Wednesday, June 16, 2010

BP Being Extorted

Not that I'm any big fan of BP, what gets to me is seeing anyone being strong armed into doing something not of their free will.

BP "agreed" to a $20 Billion escrow fund, not because it was the path they choose, it was seen as the least expensive cost of staying in business in the American neck of the oil world.

Just like some redneck good ole boy southern sheriff who has just pulled over a speeder not from the immediate vicinity. Obama has begun his shake down of British Petroleum.

Picture mirrored sunglasses, a chaw of tobacco, and a smokey the bear hat. "We'lllll lookey what we have got he'ya. You not from around these parts are ya' boys? Lemme tell ya rite he'ya an rite now, we da law round these parts."

Mark Levin pointed out from a legal stand point, BP has (shall I say had)a defensible mitigating circumstance to limit or shift some of the burden on to the Federal government. The Obama regime via OSHA and the EPA tied BP's hands on certain methods to curtail the spreading oil. Dispersants at first were allowed,then stopped, then allowed. Beach berms were not allowed to be built due to "environmental concerns".

Surrendering these funds is almost akin to a BP admission, BP is quite nearly surrendering any defensible postion they might have in any future court. My first inclination when I learned BP agreed to the escrow fund, was they had lost their collective corporate minds. Paying out $20 Billion is no big trick, if that is what BP feels is the thing to do, but by not maintaining any control over the who and how much,when, and for how long, they are IMO being wrongly advised.

Then I started to think like a big picture capitalist. To Wit: You know you are going to get nailed to the wall, the question then becomes, do you want to get raped as well? $20 Billion is a tactical down payment. From a strategic viewpoint being further extorted, within limits, by several more $10s of Billions in the future, to BP might be worth it , in order to stay in the US oil market. Prior to today's agreement, moves were underway behind the scenes, to drive BP out of this market. By making this payola payment while Obama squats as the "regime leader" BP betters their chance to remain in these waters.

A long way of saying, all things considered, this may be the least expensive route for BP.

Unless BP has gotten something in writing from Obama that certain avenues of extortion won't be used, which when they reminded him of their campaign donations, the Usurper mostly likely gave it to them, for a price, both public and private.

Britain has much experience dealing with petty african tin pot dictators, they know when to offer the ju ju beads and the 20 head of cattle. Given Obama is Kenyan,
how could he resist. Let's just hope King Obama doesn't make Haywood the offer to sleep with Michelle in order to seal the deal.


Another aspect to this sorrid mess, BP hasn't exactly skipped out on the party. We haven't heard one word of dispute from BP. Obama is making them a political pinyatta, for no other reasons than to pass his horrid Cap and Trade Scam legislation, and to gain tough guy ratings with the Leftists in his severly sagging popularity polls.

We The People's offer to the Brits, still stands- take the bastard to the Supreme Court, make him prove he is constitutionally eligible to strike this deal.

Steve

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