Archive for June 24th, 2010

24
Jun
10

After Earlier Troubles, BP Says It Restored Cap

NEWS
After Earlier Troubles, BP Says It Restored Cap
Thursday, June 24, 2010

Earth••• BP on Wednesday reinstalled an oil containment system sucking up crude from a ruptured pipe in the Gulf of Mexico, which had been removed following a collision with a robotic submarine.

The oil cap ‘was successfully reinstalled on the Deepwater Horizon’s failed blow-out preventer’ at 6.30 pm Wednesday, BP said in a statement, adding that ‘the system resumed collecting oil and gas’ a half hour later.

Oil spewed unhindered into the Gulf of Mexico when BP detached the “top hat” cap, which traps leaking oil and then siphons it up to a container ship, and made repairs after a remote-controlled submarine crashed into it.

The setback marked a terrible start for American Bob Dudley in his first day as BP’s disaster coordinator, brought in by the firm to replace gaffe-prone British CEO Tony Hayward.

Admiral Thad Allen, leading the U.S. government effort to confront the nation’s worst ever environmental disaster, said earlier the cap had been removed for inspection after crews detected gas.

“Out of an abundance of caution … they moved the containment cap with the riser pipe and moved away so they can assess the condition,” Allen told reporters earlier on Wednesday, before the cap was reattached.

“They indicated the problem was a remotely-operated vehicle had bumped into one of the vents,” Allen said, adding that the vent had then closed, creating pressure that had forced up gas and other materials.

The cap is siphoning away some 25,000 barrels of oil each day, and keeping it off would have exacerbated the dire effects of the massive leak that has allowed between 35,000 and 60,000 barrels of crude to gush into the sea, according to the latest U.S. government estimates.

Completing a disastrous start for Dudley, Allen said two people involved in the clean-up efforts had been reported dead in separate incidents.
One was killed in what he described as “an accident regarding a swimming pool,” and the second individual died of a likely self-inflicted gunshot to the head, according to the local Alabama coroner who treated the body.

Dudley assumes command from Hayward, who faced massive criticism of his handling of the spill, including accusations of insensitivity, and was ridiculed as out of touch.

Unlike Hayward, Dudley is an American citizen who spent much of his childhood in Mississippi, one of the four southern U.S. states whose coastlines face an environmental catastrophe.

The news came as administration officials pledged to redouble efforts to freeze new deepwater oil drilling while they assessed safety regulations.

On Tuesday, Judge Martin Feldman overturned a drilling moratorium authorised by President Barack Obama in the spill’s aftermath, saying it was ‘arbitrary and capricious’.

But the White House pledged to appeal the decision and Interior Secretary Ken Salazar told lawmakers at a hearing on Wednesday that he would soon issue a new order to ensure the freeze sticks.

“We will move forward with the executive authority which I have to make sure that the moratorium stays in place,” Salazar said.

The Obama administration believes the decision flies in the face of mounting evidence that there are serious safety risks with the 33 deepwater wells in question.

But oil workers and executives argue the freeze is driving away business, and Louisiana Governor Bobby Jindal, a Republican, said the moratorium hurt the same people already being negatively impacted by the spill.

An internal BP document released by a U.S. lawmaker this week showed the firm contemplated a worst-case scenario of up to 100,000 barrels, or 4.2 million gallons, a day leaking.

America’s worst previous oil spill, the 1989 Exxon Valdez disaster, dumped nearly 11 million gallons off the Alaskan coast, but even under the low end of current estimates, more than 90 million gallons have entered the Gulf.

BP has spent $2 billion so far on cleaning up the spill and compensating residents and businesses facing ruin.
• Latest News & Headlines » Home «
Share

24
Jun
10

Gulf oil spill has new face: BP replaces Tony Hayward with Bob Dudley as head of cleanup effort

NEWS
Gulf oil spill has new face: BP replaces Tony Hayward with Bob Dudley as head of cleanup effort
Thursday, June 24, 2010

••• BP put Mississippi native Bob Dudley in charge of handling the Gulf oil spill in an effort to take the spotlight off chief executive Tony Hayward.

BP PLC confirmed that Dudley, who grew up in Hattiesburg, an easy drive from the coast, is now the point man in the mission to stop the oil gusher and deal with the economic damage it has caused.

Dudley, who had led BP’s operations in the Americas and Asia, is no stranger to tough situations, having protected his company’s interests in rough dealing in Russia even after he was barred from the country.

The 54-year-old spent two decades climbing the ranks at Amoco Corp., which merged with BP, and lost out to Hayward on the CEO’s slot three years ago.

Perhaps most importantly, he is a fresh face for the oil company as it attempts to fix the spill and protect its future. Hayward shocked Gulf residents last month when he said “I’d like my life back” and weeks later went yachting.

Dudley was appointed president and chief executive of the newly created Gulf Coast Restoration Organization, effective immediately, and will report to Hayward.

“In the near term, my focus will be on listening to stakeholders, so we can address concerns and remove obstacles that get in the way of our effectiveness. And we’ll build an organisation that over the longer term fulfils BP’s commitments to the restore the livelihoods and the environment of the Gulf Coast,” Dudley said.

The reorganisation followed a series of humiliations in recent days for BP. Last week it bowed to President Barack Obama’s demand that it set up a $20 billion escrow fund to cover damages and to suspend dividend payments, followed a day later by a public thrashing for Hayward before a Congressional committee.

Hayward repeatedly apologised and expressed sorrow for the oil leak caused by a fire and explosion on the Deepwater Horizon drilling rig on April 20. Eleven workers on the rig died.

Members of the House Energy and Commerce Committee were infuriated when Hayward denied direct responsibility for operational decisions which may have led to the disaster.

“You’re really insulting our intelligence,” Rep. Eliot Engel, a Democrat from New York, said at Thursday’s hearing. “I am thoroughly disgusted.”
Hayward had a further public relations gaffe over the weekend when he was photographed at a yacht race, and on Tuesday he ducked out of a previously announced commitment to speak at an oil industry conference in London.

A defining moment in BP’s response to the disaster came on May 30 with Hayward’s unguarded remark that “There’s no one who wants this over more than I do. I’d like my life back.”

Prime Minister David Cameron intends to press Obama this weekend at the G8 summit for more clarity on the ultimate financial cost that BP will face, the British leader’s office said.

Cameron told the House of Commons on Wednesday that the company is prepared to meet its obligations to fund the clean up and compensate those whose businesses have been blighted by the spill.

“But we do want to make sure that this remains a strong and stable company, for our benefit but also for the benefit of the United States,” Cameron said.

BP said the newly formed organisation will manage all aspects of the response to the Deepwater Horizon incident and the oil and gas spill in the Gulf of Mexico. That includes clean-up operations, coordinating with the U.S. government and local officials, and managing the $20 billion escrow account.

“Having grown up in Mississippi, Bob has a deep appreciation and affinity for the Gulf Coast, and believes deeply in BP’s commitment to restore the region,” Hayward said.

“Our commitment to the Gulf States is for the long-term. And that requires a more permanent sustainable organisation to see it through,” Hayward added.

BP had said on Tuesday that Dudley would be taking the lead in the United States while Hayward retreated to his chief executive role.

Dudley’s oil industry career began in 1979 with Amoco, which merged with BP in 1998.

Between 1994 and 1997 Dudley was based in Moscow, working on developing Amoco’s business in Russia. From 2003 to 2008, he was president and chief executive of TNK-BP, a joint venture in Russia with a consortium of billionaires.

In that job, he steered the firm through a series of politically explosive disputes that saw one employee charged with espionage, the company’s offices raided by Russian intelligence, an investor boycott and a barrage of tax and labour investigations.
• Latest News & Headlines » Home «
Share




Calendar

June 2010
M T W T F S S
« May   Jul »
 123456
78910111213
14151617181920
21222324252627
282930  

Archives

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2 other followers

© Copyright 2010 Dominic Stoughton. All Rights reserved.

Dominic Stoughton's Blog