Today, the Obama administration cancelled planned lease sales in the offshore Arctic.  Apparently (and thankfully) offshore drilling above the Arctic Circle is dead for the foreseeable future.

 

 

Tonight at 9:50 pm will be the 5th anniversary of the worst blowout in US history that took the lives of eleven men and spilled over 5 million barrels of oil into the Gulf of Mexico. At the height of the crisis in the late spring of 2010 we, as a society, had a moment in time to grapple with our energy future fueled by an insatiable appetite for hydrocarbons. The moment passed, and we failed seize that moment. In true form our elected leaders simply kicked the can down the road, confident in the short memory and shallow engagement of the American electorate in issues that are critical and generational to all of us. After a brief interlude and re-arranging of deck chairs, the US government resumed issuing deepwater drilling permits with no substantial improvements in drilling technologies or requirements.

Today, BP is still in court fighting the US government about its own culpability in the blowout, and even went all the way to the Supreme Court appealing the financial settlement agreement that it had negotiated three years before, claiming the company didn’t really mean to agree to what it agreed to in the original settlement. The Court rejected it’s appeal last December. Government agencies, as well as the press, have gone easy on BP in recent years, having long since moved on to the latest contestants on The Voice and breathlessly reporting on the ebola outbreak in Africa, at least up to election day last November.

BP’s biggest accomplishment since the blowout? Succeeding in obfuscating the amount of oil that flowed into the Gulf of Mexico for the 87 days in 2010. The amount of oil that fouled the Gulf will determine the amount of the fine that BP will ultimately pay. Even though BP had equipment on site in the Gulf to contain the entire flow of the well, BP never actually captured (or measured) 100% of the flow. Not measuring total flow allowed BP to argue that we really couldn’t calculate the actual number of barrels that spilled, and that argument worked. Consensus from the scientific community was that the well flowed over 5 million barrels into the Gulf (4.2 million after collection efforts). BP argued that mysteriously it was only 2.5 million barrels after collection. In January, Judge Barbieri in New Orleans split the baby, calling it 3.2 million barrels. The lower number will save BP billions of dollars in fines. After getting a huge break from the court, BP, of course, is appealing. The company is also arguing that its US unit can only afford to pay $2.3 billion or it will go insolvent, ignoring it’s parent’s global presence and resources. The court battles continue.

As long as we burn hydrocarbons to fuel our economy, and that is for the foreseeable future, we must find those hydrocarbons more safely. That includes extreme deepwater environments where the margin for error is narrow, if not zero in certain conditions. Earlier this month, almost 5 years after the BP disaster, the BSEE (Bureau of Safety and Environmental Enforcement) issued proposed rules touting improved safety standards, but these rules really just codify current drilling practices adopted after the blowout. It does improve blowout preventer centering capability, a key failure in the BP blowout, and increases accumulator size that increases capability to close the BOP. It also mandates redundancy in shear rams by mandating a minimum of two shear rams in the stack. All that helps, but the real problem here? Congress. Congress has been MIA since the 2010 elections, killing all legislation to put new rules into law or increasing the statutory limited for liability which is still pegged at $75 million as it has been since adoption in 1990. As long as Congress shirks its responsibility to govern, all these changes made to offshore drilling safety can easily be undone by a future president more friendly to the oil and gas industry.

We are at the 5 year mark from this tragedy. Unlike virtually every other developed country on the planet, there have been no proposals from our government for comprehensive US energy policy. Many states are seeking to undo clean air standards and kill alternative fuels including wind and solar. With oil price now in a 50% decline, burning of hydrocarbons continues unabated, and our politicians are clearly more concerned for their own re-election and satisfying their largest donors who are contributing into huge dark pools of money than actually governing. I fear that we are, once again, at risk for another Macondo like event. When (not if) it happens again, my fervent hope is that the American electorate finally wakes up and demands accountability from those who represent us. I’m not optimistic. I mean, after all, Dancing with the Stars is on tonight.

Note: The Great Invisible, the award winning documentary about the the BP oil spill and its aftermath airs tonight on PBS’s Independent Lens. The film was produced by Peabody winner Margaret Brown. I was proud to play a small part in the making of the film.

Cross posted on the Huffington Post.

Pemex Extinguishes Platform Fire

Pemex announced last night via Twitter that the fire on their Bay of Campeche platform had been extinguished and that there was no oil spill.  The platform  was a processing facility and had no wells directly connected.

Platform Explosion in the Bay of Campeche

Pemex has confirmed that 4 workers were killed and 2 injured in a fire on a production platform in the Bay of Campeche off of the Yucatan Peninsula in Mexico.  Water there is generally pretty shallow, around 100 feet deep, and well control is usually performed above water level.  The platform is still on fire and 8 fireboats are battling the blaze.

We’ll keep following the story.

 

 

On October 30, TransCanada filed a plan to build a new pipeline from the oil sands projects in Alberta east to St. John, New Brunswick.  Even though the company says otherwise, Transcanada’s Energy East’s pipeline, with a capacity of 1.1 million barrels of oil per day, provides a direct substitute for the XL extension to the Keystone pipeline which has be in political limbo for 3 years.

Energy-East-Pipeline

The $12 billion pipeline construction project will involve the conversation of an existing natural gas pipeline as well as construction of approximately 900 miles of new pipeline.  Along with the pipeline, a new deepwater terminal for export will be constructed at St. John.

Most important for Transcanada, since the project is wholly contained within the borders of Canada, the project cannot be delayed or used as a political football by US politicians.  So, what’s happened is exactly what markets and economics cause to happen; the XL project has been delayed by US politicians for the benefit of themselves so long that Transcanada has developed a more expensive, but likely more certain alternative that provides a market for crude produced from the oil sands in Alberta.

The lesson here, at least for us?  It is long past time for us to adopt a comprehensive energy policy around weaning ourselves from heavy hydrocarbons and developing more sustainable cleaner fuels to power our future.  The XL pipeline debacle should be another one of those moments in time with which we are occasionally presented that should be used to change our national direction.  Perhaps, one day, we’ll actually take advantage of those opportunities to improve the future for our kids, grandkids, and their kids.

If only that was at the front of our collective consciousness.

 

 

The Keystone XL pipeline extension, proposed by TransCanada Pipeline to increase capacity of oil from Canada to refining centers on the Gulf Coast, has become a political football over the last several years, a victim of hyperbole and demagoguing, is coming up for a vote on Capitol Hill maybe as early as today.  The reason? A runoff election for the US Senate between Democrat Mary Landrieu and Republican challenger US Representative Bill Cassidy, who is so far leading in the polls.  Landrieu, an oil industry friendly Democrat, has been fighting for her political life during this midterm election season where Republicans have recently swept both the House and Senate, as well as many state houses and governor’s mansions.   Read the rest of this entry

Loren Steffy, formerly with the Houston Chronicle, is now writing for Forbes.  He’s just published an article laying out the case for building the Keystone pipeline, with which I agree.  The key points are:

  • Oil from the pipeline will not be exported, which is actually illegal under federal law.
  • Refined products, like gasoline, are being exported, but for economic reasons, due to sagging demand in the US.  It’s either export, or lay off workers.  I’ll take export, which has the side benefit of reducing our trade deficit.
  • The pipeline is essentially insurance against OPEC.  I would rather have the US control more supply, not less.

Great article by Loren.

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