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07.03 Notice for Extension of Unemployment Insurance Benefits
06.13 Students in Photo Camp Document the Chesapeake's Beauty, Fragility
06.18 A Cost-Saving Way to Travel: Rent a House
06.18 Doug Dowd's "At the Cliff's Edge" (Part II)
06.16 Doug Dowd's "At the Cliff's Edge" (Part I)
Ref. : Letters to the editor
06.30 An Open Letter to Barack Obama
06.19 Big Bad Boom
06.13 Going Green Requires National Commitment
07.03 Press distorts Clark’s comments
06.30 Iran-Contra's 'Lost Chapter'
06.27 Robert McChesney's The Political Economy of Media (Part II)
06.25 Robert McChesney's The Political Economy of Media (Part I)
06.20 Remembering Russert
06.19 Manufacturing Difference Between McCain and Bush
06.18 Killing the News in Iraq: Justifying the Unjustifiable
06.16 The Greatest Story Never Told
06.13 BBC's Pro-Israeli Bias
06.12 McCain Makes Stuff Up
06.11 WPost's Enduring Bush Cover-up
07.07 Is Barack Obama Patriotic? Is Any Politician?
07.07 Obama's FISA Statement is a Mess (Just like his Stand on Faith-based Programs)
07.07 Campaign Notes: Of Flip-Flops and Fly-Bys
07.07 Supreme Court, Inc.: Supremely Pro-Business
07.03 The Real Meaning of the Fourth of July
07.03 Three Amigos: Bush, McCain, Obama Draw a Blood-Red Line on Iran
07.02 Rep. Ron Paul Assails Congress's "Virtual Iran War Resolution
07.02 How Ignorant Are We?
06.28 Primary Season Over, Barack Channels Hillary
06.27 Senate Overwhelmingly Approves Bill to Fund Iraq War Until Mid-2009
06.27 Defending the President as Tyrant
06.25 Critical Malfunction: Misreading Gore Vidal
06.23 Campaign Finance Reform Has Failed
06.23 Thinking About Flip-Flops
06.23 Heat Waves: Burning Off the Fog of the FISA Fiasco
06.23 Alarm over 'Unfair' Campaign Money
06.23 The Supreme Court, Habeas, John Yoo and Murdoch's Wall Street Journal
06.20 Keeping America Safe from Child "Terrorists"
06.20 SuperCorridor Defeat? Don't Bet On It
06.19 Habeas Corpus Barely Saved
06.18 Mad Men: Pathology, Pretense and Power
06.16 High Water Everywhere: Court Ruling Won't Stem the Terror War Flood
06.16 Chronicle of a Craze Foretold: A History of Hope and Hype
06.13 The Republic on a Knife's Edge
06.12 Thinking About ''Term'' Life Insurance
06.12 Garrisoning the Global Gas Station
06.10 Sex Crime: A New 'Surge' in the War Against Women
07.08 Buchanan, MacDonogh, Pilger Books Explode Illusion Of American Exceptionalism
07.07 Bush-Cheney Crony Got Iraq Oil Deal
07.07 Keeping Count (When Ours Goes Down, Theirs Goes Up)
07.02 Iraq Oil Deals Fulfill Cheney's Goals
07.02 Bush's 'Wonderland' Logic
06.30 Operation Horse's Head: U.S. Raid Sends Message on Iraq "Agreement"
06.30 Invisible Hand: Washington Role in Iraq Oil Deal Revealed
06.27 It Was Oil, All Along
06.27 Big Dog, Little Tail: The American Elite Resolves on War With Iran
06.26 A Totally Lawless Regime
06.23 Top Dems Hand Bush Key Victories
06.23 Democrats Legalize Bush's Crimes
06.20 Torturegate: Truth, But No Consequences
06.20 Bomb Iran? What's to Stop Us?
06.17 Congress To Probe Bush, Cheney's Role In Plame-Gate
06.13 Written on the Body: The Reality of War
06.18 Horses, not Zebras
06.12 Trouble at the Pentagon
06.12 Jail Time for Tenet?
06.11 Exposing Bush Administration Corruption
06.10 Rep. Kucinich Files 35 Articles of Impeachment Against President Bush
07.08 Paul Krugman and Blindness About the War and the Economy
07.07 Thinking About Turnarounds
06.30 Thinking about Dependence
06.26 Health-Care Crisis Endangers Economy
06.17 Thinking About Installments
NEWS BACKGROUND & OPINION:
British Petroleum's "Smart Pig"
The Brilliantly Profitable Timing of the Alaska Oil Pipeline Shutdown
Years ago, I had the unhappy job of leading an investigation of British Petroleum's management of the Alaska pipeline system. I was working for the Chugach villages, the Alaskan Natives who own the shoreline slimed by the 1989 Exxon Valdez tanker grounding.
In one case, BP's CEO of Alaskan operations hired a former CIA expert to break into the home of a whistleblower, Chuck Hamel, who had complained of conditions at the pipe's tanker facility. BP tapped his phone conversations with a US congressman and ran a surveillance and smear campaign against him. When caught, a US federal judge said BP's acts were "reminiscent of Nazi Germany."
This was not an isolated case. Captain James Woodle, once in charge of the pipe's Valdez terminus, was blackmailed into resigning the post when he complained of disastrous conditions there. The weapon used on Woodle was a file of faked evidence of marital infidelity. Nice guys, eh?
Now let's talk timing. BP's suddenly discovered corrosion necessitating an emergency shut-down of the line. This is the same corrosion Dan Lawn has been screaming about for 15 years. Lawn is a steel-eyed government inspector who has kept his job only because his union's lawyers have kept BP from having his head.
Indeed, it's pretty darn hard for BP to claim it is surprised to find corrosion this week when Lawn issued a damning report on corrosion right after a leak and spill were discovered on March 2 of this year.
Why shut the pipe now? The timing of a sudden inspection and fix of a decade-long problem has a suspicious smell. A precipitous shutdown in mid-summer, in the middle of Middle East war(s), is guaranteed to raise prices and reap monster profits for BP. The price of crude jumped $2.22 a barrel on the shutdown news, to over $76. How lucky for BP which sells four million barrels of oil a day. Had BP completed its inspection and repairs a couple years back -- say, after Dan Lawn's tenth warning -- the oil market would have hardly noticed.
But $2 a barrel is just the beginning of BP's shut-down bonus. The Alaskan oil was destined for the California market, which now faces a supply crisis at the very height of the summer travel season. The big winner is ARCO petroleum, the largest retailer in the Golden State. ARCO is a 100%-owned subsidiary of ... British Petroleum.
Enron Corporation was infamous for deliberately timing repairs to maximize profit. Would BP also manipulate the market in such a crude manner? Some US prosecutors think they did so in the US propane market. The Commodity Futures Trading Commission (CFTC) just six weeks ago charged the company with approving a scheme to crank up the price of propane sold in poor rural communities in the US. One former BP exec has pleaded guilty.
Lord Browne, the imperious CEO of BP, has apologized for that scam, for the Alaska spill, for this week's shutdown and for the deaths in 2005 of 15 workers at the company's mortally sloppy refinery operation at Texas City, Texas.
I don't want readers to think BP isn't civic-minded. The company's US CEO, Bob Malone, was Co-Chairman of the Bush re-election campaign in Alaska. Mr. Bush, in turn, was so impressed with BP's care of Alaska's environment that he pushed again to open the state's arctic wildlife refuge (ANWR) to drilling by the BP consortium.
Indeed, you can go to Alaska today and see for yourself the evidence of BP's care of the wilderness. You can smell it: the crude oil still on the beaches from the Exxon Valdez spill.
Exxon took all the blame for the spill because they were dumb enough to have the company's name on the ship. But it was BP's pipeline managers who filed reports that oil spill containment equipment was sitting right at the site of the grounding near Bligh Island. However, the reports were bogus; the equipment wasn't there, and so the beaches were poisoned. At the time, our investigators uncovered four-volumes' worth of faked safety reports and concluded that BP was at least as culpable as Exxon for the 1,200 miles of oil-destroyed coastline.
Nevertheless, m'Lord Browne preens himself with his corporation's environmental record. We know BP cares about nature because they have lots of photos of solar panels in their annual reports -- and they've painted every one of their gas stations green.
The green paint-job is supposed to represent the oil giant's love of Mother Nature. But the good Lord, Mr. Browne, knows it stands for the color of the Yankee dollar.
BP claims the profitable timing of its Alaska pipe shutdown can be explained because they've only now run a "smart pig" through the pipes to locate the corrosion. The "pig" is an electronic drone that BP should have been using continuously, though they had not done so for 14 years. The fact that, in the middle of an oil crisis, they've run it through now, forcing the shutdown, reminds me, when I consider Lord Browne's closeness to George Bush, that the company's pig is, indeed, very, very smart.
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This story was published on August 8, 2006.
