Obama's British Petroleum Challenge

by John M. Curtis
(310) 204-8700

Copyright June 15, 2010
All Rights Reserved.                                

           Speaking from the Oval Office tonight in a nationally televised address on the Gulf Oil disaster, President Barack Obama hopes to answer his critics, painting him in the same light as former President George W. Bush’s handling of 2005 Hurricane Katrina.  With British Petroleum officials on the hot-seat in Congress, Obama, too, must show he’s doing his utmost to resolve the worst environmental crisis in U.S. history.  “We’re going to fight back with everything we’ve got,” referring to the government response to stopping the massive oil leak that began April 20.  Given the 5,000-foot depth of BP’s well, the fix has been elusive to engineers frantically working to plug the leak.  Estimated now at four-to-10 times the size of the 1989 Exxon Valdez disaster, where some 11 million gallons polluted Alaska’s Prince William Sound,  the president’s approval ratings have headed south.

            Measured by a June 15 Associated Press-Gfk Poll, 52% of Americans disapprove of Obama’s handling to the Gulf oil mess.  While Rep. Henry A. Waxman (D-Calif.) and Rep. Bart Stupak (D-Mich.) grilled BP executives about reckless safety precautions before the disaster hit April 20, Obama faced angry Gulf residents asking to stop the leak and provide compensation to businesses and residents.  Obama wants BP to deposit billions in an escrow account to handle disaster claims.  “We have to get an independent claims process.  I think everyone aggress that we have to get BP out of the claims processes and, as I said, make sure fisherman, hotel owners have a fast efficient and transparent claims process so that they’re getting their livelihood replaced,” said White House spokesman Robert Gibbs, hinting at Obama’s speech.  White House officials expect to meet with BP this week.

            Obama’s speech hopes to reassure Gulf residents and the national that the government is doing everything possible to resolve the crisis.  Unlike Hurricane Katrina, the Gulf oil spill is a manmade calamity, breeding public expectations about a swift human solution.  Few imagined that drilling a single hold in the earth’s crust could cause so much chaos.  Government resources—and expertise—for fixing the problem are limited, if, for not other reason, the government isn’t in the oil business.  Had the government nationalized the oil industry—as in Mexico or Canada—then it would have far more practical resources to resolve the issue.  Obama wants to sound confiden, while, at the same time, not raise expectations too high and create a backlash against White House.  If Obama at least wins concessions from BP on a swift claims process, it will win support from Gulf residents.

            Without the ability to stop the leak, Obama must get BP to establish a victims’ compensation fund, paying what appears unending damages to Gulf coast residents and businesses.  “This disaster has taken their ability to make a living away from them,” said Gibbs, urging BP to swiftly set up the victims’ compensation fund.  Tomorrow’s meeting with BP officials will have to take concrete steps toward setting up a compensation mechanism for Gulf residents and businesses.  Obama walked the pristine beaches of Pensacola, Florida, not yet polluted by the up to 100 million gallons of runaway petroleum ominously heading to the panhandle.  “Obviously, the news has been dominated lately by the oil spill but our nation is at war,” said addressing sailors in Pensacola.  Whatever happens in Iraq and Afghanistan currently pales in comparison to disaster in the Gulf.

            Barack’s fourth visit to the Gulf gives him the authority to speak about the plight of residents and businesses.  Since Hurricane Katrina hurt Bush’s approval ratings, the president knows his response Gulf oil spill could make-or-break his chances of second term.  Today’s stubborn recession has upped the ante for his Gulf speech, leaving future voters skeptical of White House promises.  “I am confident that we’re going to be able to leave the Gulf Coast in better shape than it was before,” Barack said Monday, raising the same specter as Bush when he made similar promises that didn’t pan out after Hurricane Katrina.  Obama’s Oval Office speech raises high stakes in the months before the midterm elections.  If he raises too many hopes or makes too many promises, he could face a backlash in the polls.  Focusing on BP’s compensation fund raises the best hopes for his approval ratings.

            Obama walks a tightrope tonight attempting to set worried Americans at ease during this time of crisis and high anxiety.  Giving too much reassurance could boomerang, appearing insincere and without tangible results.  Gulf residents and other Americans look to the president for a realistic fix to the oil disaster.  With Iraq and Afghanistan on the backburner, it would be a mistake to divert attention away from the Gulf oil disaster.  Because the government has limited options, Barack will be far better talking about how he intends to press BP for an urgent compensation fund.  Since Barack can’t plug the leak, he’s more in control of pressuring the British oil giant into offering immediate concessions.  If Obama uses the speech to sell alternative energy, he’ll most certainly see a backlash.  Tonight’s speech should be spent on White House efforts to get BP to pony up.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.