Once a government pet, BP now a capitalist tool

By: Timothy P. Carney
Examiner Columnist
June 9, 2010

 
As BP’s Deepwater Horizon oil rig was sinking on April 22, Sen. John Kerry, D-Mass., was on the phone with allies in his push for climate legislation, telling them he would soon roll out the Senate climate bill with the support of the utility industry and three oil companies — including BP, according to the Washington Post.

Kerry never got to have his photo op with BP chief executive Tony Hayward and other regulation-friendly corporate chieftains. Within days, Republican co-sponsor Lindsey Graham, R-S.C., repudiated the bill following a spat about immigration, and Democrats went back to the drawing board.

But the Kerry-BP alliance for an energy bill that included a cap-and-trade scheme for greenhouse gases pokes a hole in a favorite claim of President Obama and his allies in the media — that BP’s lobbyists have fought fiercely to be left alone. Lobbying records show that BP is no free-market crusader, but instead a close friend of big government whenever it serves the company’s bottom line.

While BP has resisted some government interventions, it has lobbied for tax hikes, greenhouse gas restraints, the stimulus bill, the Wall Street bailout, and subsidies for oil pipelines, solar panels, natural gas and biofuels.

Now that BP’s oil rig has caused the biggest environmental disaster in American history, the Left is pulling the same bogus trick it did with Enron and AIG: Whenever a company earns universal ire, declare it the poster boy for the free market.

As Democrats fight to advance climate change policies, they are resorting to the misleading tactics they used in their health care and finance efforts: posing as the scourges of the special interests and tarring “reform” opponents as the stooges of big business.

Expect BP to be public enemy No. 1 in the climate debate.

There’s a problem: BP was a founding member of the U.S. Climate Action Partnership (USCAP), a lobby dedicated to passing a cap-and-trade bill. As the nation’s largest producer of natural gas, BP saw many ways to profit from climate legislation, notably by persuading Congress to provide subsidies to coal-fired power plants that switched to gas.

In February, BP quit USCAP without giving much of a reason beyond saying the company could lobby more effectively on its own than in a coalition that is increasingly dominated by power companies. Theymade out particularly well in the House’s climate bill, while natural gas producers suffered.

But two months later, BP signed off on Kerry’s Senate climate bill, which was hardly a capitalist concoction. One provision BP explicitly backed, according to Congressional Quarterly and other media reports: a higher gas tax. The money would be earmarked for building more highways, thus inducing more driving and more gasoline consumption.

Elsewhere in the green arena, BP has lobbied for and profited from subsidies for biofuels and solar energy, two products that cannot break even without government support. Lobbying records show the company backing solar subsidies including federal funding for solar research. The U.S. Export-Import Bank, a federal agency, is currently financing a BP solar energy project in Argentina.

Ex-Im has also put up taxpayer cash to finance construction of the 1,094-mile Baku-Tbilisi-Ceyhan pipeline carrying oil from the Caspian Sea to Ceyhan, Turkey—again, profiting BP.

Lobbying records also show BP lobbying on Obama’s stimulus bill and Bush’s Wall Street bailout. You can guess the oil giant wasn’t in league with the Cato Institute or Ron Paul on those.

BP has more Democratic lobbyists than Republicans. It employs the Podesta Group, co-founded by John Podesta, Obama’s transition director and confidant. Other BP troops on K Street include Michael Berman, a former top aide to Vice President Walter Mondale; Steven Champlin, former executive director of the House Democratic Caucus; and Matthew LaRocco, who worked in Bill Clinton’s Interior Department and whose father was a Democratic congressman. Former Republican staffers, such as Reagan alumnus Ken Duberstein, also lobby for BP, but there’s no truth to Democratic portrayals of the oil company as an arm of the GOP.

Two patterns have emerged during Obama’s presidency: 1) Big business increasingly seeks profits through more government, and 2) Obama nonetheless paints opponents of his intervention as industry shills. BP is just the latest example of this tawdry sleight of hand.

Once a government pet, BP now a capitalist tool.

 http://www.washingtonexaminer.com/politics/Once-a-government-pet-BP-now-a-capitalist-tool-95942659.html

I wear many hats but history, economics and political observance have always been a passion. I am a graduate of the University of Cincinnati College of Business with a degree in Information Systems and Digital Business with a minor in European History. I work for a small mom-and-pop IT consulting and software design company. We deal in servicing mostly government funded non-profit mental and behavioral health care agencies in the state of Ohio. In this I deal with Medicaid and Medicare funds and have a little insight on the boondoggles of government there. Thankfully the undemanding nature of my daily profession gives me ample time to read and stay aware of our current state of affairs which I find stranger than fiction in many instances. In addition to being in the IT field, I have also been self employed with a small contracting company so I might know a thing or two about the plight of small business that employs 71% of the American workforce. I however don't draw my knowledge from my day jobs, which I have had a few; I draw it from an intense obsession with facts and observation about the world in which I live. I do have formal education in things such as history, economics and finance particularly as it pertains to global issues, but I have come to find much of what I thought I knew from the formalities of a state university I had to unlearn through much time and independent research. I hope you enjoy what I bring you which is not often heard in the mainstream news outlets. I would like to think my own personal editorializing is not only edifying but thought provoking while not at all obnoxious. That last one may be a hard to achieve.

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