The BP Oil Disaster is a WAY BIGGER Problem Than You May Think

by | May 6, 2010 | Headline News | 12 comments

Do you LOVE America?


    While we will shy away from the possible causes of the BP oil disaster for the time being, we urge SHTF Plan readers to take the time to read the following report by Wayne Madsen written for

    If Mr. Madsen’s assessment of the BP oil spill, the government’s response and motivations, and the oil spills economic effects are even remotely accurate, then we have a very serious problem developing.

    The immediate effects to seafood related businesses are clear, but the economic impact for food across the board could also be serious. Less seafood means more demand for meat, which means prices will most certainly rise as demand outpaces supply. Got a freezer? Stock up on shrimp, fish and meat now.

    Most shocking, but not surprising, is the government’s move to label this a national security issue, not because of actual security issues, but because it is necessary in order to blackout news coverage of the incident – it’s that bad.

    *———- FULL ARTICLE FOLLOWS ———-*

    The Cover-up: BP’s Crude Politics and the Looming Environmental Mega-Disaster

    Written by Wayne Madsen
    Originally Published at

    WMR has been informed by sources in the US Army Corps of Engineers, Federal Emergency Management Agency (FEMA), and Florida Department of Environmental Protection that the Obama White House and British Petroleum (BP), which pumped $71,000 into Barack Obama’s 2008 presidential campaign — more than John McCain or Hillary Clinton, are covering up the magnitude of the volcanic-level oil disaster in the Gulf of Mexico and working together to limit BP’s liability for damage caused by what can be called a “mega-disaster.”

    Obama and his senior White House staff, as well as Interior Secretary Ken Salazar, are working with BP’s chief executive officer Tony Hayward on legislation that would raise the cap on liability for damage claims from those affected by the oil disaster from $75 million to $10 billion. However, WMR’s federal and Gulf state sources are reporting the disaster has the real potential cost of at least $1 trillion. Critics of the deal being worked out between Obama and Hayward point out that $10 billion is a mere drop in the bucket for a trillion dollar disaster but also note that BP, if its assets were nationalized, could fetch almost a trillion dollars for compensation purposes. There is talk in some government circles, including FEMA, of the need to nationalize BP in order to compensate those who will ultimately be affected by the worst oil disaster in the history of the world.

    Plans by BP to sink a 4-story containment dome over the oil gushing from a gaping chasm one kilometer below the surface of the Gulf, where the oil rig Deepwater Horizon exploded and killed 11 workers on April 20, and reports that one of the leaks has been contained is pure public relations disinformation designed to avoid panic and demands for greater action by the Obama administration, according to FEMA and Corps of Engineers sources. Sources within these agencies say the White House has been resisting releasing any “damaging information” about the oil disaster. They add that if the ocean oil geyser is not stopped within 90 days, there will be irreversible damage to the marine eco-systems of the Gulf of Mexico, north Atlantic Ocean, and beyond. At best, some Corps of Engineers experts say it could take two years to cement the chasm on the floor of the Gulf.

    Only after the magnitude of the disaster became evident did Obama order Homeland Security Secretary Janet Napolitano to declare the oil disaster a “national security issue.” Although the Coast Guard and FEMA are part of her department, Napolitano’s actual reasoning for invoking national security was to block media coverage of the immensity of the disaster that is unfolding for the Gulf of Mexico and Atlantic Ocean and their coastlines.

    From the Corps of Engineers, FEMA, the Environmental Protection Agency, Coast Guard, and Gulf state environmental protection agencies, the message is the same: “we’ve never dealt with anything like this before.”

    The Obama administration also conspired with BP to fudge the extent of the oil leak, according to our federal and state sources. After the oil rig exploded and sank, the government stated that 42,000 gallons per day was gushing from the seabed chasm.  Five days later, the federal government upped the leakage to 210,000 gallons a day.

    However, WMR has been informed that submersibles that are  monitoring the escaping oil from the Gulf seabed are viewing television pictures of what is a “volcanic-like” eruption of oil. Moreover, when the Army Corps of Engineers first attempted to obtain NASA imagery of the Gulf oil slick — which is larger than that being reported by the media — it was turned down. However, National Geographic managed to obtain the satellite imagery shots of the extent of the disaster and posted them on their web site.

    There is other satellite imagery being withheld by the Obama administration that shows what lies under the gaping chasm spewing oil at an ever-alarming rate is a cavern estimated to be around the size of Mount Everest. This information has been given an almost national security-level classification to keep it from the public, according to our sources.

    The Corps and Engineers and FEMA are quietly critical of the lack of support for quick action after the oil disaster by the Obama White House and the US Coast Guard. Only recently, has the Coast Guard understood the magnitude of the disaster, dispatching nearly 70 vessels to the affected area. WMR has also learned that inspections of off-shore rigs’ shut-off valves by the Minerals Management Service during the Bush administration were merely rubber-stamp operations, resulting from criminal collusion between Halliburton and the Interior Department’s service, and that the potential for similar disasters exists with the other 30,000 off-shore rigs that use the same shut-off valves.

    The impact of the disaster became known to the Corps of Engineers and FEMA even before the White House began to take the magnitude of the impending catastrophe seriously. The first casualty of the disaster is the seafood industy, with not just fishermen, oystermen, crabbers, and shrimpers losing their jobs, but all those involved in the restaurant industry, from truckers to waitresses, facing lay-offs.

    The invasion of crude oil into estuaries like the oyster-rich Apalachicola Bay in Florida spell disaster for the seafood industry. However, the biggest threat is to Florida’s Everglades, which federal and state experts fear will be turned into a “dead zone” if the oil continues to gush forth from the Gulf chasm. There are also expectations that the oil slick will be caught up in the Gulf stream off the eastern seaboard of the United States, fouling beaches and estuaries like the Chesapeake Bay, and ultimately target the rich fishing grounds of the Grand Banks off Newfoundland.

    WMR has also learned that 36 urban areas on the Gulf of Mexico are expecting to be confronted with a major disaster from the oil volcano in the next few days. Although protective water surface boons are being laid to protect such sensitive areas as Alabama’s Dauphin Island, the mouth of the Mississippi River, and Florida’s Apalachicola Bay, Florida, there is only 16 miles of boons available for the protection of 2,276 miles of tidal shoreline in the state of Florida.

    Emergency preparations in dealing with the expanding oil menace are now being made for cities and towns from Corpus Christi, Texas, to Houston, New Orleans, Gulfport, Mobile, Pensacola, Tampa-St.Petersburg-Clearwater, Sarasota-Bradenton, Naples, and Key West. Some 36 FEMA-funded contracts between cities, towns, and counties and emergency workers are due to be invoked within days, if not hours, according to WMR’s FEMA sources.

    There are plans to evacuate people with respiratory problems, especially those among the retired senior population along the west coast of Florida, before officials begin burning surface oil as it begins to near the coastline.

    There is another major threat looming for inland towns and cities. With hurricane season in effect, there is a potential for ocean oil to be picked up by hurricane-driven rains and dropped into fresh water lakes and rivers, far from the ocean, thus adding to the pollution of water supplies and eco-systems.


    By. The Wayne Madsen Report for who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit:

    Hat tip Zero Hedge


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      1. Oh yeah childrens… more toxic fumes in the atmosphere from burning off the oil on the surface to add to the already deteriorating ozone layer.  It’s a good thing global warming isn’t real…;)  Also… with the onset of hurricane season upon us… it’s only going to get worse.  Just imagine storm surge washing all of that oil up unto the shore far inland… and we thought things were fugg’d up before this happened?

      2. This seems plausible, but smells fishy. If this guy writes for why does he not know a boom is not a ‘boon’? (the word is used twice)

      3. Regardless of how this occured, are all those who shortsighted people who cry about oil drilling in the Alaskan wilderness and off the coast of California happy now! This is what you expose yourself to when you only think in the “give me comfort now” mode. People are going to make mistakes in these arenas because they are being pushed on a daily basis for “more profits”.  The illusion of safety and security are a thin veil, especially where profits are concerned.

      4. More ‘hope and change’ in the air, literally, in the form of toxic fumes coming off the Gulf of Mexico.   May the winds take it to Washington D.C. and it’s inhabitants.  

        Yet another BP payoff to Obama and ripoff of U.S. taxpayers to clean up another mess.      1 Trillion USD.

        Ben Bernanke has the USD printing press running at hyper-speed to pay for Obamacare, bail out Europe, bailout BP, and bailout 34 insolvent U.S. state governments.  

        Trade your USD’s for physical gold and silver before you and yours are destroyed by ‘hope and change’ impact on the illegal federal reserve notes.

      5. The spill is horrible and could get worse, but here is actual video of the leak, hardly what is suggested in this post. As a Florida resident I pray they are able to stop it.

      6. SD Mule:  what steps are you willing to take to reduce your need for oil?  No more driving?  No more electricity?  Unfortunately, we depend on oil for everything.  Everything.  I don’t have the answer either.

      7. Flynn,
        The other options are not limited to zero fuel or zero electricity. The idea is to look at the risk/reward for drilling for oil. Is it worth polluting the ecosystems, of which we all depend on in some form, to have the convenience of driving an extra 100 miles a week or having all the lights on in your house? There are other forms of energy that do not pollute the environment. Those forms of energy can be incorporated into the system to reduce the dependence on oil. It does not have to be all or none. Unless of course ,you are a lobbyist for the oil industry. The oil industry generates alot of money, therefore they have alot of pull, and the result is a dependence on that very oil. Do I want to stop driving? NO, but I will be willing to drive less, even if it is inconvenient. Do I want zero electricity? NO, but i am willing to use less, even if it is inconvenient.

      8. Imagine what the problems will be like when the shit really hits the fan. Coming to a “theatre” near you soon.

        524 402 925 TCA

      9. Zuk, I spent some time on your code last night…

        402…. Omaha?  maybe?

      10. Mac:      Time

      11. Time is the protocal by which God catalogs eternity.

      12. I agree with Paul Revere.   I think the oil rig was intentionally “rigged” to explode.  

        Other oil companies have suggested that the original building of the Rig was so bad and so dangerous it would appear as though it was built on purpose to explode.   The safety managers on the line were screaming in the cell phone at their superiors that steps needed to be taken and their managers told them to “calm down”.  And Obama planned to do NOTHING about it. 

        Who comes out ahead?   The scum who own the Federal Reserve.  More crisis, more spending, more borrowing, more printing of money.   The Fed are always anxious to print more money.   Whatever they print they own.  They loan to the US government. We make payments. They spend it.  I think this disaster was instigated by the guys who own the Fed.  They own a good deal of BP.  AND they have the US gov in their pocket.  we should Abolish the Federal Reserve.  It’s nothing but pure scam. 

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