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Florida AG Demands $2.5 Billion In Escrow From BP

Tyler Durden's picture


Florida AG Bill McCollum has officially escalated the BP fiasco to the next level. In a post on his website today, McCollum announces that  he has "sent a letter to BP asking the company to deposit no less than $2.5 billion into an interest-earning escrow account so Florida can be assured of its availability to the state and its citizens and businesses over the long-term recovery period." And now that BP is perceived as the surrogate replacement of the "all free lunch all you can eat" US government, McCollum concludes: “Based on recent estimates from an economist, Florida could ultimately see losses as great as $2.2 billion, as well as a sharp decline in employment in the industries directly impacted by the Deepwater Horizon oil spill. As Florida braces for what will likely be a staggering blow to its economy with significant impacts to our state’s workforce and the revenues of the state and local governments, it is essential that BP establish immediately a dedicated escrow account solely for the purpose of paying claims and damages to Florida and its citizens.” In other news, the Florida economy is strong and vibrant according to the Beige book.

Full letter:



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Thu, 06/10/2010 - 15:55 | 406787 cossack55
cossack55's picture

I'm already seeing the "Reap the Whirlwind" ride at DisWor.  Maybe misters that spray black water to get a good feel on those hot summer days.

Thu, 06/10/2010 - 16:00 | 406809 chumbawamba
chumbawamba's picture

Oh god, that is too funny.  Sad, but funny.

I am Chumbawamba.

Thu, 06/10/2010 - 16:01 | 406814 chumbawamba
chumbawamba's picture

Aw, fuck it, it's just funny.

I am Chumbawamba.

Thu, 06/10/2010 - 16:22 | 406890 Kurtieboy
Kurtieboy's picture

Classic! LMAO

Thu, 06/10/2010 - 19:07 | 407234 SilverIsKing
SilverIsKing's picture

It's a trick!

The Florida AG wants them to deposit the $2.5 billion into one of Florida's "finest" banking institutions and the next week, they will be closed down by the FDIC.

I then see Goldman Sachs entering into a loss share agreement with the FDIC on that one.

Thu, 06/10/2010 - 16:01 | 406797 truont
truont's picture

McCollum announces that  he has "sent a letter to BP asking the company to deposit no less than $2.5 billion

Now THERE'S an optimist!

Someone has been breathing too much Corexit fumes, methinks...

Thu, 06/10/2010 - 16:01 | 406813 Citizen of an I...
Citizen of an IKEA World's picture

" less than..."


Thu, 06/10/2010 - 16:39 | 406940 RichardENixon
RichardENixon's picture

Yea I'm guessing they'll deposit a little bit more just to look like good sports.


Thu, 06/10/2010 - 15:59 | 406800 I need more asshats
I need more asshats's picture

That's funny. It's one way to throw some funds at the states budget crisis.... Who's the escrow agent? The Attorney General themselves?

Thu, 06/10/2010 - 18:06 | 407132 JLee2027
JLee2027's picture

AG's countrywide are trying to become little Gods. Here in Maryland the AG tried to legalize same sex marriage just by issuing his opinion on the matter. No legislature voting or actual voters needed.  Sickening.

Thu, 06/10/2010 - 16:00 | 406802 Citizen of an I...
Citizen of an IKEA World's picture

McCollum is waxing populist just now, desperate to politicize this thing to help his Senate chances, which are suddenly imperiled by a nobody.

Thu, 06/10/2010 - 16:02 | 406820 Tortfeasor
Tortfeasor's picture

Governor seat, actually.

Thu, 06/10/2010 - 16:06 | 406840 Citizen of an I...
Citizen of an IKEA World's picture

Yes, sorry.


Thu, 06/10/2010 - 16:07 | 406804 Millivanilli
Millivanilli's picture

BP just wrote back.


Dear Bill,

We'll let a Supermajor eat our dead corpse before we pay you up front.   In conclusion, FUCK YOU.




PS  We have a battalion of litigators ready to do battle for YEARS.   Given your current economic situation we predict the state of Florida will be bankrupt before a decision is handed down.  Yuk yuk yuk...

Thu, 06/10/2010 - 16:18 | 406875 Mad Max
Mad Max's picture

Seems very plausible.

Thu, 06/10/2010 - 22:26 | 407432 Snidley Whipsnae
Snidley Whipsnae's picture

Florida is already BK...Florida simply does a better job of PR than Cal, Nv, Ill, Mich, et al, of hiding insolvency.

Recent announcement from a local Orlando tv newscast...'contractor stopped construction on two major road expansions because contractor ran out of money'. Duh...

Thu, 06/10/2010 - 16:00 | 406805 Hephasteus
Hephasteus's picture

Me too. I'm going to need to escrow 40 bucks from them to pay for my increased crab salad costs.

Thu, 06/10/2010 - 16:15 | 406865 Clayton Bigsby
Clayton Bigsby's picture

nicely done, sir

Thu, 06/10/2010 - 16:00 | 406807 Mark My Words
Mark My Words's picture

Good for Florida!

Thu, 06/10/2010 - 16:02 | 406821 Gordon_Gekko
Gordon_Gekko's picture

For a corrupt to the core corporation like BP, $2.5 Billion is too less an amount.

Thu, 06/10/2010 - 16:03 | 406823 StarvingLion
StarvingLion's picture

I've done my bit.  Started up the 'Pelicans against BP' charity.  99 cents of every dollar will go to me. 

Thu, 06/10/2010 - 16:05 | 406836 chumbawamba
chumbawamba's picture

Plus all the dead pelicans a starving lion can eat.

I am Chumbawamba.

Thu, 06/10/2010 - 16:04 | 406827 chumbawamba
chumbawamba's picture

What a fucking wuss.  Send the god damn Florida National Guard to raid BP's HQ and take every top level exec prisoner.  Florida can create its own version of Gitmo on one of the less nice keys (the one soon to be surrounded by a thick slime of oil).

These politicians are fucking morons (not a revelation, I know).  They should be getting in front of every camera they can find and screaming at the top of their lungs for the head of Tony Hayward.

I am Chumbawamba.

Thu, 06/10/2010 - 16:18 | 406878 Mad Max
Mad Max's picture

Last I checked BP's US headquarters were in Chicago... that could get really entertaining.  I can just picture Daley coming out and asking the CPD to arrest all those National Guardsmen, on the basis that they don't have any right to bear arms...

Thu, 06/10/2010 - 16:37 | 406932 sethstorm
sethstorm's picture

Who said they had to announce their arrival?  Go in quietly with overwhelming force and announce it when they got what they came for, BP. 

The CPD would most likely be outmatched.  What are they going to do, bribe them to death?  That aside, it'd be nice to have some popcorn and watch the show.


Thu, 06/10/2010 - 17:15 | 406998 Kali
Kali's picture

Yes, don't forget Amoco got swallowed by BP.  They have a huge research center in Naperville too.  HOnestly, when that happened, I couldn't believe it,  Remember Amoco==> Standard Oil=>one of the first of the big US oil companies. (Teddy and trustbusters, Rockefellers,remember!)

Thu, 06/10/2010 - 22:37 | 407445 Snidley Whipsnae
Snidley Whipsnae's picture

Old man Rockefellers most telling quotes "competition is a sin"...

From Wiki: BTW, Wiki left out Chase morph to JPMorgan...

International politics/finance/economics

The family has been awarded the annual UNA-USA’s Global Leadership Award, along with other recipients over time, including Bill Clinton and Michael Bloomberg. Members of the Rockefeller family into the fourth generation (especially the prominent banker and statesman David Rockefeller, who is the present family patriarch) have been heavily involved in international politics, and have donated money, established or been involved in the following major international institutions:

Thu, 06/10/2010 - 16:28 | 406910 desgust
desgust's picture


Thu, 06/10/2010 - 16:31 | 406916 Gordon_Gekko
Gordon_Gekko's picture

The ENTIRE BP Management - with Tony Hayward first in line - must be DRAGGED physically through the sea of oil now clogging the beaches, so they end up looking like one of those pelicans we saw drenched in oil. Perhaps this will set an example for oil company executives to not fuck around with the safety and prevention measures. 

Thu, 06/10/2010 - 16:58 | 406982 Scarecrow
Scarecrow's picture

Listen to yourself. You sound like a damn idiot. We fight our battles in the courtroom here in the US. I can't believe what I am seeing in these comments. 

Thu, 06/10/2010 - 17:05 | 406999 Gordon_Gekko
Gordon_Gekko's picture

We fight our battles in the courtroom here in the US.


And look where it has gotten us...

Thu, 06/10/2010 - 17:17 | 407023 Kali
Kali's picture

I always say, lawyers, MBAs and career politicians have been the ruination of this country. +100 GG!

Thu, 06/10/2010 - 18:12 | 407137 JLee2027
JLee2027's picture

Economics finally kicking in.  Layoffs in the CA court system, law students that can't find work, etc.  I feel so 

sorry for liberals that live off the gubermint.  Not.

Fri, 06/11/2010 - 00:20 | 407556 DoChenRollingBearing
DoChenRollingBearing's picture

Too bad for California, they overspent their way into the ditch.

No bailouts for them or anyone else.

Time for each person and each organization to stand on their own.

On the other hand, giving money away to charities and any PERSON asking for money is OK with me.  I'm trying to be more generous.

Thu, 06/10/2010 - 18:07 | 407134 Hephasteus
Hephasteus's picture

I don't know what you are talking about. A bunch of idiot judges who don't even know how to fucking dress themselves are fully capable of judging right and wrong in computer science patent law and complicated medical cases.

Thu, 06/10/2010 - 18:09 | 407136 JLee2027
JLee2027's picture

We fight our battles in the courtroom here in the US. I can't believe what I am seeing in these comments. 

That's what liberals do, because they control the outcome and dictate what you are supposed to do.

Real men shoot first and ask questions later.

Thu, 06/10/2010 - 23:20 | 407496 trav7777
trav7777's picture

You have some evidence of your claims?  Or are you just a freakin raving lunatic?

Nobody even yet KNOWS wtf went wrong with this well and you've already gone to lynch mob.

BP shouldn't pay Florida a fucking DIME because any dime they DO pay to the STATE of Florida will end up in the pockets of the ELITES.  It will ALL be stolen.  Governments appropriate funds on "behalf" of their citizens that never go to them.

Fri, 06/11/2010 - 01:39 | 407639 chumbawamba
chumbawamba's picture

Yeah, so they should just keep the money and go spend it on hookers!  Fuck all the victims of the oil armegeddon, and all the pelicans!

WTF is wrong with you?  Don't you know not to get in between a mob and its object of hatred?

Go read some hippy poetry or the autobiography of Gandhi or some shit.  We're out for blood, fool.

I am Chumbawamba.

Fri, 06/11/2010 - 08:50 | 407892 trav7777
trav7777's picture

Did you read what I just wrote, fool?

Better they should give it to FL so that THEY can then go spend it on hookers?

Not a dime of the money is ever going to see the true victims.

Thu, 06/10/2010 - 16:58 | 406946 -273
-273's picture

The age of easy oil is past, the current oil is hard to get. This was a terrible tragedy, but it was also an accident (through neglect, arrogance or miscalculation or whatever else who knows). BP are as much to blame as the rest of the modern world who are completely addicted to oil. I imagine this will be an unpopular comment, but its the truth of the matter. We are all collectively responsible.

Anybody who drives a car, eats food, takes medicine, has any plastic products, wears clothes or buys anything which was transported from far away etc. etc is as responsible as BP. BP fucked up, but we cant live without oil and it's derivative products, and the remaining oil is incredibly hard to get now. Either hundreds of thousands of people die through invasion to get oil or mistakes are made and will continue to be made drilling in such deep waters since we NEED that oil. Without it, everything stops, and the world will be as fucked as Florida appears to be right now.



Thu, 06/10/2010 - 17:01 | 406988 Scarecrow
Scarecrow's picture

Don't forget the politicians who won't let the oil companies drill on land where the oil is or in the shallower water because they don't want a rig in view on the horizon. They make them go to the most dangerous places to get the oil and then get mad when something goes wrong. 

Thu, 06/10/2010 - 17:06 | 407001 Gordon_Gekko
Gordon_Gekko's picture

Somebody is a shill for BP.

Thu, 06/10/2010 - 18:25 | 407167 nonclaim
nonclaim's picture

Could be, but he's also correct.

Thu, 06/10/2010 - 18:41 | 407194 Kali
Kali's picture

Who fostered that dependency?  The oil corps?

Thu, 06/10/2010 - 23:21 | 407500 trav7777
trav7777's picture

No, the fucking laws of physics did

Fri, 06/11/2010 - 00:26 | 407563 DoChenRollingBearing
DoChenRollingBearing's picture

Decades ago I was in the oil business.  Even in 1980 the offshore rigs I was on were very careful.

Bottom line guys is we need the oil.  We should regulkate better, and the whole oil companies / drilling cos/ oilfield services cos. must man-up and be moore serious and careful.

OK we need to research the alternatives, inc. NatGas.  Hey, I hope solar, wind, geothermal, tides, etc. can contribute to resolving our energy woes.

But, there is NO WAY we can ban drilling in the Gulf and Alaska if we want to keep gasoline prices within reason AND not enrich our Arab pals.  That's a FACT.  We have to drill.

Thu, 06/10/2010 - 18:42 | 407197 Waterfallsparkles
Waterfallsparkles's picture

What is so unfortunate is that the Alternates are so expensive.  Solar Pannels for your home, very expensive.  15 years to recoup the cost.  Geo Thermal.  Would love to install Geo Thermal for my Home but so very expensive drilling the wells and the new Heating System.  Heck, even a Wood Stove will set you back close to $5,000. for the stove and the instalation.  The problem seems to me is that the alternative energy sources for Americans is so expensive that we by default go to Oil.  At least for now.

Thu, 06/10/2010 - 18:48 | 407203 Kali
Kali's picture

Why do you think cheaper, efficient methods aren't available?  That patented knowledge is buried in oil company vaults.  There are cheaper, better ways, but they won't see daylight until the system as it exists collapses.  Anyone who tries to get new techs out, get eaten by the big boys.  "Sell me your patent/product or die".  They don't want the competition.

Thu, 06/10/2010 - 23:23 | 407501 trav7777
trav7777's picture

You're out of your mind if you believe this shit.

There is no cheating physics, ok?  Oil is significantly more energy-dense than any competing substance. 

Fri, 06/11/2010 - 00:29 | 407566 DoChenRollingBearing
DoChenRollingBearing's picture

trav7777 is right on this Kali.

If the economics were good for any alternative, the first-mover oil company would make a fortune.

Oil is Numero Uno for energy density by far over all vs. anything other energy sources.  FACT.

Fri, 06/11/2010 - 05:11 | 407738 -273
-273's picture

And of course, using oil as energy is only part of it's use.

If we were out of oil tomorrow, (wont be tommorow, but 86million barrels a day are beign used, and at some point, there will not be enough to go around) here is a very short list of things that would be no longer available.

Motor Oil
Bearing Grease
Floor Wax
Ballpoint Pens
Football Cleats
Bicycle Tires
Sports Car Bodies
Nail Polish
Fishing lures
Golf Bags
Tool Boxes
Shoe Polish
Motorcycle Helmet
Petroleum Jelly
Transparent Tape
CD Player
Faucet Washers
Food Preservatives
Vitamin Capsules
Panty Hose
Life Jackets
Rubbing Alcohol
TV Cabinets
Shag Rugs
Electrician's Tape
Tool Racks
Car Battery Cases
Insect Repellent
Oil Filters
Hair Coloring
Toilet Seats
Fishing Rods
Denture Adhesive
Ice Cube Trays
Synthetic Rubber
Plastic Wood
Electric Blankets
Tennis Rackets
Rubber Cement
Fishing Boots
Nylon Rope
Trash Bags
House Paint
Water Pipes
Hand Lotion
Roller Skates
Surf Boards
Paint Rollers
Shower Curtains
Guitar Strings
Safety Glasses
Football Helmets
Ice Chests
Paint Brushes
Sun Glasses
Heart Valves
Artificial Turf
Artificial limbs
Model Cars
Folding Doors
Hair Curlers
Cold cream
Movie film
Soft Contact lenses
Drinking Cups
Fan Belts
Car Enamel
Shaving Cream
Golf Balls

This is only 144 of the over 6000 items that are manufactured using petroleum based products.

Thu, 06/10/2010 - 19:30 | 407272 Thunder Dome
Thunder Dome's picture

Geothermal causes earthquakes. Wind and solar are not economical.  Future is nuclear. Get long uranium. Probably better buy than gold.  Bring on the Yellow Cake!

Thu, 06/10/2010 - 23:55 | 407540 nobita
nobita's picture

maybe the us should raise taxes on oil? in europe gasoline is MUCH more expensive.

people who have a long drive to work can get some kind of taxbreak.

now i know most here didn´t like cash for clunkers. but what if the taxbreak is proportional to the milagegain on the exchange? this would encourage buyers to buy the most efficient cars and carcompanies to produce them.

the us carfleet could become radically more efficient if you push peoples incentives by tax and taxbreaks to where you need them to be.

then i guess nuclear power has to grow as well, but how good do you feel about that now that BP has proved that profits trumps safety always.

are we supposed to believe nuclear companies are radically diffrent?


Thu, 06/10/2010 - 21:55 | 407398 dogbreath
dogbreath's picture

blah blah blah

Thu, 06/10/2010 - 23:46 | 407534 trav7777
trav7777's picture

Do we even yet KNOW whose freakin fault this accident was?  There are several major parties, BP, Halliburton, and Transocean as well as a bunch of smaller players.

You have a freaking hole poked into the earth in one mile of water and going through 18000' of rock...and people EXPECT this type of operation to be accident free??  The sheer insanity of such a notion...just asinine.

Nobody will accept nonzero risk, in anything.  Gibs me dat.

Fri, 06/11/2010 - 02:38 | 407678 Insert witty title
Insert witty title's picture

Christ on a bike, exactly. Why does Obama insist on refering to BP as British Petroleum? Thats not its name. He's a demagogue of the worst kind.

All you americans out for blood, look in the mirror. Bhopal? What about the rig disaster one that killed 160+ British workers?

How many of you are driving those 8 litre trucks down your four lane highways on your way to Wendys?

Fuck off.

Fri, 06/11/2010 - 06:58 | 407782 Observer
Observer's picture

Absolutely spot on. This is one the few sensible posts with sensible replies as well, He may be trying to set up BP so that it's US assets can be taken back into 'US' ownership

Thu, 06/10/2010 - 16:04 | 406831 Chemba
Chemba's picture

Perhaps the Florida AG can sue BP to recover for aggregate losses in Florida real estate.  Better up that escrow request to $600 billion or so.

The florida AG should save his postage stamps.  The Great Socialist Leader Barack Obama will expropriate BP's gross assets before this is over, to "pay" for "impact on gulf economy".  I say gross, because the Socialist will stiff BP creditors just like he did with GM and Chrysler creditors, for the "common good".

Thu, 06/10/2010 - 16:18 | 406876 John McCloy
John McCloy's picture

We have a winner. The real estate losses as this expands up the eastern coast will far exceed BPs market cap. 

Thu, 06/10/2010 - 17:21 | 407037 Kali
Kali's picture

And here again, the taxpayer paid for a lot of those multi million dollar mansions built on sand bars.  Every hurricane, they get blown away and they get to be rebuilt bigger and better with FEMA funds.  Most of those places weren't insurable.

Fri, 06/11/2010 - 00:32 | 407571 DoChenRollingBearing
DoChenRollingBearing's picture

+ 50

Obama is just the kind of guy to just 'take' BPs US assets.  And pass the dough to his cronies.

Thu, 06/10/2010 - 23:26 | 407505 trav7777
trav7777's picture

This is a phenomenon I predicted years ago.

The government's appetite for revenue is voracious.

If BP does pay FL, none of the money will go into the hands of the CITIZENS harmed.  It will all be paid in no-bid and cherry contracts to people connected to the government.  I bet already there are firms hiring lobbyists to bribe FL legislators to get a piece of this money.  The plan is to put it into THEIR pockets.  Nobody gives so much as a fuck about a fisherman or dive boat operator.  They want the MONEY.

As governments suffer under cash flow problems, they are going to look for any and every excuse to confiscate EVERYTHING.  We already see this at the local level with civil forfeiture laws where the police prosecute your freaking money instead of you.  Oh, the money he had in his pocket failed to enter a's ours now.

Fri, 06/11/2010 - 01:45 | 407641 chumbawamba
chumbawamba's picture

Wow, do you really believe that?  If so, you're a nutcase.  Government officials would never take bribes.  Where is your evidence?  You're a lunatic.

I am Chumbawamba.

Fri, 06/11/2010 - 08:53 | 407897 trav7777
trav7777's picture

The evidence is in Richard Jefferson's freezer, asshole

Fri, 06/11/2010 - 03:24 | 407704 defender
defender's picture

I have been watching this trend for a few years now.  The cops will soon awaken to a world where they are the enemy as people start to get sick of being raped to pay their exhorbent paychecks. 

I am also seeing commercials to the effect of "You will get a ticket for doing [X]", that always have the tired lines of "for your own safety" and "because it is the law".  They should just get to the truth and say "because our department is broke". 

Thu, 06/10/2010 - 16:05 | 406839 Ripped Chunk
Ripped Chunk's picture

This ought to be good for a couple of days of TV news pissing matches.

What a joke.


Thu, 06/10/2010 - 16:10 | 406854 badameli
badameli's picture

Call me dumb - But I thought that economic compensation was capped at $75million? It was just an uncapped limit to clean up economic damages??? Did I miss something?

Thu, 06/10/2010 - 16:42 | 406944 RichardENixon
RichardENixon's picture

I think you missed the fact that this will become a feeding frenzy as everyone circles around to take bites from BP's bleeding corpse.


Fri, 06/11/2010 - 02:41 | 407681 Insert witty title
Insert witty title's picture

End of the Rule of Law via retroactive legislation. When was the last time a country found the rule of law eroded due to ever increasing state control? hmmmm....

Thu, 06/10/2010 - 16:11 | 406856 pragmatic hobo
pragmatic hobo's picture

perhaps BP can issue $2.4B in 5% 30yr bond to florida pension fund ...

Thu, 06/10/2010 - 16:19 | 406867 StarvingLion
StarvingLion's picture

Florida would be better off doing some Porn Parody on their bitches er mean beaches.   "Ohh I'm being bp'ed by Tony and Bill and a 1000psi blowout has erupted out of my bladder"

BTW, Florida AG...isn't that a German company? 

Thu, 06/10/2010 - 16:17 | 406873 Mad Max
Mad Max's picture

So, this is cute.  Does he have any legal basis for such a demand?

I mean, I too could write BP a letter demanding an escrow account, for any future losses I might suffer.  Maybe I'll do that...

Thu, 06/10/2010 - 17:10 | 407008 Gordon_Gekko
Gordon_Gekko's picture

It's all good as long as BP is destroyed. BP is one of the most corrupt oil companies out there.

Thu, 06/10/2010 - 23:29 | 407508 trav7777
trav7777's picture

What company ISN'T corrupt these days?

Do you fancy it's EASY to get the bribes put together in order to get approval to actually produce oil?  BP should take its shit and say fuck you YOU GO GET IT.

I've got an idea, GG, how about you take YOUR ass and your shit down 23000 feet and gimme that oil for my fuckin SUV?

Fri, 06/11/2010 - 00:36 | 407573 DoChenRollingBearing
DoChenRollingBearing's picture

No.  This time Gordon is right.  BP has a reputation for cutting corners.

I believe that when this all hits the courts, that BP will be the major party at fault.

Does not mean that Transocean (as the drillers) or Halliburton (possible bad cementing job) or Cameron (possible bad BOPs, though I did read that someone modified the BOPs) won't share the blame as well.

Thu, 06/10/2010 - 16:19 | 406879 Clayton Bigsby
Clayton Bigsby's picture

BP is actually doing us a favor - maybe, by ruining FLA's "thriving" economy, they might just have to close FLA for good - would blow a huge hole in the trailer home manufacturers tho

Thu, 06/10/2010 - 16:30 | 406902 seventree
seventree's picture

I saw an article yesterday (can't find it now) about one of the few coastline development projects that was still under way. Except now backers have called a halt until the full scale of this thing can be determined. Which could take all year at least.

Thu, 06/10/2010 - 16:47 | 406955 Hephasteus
Hephasteus's picture

But then we'd never scientifically know if people can live off of sewer water or not.

Thu, 06/10/2010 - 19:14 | 407248 Kali
Kali's picture

Sure we do, plenty of communities along the Mississippi.  : )


Thu, 06/10/2010 - 16:28 | 406887 seventree
seventree's picture

It's called the Gulf of Mexico for a reason -- I expected a stronger reaction from that government by now. Unless I missed it somehow.

Thu, 06/10/2010 - 16:31 | 406917 StarvingLion
StarvingLion's picture

Mexico's extensive prison population is ingesting tarballs as we speak to test its hallucigenic effects.  If it aint a drug it aint news in Mexico.

Thu, 06/10/2010 - 16:35 | 406928 Midnight Rambler
Midnight Rambler's picture

Don’t mean to hijack the thread, just wanted to wave ‘hi’ to everyone.

This is my first post. I’ve been visiting ZH daily for about a year now. ZH has quickly become my go-to site for finance and related discussions. I really appreciate the high signal-to-noise ratio and will do my best to keep it that way.

In the past year, I’ve made some correct decisions (and avoided some bad ones) as a direct result of what I’ve learned from ZH. I’ve used what I’ve learned to better protect my family from the coming storm. Time will tell whether I’ve done enough, but there’s no doubt it’s more than I would have done absent the flow of great information on this blog.

I’m sure there are many more out there like me, whose voices have not yet been heard, but who lurk and learn each and every day. So on behalf of us all, thank you for speaking the truth.

Midnight Rambler

Thu, 06/10/2010 - 16:47 | 406956 Gromit
Gromit's picture

Thank you Rambler and welcome to Zerohedge.

I too have appreciated the good advice and information offered here and have donated to defray their operating costs so that it may continue.

I feel better for having done so and I hope that you will too!

Fri, 06/11/2010 - 00:39 | 407579 DoChenRollingBearing
DoChenRollingBearing's picture


Now go out and please buy some gold.  Now.

Thu, 06/10/2010 - 16:45 | 406951 Dr. No
Dr. No's picture

Big Oil is the new Big Tobacco.  Back in the day when suing tobacco was all the rage, the windfall awards went into state general funds.  Now it is time for big oil to be drained in order to fund state projects and also cheezy anti-big-oil T.V. adds as to try to break our addiction.

Thu, 06/10/2010 - 18:11 | 407139 Hephasteus
Hephasteus's picture

And it's turned into an epic fraudulant tax collection scheme in the EU. Let companies price fix LCD monitor panels. Let it run for 5 years without saying squat then punative damage the companies for billions with NONE of it going to the consumers. Rinse and repeat. Free fraud split the proceeds with the government.

Thu, 06/10/2010 - 18:30 | 407173 Common_Cents22
Common_Cents22's picture

Yep, normal corrupt government is like the mafia extracting payola like they did with big tobacco.  Cept, Obama isn't normal and just might kill the cow instead of taking a few extra gallons of milk a week.

Thu, 06/10/2010 - 16:54 | 406973 Fix It Again Timmy
Fix It Again Timmy's picture

Well now we won't have to go to Alberta for oil sand extraction - Floridia can save us!  Sorry, this is tragically appalling and criminal to boot - will justice prevail, I hope so...

Thu, 06/10/2010 - 18:53 | 407214 Waterfallsparkles
Waterfallsparkles's picture

I was actually thinking about something similar.  I watched the Man on CNBC which used Mulch to soak up the Oil.

I thought wow what if they could use that oil soaked Mulch to make Fireplace Buring Logs.  Take the Mulch compess it and sell it as Fireplace Logs.

If we could find a good Comercial use for the spilled Oil Business People would be out there trying to scoop up all of the spilled Oil to benifit from their product from free Oil.

Can you imagine Millions of Companies competeing to gather up all of the spilled Oil for their Product?

Thu, 06/10/2010 - 17:03 | 406994 Madhouse
Madhouse's picture

I hear all this happy horse about BP getting bought out, going bankrupt, assets sold etc (basically where the taxpayer is left holding the bag, the execs get golden, etc etc). I personally hope the firm survives but only, and only after the US taxpayer is immune to any lingering costs.

If they can clean up the mess completely, pay everyone fairly for the disaster, drill new, safe holes that will eliminate the need for Arab oil then god bless em.

But as we all know, none of my Happy horse is going happen either...  just wait until this shit starts hitting the west coast of Florida fan - Tampa, Sarasota, Fort Meyers, even Naples, the Keys... we are talking billions. Booking a trip to east coast FL this winter ?  Sure...


Thu, 06/10/2010 - 17:30 | 407061 brokesville
brokesville's picture

BP can you send me a check please, obama bucks running low, also illeagals in az need jobs  (dirty jobs done dirt

Thu, 06/10/2010 - 17:56 | 407108 benb
benb's picture

2.5 billion?… must be some kind of typo. The Florida AG should move the decimal point two or three places to the right to get in the ball park.

Fri, 06/11/2010 - 03:35 | 407706 defender
defender's picture

With 18.8 million living in FL, this works out to $133 per person.  Maybe you are right.

Thu, 06/10/2010 - 18:02 | 407121 carbonmutant
carbonmutant's picture

Shouldn't we be demanding the heads of the Politicians that enabled BP?

Thu, 06/10/2010 - 18:22 | 407160 Waterfallsparkles
Waterfallsparkles's picture

I had an interesting thought.  If BP pays Fisherman and others claims for loss of income how does the State or the Fed get their percent of the "income" or so to speak non income?  Will States and the Government suffer thru loss of Income Tax?

Thu, 06/10/2010 - 23:37 | 407521 trav7777
trav7777's picture

You've stumbled upon the truth.  NOT ONE government is at all interested in getting the PEOPLE any of this money.  They want it in their own hands.  A pool of money means massive bribe and "campaign contribution" opportunities to dole it out to various business interests.

Katrina was some of the best shit that ever happened down there, a veritable motherlode of free money.  And meanwhile you've got volunteers going in there and rebuilding stuff.  Where the fuck did all the federal money go?

Now, we've got a nice deep-pockets defendant, and one from a politically unpopular class, those EVIL "big oil" companies who just love to RAPE US by charging us $3 a gallon when we "deserve" the stuff for our big SUV at $1.  it MUST be injustice because *I* am not getting what *I* want.

All these big oil companies developed the world and then the governments straight STOLE IT.  Wtf you think happened at Sakhalin and Samotlor and where Aramco came from?

I really have no toleration for people ignorant of the oil business.  Exxon is regarded as huge; they aren't even in the top 10.  The big fish are state-owned.

Fri, 06/11/2010 - 00:43 | 407583 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1000 trav.

Without the technological advances made by the oil industry, we would be living mid-1800s style.  You know, no internet...

.govs live to steal.

Thu, 06/10/2010 - 18:33 | 407179 dot_bust
dot_bust's picture

So many CEOs have mansions on Florida's intracoastal. Better yet, their yachts are floating next to their mansions. I can't wait to see how they react when oil starts corroding their $80 million yachts. That's when it's going to start getting real for those people. Make-believe time will be over.

Thu, 06/10/2010 - 18:34 | 407183 Common_Cents22
Common_Cents22's picture

BP should sign up for obamacare insurance, no pre-existing conditions, the gubmint will cover everyone for everything.

Thu, 06/10/2010 - 18:39 | 407192 RockyRacoon
RockyRacoon's picture

I'm sure Tony has gone over to the accounting department to get that check issued.  NOT.

Next in line:  Alabama for $1.2B, Mississippi for $1.8584B (not so hot at math, that State), and Louisiana for $27.5B, etc.

Pay one, ya pay 'em all.  That letter is a fart in a hurricane.

Thu, 06/10/2010 - 19:00 | 407221 Madhouse
Madhouse's picture

That was the mother of all Happy Horse shit comments... I love it..

Thu, 06/10/2010 - 20:30 | 407329 Bearster
Bearster's picture

How long can a nation last, where those who produce the values necessary for its survival are hated and attacked?


Thu, 06/10/2010 - 22:19 | 407425 williambanzai7
williambanzai7's picture

Instead of Cubans, their having tar balls wash up on the beaches. Better get the retirees out there cleaning up instead of hitting balls into sand traps and playing shuffle bored.

Thu, 06/10/2010 - 23:01 | 407474 Madhouse
Madhouse's picture

BPs book value is just over $100 billion with say 50% of those assets in the U.S. Over the past few hours it has been stated that daily leakage is 8+ times that reported. Of course, BP execs needed time to sell. With tourism, fishing, real estate, cleanup, unemployment, emergency govt. efforts (the list goes on and on), the 10 year cost will certainly hit $50 billion as the oil will simply not stop coming on shore in TX, LA, MS, AL, FL for years and years. The question is whether we are going to treat this like the  national emergency it is or some sort of a fucking legal, bureaucratic cluster fuck. We won't get hold of BPs assets outside of the US (the UK already made their first gesture today) but we need to take what we can, sell them and put this money in a special fund to take care of all of these issues. Right now you can all bet your asses that BP execs are planning how to personally get out alive while Obama is trying to figure how to dig his head in the sand further. Good people down there are getting screwed because of this problem and they need our help but ... WE ARE BANKRUPT OURSELVES so it is absurd for us not to be carving the money from this problem distinct from the Federal/State budgets by taking BP down at this point. This needs to be a seperate pot of money for this as it was not a natural disaster, terror attack, etc. - this was a corporate error. The taxpayers should not be left holding the bag on this 3-5-7-10 years down the road after Goldman or whomever has long walked with their hefty bankruptcy advisory fees and BPs execs have long gone. On the other side, there is a limited amount of funds so any graft should be met with severe pain. If Obama does not "get" how fucking furious people are about dumb government out here then he is 4 and away my friend. What I am seeing so far is the usual lumbering idiocy. We want someone to take this problem, slam it against the wall and bitch slap it plenty. Clear ?

Thu, 06/10/2010 - 23:41 | 407529 trav7777
trav7777's picture

Gee...wonder why they're out there in a mile of water huh, taking all these risks?

It's because there isn't any FUCKING OIL anywhere else.

This situation is going to exacerbate Peak declines because after seeing BP get savaged like this, NO private oil company is going to touch this shit with a 10 foot pole.  The ONLY companies that will do this are state-owned and have sovereign immunity.

There's probably only one on the planet with this type of expertise, and that is Petrobras.

The OCS was supposed to be the savior according to Peak deniers...yeah, until ONE minor error occurs and it floods the fucking ocean with crude, you idiots.  Time to wake up and smell the coffee.

Fri, 06/11/2010 - 01:48 | 407644 chumbawamba
chumbawamba's picture

Your point, please?

Fri, 06/11/2010 - 00:41 | 407582 StychoKiller
StychoKiller's picture

"Willie Sutton, why do you rob banks?"

Everyone knows his answer...

Fri, 06/11/2010 - 00:57 | 407600 Madhouse
Madhouse's picture

Wow. Seems I struck a nerve with either a BP exec or shareholder or some fucking idiotic oil industry lover. I have never seen 8 consecutive posts of utter bullshit before on this site or any other.

Fault ?  Not mine and it should not cost me a fucking dime was my main point (oh but it will, I am sure of that too). If the risks were not completely understood at this depth then BP should not have a) played this game in the first place and b) sub'd it to a firm that was obviously not up to the task. It is called operational risk and if a firm fucks up a few thousand miles of coastline for 10 years then your damn right they have to pay for it. Period. Any other US taxpayers out there think that sounds illogical ? Any intelligent counter-plan for the government to follow ?

Fri, 06/11/2010 - 01:50 | 407646 chumbawamba
chumbawamba's picture

That's trav.  He's a holier-than-thou-er.  He seems to be a bit excitable and on the edgy side.    He means well, generally.

I am Chumbawamba.

Fri, 06/11/2010 - 09:03 | 407910 trav7777
trav7777's picture

wtf u was down $15 yesterday

Fri, 06/11/2010 - 02:51 | 407687 Insert witty title
Insert witty title's picture

Not your fault hey? Well i guess you're typing this on a keyboard made of hemp? on a pc powered by a bunch of monkeys on a treadmill running their bums off? What clothes are you wearing? Make them yourself? Out of cotton you grew yourself?

Nahhh didn't think so.

You are oil. The fact you are on an internet forum discussing this proves it. How the fuck do you think you're able to do that? Everything about our way of life is oil and you americans are leading the pack, taking what you can while its there. And hey, thats fine, you've got the guns and the resources and you're highly organised so why not? Someone has to win.

Just don't be such a fucking hypocrite.

Fri, 06/11/2010 - 09:07 | 407916 trav7777
trav7777's picture


The price of oil should be $100/bbl and the price of gasoline $4/gal to account for this increased operational risk.

It would be nice if BP could compensate the INDIVIDUALS who were harmed.  I'm all for that.

I'm NOT for giving a single fucking dime to the "State of Florida" so that they can divide it up amongst themselves and their cronies, leaving nothing for the actual citizens harmed by the spill.

What you're saying is that this oil is too hard to get, too risky to get.  Where do YOU suggest that they explore?  I've got bad news for you; there isn't anywhere else TO explore.  So unless you and everyone else who uses electricity and drives a car is going to man up and start paying a higher percentage of your labor for energy, then really, all the sanctimonious bullshit about BP should stop.

The real problem here is that this type of operation, going to get late-stage, low EROI oil, has massive tail risk.  This was *not* accounted for in the oil or pump price of petroleum.  It needs to be.

Fri, 06/11/2010 - 09:30 | 407968 Insert witty title
Insert witty title's picture


Cheap oil at the bowser means you pay somewhere else.

I was in Utah for a ski holiday, I love it. The nicest people you will meet in the whole wide world and the driest, fluffiest, bestest snow ever, if you can get down cottonwood canyon(s).  But filling up the rental 'truck' back in UK would've been 300 sheets. Was about $40. And no i did not offset my flight with carbon credits.

You might think its cheap, well you just saw the payback. Just don't fucking whine when the payman comes knocking. Because you'll pay, one way or the other.


If i could be bothered i'm sure i could find a bob dylan lyric along those lines.

I might be enjoying the dividends of an energy rich hydrocarbon boom, but at least i fucking know it and dont' complain when the people that provide my luxuries fuck up. If you do, you're a hypocrite. I might be a bad person, but i ain't no hypocrite.

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