and tea party groups from doing the same. Hopefully, the Supreme Court will rule against this new legistlation as well… of course, if the socialist Kagan gets on the bench, we know she won’t vote in favor of REAL freedom of speech.
Thank you for your comment. I “100%” enjoyed it, but I can’t say I agree near as much.
I previously cited a source, which is not an emotional rant, but careful research, and your reply was “As far as the Big 6 controlling 62% of the US retail market, this simply isn‚Äôt true either …” As far as I know, you might just be talking from the hip, as it were. Opinions are fine, but they don’t mean compared to an investigation.
When I tell that I know people like you and me who pay in other countries less for gasoline, you tell me about hidden costs that their governments pay. And? I would much rather have a government pay for those costs than $1 trillion (which is how much U.S. has spent in the Mideast now) of their taxpayers money supporting large business interests (such industrial military complex), which a majority of their own population does not find justifiable (as in the U.S., read the polls).
When I tell you about chemicals in our blood, you talk autopsies. Lenny, I’m a physician and I can assure you that autopsies have nothing to do checking peoples’ blood or with the diagnosis of cancer. I can also assure you that you have as most of us do industrial cancer-causing chemicals, some of which may be DDT or its metabolites, even though it was banned around 1980, in your body as we all do. Of course, how much one has depends on a lot of things.
When I mention Venezuela, did I hit a button? Please, Lenny, why the emotion? And, all tangents in the discussion? And, why all the emotion about “America” in capital letters? And “A-holes” in capital letters?
And, God? I would have never suspected God, if Jesus as anything to do with your conceptualization of God, have anything to do with business and profit or oil or … . After all, who said something about a rich man passing through the eye of a needle? And, who got so angry that he threw all the traders out of the temple? I don’t know about you, but I’m Christian, (the etymology deals with Christ). But, that’s ok. Hey, I’m have my faults also. I believe that capitalism, trading and the like is part of human nature, but that doesn’t mean I should even tolerate state-capitalism.
I guess, you know, you gave this discussion a fine ending. Thanks, any way.