AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Wed Feb 23, 2011 7:59 am

http://blog.nwf.org/wildlifepromise/2011/02/breaking-spike-in-baby-dolphin-deaths-in-the-gulf-of-mexico/
Baby dolphins, some barely three feet in length, are washing up along the Mississippi and Alabama coastlines at 10 times the normal rate of stillborn and infant deaths, researchers are finding.

AndyH
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Transocean Awards Safety Bonuses

Sun Apr 03, 2011 1:45 pm

http://www.care2.com/causes/environment/blog/following-gulf-oil-spill-transocean-awards-bonuses-for-safety/

...Transocean did have the foresight to insure the Deepwater Horizon rig for about twice what it was worth. It was later reported that the company made a $270 million profit from insurance payouts after the disaster.

DrRocket
Posts: 96
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Re: Transocean Awards Safety Bonuses

Sun Jul 31, 2011 6:18 pm

AndyH wrote:http://www.care2.com/causes/environment/blog/following-gulf-oil-spill-transocean-awards-bonuses-for-safety/

...Transocean did have the foresight to insure the Deepwater Horizon rig for about twice what it was worth. It was later reported that the company made a $270 million profit from insurance payouts after the disaster.


Most likely the insurance was for replacement cost, whereas the asset on the books was already depreciated. That normally results in a gain. I didn't research this specific matter, it is just what I deal with everyday as a CPA and is the most likely scenario. Over the life of the asset, they deducted depreciation and recorded gain on insurance recovery of approximately the same amount. The cash received from insurance will be used to replace the lost platform and there will be very little cash left, if any, after replacing the platform.

If you have a small business and sell your depreciated car, you too will have a gain when you sell it.

I also doubt any insurance company would insure anything for more than it is worth, because that would open themselves to all kinds of mischief. Just try to insure your house or car for more than it is worth--you won't be able to.

AndyH
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Location: San Antonio

Re: Transocean Awards Safety Bonuses

Mon Aug 01, 2011 3:30 pm

DrRocket wrote:
AndyH wrote:http://www.care2.com/causes/environment/blog/following-gulf-oil-spill-transocean-awards-bonuses-for-safety/

...Transocean did have the foresight to insure the Deepwater Horizon rig for about twice what it was worth. It was later reported that the company made a $270 million profit from insurance payouts after the disaster.


Most likely the insurance was for replacement cost, whereas the asset on the books was already depreciated. That normally results in a gain. I didn't research this specific matter, it is just what I deal with everyday as a CPA and is the most likely scenario. Over the life of the asset, they deducted depreciation and recorded gain on insurance recovery of approximately the same amount. The cash received from insurance will be used to replace the lost platform and there will be very little cash left, if any, after replacing the platform.

If you have a small business and sell your depreciated car, you too will have a gain when you sell it.

I also doubt any insurance company would insure anything for more than it is worth, because that would open themselves to all kinds of mischief. Just try to insure your house or car for more than it is worth--you won't be able to.

Thanks for this reminder - didn't consider the gap between depreciation and replacement.

As an aside, my house appears to be insured for more than it's worth, but that's due to a 'replacement cost' rider that adjusts with market conditions.

AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Fri Aug 26, 2011 6:55 am

http://www.care2.com/causes/bp-oil-spills-into-the-gulf-of-mexico-again.html
Just days after BP publicly denied allegations that its Macondo well was leaking, chemists from Louisiana State University confirmed that samples from the water’s surface above the well are a chemical match for the hundreds of millions of gallons of oil that spewed into the Gulf last summer.

On Tuesday, investigators from the Mobile Press-Register collected samples of oil floating on the surface and delivered them to Ed Overton and Scott Miles of LSU. Most of the oil was located in a patch about 50 yards wide and a quarter of a mile long, and reporters found a “pronounced and pungent petroleum smell,” the paper said.

The scientists confirmed that the chemical fingerprint of the samples was identical to the the BP oil, known as MC252.

“After examining the data, I think it’s a dead ringer for the MC252 oil, as good a match as I’ve seen,” Overton wrote in an email to the newspaper. “My guess is that it is probably coming from the broken riser pipe or sunken platform. … However, it should be confirmed, just to make sure there is no leak from the plugged well.”
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AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Sat Sep 03, 2011 10:10 am

"The stupid become extinct."-Bill Mollison
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AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Thu Oct 06, 2011 7:22 pm

http://www.huffingtonpost.com/rocky-kistner/gulf-oil-spill-recovery_b_998321.html

Image
We found petroleum hydrocarbon contamination in all of the areas that were sampled and in the tissue of many of the seafood species. The data that we collected also lead us to believe that Polycyclic Aromatic Hydrocar­bon (PAH) contamination in some seafood species may be increasing over time.

Gotta love 'bioaccumulation'...or maybe not... :(
http://en.wikipedia.org/wiki/Bioaccumulation
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AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Mon Oct 31, 2011 1:12 pm

http://www.huffingtonpost.com/rocky-kistner/as-dolphins-die-gulf-resi_b_1067666.html?ref=green

...Many like Willie Seaman say they continue to have health problems, even though they still work. They suffer largely in silence, hoping their rashes and coughs and dizzy spells they say are linked to oil and chemical dispersants will wash away with the tides....But that may be wishful thinking if what’s happening to wildlife is any indication. Dolphins continue to die in high numbers. Fishermen report fish with lesions and shrimp coated with black substances that no one has seen before. Crabs and oyster harvests are dismal. Something seems seriously wrong with the fisheries.

All the more reason to ask, Gulf residents say, what about the people?
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AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Thu Mar 29, 2012 6:02 pm

http://www.huffingtonpost.com/rocky-kistner/mississippi-residents-fin_b_1388019.html?ref=green

Laurel didn’t find dead turtles on a recent stroll on her Gulfport shores, which she now calls "death beach." But walking along she smelled something bad. After poking around in the sand, she found the nauseating source; a dead baby dolphin’s tail, decomposing and buried not more than a few inches in the sand. An out-of-work shrimper came a long and picked it up, and when he realized what it was he started to sob; "This really ruins my day... " Laurel remembers. Tourists looked at it incredulously, Laurel says, their kids screaming, 'Mommy, it's a dolphin's tail!'
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AndyH
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Re: BP Horizon Deepwater Oil Disaster : Open Thread

Sun Apr 01, 2012 8:58 pm

http://www.thebigfixmovie.com/

On Earthday, 2010, the Deepwater Horizon offshore drilling rig sank creating the worst oil spill in history. According to the global media, the story ended when the well was capped – but that’s when the real story began. By exposing the root causes of the oil spill and what really happened after the news cameras left the Gulf states, filmmakers Josh and Rebecca Tickell uncover a vast network of corruption.

The New Orleans Times Picayune says THE BIG FIX is “a full-on, no-holds-barred bit of investigative journalism” into the dark secrets surrounding one of the largest manmade environmental catastrophes in American history.

THE BIG FIX is “a damning indictment” (Time Out New York) of a system of government and corporate collusion that puts the pursuit of profit over all other human and environmental needs. Through “smart, covert reporting that shames our news media” (The Village Voice) The Big Fix is “a mandatory-viewing critique of widespread government corruption” (LA Weekly).


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