BP’s 2010 Gulf of Mexico spill is still affecting the lives of many Americans, particularly the tens of thousands that have not settled lawsuits with the company. Yet the company has bounced back from the billions it lost in the wake of the spill.

BP announced today that its 2011 profit totaled $26 billion, a 114 percent jump from the year before, when the company’s “failure of supervision and accountability” caused the worst oil spill in U.S. history. As the company prepares for its upcoming trial, let’s take a look at how BP has made out after the Deepwater Horizon disaster:

• BP earned $3 million every hour in 2011. Its fourth-quarter profits reached $7.69 billion, which is up 38 percent from 2010.
• The company is sitting on another $14 billion in cash.
• The company continues to scale back its production in the wake of the spill, producing 10 percent less than 2010 levels.
• BP contributions to federal candidates totaled more than $98,000 in 2011, with more than half (65 percent) to Republican candidates.
• BP spent $8 million lobbying Congress in 2011, down from the record $15 million the company lobbied in 2009 – one year before the oil disaster.
• For every dollar the big five oil companies use in lobbying, they effectively receive $30 in subsidies. This could mean BP potentially gained up to $243 million in subsidies, although the exact amount for an individual company is undisclosed.
• In the third quarter, BP’s Bob Dudley announced the company had reached a “definite turning point” of boosted profits. However, nearly two years following the Deepwater Horizon disaster, BP has still only paid $7.8 billion of the $20 billion fund they created to compensate individuals and businesses for losses incurred by the spill.
• In order to pay the $40 billion cleanup costs and additional penalties, the company has committed to selling $38 billion worth of assets before 2014.

Despite being found “ultimately responsible” for the most devastating oil spill this nation has ever seen, BP has spent millions lobbying on bills that would speed offshore drilling and leases. This includes filing a total 24 reports on bills undermining safety regulation in the Gulf of Mexico, H.R. 1231 “Reversing President Obama’s Offshore Moratorium Act” and H.R. 1229 “Putting the Gulf of Mexico Back to Work Act.”

At the time, Interior Secretary Ken Salazar accused House Republicans of having “amnesia” about the oil spill. No doubt the total $137 billion profits in 2011 for the five big oil companies had something to do with it.

Have we learned nothing from the disastrous 2010 oil spill in the Gulf of Mexico?

Below is the summary of a comprehensive report on the inadequate disaster response capabilities in the Arctic.

by Kiley Kroh, Michael Conathan and Emma Huvos

When the Deepwater Horizon oil rig exploded in the Gulf of Mexico in the early morning hours of April 20, 2010 it spawned one of the worst environmental disasters in U.S. history. BP Plc’s Macondo well blowout lasted 89 days, spewing nearly 5 million barrels of oil into the Gulf of Mexico, and taking the lives of 11 men. The catastrophe showed the clear need for a massive, well-coordinated response when disaster strikes.

Though the refrain “never again” was echoed time and again in the wake of the BP oil catastrophe, we are now facing a new oil spill threat. After spending over five years and $4 billion on the process, the Royal Dutch Shell Group is on the cusp of receiving the green light to begin exploratory drilling in Alaska’s Beaufort and Chukchi Seas next summer. Though Shell emphasizes it would drill exploratory wells in shallow water rather than establishing deep-water production wells like Macondo, the fundamental characteristics of the vastly unexplored and uninhabited Arctic coastline may increase the likelihood of a spill and will certainly hamper emergency response capability.

The decision to move forward with drilling in some of the most extreme conditions on Earth has deeply divided Alaska Native communities, drawn stark criticism from environmental groups, and caused other federal agencies such as the U.S. Coast Guard and the National Oceanic and Atmospheric Administration, or NOAA, to raise concerns about the glaring absence of sound science in the region. This is highlighted in a recent letter to the Obama administration, signed by nearly 600 scientists from around the world, calling on the president and Secretary of the Interior Ken Salazar to follow through on their commitment to science and enact recommendations made by the U.S. Geological Survey before approving any drilling activity in the Arctic. In addition to the lack of a scientific foundation, the Arctic has inadequate infrastructure to deal with an oil spill, and response technologies in such extreme environmental conditions remain untested.

As we detail in this report, the resources and existing infrastructure that facilitated a grand-scale response to the BP disaster differ immensely from what could be brought to bear in a similar situation off Alaska’s North Slope. Even the well-developed infrastructure and abundance of trained personnel in the Gulf of Mexico didn’t prevent the Deepwater Horizon tragedy. Our Arctic response capabilities pale by comparison.

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Bad news for the Gulf of Mexico: a study released this week sheds new light on the toxicity of oil in aquatic environments, and shows that environmental impact studies currently in use may be inadequate….

The key finding involved the embryos of Pacific herring that spawn in the [San Francisco Bay, which was hit by an oil spill in 2007]. The fish embryos absorbed the oil and then, when exposed to UV rays in sunlight, physically disintegrated. This is called phototoxicity, and has not previously been taken into account when talking about oil spills. 

Photos from a UC Davis/NOAA study show the effects of phototoxicity in Pacific herring embryos. Embryos on the left are unexposed to oil; those on the right have been in oil and then exposed to sunlight and show cells destroyed.

After the BP oil disaster, I wrote about the toxicity of oil (see “BP’s dispersants are toxic — but not as toxic as dispersed oil“).  Turns out oil is even more toxic than we thought, as a new study from the UC Davis Bodega Marine Laboratory in collaboration with NOAA finds.

The Proceedings of the National Academy of Sciences study is titled, “Unexpectedly high mortality in Pacific herring embryos exposed to the 2007 Cosco Busan oil spill in San Francisco Bay” (subs. req’d).  That spill occurred when a “tanker hit the San Francisco-Oakland Bay Bridge and spilled 54,000 gallons of bunker fuel into the bay.”

Here’s more from the L. A. Times on the phototoxicity study:

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World Meteorological Organization: 2011 ‘caps decade tying record for heat’

The year 2011 caps a decade that ties the record as the hottest ever measured, the WMO said in its annual report on climate trends and extreme weather events, unveiled at UN climate talks in Durban, South Africa.

“Our science is solid and it proves unequivocally that the world is warming and that this warming is due to human activities,” WMO Secretary-General Michel Jarraud said in a statement, adding that policy-makers should take note of the findings.

“Concentrations of greenhouse gases in the atmosphere have reached new highs and are very rapidly approaching levels consistent with a 2 to 2.4 Celsius rise in average global temperatures.”

Scientists believe that any rise above the 2.0 threshold could trigger far-reaching and irreversible changes on Earth over land and in the seas.

The 2002-2011 period equals 2001-2010 as the warmest decade since 1850, the report said.

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Other stories below: CIA Urged to be More Open About Climate Change; Lawmakers Scrutinize Foreign Aid to China

Photo: Steve Weaver

TransCanada says it will work with Nebraska on new pipeline route

Other stories below: Morocco to Host Massive Solar Farm; Plummeting Clean Energy Shares Exaggerate Risk

China will phase out energy-draining light bulbs

China will phase out power-draining light bulbs within five years in a move to make the world’s biggest polluting nation more efficient but also certain to impact the global market.

China will ban imports and sales of 100-watt-and-higher incandescent bulbs from Oct. 1, 2012, in an attempt to save energy and curb climate change, China’s main planning agency said Friday.

Bans will also be imposed on 60-watt-and-higher bulbs from Oct. 1, 2014 and 15-watt-and-higher old-style bulbs from Oct. 1, 2016. The time frame of the last step may be adjusted according to an evaluation in September 2016, the National Development and Reform Commission statement said.

State-run Xinhua News Agency quoted Xie Ji, deputy director of the NDRC’s environmental protection department, as saying China is the world’s largest producer of both energy-saving and incandescent bulbs and so the plan will also “have a significant impact” in reducing the use of incandescents worldwide.

Last year, 3.85 billion incandescent light bulbs were produced in China and 1.07 billion of them were sold domestically, the agency said. Power consumption for lighting is estimated to be about 12 percent of China’s total electricity use, it said.

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