The  Louisiana oil spill is not just hurting wildlife. It has been a catalyst for a marked chill in Anglo American relations. BP stock has lost $17 billion in 1 day, and $100 billion in 6 weeks. The New York Post reports as follows on fears for  the future of  BP, once known as British Petroleum and now known as “Beyond Petroleum”.

“Wall Street analysts said they’re beginning to fear what once was unthinkable — that one of the biggest, most powerful and profitable companies on the planet could actually go bust.

Houston oil trader Matt Simmons told Fortune magazine that BP might file for bankruptcy in a month — even before it finishes its three-month task of drilling two relief wells in a last attempt to stop the spill.”

There should be a way to hold BP responsible for the damage it caused without driving it under. Putting the military in charge of stopping the leak and cleaning up would be a good first step. Negotiating a settlement that would have BP making regular payments while it continues to maintain its payroll of 80,000 employees would be wise. Functioning under some sort of reorganization that would assure its continued existence would prevent a domino effect from battering an already shaky economy. The left would complain about “catering to big business” and the right would complain about big government mixing into the private sector. But this is a crisis that calls for pragmatism, creativity and not being blinded by ideology.

London’s mayor, Boris Johnson has expressed concern about Brit bashing in the Obama administration. But the concerns go way beyond hurt feelings. There are serious ramifications for the British economy emanating from the BP oil spill. The London Evening Standard reports as follows on his remarks.

“When you consider the huge exposure of British pension funds to BP and its share price, and the vital importance of BP, then I do think it starts to become a matter of national concern if a great UK company is being continually beaten up on the international airwaves.”

Driving BP into oblivion might feel therapeutic to those who are understandably angry. But there are ways to reclaim the losses from BP that are better for all concerned. The impact of  BP going under must be considered. In a moral sense, it is similar to the dilemna faced by the victorious allies in World War I. They wanted Germany to pay for starting the war. But they almost drove Germany under with crippling payment schedules. The allies ended up revising the reparations payments so that the Germans would have money to live on and to pay reparations. The analogy to BP is obvious. Punitive actions can have unforeseen consequences.

The Obama administration had been neglecting Anglo American relations for a long time before the BP disaster as noted by Dorothy Rabinowitz as follows.

One of his first reforms was to rid the White House of the bust of Winston Churchill—a gift from Tony Blair—by packing it back off to 10 Downing Street. A cloudlet of mystery has surrounded the subject ever since, but the central fact stands clear. The new administration had apparently found no place in our national house of many rooms for the British leader who lives on so vividly in the American mind.

Anyone who wants to run against Barack Obama would do well to pledge that they will have the bust of Churchill returned to Washington. It’s one thing to cluelessly give the British Prime Minister a DVD collection that will not play in Britain. It’s another matter entirely to spit in the face of a trusted ally by returning a gift steeped in historical resonance.

Wanting to figure out “whose ass to kick” should not be mistaken for decisiveness. Kneeling in the sand and squeezing tar balls does not preclude the possibility of being aloof.  Having rock stars play in the White House while Obama burns bridges and gazes resolutely into his teleprompter will not solve anything.

There is a time for symbolism and  meaningful gestures. And there is a time for substance. Does Obama know the difference?

Tags:

Bashing Britain, Boris Johnson, BP, BP Oil Spill, obama, Tony Blair, Winston Churchill