BP and the potential long term pinch

[RSPENNACHIO]

This is from the GREENSHEET an automotive news weekly.

Lincolnshire, IL-based Camping World ÔÇö a large RV, parts and accessories retailer and maintenance/repair provider ÔÇö has
terminated its long-standing relationship with BPÔÇÖs Castrol Oil over the Gulf oil spill. Marcus Lemonis, Camping WorldÔÇÖs
chairman and CEO, explained: ÔÇ£We consider BPÔÇÖs behavior irresponsible and wish to sever our relationship. BPÔÇÖs Castrol Oil
will no longer be offered at any Camping World location nationwide.ÔÇØ The company plans to deplete its remaining inventory of
Castrol Oil products and donate the proceeds to disaster relief efforts. Camping World expects to name a replacement provider
in the coming weeks.

I never conected BP and Castrol... Hmmm I may shop around for a different brand of oil in 5k miles...

 

[deilenberger]

It seems somewhat ironic to me that a company selling RV's - probably the least fuel efficient vehicles on the road, is casting blame at BP who is a provider of the product their fuel-guzzlers need to run. Reminds me of glass houses and stones.

For a really factual and balanced view of what happened (day by day), what was done and what is being done - plus what the consequences of this disaster will be, I'd REALLY suggest looking at the Discovery Channel special "Disaster in the Gulf" (premiered last night - I'm sure it will be on again.) Very few talking heads making sound bites - heavy on facts, and unprecedented access to the BP disaster center. The conclusion I came away with was - pointing fingers should wait - because it may slow down stopping the disaster from getting worse. As it is right now - it's bad enough that I would term it "We're ******" (and you can figure out for yourself what the second word is - we can't use it here on the forum.)

Meanwhile it appears Camping World appears to think we're gullible enough to believe this was a sincere decision, and not one made to deflect criticism of their business - plus get a bit of free publicity to boot. The term "self-serving" is what comes to mind with what I'm sure was a press-release from them.

Not born yesterday..

 

[hlothery]

Indeed. I was a proponent of the "drill, baby, drill" idea.....but I'm definitely rethinking that now. I, therefore, share some blame. Unfortunately, I will need to continue my dependence on oil for the forseeable future. I hope said future includes alternative energy/transportation sources to try and stem the growing and insatiable world demand for oil.....the only thing, IMHO, that will prevent this from happening again and again.

 

[Ken F]

There was a bill passed by President Clinton in 1995 (with a huge, long name)which curtailed or cut royality payments by oil producers drilling 10 miles off shore, to increase our oil production. This is partially why they are drilling so far off shore, and at such great depths. There were no new safeguards put into place by this bill, to cover this new deep drilling. Not trying to cast blame, only saying that the profit is much greater for companies to drill in very deep water.


460

 

[RSPENNACHIO]

Camping world does not sell RV's. Their business is selling parts and service for recreational vehicles and supplies for camping. They don't make those fuel-guzzling RV's that Americans buy. While the Discovery Channel may have aired an interesting special, their information is designed to make good product which is entertainment. I am sure there is some factual basis for whatever they are showing though.

Yeah, camping world may be using this a marketing ploy but come on are we also so gullible in believing that BP is going to spend all of their money to fix this mess? It is BP's responsibility that the rig exploded and it is theirs to clean up.

Earlier this week there was discussion of BP's possible filing for bankruptcy because of this. WHAT? a company who earns $20 billion (with a "B") in profit per year and the first major flub and they are going to hid behind the courts for protection??? Come on, this is a for profit company. I am pretty sure that whatever cleanup effort they put forth will be directly related to how it will first impact their bottom line.

And in response to what 460 said (who runs a gas guzzeling jet boat (sorry I had to make that jab)), risk when managed properly should result in higher profits. On the other hand risk can also lead to exlopsions (yes, the pun was intended). Risk is usually expensive. Just ask an insurance agent.

 

[sjbmw]

Helping hands....

In 1990, Congress passed the Oil Pollution Act, which capped any oil spill liability at 75 million dollars. This law has made offshore drilling safety an afterthought for the drillers.

This spill was a matter of "when" not "if". Congress guaranteed it.

I would not worry too much about Castrol but Red Lobster sure is toast.

Don is right, we are truly....

 

[RSPENNACHIO]

Red Lobster sure is toast.

Don is right, we are truly....

Since when did lobster become toast?

I also agree with Don about us being (bad word) in so much as how ever much money is spent or who is at fault or what ever... we are about to experience some major changes.

 

[Ken F]

I was able to find this which explains the bill, and it's shortfalls:

>In 1995, President Clinton signed the Outer Continental Shelf Deepwater Royalty Relief Act which exempted oil wells drilled deep in the Gulf from the normal royalty payments they would normally have owed the government for their oil. Usually, these payments amount to between 12% and 16% of their revenues, so exemption from this requirement did a great deal to catalyze drilling in deep waters in the Gulf of Mexico. As a result of the Administration action, deepwater oil production in the Gulf increased rapidly, growing from 42 million barrels annually in 1996 to 348 million in 2004. The latter figure represents about 6% of total United States oil consumption and about 15% of domestic production. Natural gas production from deepwater Gulf drilling increased tenfold during the same period.

The Deepwater Horizon well was one of those catalyzed by the Clinton legislation and began drilling in 2001.

The legislation was pushed avidly by Republicans in Congress, particularly those representing the very Gulf states now engulfed by the oil that is flowing from the wells they encouraged.

Unfortunately, the Clinton Administration - and the Bush and Obama Administrations that followed - failed to consider seriously what to do if things went wrong. In contrast to the licensing of nuclear power plants, where vast time and money has been spent developing fail safe systems, very little thought was given - obviously - to what how to stop an explosion that would trigger a vast spill, how to plug the hole, and how to stop the oil from reaching Gulf and Atlantic coast beaches.

Instead, the oil industry took its cue from Washington and went full speed ahead into drilling and production in deepwater Gulf oil wells with the predictable result that something, somehow, sometime would go very, very wrong and that nobody would have the faintest idea of what to do about it.

This decision to embark on vast Gulf oil drilling was, of course, the correct one. But the failure to think through how to avert a disaster on the magnitude of that which is now on our hands is the height of irresponsibility.

All three Administrations - Clinton, Bush, and Obama - bear the blame for this abject failure. None took the danger of a massive spill seriously or sought to hold up the massive expansion of off shore drilling until failsafe measures could be developed.

But, as with the subprime crisis, policy initiatives taken during the Clinton years - with the best of motives - were implemented without adequate regulation and without due consideration of the dangers involved. We are now suffering mightily for this failure of foresight and planning.<

 

[osbornk]

Camping world does not sell RV's. Their business is selling parts and service for recreational vehicles and supplies for camping.

Camping World does sell a bunch of RVs. Thor Industries even makes a Coleman travel trailer that is available exclusively through Camping World

 

[jfcaramagno]

For a really factual and balanced view of what happened (day by day), what was done and what is being done - plus what the consequences of this disaster will be, I'd REALLY suggest looking at the Discovery Channel special "Disaster in the Gulf"

Also daily on the PBS Newshour.

 

[jforgo]

In 1990, Congress passed the Oil Pollution Act, which capped any oil spill liability at 75 million dollars. This law has made offshore drilling safety an afterthought for the drillers.

This spill was a matter of "when" not "if". Congress guaranteed it.

I would not worry too much about Castrol but Red Lobster sure is toast.

Don is right, we are truly....

Corporate welfare takes many forms, doesn't it?
Once they actually have to underwite their own risks, they will be more careful. Not much incentive to be careful, when a problem quickly becomes someone else's (but until then profits of course you get to keep), now is there?

 

[deilenberger]

Camping world does not sell RV's.

http://www.campingworld.com/index.cfm?affiliateID=577&siteID=xCYM2pfZ9Z4-YCm4DNQVVSvCQ80ZAciHNw

Funny - they seem to think they sell them.

Their business is selling parts and service for recreational vehicles and supplies for camping. They don't make those fuel-guzzling RV's that Americans buy. While the Discovery Channel may have aired an interesting special, their information is designed to make good product which is entertainment. I am sure there is some factual basis for whatever they are showing though.

Still not born yesterday..

 

[PGlaves]

http://www.campingworld.com/index.cfm?affiliateID=577&siteID=xCYM2pfZ9Z4-YCm4DNQVVSvCQ80ZAciHNw

Funny - they seem to think they sell them.



Still not born yesterday..

7,174 listed as available on their site.

 

[ANDYMCLAIN]

Internal combustion as entertainment

What I see happening in the Gulf Of Mexico makes me sick at heart. I save my little bits of plastic, glass, metal and paper to recycle and BP is dumping millions of gallons of sludge into one of the most important ecosystems we have, our oceans. I'm sure this is not what God had in mind for our stewardship of this world. I may have to give up the internal combustion engine as a form of entertainment.

 

[RSPENNACHIO]

http://www.campingworld.com/index.cfm?affiliateID=577&siteID=xCYM2pfZ9Z4-YCm4DNQVVSvCQ80ZAciHNw

Funny - they seem to think they sell them.



Still not born yesterday..

I know Don, your profile says your birthday is June 24th so you could not have been born on those past days.

7,174 listed as available on their site.

Ok, so campingworld sells RV's... (Don, you get 2 points. One for being right and one for having to proving it. Paul you get 1/2 a point for piling on with the winning team. If anyone wants to asses me demerits for being wrong I'll accept them). I really was not intending for this to be a argument about camping world and what they do or don't do but more of a discussion about the oil spewing in the gulf.

Well, sometimes discussions go this way and somtimes they go that way. It all depends on who is wearing the hat and which tracks they want to take.

 

[1aretea]

I knew that Don and Paul were right all a long. So please give me points.