Maybe the explosion was 'act of God'
But the spill is because they didn't have the remote cap hardware that's required in the North Sea.
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Drew |
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DING DING DING
And fought it tooth and nail.
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Which is why BP is going to be slugged with the bill.
They should also be slugged with a fine of some large factor over the cleanup bill, like ten or twenty: hopefully something seriously big enough for it to cost a lot more than it ever cost for fighting the remote shutdown hardware.
Of course, they'll then find a way to pass it on to consumers, though if they try that too hard, people will buy elsewhere. Wade. Q:Is it proper to eat cheeseburgers with your fingers? A:No, the fingers should be eaten separately. |
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Re: "pass it on to consumers"
Price and cost are independent variables. People are willing to pay a given price regardless of what it costs to produce the good.
If you can reduce your costs without reducing the price people are willing to pay, your profits go up. If your costs go up at the same time your competitors' costs go up, everyone raises their prices. Consumers either pay the increase or they buy less. If they buy less, everyone lowers prices and eats a smaller profit margin. If your costs go up, but your competitors' costs don't go up, you eat a smaller profit margin. If you were already too close to 0% -- and BP was nowhere close to that -- then you can't afford to keep producing. You either operate at a loss until things change, or you go out of business. The whole "pass it on to consumers" meme is a right wing talking point designed to prevent ever assessing reasonable costs to business, since "they'll just pass it on to consumers anyway". --
Drew |
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dont worry, exxon citgo and aramco
are slavering t the chance to pass this onto the consumers. A barrel of oil is getting $85 and we are awash in the stuff being held in containers everywhere
If we torture the data long enough, it will confess. (Ronald Coase, Nobel Prize for Economic Sciences, 1991)
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I clearly missed a step.
Looking back at what I posted in the light of you what you posted what I probably unknowingly meant was that BP needs to be fined enough to take most of the profit away without necessarily making continued production unprofitable.
How to discourage their competitors from jacking up the selling price at the same time is a tricky one. Wade. Q:Is it proper to eat cheeseburgers with your fingers? A:No, the fingers should be eaten separately. |
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wrong in this case
There has been some significant attention paid as to whether the rig should have been fitted with an acoustic remote control system for the BOPs  though in one discussion I heard there was some confusion as to what this would have changed on the rig, since there were BOPs in place. The acoustic system has the following benefit:other links state that the BOP are in place but the seals or something else is blown so an acoustic trigger wouldnt help If we torture the data long enough, it will confess. (Ronald Coase, Nobel Prize for Economic Sciences, 1991)
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More info.
BP's lawyers seem to controlling the information that's getting out, so it's hard to know what's really going on.
Some more details of the work in progress is here - http://www.upstreamo...article213982.ece (lots of jargon though) [...] Supposedly they tested the BOP 10 days before the incident (they're required to test it every 14 days). Via http://dailyhurrican...ll---sort-of.html via HuffingtonPost. An interesting paper on BOPs and how they work is here - http://www.eenews.ne...ocument_gw_05.pdf (61 pages via a NYTimes story). Contrary to what I understood BP's head to say on Morning Edition, BOPs have failed in the past. It says: 3.5 Previous Field Failure That sounds suspiciously like what happened here. Wikipedia - http://en.wikipedia.org/wiki/Ixtoc_I It took nearly 10 months to seal the Ixtoc I well... :-( Cheers, Scott. |