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March 15 2012

22:06

U.S. Chamber Front Group Holds “Whine And Blame” Facebook Party – Nobody Shows Up

American Free Enterprise, a front group of the U.S. Chamber of Commerce, held a complaint session on Facebook on Tuesday afternoon to let Americans vent about “who is to blame” for rising gas prices. Unfortunately for the group, few people attended their virtual party.

The pity party was an attempt to get Americans riled up at President Obama for allegedly being an enemy of the oil industry – a claim that conservatives have falsely been throwing around since he took office. But the lack of enthusiasm was evident by the low participation.

Here is the comment thread from the “discussion," which I captured yesterday. Names and pictures have been covered:

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December 17 2011

22:27

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.

Among the regulations that were revoked was the requirement for offshore rigs to maintain an acoustic switch – a device that would explode and seal off an oil well permanently in the event of a blowout. There was no acoustic switch installed on the Deepwater Horizon rig. Triggering the switch makes the well no longer usable.

Another failure of the government involved the actual rig inspections. Again, our previous reports revealed that the regulators charged with insuring the rig’s safety allowed the oil companies to fill out their own inspection reports in pencil, with the regulators going back over them in pen after they were sent back.

While these aspects were not specifically mentioned in the new report, it does at least put some blame on the government.

The new report also lays plenty of blame at the feet of the companies involved with the Deepwater Horizon rig, which were BP, Transocean, and Halliburton:

The actions, policies, and procedures of the corporations involved did not provide an effective systems safety approach commensurate with the risks of the Macondo well. The lack of a strong safety culture resulting from a deficient overall systems approach to safety is evident in the multiple flawed decisions that led to the blowout…

The (blow-out-prevention) system was neither designed nor tested for the dynamic conditions that most likely existed at the time that attempts were made to recapture well control. Furthermore, the design, test, operation, and maintenance of the (blow out prevention) system were not consistent with a high-reliability, fail-safe device.

Earlier this year, rig-owner Transocean attempted to claim in their own report that the blame for the explosion and oil leak should be levied at BP and Halliburton, and that the Transocean-owned blowout preventer was fully operational. An additional Transocean report tried to lay the blame for the explosion on the rig workers.

The new report also comes on the heels of a recent lawsuit filed by BP claiming that Halliburton was attempting to destroy evidence of their shoddy cement work prior to trial.

September 14 2011

22:02

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.


But the report wasn’t just another episode of the blame game, it actually offered solutions to prevent further disasters. The Associated Press notes the recommendations of the panel as follows:
  

The panel recommended further changes to offshore drilling practices, including requiring at least two barriers to be placed in a well — one mechanical, and one cement. The Macondo well had a single barrier, the cement seal at the bottom, so when the blowout happened the only thing to stop it was the blowout preventer. That didn't work, the panel says, because the kink in the pipe caused by the force of the blowout kept it out of reach of the safety device's shearing rams. The rams are supposed to pinch a well shut in an emergency by slicing through the well's drill pipe.
 

But the Coast Guard report isn’t the only problem that BP is having to deal with in regards to the Deepwater Horizon oil rig. Reports over the last few weeks have been surfacing about oil sheens appearing in the Gulf of Mexico around the “sealed off” Macondo well where the Deepwater Horizon rig was located. Today, a new report by Al Jazeera highlighted the seriousness of the new oil being found in the Gulf:
  

Al Jazeera flew to the area on Sunday, September 11, and spotted a swath of silvery oil sheen, approximately 7 km long and 10 to 50 meters wide, at a location roughly 19 km northeast of the now-capped Macondo 252 well.

Edward Overton, a professor emeritus at Louisiana State University's environmental sciences department, examined data from recent samples taken of the new oil. Overton, who is also a National Oceanic and Atmospheric Administration (NOAA) contractor, told Al Jazeera, "After examining the data, I think it's a dead ringer for the MC252 [Macondo Well] oil, as good a match as I've seen".

While not ruling out the possibility that oil could be seeping out of the giant reservoir, which would be the worst-case scenario, Overton believes the oil currently reaching the surface is likely from oil that was trapped in the damaged rigging on the seafloor. He said the oil could either be leaking from the broken riser pipe that connected the Deepwater Horizon to the well, or that oil is leaking from the Deepwater Horizon itself.
 

Other scientists along the Gulf Coast are worried that the oil could actually be coming from the actual oil reserve itself – speculating fissures developing along the floor of the Gulf of Mexico are leaking oil from the 50 million gallon reservoir beneath the sand. While events like that are actually quite common, none have been known to create sheens as massive as the current one being tracked in the Gulf.

While it will be difficult to prove where the new oil is coming from without extensive underwater surveillance, one thing is for sure: The damage from the Deepwater Horizon disaster will not be subsiding any time soon, and BP’s troubles will linger even longer.

August 22 2011

20:03

Is Deepwater Horizon Rig Owner Trying To Blame Victims For Gulf Oil Disaster?

A new report released by authorities in the Marshall Islands says that the failure of oil rig workers to properly address safety issues led to last year's catastrophic blowout and explosion of the Deepwater Horizon oil rig. The Deepwater Horizon was registered in the Marshall Islands by rig owner Transocean. Much like large ships, oil rigs are often registered in overseas territories for tax purposes.

The Marshall Islands report is one of the first to explicitly put the blame for the disaster on workers rather than the companies involved – BP, Transocean, Halliburton, and Cameron International. While the new report is not the first to claim that communications broke down in the moments leading up to the Deepwater Horizon explosion, it is the first to place the blame mostly on the backs of the people who did everything in their power to avert the disaster, while only casually mentioning the fact that BP’s actions and those of the other companies with a stake in the rig might have also helped cause the disaster.

From The Star Tribune:

In somewhat of a pass for Transocean, the report concluded that confusion regarding decision-making authority during the incident was not a cause of the disaster.

The report also recommended rig operators ensure that new crew members, contractors and visitors be told when they board about the roles and responsibilities of people in charge of the vessel, and how the chain of command works in emergencies.

The report also makes the claim that the oil rig was completely fit for service during the time of the explosion. This claim is contrary to previous reports that Halliburton’s cement mixture was substandard, that BP cut corners on rig safety to save money and forged inspection documents, and that the design of the blowout preventer made the device utterly worthless.

An investigation this past April also revealed that the Marshall Islands had failed in their duties to inspect the vessel, which could have potentially implicated the nation in the spate of lawsuits surrounding the Deepwater Horizon explosion and subsequent oil leak into the Gulf of Mexico.

This report is similar to a report released earlier this year by investigators at Transocean. The Transocean internal report placed the blame squarely on the backs of both BP and Halliburon for a mix of failures, but also claimed that their rig was fit for duty.

What the report ultimately does is vindicate rig owner Transocean from any wrongdoing in the matter. It also protects the Marshall Islands’ stake in offshore drilling vessel registrations.

As mentioned above, oil rigs are usually registered overseas to help cut down on tax liabilities. Transocean, a company based in Sweden, owns roughly 50% of all deepwater rigs in existence, with countless rigs registered in the Marshall Islands. So the Marshall Islands has a deep interest in making sure that Transocean remains free of blame in the matter – they have a lot to gain financially from the company.

However, a report by the U.S. Coast Guard shows that the two entities might be the ones responsible for the command breakdown that they are now blaming for the disaster. From the Coast Guard’s report:

Because of a ‘clerical error,’ by the Republic of the Marshall Islands, DEEPWATER HORIZON, was classified in a manner that permitted it to have a dual-command organizational structure under which the OIM was in charge when the vessel was latched on to the well, but the master was in charge when the MODU was underway between locations or in an emergency situation. When the explosions began, however, there was no immediate transfer of authority from the OIM to the master, and the master asked permission from the OIM to the master, and the master asked permission from the OIM to activate the vessel’s EDS. This command confusion at a critical point in the emergency may have impacted the decision to activate the EDS.”

The Republic of the Marshall Islands’ (RMI’) “clerical error” in listing DEEPWATER HORIZON as a self-propelled MODU instead of a dynamic positioned vessel enabled Transocean to implement a dual-command organizational structure on board the vessel. This arrangement may have impacted the decision to activate the vessel’s emergency disconnect system (EDS). Even though the master, who was responsible for the safety of his vessel, was in the CCR at the time of the well blowout, it cannot be conclusively determined whether his questionable reaction was due to his indecisiveness, a lack of training on how to activate the EDS or the failure to properly execute an emergency transfer of authority as required by the vessel’s operations manual. U.S. regulations do not address whether the master or OIM has the ultimate authority onboard foreign registered dynamic positioned MODUs operating on the U.S. Outer Continental Shelf.”

In essence, by blaming the crew and the breakdown in the chain of command in the run up to the explosion, both Transocean and the Marshall Islands are actually blaming themselves.

So far, every corporate entity involved in the Gulf oil disaster has attempted to put the blame onto someone else. And as long as oil continues to roll up onto our shores, it is unlikely that the blame game will end.

June 24 2011

11:45

Transocean Report Blames BP For Gulf Oil Disaster

Offshore oil drilling giant Transocean released the results of an internal investigation this week on the causes of last year’s Deepwater Horizon oil rig explosion. The investigation concluded that well owner BP was to blame for the explosion and the resulting 3-month oil geyser in the Gulf of Mexico.

Transocean claims that BP’s actions led to the blowout, as they were in charge of most of the decision-making on the Deepwater Horizon rig. Transocean says that BP’s poor decisions caused a succession of problems ranging from the well design itself to the construction process of the Macondo rig. Transocean officials also fault BP for causing a breakdown in communication during construction, which they claim led to many of the failures aboard the oil rig. Here are a few highlights from their report:

BP did not properly communicate to the drill crew the lack of testing on the cement or the uncertainty surrounding critical tests and procedures used to confirm the integrity of the barriers intended to inhibit the flow of hydrocarbons from the well. A hydrocarbon is a compound consisting of hydrogen and carbon that is found in oil and gas.

BP adopted a technically complex nitrogen foam cement program for sealing the well. The resulting cementing job was of minimal quantity, left little margin for error, and was not tested adequately before or after the cementing operation. Further, the integrity of the cement may have been compromised by contamination, instability, and an inadequate number of devices used to center the casing in the wellbore.

Cement contractor Halliburton and BP did not adequately test the cement slurry used to seal the well.

BP also failed to assess the risk of the temporary abandonment procedure used at Macondo. At the time of the explosion, BP was making sure the well was sealed so it could temporarily abandon the site and perhaps come back at some point in the future to produce oil from the exploratory well. Transocean said BP generated at least five different temporary abandonment plans for the Macondo well between April 12, 2010, and April 20, 2010. After this series of last-minute alterations, BP proceeded with a temporary abandonment plan that created risk and did not have the required government approval.

Transocean’s report also claims that their blowout preventer (BOP) was fully operational and played no part in the explosion and oil leak. Transocean was the owner of the blowout preventer, a device that had the potential to prevent the massive oil leak into the Gulf of Mexico. Their claim that the BOP was working properly goes against the findings of previous reports.

As we’ve reported in the past, numerous failures led to last year’s disaster in the Gulf of Mexico, including a lack of regular inspections and a cozy relationship between rig owners and federal regulators.

Transocean is facing numerous lawsuits for their role in the Deepwater Horizon explosion, and their report is likely an attempt to shift the blame onto BP and Halliburton. The likelihood of their internal investigation playing a significant role in litigation remains small, as the government’s report has clearly stated that all parties share in the responsibility for the catastrophe.

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