Why the United States Still Can't Get BP to Do What's Necessary

While BP is the operator & principal developer of the oil field with 65% of interest. 25% is owned by Anadarko Petroleum Corporation, and 10% by MOEX Offshore 2007 (a unit of Mitsui).



Anadarko maintains insurance policies designed to provide financial protection for such events, & estimates its coverage will likely total approximately $177.5 million, less deductibles of $15 million. Mitsui is believed to have a $45 million owner's extra expense policy. Transocean (the drilling contractor) is believed to have $560 million of physical damage insurance & some $950 million in third party liability insurance, of which $700 million excess of $50 million is thought to cover offshore risks. Cameron (the manufacturer of the blowout preventer that failed on the rig) has a $500 million liability insurance policy.



And BP's insurance coverage?



About 3 years ago, BP decided that it was being taken for a ride, overcharged for insurance, so it decided "to go bare".



And what does our government say? "No problem. We've got to stimulate growth and jobs."



None of these corporations has insurance coverage that comes anywhere close to repairing the damage. But they don't have to because they know that our government will bail them out & pass the costs of clean-up onto the American people.



Whether run by Republicans or Democrats (DLC-controlled Democratic Party), our government socializes the risk & privatizes the profits.
Read the Article at HuffingtonPost