HARTFORD, CT - With the Gulf oil spill disaster and America’s energy future expected to be the focus of the Oval Office speech to the nation tonight, Richard Blumenthal called on President Obama to enforce stronger oversight and accountability, including granting subpoena power to the independent committee reviewing the disaster, and creation of an escrow account to pay damages.
“Lives have been lost and ruined by this disaster. The environmental and economic impact will be felt for years. Irreparable damage has been done. BP must be held accountable and the independent committee reviewing this disaster must have the tools it needs to do the job,” said Blumenthal, Connecticut’s Democratic candidate for the U.S. Senate. “We must get serious about protecting people instead of the profits of big oil.”
Blumenthal is encouraging President Obama to go beyond the escrow account expected to be announced tonight and also grant subpoena power to the committee reviewing the disaster, to hold BP fully accountable for cleanup and compensation stemming from the spill.
Blumenthal is also proposing:
- An increase in the liability cap on Big Oil companies,
- An immediate and indefinite moratorium on new offshore deep water drilling,
- Closing the tax loopholes for oil companies seeking new leases on public lands,
- Ending oil companies’ ability to self-police, and
- Reviewing and strengthening existing penalties for safety violations.
Blumenthal says more accountability from Big Oil and more protections for consumers and the environment are needed in the wake of the explosion, which continues to endanger the economic livelihood of millions and devastate the Gulf coastline.
“Here in Connecticut, we value the beauty of our shoreline and we’re constantly reminded of the need to protect Long Island Sound. Imagine if this disaster had struck our shores,” Blumenthal continued. “This disaster is the result of lax federal government oversight, as well as BP’s putting profits over safety. We must do more to ensure vigorous safety standards, hold BP accountable, and stop the companies from policing themselves.”
“I know from my personal experience in conducting major investigations that the granting of subpoena power is critical to uncovering the truth, especially when big corporations resist it,” added Blumenthal.
Blumenthal’s proposal includes the following:
- Granting Subpoena Power to the Oversight Commission. Time and again, BP has shown an unacceptable willingness to play fast and loose with the American public regarding the details of the oil spill. Granting the President's investigatory commission subpoena power is the way to ensure the company comes clean about the facts underlying the disaster.
- Requiring BP’s Expected Payouts for Cleanup and Compensation Held in Escrow. To create an incentive for BP to pay claims quickly, at least $20 billion from BP should be held in escrow and administered by an independent party.
- Raising the Liability Cap on Big Oil Companies. At its current liability cap level of $75 million, entities such as BP are off the hook for all but a fraction of the damages for which they should be held responsible. Given their enormous profits, oil and gas companies’ liability must be at least $10 billion in case of oil spills or similar disasters.
- Implementing an Immediate, Indefinite Moratorium on All New Offshore Deep Water Drilling Projects.
- Closing Loopholes for Oil Companies Seeking New Leases on Public Land, Saving Taxpayers Billions. Since the 1990s, oil companies have been able to drill in the Gulf of Mexico without paying royalties to the federal government until oil prices reached $28/barrel, applicable to the companies’ existing leases. However, legislation failed to stipulate that new leases would be subject to ”royalty relief” at this threshold- essentially allowing oil companies to utilize public land for free- meaning billions in lost revenue over the last 15 years, while taxpayers continue to subsidize oil exploration and drilling. Requiring oil companies to renegotiate existing leases or pay a fee would eliminate this loophole and avoid as much as $53 billion in revenue losses, according to a 2008 GAO report.
- Ending Oil Companies’ Self-Policing. The government has let oil companies regulate themselves for far too long. Tough regulation and substantive enforcement are necessary to ensure that oil and gas companies are forced to account for safety along with their profits.
- Reviewing and Strengthening Existing Penalties for Safety Violations. In the months and years leading up to the April 20 explosion, BP sustained hundreds of willful safety violations at the Deepwater Horizon rig. A comprehensive review and strengthening of existing penalties for safety violations will ensure that flagrant disregard for worker and environmental safety isn’t just part of the cost of doing business for Big Oil.
