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Shell’s Alaska mishap has a big PR cost — and a big cost to taxpayers

Shell’s Alaska mishap has a big PR cost — and a big cost to taxpayers

Even at 6:30 a.m. Alaska time today, three hours before sunrise, there was a hum of activity at the unified command center coordinating the response to Shell’s breakaway drilling rig off Kodiak Island on the state’s southern coast. The command — coordinating the efforts of Shell, the Coast Guard, the state, Noble Corporation (the drilling contractor), and local officials — is responsible for figuring out how badly the 28,000-ton Kulluk is damaged, if it’s leaking any of its 143,000 gallons of diesel fuel, and how it can be towed back out to sea. Three days after the rig broke free of two tugboats in bad weather and ran aground, only one of those questions can be answered: It isn’t leaking fuel. Yet.

Hoping to figure out the extent of the Coast Guard’s role in recovery — how many of the 600 people working on the response are employees of the agency, or of the state of Alaska — I called the Coast Guard station in Anchorage this morning, and was quickly referred to the unified command. When I called there, I spoke with Destin Singleton over clamorous background noise. Singleton is the spokesperson for the recovery effort — and a Shell public relations staffer.

For what little progress has been made in assessing damage to the rig, the command has put together a pretty thorough communications system. The effort has a website, KullukResponse.com, a Twitter feed, and a page of photos on Flickr. Singleton, a PR professional, didn’t offer much information beyond what’s available on the website. So here’s the latest update:

A team of five salvage experts boarded the grounded drilling unit Kulluk [yesterday] to conduct a structural assessment to be used to finalize salvage plans, currently being developed by the Kulluk Tow Incident Unified Command.

The five-member team was lowered to the Kulluk by a U.S. Coast Guard helicopter at about 10:30 [yesterday] morning. The assessment lasted about three hours. A helicopter safely hoisted the team from the drilling unit at about 1:30 p.m. The Coast Guard helicopter and crew also delivered a state-owned emergency towing system to the Kulluk, which will be used during salvage operations.

It’s clear that the Coast Guard is playing a significant role in efforts at recovery. The video at the top of the page is from one agency flyover of the rig. But Singleton wasn’t able to (or wouldn’t) say how many Coast Guard employees were involved, nor was she able to say how many of the people working on the effort were employed by Shell. (Save one, that is: herself.)

There’s no doubt that the effort is a complex one, requiring interagency coordination and careful consideration of safety risks. One of the main reasons that activists have been concerned about the prospect of drilling in the region is unstable, unmanageable weather like that currently impeding the recovery. But it’s also clear that Shell recognizes the public relations risk of its inability to control its drilling vessel. According to Politico, several environmental organizations plan to unveil a push to freeze drilling in the region in light of Shell’s ongoing problems.

Shell’s mistakes are costing it an enormous amount of money even before a single drop of oil has been extracted in the region. And it’s costing us money, too, though exactly how much isn’t clear — and the company isn’t saying.

U.S. Coast GuardRear Adm. Thomas Ostebo, commander, 17th Coast Guard District and D17 Incident Management Team commander, observes the conical drilling unit Kulluk from an MH-60 Jayhawk helicopter during a second overflight Tuesday, Jan. 1, 2013.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Shell’s Alaska mishap has a big PR cost — and a big cost to taxpayers

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The hottest race of 2013: House climate hawk Markey is gunning for Kerry’s Senate seat

The hottest race of 2013: House climate hawk Markey is gunning for Kerry’s Senate seat

Martha Coakley

Could Ed Markey be the Senate’s newest climate hawk?

The Senate will lose an advocate for climate action when John Kerry becomes secretary of state (assuming he gets confirmed, which seems pretty darn safe to assume). But it could gain another senator who’s just as climate-hawkish if Ed Markey wins the race for Kerry’s soon-to-be-vacated seat.

Rep. Markey (D-Mass.) announced last week that he intends to run in the special election next spring or summer to fill Kerry’s spot. He’s not the only Democrat who’s talking about a run, but he’s the most senior and high-profile, so the establishment swiftly got behind him, hoping to avert a primary fight.

Kerry didn’t outright endorse Markey, but he praised him effusively, calling him “the House’s leading, ardent, and thoughtful protector of the environment.” Kerry continued: “He’s passionate about the issues that Ted Kennedy and I worked on as a team for decades, whether it’s health care or the environment and energy or education.”

Markey is arguably the most passionate, outspoken climate advocate in the House. You might remember him from such legislation as the Waxman-Markey climate and energy bill, which was passed by the House in 2009 and then died a slow and painful death in the Senate. Markey was the one and only chair of the House Select Committee on Energy Independence and Global Warming during its existence from 2007 to 2010. Though Republicans killed the committee when they took control of the House two years ago, that hasn’t stopped Markey from pushing energy and climate issues into the spotlight — and writing about his efforts on Grist.

In announcing his candidacy for the Senate, Markey made clear that he plans to keep focusing on energy: “I will not sit back and allow oil and coal industry lobbyists to thwart our clean energy future,” he said. Scott Nathan, chair of the League of Conservation Voters, told The Boston Globe that he was thrilled to back Markey, describing the congressmember as “a champion fighting for the clean-energy economy.”

Now the big, looming question is whether Scott Brown will run for Kerry’s spot from the Republican side. Brown lost his Senate seat to Democrat Elizabeth Warren in November after a bruising campaign. The two clashed over climate change and energy issues, and environmental groups came out in full force against Brown and for Warren. Here’s what I wrote about Brown during that race:

Scott Brown is one of the more centrist Republicans in the Senate, yet he’s getting a lot of hate from the green community. Brown has bucked his party on wind power, calling for extension of a key wind tax credit that Mitt Romney opposes. But he’s buddied up with Big Oil and the Koch brothers (he’s gotten about $333,000 in campaign cash from the oil and gas industry). He voted to push through the Keystone XL pipeline and maintain oil-industry subsidies (even while claiming said subsidies don’t exist). And he’s been wishywashy on climate science and has opposed EPA’s efforts to regulate CO2.

Brown has been mum on his intentions so far, but many pols and pundits think he’s likely to run. If he does, he’ll be a serious contender. In a mid-December poll of registered Massachusetts voters, 58 percent had a favorable view of him. Markey, by contrast, got just 24 percent favorability, with 27 percent of respondents undecided about him and 33 percent never having heard of him. In a head-to-head matchup, 48 percent of voters preferred Brown compared to 30 percent for Markey.

Markey could close that gap if he runs a strong campaign, but he’s been in a safe seat for decades, so he’s out of practice. Boston Globe columnist Joanna Weiss argues that Markey will need to “find his inner celebrity” if he wants to win. “[A] statewide race, particularly one that’s condensed into a few months, will require Markey to be much flashier than he’s had to be within the halls of Congress.” Markey may be wonky, but he’s been known to pull out the spark and flash. Expect to see a lot more of that in the coming months.

Lisa Hymas is senior editor at Grist. You can follow her on

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The hottest race of 2013: House climate hawk Markey is gunning for Kerry’s Senate seat

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A Quick Look at U.S. Healthcare Costs for the Elderly

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Austin Frakt has a chart up today showing that healthcare costs for the elderly are fantastically higher in the United States than they are in other similar countries. However, the vagueness of his note that the chart “is, apparently, from a year 2005 study,” immediately set off my spidey sense. The link goes to a news article about an engineering professor who created the chart based on data “drawn from a 2005 study done by Boston University economist Lawrence Kotlikoff and his colleagues.”

Kotlikoff’s data might well be right, but it’s worth at least a little bit of skepticism. A study published in Health Affairs using data through 2004 says that per capita healthcare spending for those 65+ is about $15,000, which suggests that a decent point estimate for those exactly age 65 is around $10,000 or so. Likewise, the estimate for those 85+ is $25,000, which suggests that a good point estimate for those exactly age 85 is perhaps $20,000 or so.

Using these two numbers, I drew a new line for the United States onto the chart in Austin’s post. It’s the dashed line below, and although it’s still a lot higher than the other four countries, it’s not quite as scary looking. If anyone knows of a more authoritative international comparison by age cohort, I’d be happy to post it. In the meantime, I suspect that U.S. spending levels are just in the normal scary range—which we already knew—not the mega-scary range suggested in the original chart.

UPDATE: Judging from the comments to Austin’s post, this chart is bogus. Aside from the fact that costs at the high end might be overstated, it includes only public spending, which is very low in the U.S. for those under 65. So the spike at age 65 is artificial. Also, several countries are omitted, making the United States look more extreme than it actually is.

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A Quick Look at U.S. Healthcare Costs for the Elderly

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It’s a sports dome and a hurricane shelter all in one

It’s a sports dome and a hurricane shelter all in one

There’s a lot of talk these days about the need to become more resilient and ruggedize our systems in order to better cope in a climate-changed world. It’s nice to actually see a little action on this front — in Texas, of all places.

Jay Phagan

Texas’ first “hurricane dome” in Woodsboro will do double duty as a gym and a shelter. We expect it’ll look more appealing once the gale-force winds start blowing.

From the Associated Press:

Most of the time, the windowless building with the dome-shaped roof will be a typical high school gymnasium filled with cheering fans watching basketball and volleyball games.

But come hurricane season, the structure that resembles a miniature version of the famed Astrodome will double as a hurricane shelter, part of an ambitious storm-defense system that is taking shape along hundreds of miles of the Texas Gulf Coast.

Its brawny design — including double-layer cinder-block walls reinforced by heavy duty steel bars and cement piers that plunge 30 feet into the ground — should allow it to withstand winds up to 200 mph. …

[A dome now under construction in Edna, Texas,] is one of 28 such buildings planned to protect sick, elderly and special-needs residents who might be unable to evacuate ahead of a hurricane. First-responders and local leaders will also be able to take refuge in the domes, allowing them to begin recovery efforts faster after a storm has passed. … [The domes] are being erected with help from the Federal Emergency Management Agency.

Just how rugged are these things? “The builders boast Mother Nature and the big bad wolf could huff and puff together, and it wouldn’t be enough to destroy the dome,” reports Fox 26 in Houston. We assume that’s the Texan way to talk about climate change.

Lisa Hymas is senior editor at Grist. You can follow her on

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6 Frankenfoods to Avoid

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6 Frankenfoods to Avoid

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WATCH: President Obama "Modestly Optimistic" We Won’t Fall Off Fiscal Cliff

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Friday evening President Obama expressed modest optimism that the House and Senate will reach a fiscal cliff deal before the New Year’s deadline, but said that if Congress fails to act, he will ask Senate Majority Leader Harry Reid (D-Nev.) to propose a bill that protects unemployment benefits and stops tax increases on the middle class.

“I will urge Senator Reid to bring to the floor a basic package for an up-or-down vote, one that…lays the groundwork for additional deficit reduction and economic growth steps,” President Obama said at a press conference on Friday, after meeting behind closed doors with Sen. Reid, Senate Minority Leader Mitch McConnell (R-Ky.), House Speaker John Boehner (R-Ohio) and House Minority Leader Nancy Pelosi (D-Calif.) “That’s the bare minimum…and it shouldn’t be that hard.”

As my colleague Andy Kroll points out, the fiscal cliff “isn’t really a cliff” but we’re still “in for roughly $400 billion in tax increases and $200 billion in spending cuts…spread out over many months.” Without a fiscal cliff deal, Bush’s tax cuts for the middle class will expire, shrinking US GDP by 1.3 percent. Additionally, unemployment benefits worth $30 billion are expected to run out, potentially ending benefits for millions of Americans.

“The American people are not going to have any patience for a politically self-inflicted wound to our economy,” the President said. “Outside of Washington, nobody understands how it is that this seems to be a repeat pattern.”

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WATCH: President Obama "Modestly Optimistic" We Won’t Fall Off Fiscal Cliff

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Starbucks CEO Should Leave His Baristas Alone

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Paul Krugman, like a lot of liberals, is annoyed with Howard Schultz, the CEO of Starbucks:

By all accounts, he’s a good guy, with genuinely generous instincts. But in his message to employees, urging them to write “come together” on coffee cups, he gets the nature of the fiscal cliff completely wrong. In fact, he gets it wrong in two fundamental ways…..First of all, the fiscal cliff is NOT A DEBT PROBLEM. In fact, it’s the opposite.

….And then, on top of that, he has the politics all wrong, in the characteristic centrist way: he makes it sound as if the problem was one of symmetric partisanship, with both sides refusing to compromise. The reality is that Obama has moved a huge way both in offering to exempt more high-earner income from tax hikes and in offering to cut Social Security benefits; meanwhile, the GOP not only won’t agree to any kind of tax hike at all, it also has yet to make any specific offer of any kind.

I’m curious about something: Am I the only one who’s annoyed not just at Schultz’s confusion, but at the fact that he’s asking his employees to endorse an explicitly political message? It’s one thing to sell coffee in cups with a message already printed on them: that obviously doesn’t suggest any kind of personal recommendation. But writing the message yourself? That’s a whole different thing.

Sure, “come together” is pretty anodyne. But it’s a political message nonetheless. If Schultz wants to use his own money and his own soapbox to broadcast misinformation, that’s his right. But he should leave his employees out of it.

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Starbucks CEO Should Leave His Baristas Alone

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Republicans Continue to Stare Into the Abyss, But Nothing Stares Back

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The absurdities of the fiscal cliff continue apace. Here is Mitch McConnell, master of the absurd:

“Nothing can move forward in regards to our budget crisis unless Speaker Boehner and Leader McConnell are willing to participate in coming up with a bipartisan plan,” Reid said. “So far, they are radio-silent.”

McConnell retorted that Republicans have been eager to work with Obama. After one-on-one talks between Obama and Boehner failed to produce a broad deficit-reduction package last week, McConnell said it is now the president’s responsibility to put forward a new plan. “Republicans bent over backwards,” he said. “We wanted an agreement. But we had no takers. The phone never rang.”

….Boehner’s message was that “we were going to wait for the Senate to take up the bill that we passed six months ago,” said one Republican lawmaker who was on the call. “Quit trying to do this leadership-negotiating thing.”

Republicans bent over backwards! Boehner apparently did his bending over by never once proposing a detailed plan and never once being willing to publicly tell us what spending cuts he wanted. Then he failed to get passage of even a PR stunt and simply gave up. McConnell, for his part, did his bending over backwards by retreating to his office and never once poking his head out for four consecutive weeks.

But maybe “one Republican lawmaker” has the right idea. Why bother negotiating with McConnell, who so far has shown no inclination to want responsibility for anything? Maybe Obama and Reid should simply come up with a modestly different package than the most recent Democratic proposal and see if they can round up seven Republican votes for it. The Maine twins might vote for it. Lugar’s retiring, so he might vote for it. Murkowski could maybe be bought off. Scott Brown wants some centrist cred for his next Senate run, so he might vote for it. Maybe a bit of old-fashioned horsetrading could put together 60 votes.

(Needless to say, 60 votes will be necessary, since Mitch McConnell certainly won’t forego a filibuster of anything that Obama proposes. He’s not willing to bend that far backward.)

After that, who knows? Maybe a bill with no fingerprints on it from the GOP leadership could pick up a couple dozen Republican votes in the House if Boehner allows it to come to the floor, as he’s promised. You never know.

It’s a longshot. But I wonder if it’s any more of a longshot than continuing to engage with Boehner and McConnell, both of whom are obviously scared to death of doing anything other than simply rejecting every proposal Obama puts forward and then accusing Obama of “not being serious”?

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Republicans Continue to Stare Into the Abyss, But Nothing Stares Back

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Holiday shopping is down, mall blight is up

Holiday shopping is down, mall blight is up

It seems a lot of Americans shifted the gift this holiday season. Early reports from retailers indicate this may well be the least shop-happy winter since the apocalyptic recession Christmas of 2008. And climate change sure isn’t helping.

Sean_Marshall

Reuters reports:

Shares of retailers dropped sharply on Wednesday, helping drag broader indexes lower, as investors realized they were likely to be disappointed when companies start to report results in a few weeks’ time.

“The broad brush was Christmas wasn’t all that merry for retailers, and you have to ask what those margins look like if the top line didn’t meet their expectations,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group.

Growth was always expected to slow this season, though an improving employment picture and rising home values had helped mitigate the worst fears. But then Superstorm Sandy hit the East Coast in late October, mild weather blunted sales of winter clothing and rising concern about the “fiscal cliff” became more of a reality, dragging down already-pessimistic forecasts.

(T-minus how long until someone rebrands swimsuits as a great climate collapse fashion choice?)

Stores stand to scoop up nearly a third of their annual sales over the holiday season, so this drop could be significant — but could it be enough to push us closer to a more lasting shifting of the gifts?

Sales may be down on the whole, but they’re also moving from the brick and mortar world to the digital, leaving us with empty, useless retail spaces and dead, blighted malls from coast to coast. According to Atlantic Cities, shopping mall vacancy rates are now hovering around twice what they were 10 years ago. The head of a leading commercial real estate firm said of these ghost malls, “I don’t think we’re overbuilt, I think we’re under-demolished.”

But we shouldn’t be knocking these places down! We should save the energy and resources that would otherwise be needed to demolish and rebuild, and instead creatively reuse retail space for community centers and social services. But not for shark aquariums though, please. Please.

Susie Cagle writes and draws news for Grist. She also writes and draws tweets for

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Holiday shopping is down, mall blight is up

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The $400 million plan to unsink a giant cruise ship

The $400 million plan to unsink a giant cruise ship

Nearly a year after it crashed into a very picturesque rock on the coast of Giglio Island in the Mediterranean, the Costa Concordia cruise ship is still lying on its side in the middle of a marine wildlife preserve. The island’s mayor called the ship “an ecological timebomb,” but while it’s not (currently!) leaking oil into the sea, the Concordia is basically a massive amount of pollution still waiting to happen.

Roberto Vongher

There are only two things to do: Chop it up, sink it, and say sorry, or spend $400 million towing the failed monstrosity away from nature.

The latter it is!

Business Insider calls the plan, “the riskiest, most complicated, and most expensive salvage plan ever undertaken,” and no one is entirely sure it will actually work.

The process consists of stabilizing the ship with massive cables (almost complete); drilling an underwater platform into the sea floor; attaching massive floaties to each side of the ship, tipping it upright, and (hopefully!) towing it away from the protected coastline still mostly intact.

Workers had to take a four-day rock climbing course before beginning the work, which will take months.

The (many) companies undertaking this plan say, “it best fulfills the main objectives of the operation: removal of the wreck in one piece, minimal risk, minimal environmental impact, protection of Giglio’s economy and tourism industry, and maximum safety of the work.”

When the only other option is to sink the ship and walk away, it doesn’t really matter if the salvage plan is serious about preserving the Mediterranean ecosystem or just desperate to salvage the tourist dollars on which Giglio’s economy relies. But just think of all the wonderful things we could do with that $400 million if we weren’t building these big dumb toys and crashing them into islands.

Susie Cagle writes and draws news for Grist. She also writes and draws tweets for

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