Booms, Boats, and Insider Trading

 A bleary eyed crew of Seattle University students began the day in much the same way they would at home: with a fresh cup of coffee. We had arranged an early meeting with an official from the Department of Homeland Security who had been stationed at the Unified Command Center on the north shore of Lake Pontchartrain since late April, soon after the rig sank. He spent two hours briefing us on everything from the early response, to the BP Deepwater Horizon’s distress signals, to the current status of the remediation process.

 Here are just a few of the key points we gleaned from this informative conversation:

•   We began by first discussing the containment efforts by BP and the government. This complex topic included a breakdown of the timeline from the initial responses to the distress calls and the difficulties faced assessing the situation in the first days when sediment stirred up by the rig was impeding visibility of the remote operated vehicles (ROVs). The DHS official admitted that the boom, which was a focal point of the media throughout the 24/7 coverage, was primarily a cosmetic solution that did not have much success sequestering oil.
•   Our conversation then turned to details of the “vessels of opportunity” hired by BP that employed local fishermen, shrimpers, and what would become anyone with a boat to collect oil with booms and skimmers. Any boat over thirty-five feet in length was compensated $2,500.00 a day plus fuel costs. A more modest compensation of $1,700.00 was given to boats under 35 feet in length plus fuel costs. This ad hoc contracting was important as it allowed fishermen to earn a wage while their primary means of income were inaccessible due to fishery closures and oil encroachment on habitat. However, as the fisheries reopened and these people began to return to work, they found that it was more and more difficult to turn a profit due in part to concerns of hydrocarbon contamination in the seafood.  We will be speaking to members of the fishing and shrimping community later on in the week to examine what this process was like from their perspective.

•         After this assessment of the ecological and social effects of the oil disaster, we began a deeper discussion of the national implications of both the spill and containment attempts on financial markets. As mentioned before, many national and local entities were involved and working at the Unified Command Center. However, a somewhat unexpected agency turned up proving to hold high stakes in the issue surrounding the eventual containment of the oil. Anticipating the potential for improper gains in stock trading, the Securities and Exchange Commission (SEC) set up shop at the UCC to monitor all correspondence and communication within the command center to ensure there was no insider trading being leaked from within the central hub of command.

Obviously much more was covered in this lengthy conversation, but so as not to overwhelm audience, we will be discussing many other issues that arose during the conversation in posts to follow. This account was delivered candidly, and with first hand experiences of many aspects of the clean up efforts. While many have criticized the efforts of the Unified Command throughout its tenure, it is important to remember it was staffed by dedicated individuals working 16-20 hour days for over three months as these tragic events unfolded.