Big oil asks government to protect it from climate change

This stuff just cannot be made up. After denying any climate change for decades and even persuading the people that could be persuaded that it didn't exist, the Big Oil is now asking for federal protection and for the taxpayer money to be used for the building of a wall in the Gulf, protecting the oil industry locations from future hurricanes and other natural disasters. $3.9b has already been allocated for the building of the three sections to protect oil facilities, and an extra $12b is intended for another 60 miles of walls and barriers to protect industry assets.

The plan is focused on a stretch of coastline that runs from the Louisiana border to industrial enclaves south of Houston that are home to one of the world’s largest concentrations of petrochemical facilities, including most of Texas’ 30 refineries, which represent 30 percent of the nation’s refining capacity.

Texas is seeking at least $12 billion for the full coastal spine, with nearly all of it coming from public funds. Last month, the government fast-tracked an initial $3.9 billion for three separate, smaller storm barrier projects that would specifically protect oil facilities.

Texas does have $11b saved up for projects such as these but when the White House is in cahoots with the big oil and willing to spend taxpayer money to help, those funds can be saved for an administration less willing to fund big oil.

Texas has not tapped its own rainy day fund of around $11 billion. According to federal rules, 35 percent of funds spent by the Army Corps of Engineers must be matched by local jurisdictions, and the GOP-controlled state Legislature could help cover such costs. But such spending may be tough for many conservatives to swallow.

Texas “should be funding things like this itself,” said Chris Edwards, an economist at the libertarian Cato Institute. “Texans are proud of their conservatism, but, unfortunately, when decisions get made in Washington, that frugality goes out the door.”

But the idea of taxpayers around the country paying to protect refineries worth billions, and in a state where top politicians still dispute climate change’s validity, doesn’t sit well with some.

“The oil and gas industry is getting a free ride,” said Brandt Mannchen, a member of the Sierra Club’s executive committee in Houston. “You don’t hear the industry making a peep about paying for any of this and why should they? There’s all this push like, ‘Please Senator Cornyn, Please Senator Cruz, we need money for this and that.’”

Normally outspoken critics of federal spending, Texas Sens. John Cornyn and Ted Cruz both backed using taxpayer funds to fortify the oil facilities’ protections and the Texas coast. Cruz called it “a tremendous step forward.”

We'll follow this development, or I will at least, and update everyone -- but is there any doubt as to what will happen, especially with all the other distractions going on in D.C.? The funds will be approved without much, if any, discussions and the American taxpayers can say goodbye to the billions that will be given to those who created the situation in the first place.

Associated Press

The swamp needs to be drained, and I'm sick of everyone saying it while the show goes on. People are falling for promises and false rhetoric while actions speak another story. Where is the conservatism promised? Where are the promises to lessen the spending? How about the promises to combat lobbying? All of those promises fall apart, all at once and not for the first time, with this one despicable act.

Why does one of the biggest industries in the world need to have anyone pay for anything ?
These companies have more than enough money and resources to protect their assets on their own.

a reply to: Kharron

How is protecting facilities from hurricanes and natural disasters the same as protecting facilities from "climate change"? Did hurricanes and natural disasters not occur before this period of climate change?

This sounds like a little rhetorical trickery used to make some people look like hypocrites.

"Help! The gulf coast is inexplicably getting tremendous hurricanes every year when we only used to get a bad hurricane every half a decade. we don't know why it's happening but you should use taxpayer money to help protect our assets from these completely mysterious climate changes... err, NATURAL climate changes."

-The Oil Industry

originally posted by: TheSubversiveOne
a reply to: Kharron

How is protecting facilities from hurricanes and natural disasters the same as protecting facilities from "climate change"? Did hurricanes and natural disasters not occur before this period of climate change?

This sounds like a little rhetorical trickery used to make some people look like hypocrites.

Because to the Cult of Gore, seasons are indisputable proof of "Climate Change."

The source has just spun what was a story about protecting infrastructure from hurricanes into more "proof" that the world is going to end unless cows stop farting and we stop breathing.

Funny thing about hurricanes, I grew up in Florida and I remember as a kid (im 45), Florida got pounded pretty hard with hurricanes and tropical storms.

Then for about 15 years hurricane season was 1 or 2 hurricanes a couple named storms and not much else, so as the cycle brings more storms back its OMG THE WORLD IS ENDING.

To me at least when it comes to hurricanes, it looks like the normal pattern... things get rough, then things calm down then they get rough again.

ETA: Big oil should be told to pony up some of those record profits to assist.

originally posted by: Lumenari

originally posted by: TheSubversiveOne
a reply to: Kharron

How is protecting facilities from hurricanes and natural disasters the same as protecting facilities from "climate change"? Did hurricanes and natural disasters not occur before this period of climate change?

This sounds like a little rhetorical trickery used to make some people look like hypocrites.

Because to the Cult of Gore, seasons are indisputable proof of "Climate Change."

The source has just spun what was a story about protecting infrastructure from hurricanes into more "proof" that the world is going to end unless cows stop farting and we stop breathing.

It can be twisted to encompass any natural disaster. If only the people of Pompei didn't build their town on the side of Vesuvious, they would have shielded themselves from climate change.

originally posted by: Slanter
"Help! The gulf coast is inexplicably getting tremendous hurricanes every year when we only used to get a bad hurricane every half a decade. we don't know why it's happening but you should use taxpayer money to help protect our assets from these completely mysterious climate changes... err, NATURAL climate changes."

-The Oil Industry

Worst one to hit Texas was in 1900.

And you missed that inconvenient truth that hurricanes have become less frequent since 1850.

But truth and climate change zealots are polar opposites, are they not?

Big Oil get yugggee tax breaks and government subsidies even though making obscene profits. Know why?

Because they give yugggeee campaign contributions to candidates and sweet paid positions on the board when they retire and nice vacations for politicians and their families to islands where they maintain off shore accounts.


I forgot to mention plenty of oil company lobbyist give out super bowl tickets to politicians that favor big oil. How do you like that $5 a gal for gas. It's coming....MAGA



Its American capitalism.....at it's most corrupt.

www.washingtonpost.com... 4287507db_story.html?utm_term=.fab990e827c5

a reply to: Lumenari

Worst one to hit Texas was in 1900.

You do understand why it was so devastating?

a reply to: Kharron

I'm sorry, but humans need to stop trying to contain nature and actually adapt to its inevitable change, especially along coastlines (this is where our current societies of stagnant coastal cities is a liability...and that should have been known long ago).

As for AP titling and spinning it the way that they have, that's journalistic malpractice, and only accepted by those easily persuaded to accept such things.

What a funny story to use as a soapbox for your rant on the current administration, though. No promises fall apart because of this one spun story--that's an odd claim to make.

a reply to: olaru12

Yep, huge tax breaks.
I guess we could take those away and just deal with $9 a gallon gas.

Bet folks would love that.

a reply to: Kharron

The nation runs on oil, therefore the facilities related to it are in the public's best interests to keep operational. Unless and until real viable alternatives are found (and no, covering the nation from tip to tail with wind turbines that put out a small fraction of the power as coal fire, natural gas fire, and oil fire generators do is not a viable alternative), we run on oil.

a reply to: Kharron

Has nothing to do with climate change

Jaden

a reply to: Irishhaf

Fair enough. Anecdotal evidence is always welcome.

But hey, it’s mere coincidence that weather-related losses have increased 15-fold over the last 30 years. Here is some factual evidence to chew on: AIG Insurance Brief — Insuring Insurance Against Extreme Weather

That report is a bit dated (~2012)...and doesn’t account for Harvey. Or Irma. Or Maria.

It’s all about those “fat tails” in the probability distribution function. Sticking your finger in the wind or pondering the good ole days will leave you uninsured and calling Uncle Sam for a handout.

a reply to: Lumenari
Those fine people at Chevron are hoodwinking the “cult of Gore”: Chevron and Climate Change — March, 2018

a reply to: olaru12

Those "obscene" profits are based off of volume, not base price. The sale of oil and gas yields yuuuuge profits to the federal, state, and local governments in the form of taxes collected as well. Take WA as an example... the state collects $0.50 in taxes per gallon plus the $0.18 per gallon collected by the feds. Average price of a gallon in WA is presently $2.87. The oil company actually doing the work makes $0.07 per gallon profit.
www.forbes.com...

Whose the vampire here, the company holding all the risks for $0.07 per gallon or the government taking close to 10-times that?

a reply to: BeefNoMeat

And people flocking to the coast line for the better weather over the last 30 years will certainly have a major effect on the amount of damage reported after a storm.

More anecdotal evidence coming, small town I grew up in outside Tampa used to be you could drive from our town all the way to the beaches in the Bay in about an hour.

Now an hours drive will barely get you into the city.


More people, more buildings more damage... yea yea I haven't done a big study, I am just a dumb knuckle dragger but coastal cities aren't shrinking and for some reason every year some idiot builds a million dollar home a stones throw from the water in Hurricane alley and gets surprised when the house is flooded and the roof heavily damaged. which screws everyone else in the state who was smart enough to stay off the water when they built their home.

a reply to: Irishhaf

Hey, at least you’re honest with yourself.

But, yes, you’re right about a lack of foresight: Coastal Property New Junk Bonds?

There are only a few that can insure against future losses before there even tangible assets, but don’t be surprised if in 15-20 years some vampire squid outlet, like AIG, hasn’t run another “too big to fail” scheme based on junk assets that they bet against with 15-20 years of foresight — they have said as much in the brief I provided.

a reply to: burdman30ott6

The sale of a gallon of gas is not their only source of profit.

originally posted by: roadgravel
a reply to: burdman30ott6

The sale of a gallon of gas is not their only source of profit.

Industry profit margins are cyclical too. But on average, between 2006 and 2010, the largest oil companies averaged a profit margin of around 6.5%. This pales in comparison to profit margins in just about every other industry. The pharmaceutical industry, for example, routinely averages a profit margin of about 16%. The soft drink market is even more lucrative.

(from my above link)

The pump isn't the only source of government profit, either. The vampires bite the neck as it is pumped from the ground, too... not to mention corporate taxes and employment taxes. graphics.wsj.com...
27.5% of a barrel of oil's market cost is production taxes claimed by the government.