Guest Post: The Cover-up: BP's Crude Politics And The Looming Environmental Mega-Disaster

Tyler Durden's picture

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The Cover-up:  BP's Crude Politics and the Looming Environmental Mega-Disaster

We have been informed by sources in the US Army Corps of Engineers, Federal Emergency Management Agency (FEMA), and Florida Department of Environmental Protection that the Obama White House and British Petroleum (BP), which pumped $71,000 into Barack Obama's 2008 presidential campaign -- more than John McCain or Hillary Clinton, are covering up the magnitude of the volcanic-level oil disaster in the Gulf of Mexico and working together to limit BP's liability for damage caused by what can be called a "mega-disaster."

Obama and his senior White House staff, as well as Interior Secretary Ken Salazar, are working with BP's chief executive officer Tony Hayward on legislation that would raise the cap on liability for damage claims from those affected by the oil disaster from $75 million to $10 billion. However, WMR's federal and Gulf state sources are reporting the disaster has the real potential cost of at least $1 trillion. Critics of the deal being worked out between Obama and Hayward point out that $10 billion is a mere drop in the bucket for a trillion dollar disaster but also note that BP, if its assets were nationalized, could fetch almost a trillion dollars for compensation purposes. There is talk in some government circles, including FEMA, of the need to nationalize BP in order to compensate those who will ultimately be affected by the worst oil disaster in the history of the world.

Plans by BP to sink a 4-story containment dome over the oil gushing from a gaping chasm one kilometer below the surface of the Gulf, where the oil rig Deepwater Horizon exploded and killed 11 workers on April 20, and reports that one of the leaks has been contained is pure public relations disinformation designed to avoid panic and demands for greater action by the Obama administration, according to FEMA and Corps of Engineers sources. Sources within these agencies say the White House has been resisting releasing any "damaging information" about the oil disaster. They add that if the ocean oil geyser is not stopped within 90 days, there will be irreversible damage to the marine eco-systems of the Gulf of Mexico, north Atlantic Ocean, and beyond. At best, some Corps of Engineers experts say it could take two years to cement the chasm on the floor of the Gulf.

Only after the magnitude of the disaster became evident did Obama order Homeland Security Secretary Janet Napolitano to declare the oil disaster a "national security issue." Although the Coast Guard and FEMA are part of her department, Napolitano's actual reasoning for invoking national security was to block media coverage of the immensity of the disaster that is unfolding for the Gulf of Mexico and Atlantic Ocean and their coastlines.

From the Corps of Engineers, FEMA, the Environmental Protection Agency, Coast Guard, and Gulf state environmental protection agencies, the message is the same: "we've never dealt with anything like this before."

The Obama administration also conspired with BP to fudge the extent of the oil leak, according to our federal and state sources. After the oil rig exploded and sank, the government stated that 42,000 gallons per day was gushing from the seabed chasm.  Five days later, the federal government upped the leakage to 210,000 gallons a day.

However, WMR has been informed that submersibles that are  monitoring the escaping oil from the Gulf seabed are viewing television pictures of what is a "volcanic-like" eruption of oil. Moreover, when the Army Corps of Engineers first attempted to obtain NASA imagery of the Gulf oil slick -- which is larger than that being reported by the media -- it was turned down. However, National Geographic managed to obtain the satellite imagery shots of the extent of the disaster and posted them on their web site.

There is other satellite imagery being withheld by the Obama administration that shows what lies under the gaping chasm spewing oil at an ever-alarming rate is a cavern estimated to be around the size of Mount Everest. This information has been given an almost national security-level classification to keep it from the public, according to our sources.

The Corps and Engineers and FEMA are quietly critical of the lack of support for quick action after the oil disaster by the Obama White House and the US Coast Guard. Only recently, has the Coast Guard understood the magnitude of the disaster, dispatching nearly 70 vessels to the affected area. WMR has also learned that inspections of off-shore rigs' shut-off valves by the Minerals Management Service during the Bush administration were merely rubber-stamp operations, resulting from criminal collusion between Halliburton and the Interior Department's service, and that the potential for similar disasters exists with the other 30,000 off-shore rigs that use the same shut-off valves.

The impact of the disaster became known to the Corps of Engineers and FEMA even before the White House began to take the magnitude of the impending catastrophe seriously. The first casualty of the disaster is the seafood industy, with not just fishermen, oystermen, crabbers, and shrimpers losing their jobs, but all those involved in the restaurant industry, from truckers to waitresses, facing lay-offs.

The invasion of crude oil into estuaries like the oyster-rich Apalachicola Bay in Florida spell disaster for the seafood industry. However, the biggest threat is to Florida's Everglades, which federal and state experts fear will be turned into a "dead zone" if the oil continues to gush forth from the Gulf chasm. There are also expectations that the oil slick will be caught up in the Gulf stream off the eastern seaboard of the United States, fouling beaches and estuaries like the Chesapeake Bay, and ultimately target the rich fishing grounds of the Grand Banks off Newfoundland.

WMR has also learned that 36 urban areas on the Gulf of Mexico are expecting to be confronted with a major disaster from the oil volcano in the next few days. Although protective water surface boons are being laid to protect such sensitive areas as Alabama's Dauphin Island, the mouth of the Mississippi River, and Florida's Apalachicola Bay, Florida, there is only 16 miles of boons available for the protection of 2,276 miles of tidal shoreline in the state of Florida.

Emergency preparations in dealing with the expanding oil menace are now being made for cities and towns from Corpus Christi, Texas, to Houston, New Orleans, Gulfport, Mobile, Pensacola, Tampa-St.Petersburg-Clearwater, Sarasota-Bradenton, Naples, and Key West. Some 36 FEMA-funded contracts between cities, towns, and counties and emergency workers are due to be invoked within days, if not hours, according to WMR's FEMA sources.

There are plans to evacuate people with respiratory problems, especially those among the retired senior population along the west coast of Florida, before officials begin burning surface oil as it begins to near the coastline.

There is another major threat looming for inland towns and cities. With hurricane season in effect, there is a potential for ocean oil to be picked up by hurricane-driven rains and dropped into fresh water lakes and rivers, far from the ocean, thus adding to the pollution of water supplies and eco-systems.


By. The Wayne Madsen Report for who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit:

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cbaba's picture

thanks Tyler, excellent article

merehuman's picture

Cavern, size of Mt. Everest under the seabed. So is the 3.2 @ Sardis LA  earthquake a foreshadow of whats to come? On another post i was suggesting the possibility of this and was called a fool. I dont look so foolish now.

If my vision is correct there will be a cavein  in the gulf. Ocean water will rush in to fill the lower water level. It will end up with a hell of a tsunamy.

After that , who knows but one thing is for sure, the earth will react.

There is still time to get out of harms way. This will undoubtedly affect other rigs, most wiil also tip, break etc should my scenario come true.

A lot of us will die because of this.

Ok , junk me and i will become a fiction writer.

sondog's picture

Please don't become a writer until you learn to spell.

Ripped Chunk's picture

sondog, doesn't this get tiresome for you?

Village Idiot's picture
These two jokers have a bigger problem than spelling - although ignorance and spelling do go hand in hand.  Isn't the Internet (email) a bitch, guys?  Just ask Fab. by merehuman
on Sun, 05/02/2010 - 18:38


cbaba, you got junked twice already just for mentioning JEWS.

Jews. JEWS JEWS jews and more JEWS.

OK  now junk me to too you ignorant fuck.  The truth is what it is.

by cbaba
on Sun, 05/02/2010 - 19:03

call the megaphone and add more junks,i dont care, it doesnt change the truth ignorant fuck and douche with your mother bag VI.


by merehuman
on Sun, 05/02/2010 - 19:16

less than 5 minutes since i used the miracle word JEW. I already have one junk. Thank you. It feels good to be noticed.

BTW chaba.  It wasnt I that junked you. Anytime i point out how the seats of power in our government is predominantly jewish i get a lot of junks. The truth is what it is.

If all those Jews wore armbands, we would see how they control our society. Perhaps thats why Hitler had them wearing armbands. And yes, truhout the course of my long life i have met, done business with and loved many Jewish people along the way. I do not hate or even dislike Jews. They are people like all others. Still, the fact remains that they hold many powerful seats.

If all those same seats were held by, say Chinese, there would be a hell of an outcry ? would there not?




merehuman's picture

village idiot , you have succeeded in stopping any further posts from me.

Its pointless anyway and i have better things to do. You actually did me a favor.

Village Idiot's picture

Reincarnate.  And next time - hold it with the stuff that has no place on ZH (or, anywhere for that matter).  Godspeed.

cossack55's picture

Do you mean you will write for CNBS, BP, and the POTUS?

velobabe's picture

that image just takes my breath away.

this is the scariest, to me, than any stock market crashing 1000pts.

we know it will be saved, over and above this planet and it's beings.

saddest day for the earth, so far.

Ragnarok's picture

That's not how it works, oil is trapped inside the porosity of reservoir rocks, little droplets about the size of a pinhead.


I believe the reservoir is around 18000ft deep so any deformation of the rocks will be fairly slow and plastic like play-dough as the fluid drain slowly over time.  It will not be instantaneous jagged faulting causing a tsunami.

dark pools of soros's picture

it will be worse..  it will disturb Cthulhu and he will rise before his normal feeding cycle..  which will make him grumpy

Harbourcity's picture

I though Cthulhu was the leader of the Bilderberg group?


DFCtomm's picture

That too.

Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn


SylphGlitch's picture

So R'lyeh is now in the Gulf Coast?

After watching the Dow drop 1000 pts because of one HFT transaction I'll believe it....

Ragnarok's picture



Some people are still grappling with the fact that the earth is round, let alone its 4.5 -4.9 billion year history, basic structure, basic geology and the theory of plate tectonics which governs the crust.  I think it was somewhere in middle school science class.


The world would be a better place if everyone just watched the original "how the earth was made" on the history channel. At least then we could try to build their undrstanding from some concept of reality.


And some basic info on iceland:

kengland's picture

Why does this suprise you TD and readers. LMAO. Am I not reading ZH? You mean to tell me you just woke up to the fact that both repubs and dems are bought and paid for many times over by the same groups? I thought you understood that.


Fraud-Esq's picture

waz wondering when someone would say "nationalization". It's one sure way to pay for some stuff but hard to do without an excellent reason...

What_Me_Worry's picture

...and the lawyers rejoice in their new found printing press.

bullwinkle's picture

$71,000 dollar contribution.  Yeah that sounds like a good reason for Obama to be siding with BP on this mess.

I mean that should at least cover his dry cleaning bill for the year. 

Assetman's picture

It's amazing how cheaply politicians can be bought.

It might be the best $71k BP has ever spent.

docj's picture

Spot-on, Assetman.  Frankly that's what has always amazed me about politics - not how much money is spent on elections (about what the US spends advertising chewing gum or popcorn, if I recall the numbers correctly), but how little it takes to get the attention of these folks.

Send a $100 donation to your State Senator and see what I mean.

lesterbegood's picture

Invest in a senator? Best investment on the planet! 1000% return on investment!

Thunder44's picture

All this oil gushing out of the bottom of the ocean,where's the coverage how much damage,how much has hit land.

DaveyJones's picture

other prostitutes work for much less, some for just a hit

Gold...Bitches's picture

And they at least have the courtesy that if they are going to screw you in the ass at least they'll give you a reach around.

Ripped Chunk's picture

That has to be why the bankers and "corporate captains" must laugh and laugh until they piss themselves. How cheap these stupid imbeciles can be bought for. No knowledge of the real world at all. But they get elected.

anony's picture

How stupid can they be to get lifetime salaries twice as good as the private sector, benefits to make an Emir blush, pensions for relatively few years service AND if you think all they get is some campaigin contributions I'd point out that Clinton got $10,000,000 just from Norway for what the fuck?

You grossly misunderestimate the goodies that career politicians manage to have bestowed on them and without an IRS audit, (ever hear of a career politician being investigated by the IRS?) you will never know how wealthy they are but a glimpse of their lifestyle, close up, yet to be vetted by an investigative journalist, would shock you.

They're laughing all right, but only because their $10,000,000 investment likely returned to them at a thousand fold.   

Ripped Chunk's picture

So how long have you been retired from Congress for?

I guess according to your description, carreer politicians need to become extinct.


cossack55's picture

I'll second that motion. We will need more fossil fuels soon.

Cindy_Dies_In_The_End's picture

Yeah, I donned my tinfoil head gear after I read that. Obama would blow his nose on 71K.


Geez, should't we be screening more of this stuff?

Cindy_Dies_In_The_End's picture

Yeah, I donned my tinfoil head gear after I read that. Obama would blow his nose on 71K.


Geez, should't we be screening more of this stuff?

Sigma X's picture

While the 71k might not be reason, a president who recently opened up the Gulf to additional drilling might have his own motivation for wanting this disaster to seem like something less....

AnAnonymous's picture

Too bad that Obama guy was not elected before.

I always had the feeling that an elected black guy would be allowed to get away with less than your casual white yankee-dankee/hillbilly Joe.

Feeling confirmed.

Covering up for an oil corporation after an oil spill... What a surprise.

Some areas of the world had to fight 20 years or more to get compensated after an oil spill, including cases US oil companies were involved.

carbonmutant's picture

Obama biggest recipient of BP cash

While the BP oil geyser pumps millions of gallons of petroleum into the Gulf of Mexico, President Barack Obama and members of Congress may have to answer for the millions in campaign contributions they’ve taken from the oil and gas giant over the years.

BP and its employees have given more than $3.5 million to federal candidates over the past 20 years, with the largest chunk of their money going to Obama, according to the Center for Responsive Politics. Donations come from a mix of employees and the company’s political action committees — $2.89 million flowed to campaigns from BP-related PACs and about $638,000 came from individuals.


exportbank's picture

This is a slow-motion wreck - the loop current that comes up between the Yucatan and Cuba will in about a week - start to move the oil into the Gulf Stream. The only piece of decent luck is that summer is bearing down on us so we'll get some evaporation of the oil but in potential devastation (financial impact) this is on par with public sector pensions.

Sudden Debt's picture


I'm putting all my funds in shorting BP!

Great article!

ZerOhead's picture

I wouldn't be doing that if I were you...

First of all... anyone with even the slightest passing familiarity with 'soft rock' geology will tell you that a cavern the size of Everest underneath the Gulf is sheer nonsense.

There is indeed a porous reservior rock (usually sandstone or limestone) that contains the oil capped by a non-porous formation above to be sure... but the degree of porousity is in the very low percentages... like 1% or 2% here... so cave-ins are almost impossible.

Nothing will collapse my friends... but any... and I mean any increase in the rate of flow is very bad news indeed... but reports are that the BOP worked with some minor leaks around the seals... which at these pressures is already giving us 5,000 or so bbls/day of leakage.

If the casing fails and the oil emerges outside same however... we are talking a whole different ball game.

divide_by_zero's picture

Some good info here, and of course in UK newspapers, MSM not so much.

Sounds like the BOP was way undermatched for this reservoir, 5000 psi limit but estimate of gas kick in the 60,000 psi range. Saw one estimate that the pocket encompasses a 25,000 square mile area. One petroleum engineer said it was so big that rather than being worried about the world running out of oil he was "more worried about running out of air to burn" (still trying to find that one again). They are also apparently worried about the mud etc coming up from the reservoir abrading the casing to failure. 

ZerOhead's picture

If the BOP had failed and was 'open' the velocity of oil in the pipe at least initially would be insane. That and fragments of the reservoir rock would indeed abrade the remaining pipe/casing. But without the high flow required that is jusy NOT going to happen. All the pressure... and thus low flow rates... remain below the BOP. If the BOP goes or the oil finds it's way around the casing at those pressures? Then you have an epic disaster in the making.

Broken_Trades's picture

First of all... anyone with even the slightest passing familiarity with 'soft rock' geology will tell you that a cavern the size of Everest underneath the Gulf is sheer nonsense.


Thanks for finally posting some common sense.  I can't believe some of the sensational crap I'm reading here on ZH about the sea floor collapsing, and massive underground caverns.  Obviously whomever is writing this crap has zero knowledge of how oil and gas reservoirs.  Oil and gas is trapped inside the pore spaces of reservoir rock.  Once the oil and gas is gone, what do you think happens to the reservoir rock? 

Think about it dumbasses:  Weve been drilling for hundreds of years all over the world and the sea floor or ground hasnt collapsed anywhere else.  lol



Tyler - Stop posting up sensational crap.  Some of these oil commentaries are pure BS and it's detracting from the credibility of this site.




WaterWings's picture

What a paradox. If it hadn't been posted this comment section would never have existed - and I have learned much from it.

RichardENixon's picture

"There is other satellite imagery being withheld by the Obama administration that shows what lies under the gaping chasm spewing oil at an ever-alarming rate is a cavern estimated to be around the size of Mount Everest. This information has been given an almost national security-level classification to keep it from the public, according to our sources."  How is it possible to see this from a satellite? I'm in New Orleans and if things are as bad as this article says I guess I better pack up the kids and scram. My house was filled with 11 feet of toxic water by Katrina and I don't need another hurricane raining crude oil down on my head while oil-soaked water rises up to my neck. That would be a little more than even I would be willing to go through. 

cossack55's picture

I would think the resultant tsunami would be a little more worriesome.

dark pools of soros's picture

that slick water will make it awesome to skim board in...  

Clancy's picture

As someone who has been through at least one oil hurricaine let me tell you you definitely gotta be careful of open flames.

WaterWings's picture

Better tell my friends down south to quit smoking before August.