Oil And Gas Companies Shirking Responsibility For $123 Billion In Cleanup Costs: Report
Oil And Gas Companies Shirking Responsibility For $123 Billion In Cleanup Costs: Report
"Companies need to be putting a lot more money toward cleanup.”
Good ‘ol privatize the profits, socialize the losses scheme at it again
This is literally the reason why free markets are the bane of all that is good. Sure, it's nice to get the shinies quickly and cheaply, but then you find out the cost of that is how the world is being torn apart because it's cheaper to do it that way.
The only solution is government regulations to force companies to become responsible for their actions. And the only way to have that is for politicians who think about the country first and have the will to enact the necessary change.
I mean, down south the erosion of government regulations is bringing back child labour. Imagine a 15yo working in a steel mill, as it's recently been legalized in some states.
Government regulations??? That sounds like socialism!!! Oh, and can I get a couple billion dollars in tax money to cover my expenses? Which is totally not socialism how dare you!!!
Why should they be responsible for cleanup? There's no law or contract that compels this. I don't understand why they wouldn't "shirk" it.
I don't wash my car, but law requires me to get the emissions tested so I do.
The problem is bigger than that.
The government has had lobbying for years from the private sector, and the O/G sector has had big money to throw around. They get pushback from these companies when they try to up the 'just in case' fund that is there to cover costs of rehab in case the company goes under. But since that isn't enough, they're often left unmanaged. In the article above they talk about the two easiest examples - mine rehabilitation and orphan well cleanup.
If a company ignores well decommissioning, they can cut costs, suck up as much oil as possible, then declare bankruptcy and walk away from the requirements to clean up, leaving the public to pay for it.
Why should they be responsible for cleanup?
This one is easy. You make the mess, you clean it up. Basic kindergarten levels of societal responsibility.
There’s no law or contract that compels this.
There is, actually, but they're avoiding it by a number of legal loopholes (as mentioned above). Socially/morally, they have the responsibility to do so, but they've managed to legally avoid it/ignore it. Hence the 'shirk'
The argument is that there should be a greater amount of laws and regulations surrounding the O/G or resource extraction sector and their impacts, but often you hear complaints from those employed in those sectors about government overreach and unnecessary bureaucracy/red tape hampering and smothering the free market.
This article is important as it highlights why we need more regulation and the danger of letting these companies continue to act they way they have for years.
Not washing your car is not bad for the environment. It only harms your car.