Fourth of July- it means independence, cookouts, and time at the beach. Unless you are living or vacationing along the Gulf coast this weekend. This year, many of the beaches that are used to seeing visitors flock to the sand like the migrating wildlife are as bare and lifeless as the excuses BP has stopped making for why the oil leak isn’t stopped yet. Instead of reveling families and the sounds of screaming children, the beaches are seeing cleanup workers and hearing the sounds of lonely footsteps on tarb-balled sand. As for BP, they are trying to shore up support for their own selves in the face of rumors that there are take-over bids circling like vultures.

Pensacola Beach is feeling the effects:

"It's ... sad to see the beach is not as crowded as it normally is, there's not as many people here. Not as many people in the restaurants. Very sad because you know they need the business," said Derek Robbins,  tourist from Houston.

He’s right. It’s sad and the restaurants need the business. Mississippi lacks their usual gaggle of tailgaters at the local beaches.

There are a slew of rumors that BP is circling its own wagons to protect itself against numerous takeover bids, and that its stock prices, already halved, will take a further hit on Monay in London’s markets. If that happens, there is sure to be more fallout when the American markets open again after taking July 5 off. What are we to think about all of this as we celebrate our independence?

Three thoughts:

1. BP is dying. BP as we know it will not exist by the end of the year. Their stock price dropping by that much alone is enough to show that they do not have the strength to weather the tide of this kind of a disaster. Whether they are split into several companies or acquired in whole by another oil outfit, the idea that they will continue to operate in the U.S. in any real way is unlikely.
2. Domestic production. This puts the United States in an awkward position, as much of our rhetoric in recent years has been about achieving greater energy independence, and this coming from both Republicans and the Obama administration. While nobody is screaming drill, baby, drill anymore, the 6 month drilling moratorium doesn’t have the legal legs to stand up either, and that means that it’s not going anywhere fast. After the capping and cleanup are finished, I expect to see renewed interest in the offshore drilling idea, albeit with new regulations.
3. Green Energy. It is ironic (and sad) that BP tried to paint itself as the green answer to the future of energy. In its almost 10 year “Beyond Petroleum” campaign, the company talked endlessly about how green they were becoming and what we should expect from them in the future. While it may have been so much greenwashing, their example could have taken on real legs and transformed the oil industry. Alas, no catalyst here anymore.

Photo Credit: NCinDC