Posts Tagged ‘BP’

US Issues First Deepwater Drilling Permit Since Gulf Spill

Tuesday, March 1st, 2011

noble

Noble Energy was awarded the first new deepwater drilling permit by the Interior Dept. this week, almost four months after the drilling moratorium was lifted and nearly a year after the BP spill in the Gulf of Mexico. Noble Energy, whose site sits 70 miles off the coast of Louisiana, must comply with increased safety regulations and has a revamped blowout prevention plan in place.

From the New York Times:

“This permit represents a significant milestone for us and for the offshore oil and gas industry, and is an important step towards safely developing deepwater energy supplies offshore,” said Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement. “This permit was issued for one simple reason: The operator successfully demonstrated that it can drill its deepwater well safely and that it is capable of containing a subsea blowout if it were to occur.”

Noble estimated a worst-case discharge of 69,700 barrels of oil per day if it loses control of its well. But the company has contracted with the Helix Well Containment Group to use its capping stack to stop the flow of oil in such a scenario, Bromwich said.

BOEMRE expects additional deepwater permits to be issued in the coming weeks and months based on a process similar to Noble’s permit, but the approvals will be limited because only a handful of completed applications have been received, Bromwich said.

The National Journal points out that BP owns a significant share of the approved well. Read additional coverage here.

Submitted by Patrick McQueen.

Fortune Mag: BP Spill “Was a Long Time in the Making”

Wednesday, January 26th, 2011

Photo courtesy of Fortune.

Fortune has just published a thorough look at BP’s internal culture prior to and following the disaster at the Macondo well last year. The excellent feature includes an employee’s homemade video of the Deepwater Horizon rig’s inner workings, shot in 2004. The piece sheds light on the unprecedented magnitude of the disaster, and concludes that despite the pledges of CEO Tony Hayward to focus on safety, the disaster involved failures on almost every conceivable level and “was a long time in the making.”

From Fortune

It’s not easy to blow up an offshore oil rig. It requires an astonishing collection of failures big and small, human and mechanical, by individuals and by organizations. In the industrial-accident investigation business, the classic metaphor is Swiss cheese. Each mistake is a hole in a single slice, and it’s only when the errors stack up, with the holes aligning perfectly, that a disaster results.

Tech blog Gizmodo points out what may be the most disturbing part of the whole story – new BP CEO Bob Dudley thinks this year ranks with BP’s best.

Check out the entire Fortune story by following the link above, it’s well worth your time.

Submitted by Patrick McQueen

Latest Alaska Pipeline Leak Puts Spotlight on Aging System

Tuesday, January 11th, 2011

alyeska--pipeline-abrahm-300x200

Photo by Abrahm Lustgarten/ProPublica

A leak in the Trans Alaskan Pipeline System (TAPS) discovered over the weekend has halted most oil production on Alaska’s North Slope. Roughly 10 barrels of spilled crude was found in a pump station basement, forcing operators to shut down production. That stoppage results in a 12% drop in daily U.S. oil production. TAPS is expected to resume production this week.

The relatively small leak raises large concerns, however. ProPublica reports that the leak is just the latest in a series of recurring problems receiving only temporary fixes. Unsurprisingly, BP is involved. From ProPublica’s report:

BP, the pipeline company’s largest single owner, has called it a “significant event.”

BP is no stranger to pipeline problems in Alaska. We recently reported that a BP maintenance report in October found severe corrosion throughout its own system of pipelines, and workers had complained of “Band-Aid” solutions to long-running maintenance issues.

DOT’s Pipeline and Hazardous Materials Safety Administration does not need to approve TAPS repairs this week to get the pipeline restarted, but we’ll be watching to see if regulators begin addressing what may be a looming safety concern.

‘You Can Invest in Safety Now, or You Can Pay for Failure Later’

Monday, December 13th, 2010

The headline is a remark to be delivered by William K. Reilly, co-chairman of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, at a Wednesday conference of the lawyers for American oil companies. The Wall Street Journal previewed Reilly’s speech ahead of the conference, revealing that the leader of the federal spill commission will deliver harsh criticism to industry leaders – oil executives and federal regulators alike.

In particular, Reilly will target BP, Halliburton, and Transocean – the three companies responsible for the Deepwater Horizon spill – for their negligence prior to the spill along with safety regulators he claims lack the technical expertise required to be effective. Reilly will call for oil companies to establish a self-policing agency similar to that of the nuclear industry.

From the Wall Street Journal:

“The interest group that could most threaten the future viability of offshore drilling is the oil and gas industry itself,” Mr. Reilly says in the speech. “There has to be a recognition that the industry has not made safety a high enough priority. We need a major transformation in the oil and gas industry’s understanding of what it means to put a priority on creating a safety culture. This is an industrywide challenge that can’t simply be laid at the feet of a few rogue players.”

While BP declined to comment ahead of the speech, Halliburton and Transocean were quick in their attempts to lay all of the blame on BP:

Halliburton said Tuesday it “remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP’s specifications for its well-construction plan and instructions.”

Transocean said “the calculations, blueprints and step-by-step construction procedures for the well were crafted by BP engineers and approved by federal regulators in advance of—and in some cases, during—the construction process itself.”

Kudos to the commission for moving past BP to determine everyone responsible for the loss of lives that sadly have become routine in the oil industry. It’s clear that BP was not alone in their carelessness.

Submitted by Patrick McQueen

Spill Panel Opens Public Forum

Thursday, December 2nd, 2010

The federal panel investigating the BP oil spill opened their deliberations to public discourse today. The discussions continue tomorrow, and can be viewed live here.

The big news came from panel co-chairman William K. Reilly who, in previewing the commission’s upcoming recommendations, discussed the creation of an industry group to self-police lagging oil companies, similar to the group that exists in the nuclear industry. The proposed group would ensure that safety regulations were closely followed and would be completely self-financed by oil exploration ventures.

From the NY Times:

[Reilly] said it was in the self interest of the oil and gas industry to create an institute that will ensure, as he put it, “that the laggards in safety and environmental stewardship can be brought up to a higher standard by their peers.”

He added, “We are not dealing here with a sick or failing or unsuccessful industry, but with a complacent one.”

Mr. Reilly said the industry needed to adopt a new safety culture. But he also said that government needed to improve a regulatory system that he said had “failed utterly” to keep up with advances in deepwater drilling technology. He said the commission was likely to recommend regulatory reforms that go beyond those already being put into effect by Interior Secretary Ken Salazar, and that the panel would ask Congress and industry to help fund the changes.

It will be interesting to see whether the industry giants decide to spend the money to police themselves. Such a measure could help ensure panels such as this are not needed in the future. There is no word yet on how the proposal will be received by the industry.

Full details of the commission can be viewed here.

Submitted by Patrick McQueen