Obama Scores $20 Billion Relief Fund from BP
The day after a speech from the Oval Office, in which President Obama had strong words about the 58-day-old Deepwater Horizon oil spill (and for its progenitor, British Petroleum), he had a much-anticipated meeting with BP executives. Initially, it appears that meeting was very successful. Obama won several government demands, including a $20 billion account to be set aside by BP to pay damage claims resulting from the spill. $100 million was set aside to pay unemployed oil rig workers, and BP is to suspend dividend payments to shareholders this year.
The biggest news is the $20 billion account should put to rest at least some fears felt by business owners in the Gulf of Mexico region, many of whom have had their entire livelihoods washed away by the oil slick. Fishing, tourism, wildlife and plant life have all suffered as a result of the oil leak, which is nearly two months old, but according to President Obama and BP, should be 90-percent contained by the end of June and completely stopped by the end of summer.
My first question upon reading the news in Reuters was, given that this is an environmental disaster of unprecedented proportions and is destroying the Gulf of Mexico, will $20 billion even be enough? According to the White House:
“This $20 billion will provide substantial assurance that the claims people and businesses have made will be honored,” said Obama. “It’s also important to emphasize this is not a cap. The people of the Gulf have my commitment that BP will meet its obligations to them. BP has publicly pledged to make good on the claims that it owes to the people in the Gulf, and so the agreement we reached sets up a financial and legal framework to do it.”
The money will be put into an escrow account to be controlled by neither the government nor BP. Rather, the funds will be administered by an independent third party. 
“So if you or your business has suffered an economic loss as a result of this spill, you’ll be eligible to file a claim for part of this $20 billion,” added the President. Ken Feinberg, who administered claims for victims of 9/11, was appointed by Obama and BP to handle the third-party oversight.
The President was careful to stress in his post-meeting speech that the victims of the oil spill, including the people he met with and communities he visited on his trip to the region over the weekend, were his top priority. Obama added that how satisfied these people are with the timeliness and substance of BP’s aide in the coming days will be “the standard by which I measure BP’s responsiveness.”
Photo Credit: Guardian & Corbis
Posted on June 17th in Solar Politics by Dan.