Obama Calls BP "Reckless", Wants Fund Established
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President Barack Obama made his first Oval Office address Tuesday where he laid out a plan for combating the oil spill in the Gulf of Mexico and his intention to demand that BP PLC (NYSE: BP) set aside billions of dollars to pay for the damages of the disaster.
Obama called the oil spill the worst disaster to ever hit the U.S. and accused BP of "recklessness" in how they conducted drilling. The situation is a deterrent from the President's agenda of lowering unemployment and reforming policies on Wall Street.
The fund that is being pursued by the government would be used as a guarantee that BP will cover the billions of dollars needed to clean up the oil spewing into the Gulf and to compensate the people and businesses affected.
"And this fund will not be controlled by BP. In order to ensure that all legitimate claims are paid out in a fair and timely manner, the account must and will be administered by an independent, third party," Obama said.
BP executives have responded to the actions by the U.S. government by saying that, "We share the president's goal of shutting off the well as quickly as possible, cleaning up the oil and mitigating the impact."
BP has already racked up massive fines just based on the fee for polluting major waterways. The company could face a $4,300 per barrel fine for the oil spilling into the Gulf of Mexico, which if estimates are accurate could bring the total to $9 billion at this point.
The President has been criticized for not responding with full force to the catastrophe, but with the meeting taking place with BP executives, the Oval Office speech and his trip to the Gulf this week for two days, Obama is attempting to show a hands-on approach to dealing with the spill.
Opinion polls conducted in the U.S. show that most Americans see Obama's position on the situation as being too detached and that he has not put enough pressure on BP.
The spill has wreaked havoc on 120 miles shore line in the Gulf region, crippling the local fisheries and tourism industries, while also having a deadly effect on wildlife.
Obama called the oil spill the worst disaster to ever hit the U.S. and accused BP of "recklessness" in how they conducted drilling. The situation is a deterrent from the President's agenda of lowering unemployment and reforming policies on Wall Street.
The fund that is being pursued by the government would be used as a guarantee that BP will cover the billions of dollars needed to clean up the oil spewing into the Gulf and to compensate the people and businesses affected.
"And this fund will not be controlled by BP. In order to ensure that all legitimate claims are paid out in a fair and timely manner, the account must and will be administered by an independent, third party," Obama said.
BP executives have responded to the actions by the U.S. government by saying that, "We share the president's goal of shutting off the well as quickly as possible, cleaning up the oil and mitigating the impact."
BP has already racked up massive fines just based on the fee for polluting major waterways. The company could face a $4,300 per barrel fine for the oil spilling into the Gulf of Mexico, which if estimates are accurate could bring the total to $9 billion at this point.
The President has been criticized for not responding with full force to the catastrophe, but with the meeting taking place with BP executives, the Oval Office speech and his trip to the Gulf this week for two days, Obama is attempting to show a hands-on approach to dealing with the spill.
Opinion polls conducted in the U.S. show that most Americans see Obama's position on the situation as being too detached and that he has not put enough pressure on BP.
The spill has wreaked havoc on 120 miles shore line in the Gulf region, crippling the local fisheries and tourism industries, while also having a deadly effect on wildlife.
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