Gulf of Mexico

Sat, 2011-12-17 14:27Farron Cousins
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Report Partially Blames Federal Government For Deepwater Horizon Oil Rig Explosion

Perhaps one of the most honest assessments of last year’s Deepwater Horizon oil rig explosion reveals the numerous failures of both industry and the federal government in the worst marine oil disaster in U.S. history.

The U.S. Department of the Interior sanctioned the report, compiled by more than a dozen experts operating with the temporary group called the Committee for Analysis of Causes of the Deepwater Horizon Explosion, Fire, and Oil Spill to Identify Measures to Prevent Similar Accidents in the Future (The Committee). And while the experts on The Committee identified failures we’ve documented in the past - particularly the shoddy design of the well’s blowout preventer - the committee highlighted plenty of new information as well.

Noting again that it was sanctioned by the federal government, it's interesting that this was one of the first reports to explicitly implicate the federal government’s irresponsible actions as a cause of the massive oil disaster that followed the explosion:

The regulatory regime was ineffective in addressing the risks of the Macondo well. The actions of the regulators did not display an awareness of the risks or the very narrow margins of safety.

As DeSmog has reported in the past, the federal government’s role in the disaster can be traced all the way back to 2001, when then-Vice President Dick Cheney was holding his secret Energy Task Force meetings with oil industry executives. During those meetings, the industry insiders in attendance helped the Vice President draft legislation that would eviscerate basic health and safety standards that protected workers and the public from the oil industry's reckless practices.

Wed, 2011-12-14 14:32Brendan DeMelle
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BP Returns to Deepwater Offshore Drilling in the Gulf of Mexico

BP, the oil major responsible for the biggest offshore oil disaster in U.S. history, is officially returning to deepwater oil drilling in the Gulf of Mexico. The Obama Interior Department “awarded” BP $27 million worth of leases for oil-and-gas exploration in the Gulf waters into which the company and its accomplices dumped roughly 5 million barrels of oil in April 2010.

The Interior Department conducted its first Gulf lease sale since the BP disaster and announced today the winning bids from 20 different companies totaling $712 million. Adding a strange insult to injury, the lease sale was conducted in New Orleans, home to many fishermen and small business owners whose livelihoods were imperiled by BP's reckless drilling disaster.

In its coverage, BP Awarded $27 Million in Leases for Gulf Oil, Gas Exploration, the National Journal reports that:

BP bid a total of $109.9 million on 15 leases and won 11 for $27.4 million, Interior's Bureau of Ocean Energy Management reported in a list of sales posted on its website.

Interior Secretary Ken Salazar said:

This marks a milestone with respect to the greatest overhaul in the America’s history,” Salazar said of the offshore-drilling safety reforms and changes implemented by Interior since the April 2010 explosion of a BP well in the Gulf led to the worst offshore oil spill in U.S. history. “We believe we can move forward with oil and gas development.”

The only milestone this really marks is the renewed guarantee that the oil industry will continue to destroy the Gulf of Mexico one disaster at a time in its pursuit of dangerous, extreme energy. 

Tue, 2011-12-06 12:58Farron Cousins
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BP Accuses Halliburton Of Destroying Evidence In Gulf Deepwater Horizon Disaster

Just months before trials are set to begin, BP is accusing Halliburton of destroying evidence related to their shoddy cement work that helped cause last year’s Gulf of Mexico oil disaster. According to Reuters, BP has officially filed their allegations with the courts, hoping to get the ball rolling on an investigation prior to trial.

Halliburton was responsible for supplying the cement on the Deepwater Horizon oil rig’s well, which was found to be substandard in investigations. According to Reuters, via Raw Story:

Citing recent depositions and Halliburton’s own documents, BP said Halliburton “intentionally” destroyed the results of slurry testing for the well, in part to “eliminate any risk that this evidence would be used against it at trial.”

The oil company also said Halliburton appeared to have lost computer evidence showing how the cement performed, with Halliburton maintaining that the information is simply “gone.”

BP asked U.S. District Judge Carl Barbier in New Orleans, who oversees spill litigation, to sanction Halliburton by ruling that Halliburton’s slurry design was “unstable,” a finding of fact that could be used at trial.

If Halliburton did destroy evidence, this could significantly shift the blame for the oil well, showing that Halliburton had something to hide. This would then take a lot of pressure off of BP and Transocean.

Thu, 2011-12-01 14:43Steve Horn
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LNG Groundhog Day: Cheniere Energy Signs Yet Another Gas Export Deal on Gulf Coast

Credit: Oleksandr Kalinichenko / Shutterstock

Another day, another unconventional gas export deal signed. Nascent North American LNG (liquefied natural gas) export deals are happening so fast and furiously that it is hard to keep track of them all.

The latest: On November 21, Cheniere Energy Partners signed a 20-year LNG export deal with Gas Natural Fenosa, an energy company which operates primarily in Spain but also in such countries as Italy, Mexico, Colombia, Argentina, and Morocco. Cheniere will maintain the Sabine Pass LNG export terminal located off of Sabine Lake between Texas and Louisiana, which feeds into the Gulf of Mexico, while Gas Natural Fenosa will ship the gas to the global market.

Cheniere, which made waves when its CEO Charif Souki announced that his corporation's business model would center exclusively around LNG export terminals, also recently signed a 20-year export deal with BG Group, short for British Gas Group.

Like the recent export deal with BG Group, which involves carrying fracked unconventional gas from various shale basins around the United States via pipelines to the Sabine Pass LNG export terminal, the Gas Natural Fenosa deal also centers around the export of gas from Sabine Pass to the global market.

Thu, 2011-11-17 19:22Farron Cousins
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Brazilian Officials Investigating Chevron Oil Spill Off Coast

Law enforcement agencies in Brazil announced today that they would begin investigating the cause of an oil spill that occurred off the coast. Chevron's Frade Well off the coast of Brazil has been leaking for more than a week. From the start, Chevron tried to downplay the significance of the spill, suggesting it had natural causes, but Brazilian officials are now saying that Chevron did, in fact, cause an oil spill.

Mike G at The Understory lays out the story:

Brazil’s Federal Police agency has announced that it is investigating the spill, and said in a statement that those responsible could be facing up to 5 years in prison…After Chevron tried to blame it on natural seepage for a week, officials have confirmed that the oil spill off the Brazilian coast is in fact the result of Chevron’s operations at its Frade well.

Echoing last year’s Gulf of Mexico oil disaster and BP’s defensive and often misleading public communications during that disaster, Chevron has continuously downplayed and underestimated the amount of oil that has leaked out of their well (which, according to the company, was sealed today). The oil giant claims that the amount of oil leaked out of the Frade well was somewhere between 400 and 650 barrels of oil, with only about 65 barrels worth of oil remaining on the surface of the water after a week of natural dissipation and the application of chemical dispersants.

However, independent analyses performed by organizations tell a different story.

Wed, 2011-10-05 17:30Farron Cousins
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New Federal Report Says Gulf of Mexico Cleanup Needed “Urgently”

A preliminary report released Wednesday by the federal Gulf Coast Ecosystem Restoration Task Force says that cleanup is needed for the Gulf of Mexico “urgently,” in order to protect the environmental and economical status of the Gulf.

The task force was established by President Obama after the oil disaster in the Gulf last summer, and is set to deliver a final report on the status of the Gulf of Mexico, as well as a restoration strategy for Gulf Coast states to implement in order to save the region. The goals set forward by the task force include conserving habitats along the Gulf Coast, improving water quality, protecting coastal resources, and enhancing the resilience of coastal communities.

Tue, 2011-09-27 16:56Farron Cousins
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BP Oil Dispersant Corexit Contained Cancer-Causing Agents

A new report on the Gulf of Mexico oil disaster of 2010 is providing adequate cause for concern for residents and clean up workers along the Gulf Coast. The report from EarthJustice reveals that Corexit, the oil dispersant used by BP to aid in oil cleanup, is laden with cancer-causing chemicals.

The dispersant Corexit was dumped into the oil-stained waters of the Gulf of Mexico to help the oil coagulate and sink to the sea floor. Once the oil clumps reached the bottom, it was believed that they would disintegrate into the water, no longer posing a threat to marine life. But as EarthJustice’s report shows, the threat lingered.

An estimated 1.8 million gallons of Corexit were dumped into the Gulf of Mexico in an attempt to displace the 206 million gallons of oil that spewed from a broken well-head on the Gulf floor. And while the dispersant itself was ruled to be less toxic than the oil, the study suggests that the combination mixture of crude oil and dispersant poses a significantly greater threat to both the environment and marine life than either substance on its own. The EPA says that studies have been done on some of the 57 chemical agents found in dispersants, but they also acknowledge that no long term studies have been conducted on the exposure to these chemicals in quantities as large as were poured into the Gulf.

Wed, 2011-09-14 15:02Farron Cousins
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Deepwater Horizon Still A Massive Headache For BP

The problems facing BP along the Gulf Coast continue to pile up. After more than a year of investigations, the U.S. Coast Guard has finally released their long-awaited assessment of last year’s Deepwater Horizon oil rig explosion. Their conclusion was that the ultimate blame for the disaster rests squarely on BP’s shoulders.

The new report, put together by The Coast Guard-Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE), was among the most exhaustive investigations to date, according to Reuters. The report claims that the decisions made by BP in the days before the rig explosion are what led to the catastrophe. Among those were BP’s decision to ignore the safeguarding of the cement plug, and the oil company’s decision to only use one type of cement to seal the well. The report also said that the location that BP chose for the casing was very poor, making it difficult to access in an emergency.

The new report does lay some blame at the feet of other companies involved, including Transocean and Halliburton, but they said that at the end of the day, BP was in charge of the decision-making process, and therefore they are the responsible party. This is a far cry from a recent report by Marshall Islands investigators, who recently pinned the blame for the disaster on the rig workers themselves, rather than the companies involved in the rig’s management. The new report is on par with other reports that also put most of the blame on BP.

Tue, 2011-09-13 10:55Farron Cousins
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Polluters Join Forces To Pressure Obama On Oil And Gas Drilling

In the wake of President Obama’s speech on job creation last week, major players in the energy industry have banded together to put pressure on the president to speed up the permitting process for new oil and gas drilling leases. At least 17 different companies and interest groups sent a joint letter to the president telling him that the best way to create jobs is to allow the dirty energy industry to drill, baby, drill.

From the industry letter:
  

One policy initiative that simultaneously creates high-paying jobs and increases revenues into federal coffers would be to improve efficiency and the rate of permitting activity in the Gulf of Mexico to a rate that is commensurate with industry’s ability to invest. Because safe, reliable domestic energy impacts all sectors of the US economy — manufacturing, agriculture, transportation and small business – such a move makes sense in light of the new regulatory regime and containment protocols developed by the Interior Department and private industry working in partnership.


The dirty energy industry would like us to believe that the administration’s energy protocols for drilling are hindering job growth in the country, even though the current wait time for drilling approval is about three months. Their claims of “safety” also ring hollow for those of us living on the Gulf Coast who are still witnessing oil washing up on our shores more than a year after the Deepwater Horizon oil rig exploded and sank into the Gulf of Mexico, spewing oil into the water for more than three months.

The American Petroleum Institute was not a part of the 17 groups that sent the letter to the president, but they have not been silent in the jobs debate. In a recent release, the API claimed that by lifting restrictions on oil and gas drilling, the energy industry would add as many as 1.4 million jobs and generate as much as $800 billion in tax revenue for the federal government. API president Jack Gerard acknowledged that it would take about 7 years for all of these jobs to materialize, far less than the estimated 2 million “green” jobs created in just one year by the President’s 2009 stimulus package.

Tue, 2011-08-23 21:24Farron Cousins
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Justice Department Launches Investigation Into BP's Oil Gusher Cover Up

The U.S. Department of Justice has launched an official investigation to determine whether or not BP lied to the public and to the government about the amount of oil that was leaking from a broken pipe during last year’s Gulf of Mexico oil disaster. The leak was the result of the explosion and subsequent sinking of the Deepwater Horizon oil rig, owned by Transocean but operated by BP.

During the initial days of the oil leak, BP was constantly updating their estimates of how much oil was flowing out of the broken pipeline. In spite of their advanced camera, computer, and other data technologies, they were somehow never able to give an accurate, or even close to accurate, account of what was happening beneath the water’s surface. The Justice Department is hoping to find out whether the company was acting dishonestly, or if they actually couldn’t determine the flow rate despite all the data available to them.

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