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Showing posts with label drilling moratorium. Show all posts
Showing posts with label drilling moratorium. Show all posts
16 October 2010
11 September 2010
NRDC ACTION FUND:Rachel Maddow shines a spotlight on the Koch Brother’s efforts against clean energy reforms 10SEP10
THE Koch brothers (3rd after the Gates and Warren Buffett in wealth in America) are primary funders of the tea baggers, taking advantage of the pathetic gullibility and voluntary ignorance and prejudice of these people with the ultimate goal of screwing them for their own financial and political gain. This is from the NRDC Action Fund showing the involvement of Koch Industries, Marathon Petroleum, Ariel Corp (a gas company) and others attacking the "over reaction" to the BP Gulf of Mexico oil spill, the drilling moratorium, climate change, renewable energy, government regulation, taxes and Democrats. David and Charles Koch are greedy, evil corporate pigs intent on buying a government that will let them rape and pillage the environment at the expense of their employees, the tea-bagger movement and the common good of the nation.
The Koch Brothers have been working hard to stop comprehensive clean energy and climate reform. Last night, Rachel Maddow did a great introduction to some of their underhanded tactics. Watch it here:
You can read the ThinkProgress report that she cites here.
ThinkProgress attended one of the rallies yesterday in Canton, Ohio. What was billed as an organic grassroots jobs rally quickly descended into attacks on three things the Kochs most oppose: global warming science, oil safety regulations, and Democrats. One of the speakers, Sgt. Dennis Bartow, called global warming a “hoax.” He was joined by Karen Wright, CEO of the gas company Ariel Corporation, who ridiculed climate change as “questionable science” and referred to pollutants as “so-called carbon dioxide emissions.” Wright went on to rail against “so-called green jobs” that were “dubious” and “phony.”
Other speakers later dismissed attacks on the oil industry’s safety record, particularly in the wake of the Gulf oil spill. Radio host Matt Patrick called the deepwater drilling moratorium “ridiculous” and compared it to a ban on building houses because one caught on fire. Wright “did a quick Google search” on the oil industry’s safety record and openly wondered why Congress doesn’t ban cars because the number of auto accident deaths far exceeds the number of oil industry deaths. Wright also gleefully proclaimed that the oil spill is “all gone,” a claim that is easily dispelled with a quick Google search.
Many of the speakers also rallied the crowd against Ohio’s Democrats in Congress. For example, after telling audience members that he wasn’t going to call out particular politicians nor indict a single political party, Patrick — literally ten seconds later — called out only Democrats by name:
Watch the highlights here:
The Koch Brothers have been working hard to stop comprehensive clean energy and climate reform. Last night, Rachel Maddow did a great introduction to some of their underhanded tactics. Watch it here:
You can read the ThinkProgress report that she cites here.
Koch-Funded Oil Rally Calls Global Warming A ‘Hoax,’ Dismisses Oil Spill, And Attacks Democrats
Beginning last week, the oil industry launched a national astroturfing effort called “Rally for Jobs.” The events, which are being held across the nation, are backed by right-wing billionaire brothers Charles and David Koch. They launched a nearly identical campaign last summer that was widely mocked for its obvious astroturfing after it was revealed that 15 of the 21 Energy Citizens events were actually planned by oil industry lobbyists.ThinkProgress attended one of the rallies yesterday in Canton, Ohio. What was billed as an organic grassroots jobs rally quickly descended into attacks on three things the Kochs most oppose: global warming science, oil safety regulations, and Democrats. One of the speakers, Sgt. Dennis Bartow, called global warming a “hoax.” He was joined by Karen Wright, CEO of the gas company Ariel Corporation, who ridiculed climate change as “questionable science” and referred to pollutants as “so-called carbon dioxide emissions.” Wright went on to rail against “so-called green jobs” that were “dubious” and “phony.”
Other speakers later dismissed attacks on the oil industry’s safety record, particularly in the wake of the Gulf oil spill. Radio host Matt Patrick called the deepwater drilling moratorium “ridiculous” and compared it to a ban on building houses because one caught on fire. Wright “did a quick Google search” on the oil industry’s safety record and openly wondered why Congress doesn’t ban cars because the number of auto accident deaths far exceeds the number of oil industry deaths. Wright also gleefully proclaimed that the oil spill is “all gone,” a claim that is easily dispelled with a quick Google search.
Many of the speakers also rallied the crowd against Ohio’s Democrats in Congress. For example, after telling audience members that he wasn’t going to call out particular politicians nor indict a single political party, Patrick — literally ten seconds later — called out only Democrats by name:
I’m not going to sit here and tell you it’s all one political party or that it’s this politician or that politician. You’ve got some people right now in the state of Ohio that want nothing more than to tax small businesses right out of business. You know who they are. And John Boccieri and Zack Space and Tim Ryan and Betty Sutton and Charlie Wilson, this message is for you. We’re coming after you. Good luck in November!Of the approximately 400 who showed up for the rally, “most arrived in four buses” that were paid for and organized by oil and gas companies. ThinkProgress caught up with one of the attendees, who confirmed that Marathon Petroleum arranged a bus to bring over 50 of its employees to the rally.
Watch the highlights here:
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02 September 2010
One Day Before Its Gulf Oil Rig Exploded, Mariner Energy Said Obama ‘Is Trying To Break Us’ With Moratorium 2SEP10
NO doubt tomorrow Mariner Energy will declare the Obama Moratorium caused the explosion, and the rabid right-wing media and the teabaggers and right-wing fanatics will blame Obama, Democrats and environmentalist for this latest rig explosion.
The U.S. Coast Guard said this morning that a natural gas and oil drilling platform exploded 80 miles off the coast of Louisiana. A Coast Guard spokesperson said the platform, Vermilion Oil Rig 360, is an oil and gas platform in 2,500 feet of water and is owned by Houston-based Mariner Energy.It is not currently producing oil or gas. (The AP updates its story to note the platform was in production at the time of the fire.) Apache Corp. recently purchased Mariner in a multi-billion dollar deal.
Just yesterday, however, the Financial Times reported that employees from Apache and Mariner, along with thousands of oil industry workers, rallied in Houston to protest the Obama administration’s offshore drilling moratorium that was designed as a safety precaution after BP’s disastrous Gulf oil spill. A Mariner Energy employee chastised the Obama administration for its drilling moratorium, which would not have affected the rig that exploded today:
Thirteen workers were on the rig when it exploded; the Coast Guard has said that “all 13 workers involved in the production platform explosion are accounted for, but one person is injured.”
By ALAN SAYRE
The Associated Press
Thursday, September 2, 2010; 8:15 PM
NEW ORLEANS -- An oil platform exploded and burned off the Louisiana coast Thursday, the second such disaster in the Gulf of Mexico in less than five months. This time, the Coast Guard said there was no leak, and no one was killed.
The Coast Guard initially reported that an oil sheen a mile long and 100 feet wide had begun to spread from the site of the blast, about 200 miles west of the source of BP's massive spill. But hours later, Coast Guard Cmdr. Cheri Ben-Iesau said crews were unable to find any spill.
The company that owns the platform, Houston-based Mariner Energy, did not know what caused the explosion.
Mariner officials said there were seven active production wells on the platform, and they were shut down shortly before the fire broke out.
Louisiana Gov. Bobby Jindal said the company told him the fire began in 100 barrels of light oil condensate, but officials did not know yet what sparked the flames.
The Coast Guard said Mariner Energy reported the oil sheen. In a public statement, the company said an initial flyover did not show any oil.
Photos from the scene showed at least five ships floating near the platform. Three of them were shooting great plumes of water onto the machinery. Light smoke could be seen drifting across the deep blue waters of the gulf.
By late afternoon, the fire on the platform was out.
The platform is in about 340 feet of water and about 100 miles south of Louisiana's Vermilion Bay. Its location is considered shallow water, much less than the approximately 5,000 feet where BP's well spewed oil and gas for three months after the April rig explosion that killed 11 workers.
Responding to any oil spill in shallow water would be much easier than in deep water, where crews depend on remote-operated vehicles to access equipment on the sea floor.
A Homeland Security update obtained by The Associated Press said the platform was producing 58,800 gallons of oil and 900,000 cubic feet of gas per day. The platform can store 4,200 gallons of oil.
White House press secretary Robert Gibbs said the administration has "response assets ready for deployment should we receive reports of pollution in the water."
All 13 of the platform's crew members were rescued from the water. They were found huddled together in life jackets.
The captain of the boat that rescued the platform crew said his vessel was 25 miles away when it received a distress call Thursday morning from the platform.
The Crystal Clear, a 110-foot boat, was in the Gulf doing routine maintenance work on oil rigs and platforms. When Capt. Dan Shaw arrived at the scene of the blast, the workers were holding hands in the water, where they had been for two hours. They were thirsty and tired.
"We gave them soda and water, anything they wanted to drink," Shaw said. "They were just glad to be on board with us."
Shaw said the blast was so sudden that the crew did not have time to get into lifeboats. They did not mention what might have caused the blast.
"They just said there was an explosion, there was a fire," Shaw said. "It happened very quick."
Crew members were being flown to a hospital in Houma. The Coast Guard said one person was injured, but the company said there were no injuries. All of them were released by early Thursday evening.
Jindal met with some of the survivors. He would not identify them except to say most were from Louisiana.
Environmental groups and some lawmakers said the incident showed the dangers of offshore drilling, and urged the Obama administration to extend a temporary ban on deepwater drilling to shallow water, where this platform was located.
"How many accidents are needed and how much environmental and economic damage must we suffer before we act to contain and control the source of the danger: offshore drilling?" said Rep. Frank Pallone, a New Jersey Democrat.
Mike Gravitz, oceans advocate for Environment America, said President Barack Obama "should need no further wake-up call to permanently ban new drilling."
There are about 3,400 platforms operating in the Gulf, according to the American Petroleum Institute. Together they pump about a third of the America's domestic oil, forming the backbone of the country's petroleum industry.
Platforms are vastly different from oil rigs like BP's Deepwater Horizon. They are usually brought in after wells are already drilled and sealed.
"A production platform is much more stable," said Andy Radford, an API expert on offshore oil drilling. "On a drilling rig, you're actually drilling the well. You're cutting. You're pumping mud down the hole. You have a lot more activity on a drilling rig."
In contrast, platforms are usually placed atop stable wells where the oil is flowing at a predictable pressure, he said. A majority of platforms in the Gulf do not require crews on board.
Many platforms, especially those in shallower water, stand on legs that are drilled into the sea floor. Like a giant octopus, they spread numerous pipelines and can tap into many wells at once.
Platforms do not have blowout preventers, but they are usually equipped with a series of redundant valves that can shut off oil and gas at different points along the pipeline.
Numerous platforms were damaged during hurricanes Katrina and Rita. The storms broke pipelines, and oil spilled into the Gulf. But the platforms successfully kept major spills from happening, Radford said.
"Those safety valves did their job," he said.
Industry representatives sought to minimize Thursday's incident and distance it from the well blowout in April.
"We have on these platforms on any given year roughly 100 fires," said Allen Verret, executive director of the Offshore Operators Committee.
Federal authorities have cited Mariner Energy and related entities for 10 accidents in the Gulf of Mexico over the last four years, according to safety records from the Bureau of Ocean Energy Management, Regulation and Enforcement.
The accidents range from platform fires to pollution spills and a blowout, according to accident-investigation reports from the agency formerly known as the Minerals Management Service.
In 2007, welding sparks falling onto an oil storage tank caused a flash fire that slightly burned a contract worker. The Minerals Management Service issued a $35,000 fine.
Mariner Energy Inc. focuses on oil and gas exploration and production in the Gulf. In April, Apache Corp., another independent oil company, announced plans to buy Mariner in a cash-and-stock deal valued at $3.9 billion, including the assumption of about $1.2 billion of Mariner's debt. That deal is pending.
On Friday, BP was expected to begin the process of removing the cap and failed blowout preventer from its ruptured well, another step toward completion of a relief well that would seal the leak permanently. The Deepwater Horizon exploded April 20, setting off a three-month leak that totaled 206 million gallons of oil.
The U.S. Coast Guard said this morning that a natural gas and oil drilling platform exploded 80 miles off the coast of Louisiana. A Coast Guard spokesperson said the platform, Vermilion Oil Rig 360, is an oil and gas platform in 2,500 feet of water and is owned by Houston-based Mariner Energy.
Just yesterday, however, the Financial Times reported that employees from Apache and Mariner, along with thousands of oil industry workers, rallied in Houston to protest the Obama administration’s offshore drilling moratorium that was designed as a safety precaution after BP’s disastrous Gulf oil spill. A Mariner Energy employee chastised the Obama administration for its drilling moratorium, which would not have affected the rig that exploded today:
Companies ranging from Chevron to Apache bussed in up to 5,000 employees to the Houston convention centre to underline to Washington the industry’s contribution to the country. [...]Apache Corp. recently agreed to buy BP assets in order to help the British oil giant meet its financial obligations as a result of its Gulf of Mexico oil spill.
“I have been in the oil and gas industry for 40 years, and this administration is trying to break us,” said Barbara Dianne Hagood, senior landman for Mariner Energy, a small company. “The moratorium they imposed is going to be a financial disaster for the gulf coast, gulf coast employees and gulf coast residents.”
Thirteen workers were on the rig when it exploded; the Coast Guard has said that “all 13 workers involved in the production platform explosion are accounted for, but one person is injured.”
Update The Washington Post reports, "In its recent Securities and Exchange filing, the company said that the Interior Department's moratorium on deep-water drilling in the Gulf of Mexico had affected Mariner's operations. It said its operations 'may be impacted in the future by increased regulatory oversight, which may increase the cost of' Outer Continental Shelf wells 'and delay drilling and production therefrom.'"
Oil platform explodes off La. coast; crew rescued
SLIDESHOW
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Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, off the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
Map locates site of new oil rig explosion (P. Holm - AP)
Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, off the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, of the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, of the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
A person believed to be survivor of an oil and gas platform exploion in the Gulf of Mexico, is helped off a Coast Guard rescue helicopter on the heliport of Terrebonne General Hospital, where injured and survivors were taken, in Houma , Louisiana., Thursday, Sept. 2, 2010. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, off the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
Boats are seen spraying water on an oil and gas platform that exploded in the Gulf of Mexico, off the coast of Louisiana., Thursday, Sept. 2, 2010. All 13 crew members were rescued. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
An unidentified Coast Guard search and rescue team member shakes hands with persons believed to be survivors of an oil and gas platform that exploded in the Gulf of Mexico, after they walked off a Coast Guard rescue helicopter on the heliport of Terrebonne General Hospital, where injured and survivors were taken, in Houma , La., Thursday, Sept. 2, 2010. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)
By ALAN SAYRE
The Associated Press
Thursday, September 2, 2010; 8:15 PM
NEW ORLEANS -- An oil platform exploded and burned off the Louisiana coast Thursday, the second such disaster in the Gulf of Mexico in less than five months. This time, the Coast Guard said there was no leak, and no one was killed.
The Coast Guard initially reported that an oil sheen a mile long and 100 feet wide had begun to spread from the site of the blast, about 200 miles west of the source of BP's massive spill. But hours later, Coast Guard Cmdr. Cheri Ben-Iesau said crews were unable to find any spill.
The company that owns the platform, Houston-based Mariner Energy, did not know what caused the explosion.
Mariner officials said there were seven active production wells on the platform, and they were shut down shortly before the fire broke out.
Louisiana Gov. Bobby Jindal said the company told him the fire began in 100 barrels of light oil condensate, but officials did not know yet what sparked the flames.
The Coast Guard said Mariner Energy reported the oil sheen. In a public statement, the company said an initial flyover did not show any oil.
Photos from the scene showed at least five ships floating near the platform. Three of them were shooting great plumes of water onto the machinery. Light smoke could be seen drifting across the deep blue waters of the gulf.
By late afternoon, the fire on the platform was out.
The platform is in about 340 feet of water and about 100 miles south of Louisiana's Vermilion Bay. Its location is considered shallow water, much less than the approximately 5,000 feet where BP's well spewed oil and gas for three months after the April rig explosion that killed 11 workers.
Responding to any oil spill in shallow water would be much easier than in deep water, where crews depend on remote-operated vehicles to access equipment on the sea floor.
A Homeland Security update obtained by The Associated Press said the platform was producing 58,800 gallons of oil and 900,000 cubic feet of gas per day. The platform can store 4,200 gallons of oil.
White House press secretary Robert Gibbs said the administration has "response assets ready for deployment should we receive reports of pollution in the water."
All 13 of the platform's crew members were rescued from the water. They were found huddled together in life jackets.
The captain of the boat that rescued the platform crew said his vessel was 25 miles away when it received a distress call Thursday morning from the platform.
The Crystal Clear, a 110-foot boat, was in the Gulf doing routine maintenance work on oil rigs and platforms. When Capt. Dan Shaw arrived at the scene of the blast, the workers were holding hands in the water, where they had been for two hours. They were thirsty and tired.
"We gave them soda and water, anything they wanted to drink," Shaw said. "They were just glad to be on board with us."
Shaw said the blast was so sudden that the crew did not have time to get into lifeboats. They did not mention what might have caused the blast.
"They just said there was an explosion, there was a fire," Shaw said. "It happened very quick."
Crew members were being flown to a hospital in Houma. The Coast Guard said one person was injured, but the company said there were no injuries. All of them were released by early Thursday evening.
Jindal met with some of the survivors. He would not identify them except to say most were from Louisiana.
Environmental groups and some lawmakers said the incident showed the dangers of offshore drilling, and urged the Obama administration to extend a temporary ban on deepwater drilling to shallow water, where this platform was located.
"How many accidents are needed and how much environmental and economic damage must we suffer before we act to contain and control the source of the danger: offshore drilling?" said Rep. Frank Pallone, a New Jersey Democrat.
Mike Gravitz, oceans advocate for Environment America, said President Barack Obama "should need no further wake-up call to permanently ban new drilling."
There are about 3,400 platforms operating in the Gulf, according to the American Petroleum Institute. Together they pump about a third of the America's domestic oil, forming the backbone of the country's petroleum industry.
Platforms are vastly different from oil rigs like BP's Deepwater Horizon. They are usually brought in after wells are already drilled and sealed.
"A production platform is much more stable," said Andy Radford, an API expert on offshore oil drilling. "On a drilling rig, you're actually drilling the well. You're cutting. You're pumping mud down the hole. You have a lot more activity on a drilling rig."
In contrast, platforms are usually placed atop stable wells where the oil is flowing at a predictable pressure, he said. A majority of platforms in the Gulf do not require crews on board.
Many platforms, especially those in shallower water, stand on legs that are drilled into the sea floor. Like a giant octopus, they spread numerous pipelines and can tap into many wells at once.
Platforms do not have blowout preventers, but they are usually equipped with a series of redundant valves that can shut off oil and gas at different points along the pipeline.
Numerous platforms were damaged during hurricanes Katrina and Rita. The storms broke pipelines, and oil spilled into the Gulf. But the platforms successfully kept major spills from happening, Radford said.
"Those safety valves did their job," he said.
Industry representatives sought to minimize Thursday's incident and distance it from the well blowout in April.
"We have on these platforms on any given year roughly 100 fires," said Allen Verret, executive director of the Offshore Operators Committee.
Federal authorities have cited Mariner Energy and related entities for 10 accidents in the Gulf of Mexico over the last four years, according to safety records from the Bureau of Ocean Energy Management, Regulation and Enforcement.
The accidents range from platform fires to pollution spills and a blowout, according to accident-investigation reports from the agency formerly known as the Minerals Management Service.
In 2007, welding sparks falling onto an oil storage tank caused a flash fire that slightly burned a contract worker. The Minerals Management Service issued a $35,000 fine.
Mariner Energy Inc. focuses on oil and gas exploration and production in the Gulf. In April, Apache Corp., another independent oil company, announced plans to buy Mariner in a cash-and-stock deal valued at $3.9 billion, including the assumption of about $1.2 billion of Mariner's debt. That deal is pending.
On Friday, BP was expected to begin the process of removing the cap and failed blowout preventer from its ruptured well, another step toward completion of a relief well that would seal the leak permanently. The Deepwater Horizon exploded April 20, setting off a three-month leak that totaled 206 million gallons of oil.
23 June 2010
Walruses! Dead Turtle Experts! Xerox Machines! 16JUN10 & Judge Blocks Moratorium On Gulf Offshore Drilling 22JUN10
— Still from Alice in Wonderland, 1951
Since the explosion of the Deepwater Horizon rig, we've seen just how sad BP's planning for the event of a disaster has been. But we also got a glimpse of how ridiculous it was on paper. BP's 583-page Gulf plan, last updated in June 2009, included references to how to protect walruses and sea lions, which, as Energy and Environment subcommittee chair Ed Markey (D-Mass.) noted, "have not called the Gulf home for 3 million years." The plan also included the phone number of a sea turtle expert who has been dead for five years.
And it gets even worse: The other four oil giants are using almost the exact same plans.
In yesterday's hearing, representatives brought out the emergency response plans of Shell, ConocoPhillips, Chevron, ExxonMobil, and BP that had been drafted in case of an oil spill in the region. The cover photos of rigs and tankers are identical, just in different colors, and four of the five plans include the references to walruses, sea lions, seals, and sea turtle expert Dr. Peter Lutz. They list him as a staff member of the University of Miami, though he hadn't worked there since 1991, when he left for Florida Atlantic University. Oh, and he passed away in February 2005, so he probably wouldn't be able to offer much help now anyway.
"ExxonMobil, Chevron, ConocoPhillips, and Shell are as unprepared as BP," said Henry Waxman (D-Calif.), who called the responses "cookie cutter" plans. "When you look at the details, it becomes evident these [response] plans are just paper exercises."
Markey summed up the companies' response strategies pretty well in Tuesday's hearing: "The only technology you seem to be relying on is the Xerox machine."
ExxonMobil CEO Rex Tillerson defended the inclusion of Lutz. Just because he passed away, said Tillerson, "does not mean the importance of his work died with him." (He did grant that, "It's unfortunate that walruses were included.") Tillerson also defended the overlap between the companies' plans: "Cookie cutter should not come as a surprise. The industry relies on sharing resources."
All of the executives testifying yesterday maintained that the Gulf disaster was the fault of BP failing to uphold safety and environmental standards, not an industry-wide problem. Had this been their operation, they would have made better decisions, each said, decisions that would have prevented the blowout in the first place. "Most of us sitting here today would have handled it differently," said James Mulva, president of ConocoPhillips.
The companies are, however, very concerned about the media coverage. Exxon's plan has a 40-page appendix on dealing with the media, with 13 sample press releases. They range from what to say in case of a minor incident ("ExxonMobil deeply regrets the incident that occurred") to a major incident possibly involving fatalities ("We are greatly saddened by this tragic event and express our deepest sympathy to the families of those affected. We are working with [APPROPRIATE AUTHORITIES] at the site to investigate the cause of the incident").
They might be ready for the media, but none of the executives would testify that they could do much better than BP when it came to responding to this kind of disaster. "The fact of the matter is when these things happen, we are not well equipped to handle them," said Tillerson. "That's why the emphasis is on preventing them."
And when that doesn't happen? Well, then we apparently get what we're currently watching unfold in the Gulf. But don't worry – this is just BP's problem.
See all the response plans for the Gulf:
BP
ConocoPhillips
ExxonMobil
Shell
Chevron
Judge Blocks Moratorium On Gulf Offshore Drilling
by The Associated Press
Enlarge Saul Loeb/AFP/Getty Images A crane idles next to offshore oil rig supply ships at Port Fourchon, La., last week. More than 95 percent of the port's business is related to the oil and gas industry.
Saul Loeb/AFP/Getty Images
A crane idles next to offshore oil rig supply ships at Port Fourchon, La., last week. More than 95 percent of the port's business is related to the oil and gas industry.
June 22, 2010
A federal judge struck down the Obama administration's six-month ban on deepwater oil drilling in the Gulf of Mexico as rash and heavy-handed Tuesday, saying the government simply assumed that because one rig exploded, the others pose an imminent danger, too.The White House promised an immediate appeal. The Interior Department had imposed the moratorium last month in the wake of the BP disaster, halting approval of any new permits for deepwater projects and suspending drilling on 33 exploratory wells.
White House spokesman Robert Gibbs said President Barack Obama believes that until investigations can determine why the spill happened, continued deepwater drilling exposes workers and the environment to "a danger that the president does not believe we can afford."
Heard On 'All Things Considered'
June 22, 2010
U.S. District Judge Martin Feldman, who was appointed by President Ronald Reagan and has owned stock in a number of petroleum-related companies, sided with the plaintiffs.
"If some drilling equipment parts are flawed, is it rational to say all are?" he asked. "Are all airplanes a danger because one was? All oil tankers like Exxon Valdez? All trains? All mines? That sort of thinking seems heavy-handed, and rather overbearing."
He also warned that the shutdown would have an "immeasurable effect" on the industry, the local economy and the U.S. energy supply.
Interior Secretary Ken Salazar said in a statement late Tuesday that within the next few days he will issue a new order imposing a moratorium that eliminates any doubt it is needed and appropriate.
Feldman's ruling was welcomed by the oil and gas industry and decried by environmentalists.
More From NPR's 'Political Junkie'
It was not clear whether Feldman still has any of the energy industry stocks. Recent court filings indicate he may no longer have Transocean stock. The 2008 report showed that he did not own any individual shares in big companies such as BP, which leased the rig that exploded, or ExxonMobil.
Feldman did not immediately respond to a request for more information about his current holdings.
Josh Reichert, managing director of the Pew Environment Group, said the ruling should be rescinded if the judge still has investments in companies that could benefit. "If Judge Feldman has any investments in oil and gas operators in the Gulf, it represents a flagrant conflict of interest," Reichert said.
Feldman's ruling prohibits federal officials from enforcing the moratorium until a trial is held. At least two major oil companies, Shell and Marathon, said they would wait to see how the appeals play out before resuming drilling.
In his ruling, the judge called the spill "an unprecedented, sad, ugly and inhuman disaster," but said Salazar's rationale for the moratorium "does not seem to be fact-specific and refuses to take into measure the safety records of those others in the Gulf." Feldman said he was "unable to divine or fathom a relationship between the findings and the immense scope of the moratorium."
The judge said the blanket moratorium "seems to assume that because one rig failed and although no one yet fully knows why, all companies and rigs drilling new wells over 500 feet also universally present an imminent danger."
The lawsuit was filed by Hornbeck Offshore Services of Covington, La. CEO Todd Hornbeck said after the ruling that he is looking forward to getting back to work. "It's the right thing for not only the industry but the country," he said.
Earlier in the day, executives at a major oil conference in London warned that the moratorium would cripple world energy supplies. Steven Newman, president and CEO of Transocean, called it unnecessary and an overreaction.
"There are things the administration could implement today that would allow the industry to go back to work tomorrow without an arbitrary six-month time limit," Newman said.
BP CEO Tony Hayward skipped the event after coming under fire for attending a yacht race in England on Saturday rather than dealing with the spill.
BP stock dropped 81 cents, or 2.7 percent, to $29.52, near a 14-year-old low for the company in U.S. trading. The stocks of other companies associated with the spill remained low despite Feldman's ruling.
The drilling moratorium was declared May 6 and originally was to last only through the month. Obama announced May 27 that he was extending it for six months.
Rep. Edward Markey, D-Mass., chairman of the Select Committee on Energy Independence and Global Warming, slammed the ruling.
"This is another bad decision in a disaster riddled with bad decisions by the oil industry," said Markey, who was at the forefront of the effort to force BP to make underwater video of the spill public. "The only thing worse than one oil spill disaster in the Gulf of Mexico would be two oil spill disasters."
In Louisiana, Gov. Bobby Jindal and corporate leaders had complained that the moratorium would cost the region thousands of lucrative jobs, most paying more than $50,000 a year.
Feldman agreed, writing: "An invalid agency decision to suspend drilling of wells in depths over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region and the critical present-day aspect of the availability of domestic energy in this country."
He said Gulf drilling accounts for 31 percent of total domestic oil production and 11 percent of domestic natural gas production, and an estimated 150,000 jobs are directly related to offshore operations.
Tim Kerner, mayor of the fishing town of Lafitte, La., cheered the ruling. "I love it. I think it's great for the jobs here and the people who depend on them," he said.
The American Petroleum Institute, one of the industry's main lobbying groups, also welcomed the decision: "With this ruling, our industry and its people can get back to work to provide Americans with the energy they need, and do it safely and without harming the environment."
In its response to the lawsuit, the Interior Department had argued the moratorium was necessary while the effort to stop the leak and clean the Gulf continues and new safety standards are developed. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," the department said.
The government also challenged contentions that the moratorium would cause long-term economic harm. There are still 3,600 oil and natural gas production platforms in the Gulf.
As Feldman was issuing his ruling, the people in charge of a $20 billion fund to compensate those whose livelihoods have been ruined by the spill were on the coast Tuesday to talk with officials about the claims process.
Kenneth Feinberg, tapped by the White House to run the fund, has pledged to speed payments to fishermen, business owners and others. He was to meet with Alabama Gov. Bob Riley.
BP claims director Darryl Willis visited a claims center in a rundown strip mall in Bayou La Batre, Ala., and said the company has already cut 37,000 checks for $118 million. Claims totaling about $600 million have been filed so far.
"Anyone who feels like they have been damaged or hurt or harmed has every right to file a claim," Willis said. "These are complicated in some cases, and in some cases they're straightforward. But every person should file their claim, and they will be looked at fairly."
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