Allison Kilkenny: Unreported

Contractors raking in mad cash in wake of BP disaster

Posted in Barack Obama, BP, corporations, deregulation, environment, offshore drilling, regulation by allisonkilkenny on June 12, 2010

A rescue worker captures one oil-covered brown pelican off the coast of Louisiana. AP Photo

God, this is depressing. The industrial sector is just about extinct, corporations are fleeing the country to exploit cheap foreign labor, unions are gasping their last breaths, and 6.8 million Americans have been unemployed 27 weeks, or longer (the numbers are higher in places like Detriot, which has 30 percent unemployment, but the media doesn’t really focus on that reality).

But there is good news! Well, kind of. If your trade is oil spill clean-up, you’re experiencing a bonanza right now.

Hundreds of contractors and subcontractors are doing jobs both complex and mundane, whether it’s building the robots that BP sends 5,000 feet underwater to capture live video of the broken wellhead or providing boats to skim oil from the water’s surface. And then there is the cottage industry that has sprung up overnight to support the 24,600 cleanup workers, catering their meals, hauling away their trash and supplying portable toilets.

“There’s money flowing in the streets,” said Michael E. Hoffman, director of research at Wunderlich Securities, a Memphis-based brokerage firm.

America may be losing the race to evolve technology, and alternative fuels, but at least we still lead the way in creating horrible catastrophes that our unemployed masses can then toil to clean up.

Ever the barometer of compassionate altruism, Wall Street immediately rushed to figure out who would be the winners of the BP disaster. The financial sector doesn’t price superfluous biological waste like sea turtles, or oceans because things like endangered pelicans don’t make the right people money. However, Wall Street does know how to price stuff like hundreds of thousands of gallons of toxic dispersants.

Within two weeks of the April 20 Deepwater Horizon explosion, the stock price of Clean Harbors, a Boston-based hazardous-waste management company, shot up more than 20 percent. During the same period, Nalco Holding Co., which makes the chemical dispersant Corexit, rose to nearly a year high.

Sure, Nalco, made a killing during the disaster. It helps that one of its board members, Rodney F. Chase, is a former BP board member. That cozy relationship provides Nalco with unique access to the big business of oil spill cleanup. The Wapost article doesn’t mention that stuff (why get messy?) but it does include this nugget:

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