The NYT article directly below is a must read. The oil industry “is among the most heavily subsidized businesses,” according to the tax code. Yet the oil industry would have us believe that imposing an extra tax to pay for clean up — even with all the subsidies and profits — would transform our country into Thunderdome. And catch the videos below — there are allegations that BP has been dumping sand on the beaches to cover the oil.
When the Deepwater Horizon drilling platform set off the worst oil spill at sea in American history, it was flying the flag of the Marshall Islands. Registering there allowed the rig’s owner to significantly reduce its American taxes.
The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes.
At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon — a deduction of more than $225,000 a day since the lease began.
With federal officials now considering a new tax on petroleum production to pay for the cleanup, the industry is fighting the measure, warning that it will lead to job losses and higher gasoline prices, as well as an increased dependence on foreign oil.
But an examination of the American tax code indicates that oil production is among the most heavily subsidized businesses, with tax breaks available at virtually every stage of the exploration and extraction process. Continued…
BP admits failing to use industry risk test at any of its deepwater wells in the US
However, BP admitted to The Sunday Telegraph that it does not use safety cases on any of its US wells, including the high-pressure deep water Macondo well from which up to 60,000 barrels of oil per day are still leaking in the Gulf of Mexico.
It is now 75 days since the Deepwater Horizon rig exploded and sank, killing 11 men and triggering the catastrophic spill.
The US Government wants to make the safety case process a legal requirement for floating offshore drilling – one of five recommendations to change processes in the Gulf. More…
In another effort to repair its image, BP picks up tab for fireworks show in Colorado.
… The display typically costs $15,000 and city officials were poised to cancel it because of a budget crunch. But representatives of BP’s office in southwestern Colorado surprised the council by announcing the company would pick up the tab.Company spokesman Curtis Thomas says BP knows how important the celebration is to the community and didn’t want it to be lost. He says BP hasn’t asked for any advertising in exchange for its donation.
Many conservative leaders have jumped on the “shakedown” bandwagon, seeing BP’s $20 billion for an escrow fund as a real danger to the company’s viability. But if the company can pay for fireworks and baseball trophies while launching aggressive media campaigns and funding a front group to downplay the disaster, BP can cover its responsibility to the victims in the Gulf.
Has BP been dumping sand on the beaches in order to cover up oil? Via Allison Kilkenny: (Louisiana)
See more videos of Pensacola Beach here