Posts Tagged ‘Tony Hayward

13
Aug
10

Alabama Sues BP, Transocean, Halliburton over Gulf Oil Spill

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Alabama Sues BP, Transocean, Halliburton over Gulf Oil Spill
Alabama AG Sues BP, Transocean, Halliburton For “Catastrophic” Gulf Oil Spill

Friday, August 13, 2010

The U.S. state of Alabama is suing BP and Transocean for damages sustained from the Gulf of Mexico oil leak.

‘We are making this claim because we believe BP has inflicted catastrophic harm,’ said the state’s attorney general, Troy King.

‘We are suing them for the amount it will take to make Alabama whole.’

Mr. King did not name a figure.

Sky’s U.S. correspondent Robert Nisbet said: ‘This is particularly interesting within the state of Alabama because the state’s governor (Bob Riley) disagrees with the attorney general’s course of action. He wants to wait to see what compensation BP offers first.’

King defended his decision, arguing that it put the state in the strongest legal position.

Nisbet added: ‘Some 300 federal lawsuits have already been filed against BP and other companies involved in this spill in over 12 states – so a huge amount of legal complication and difficulty now facing BP.’
Louisiana sustained the most damage to its coastline and waters from the oil spill that began in April and was plugged with cement on July 15.

But oil also damaged the economies of Mississippi, Alabama and Florida.

Alabama’s suit also names Anadarko Petroleum Corp, among others. ‘It is believed the explosion on the Deepwater Horizon was a blowout relating to the cementing work,’ according to the suit.

On the leak itself, meanwhile, National Incident Commander Thad Allen says they are still deciding when to resume work on the relief well.

Ambient pressure tests on the temporary, ‘static kill’, solution had been completed, he said, and those results suggest pressure is being maintained – although there is minor leakage from the flange.

However, they are concerned that proceeding with the ‘bottom kill’, the final cement plug using the relief well, could disrupt what they have done already and create increased pressure. More tests will be conducted.
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09
Aug
10

BP Prepares for Final Drilling Phase

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BP Prepares for Final Drilling Phase

Monday, August 9, 2010

BP today advanced on what it hopes is the final lap towards permanently killing the source of the world’s worst offshore oil spill and kicked off a $20 billion compensation fund with a first $3 billion deposit.

A relief well being drilled by BP is on track to start this week to provide a definitive “bottom kill” shutdown of the crippled Gulf of Mexico well, unless an approaching weather system disrupts the timing, the top U.S. oil spill response chief said.

The biggest environmental response operation ever launched in the United States passed a critical milestone last week by subduing the blown-out deep-water well with injections of heavy drilling mud, followed by a cement seal.

BP’s Macondo well, 1 mile down in the Gulf of Mexico, had been provisionally capped on July 15th after spewing an estimated 4.9 million barrels of oil into the Gulf, soiling marshlands, fisheries and tourist beaches along several hundreds of miles of the Gulf Coast.

But the relief well is regarded as the final solution to plug the well 2.5 miles beneath the seabed.

“They are closing in on the last 30-40 feet . . . it’s ongoing and going in segments,” response chief retired Coast Guard admiral Thad Allen said in an update on the relief well. “We expect that sometime before the end of the week we will be able to . . . commence the kill,” he told a conference call.
As the deep-water engineering operation progressed, BP said it was also moving to fulfill its public commitments to compensate for economic damage caused by the spill.

Mr. Allen said the spill response authorities were closely watching a tropical weather system moving east over the Florida peninsula, which forecasters see crossing in a few days near BP’s Deepwater Horizon spill site.

He said that depending on its strength and direction, this system could affect the timing of the relief well “bottom kill” operation. Forecasters were giving this disturbance a 30 percent chance of strengthening into a tropical cyclone.

Elsewhere, BP said it had made an initial deposit of $3 billion into a $20 billion escrow fund.

The chief executive of BP’s Gulf Coast Restoration Organization, Bob Dudley, said the $3 billion initial contribution to the escrow fund was intended to back up the company’s repeated pledge to “make good” economic losses caused by the spill to Gulf Coast fishermen, tourism operators and home owners.

“Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast,” Mr. Dudley said in a statement.

The U.S. Justice Department confirmed the contribution, saying it had completed negotiations with BP on the fund.
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05
Aug
10

BP begins to seal runaway well in Gulf of Mexico

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BP begins to seal runaway well in Gulf of Mexico

Thursday, August 5, 2010

BP has begun sealing its runaway oil well in the Gulf of Mexico with cement, one of the final steps to plug the gusher at the center of the worst U.S. environmental disaster on record.

Some 15 weeks after the well ruptured and 21 days after the flow was stemmed with a temporary cap, the massive slick which once stretched for hundreds of miles is rapidly disappearing from the Gulf.

But officials cautioned that a great deal of clean-up work remained and that the long-term impact of the disaster could be felt for years, even decades.

In a long-awaited breakthrough, BP brought the well under control on Wednesday after pumping heavy drilling fluid into the busted Macondo well for eight hours, forcing the oil back down into the reservoir miles beneath the seabed.

The British energy giant then began pumping cement at 09.15 CDT on Thursday after the procedure was approved by U.S. officials.

‘The aim of the procedure is to assist with the strategy to kill and isolate the well,’ BP said in a statement. ‘This procedure will complement the ongoing relief well operation.’

In giving the green light, spill response chief Thad Allen emphasised that the cementing should ‘in no way delay the completion of the relief well,’ expected to be finished in mid-August to seal the well permanently.
‘So, the long battle to stop the leak and contain the oil is finally close to coming to an end. And we are very pleased with that,’ U.S. President Barack Obama said. ‘Our recovery efforts, though, will continue. We have to reverse the damage that’s been done.’

It took 106 days to shut the well down in the wake of a devastating explosion on April 20 that killed 11 workers and sank the BP-leased Deepwater Horizon rig, unleashing a torrent of oil into the Gulf.

At 4.9 million barrels – or enough oil to fill 311 Olympic-sized swimming pools – the disaster is the biggest maritime spill on record.

It threatened the fish and wildlife-rich U.S. Gulf coast with environmental ruin and plunged residents of coastal communities into months of anguish over their livelihoods and the region’s future.

A government report released on Wednesday found that a third of the oil was captured or mitigated through burning, skimming, chemical dispersion and direct recovery from the wellhead.

Heat from the sun helped some of the chemicals in the crude evaporate. Waves and currents broke the slick up into smaller patches. Then the microbes which feed on natural oil seeping in the Gulf got to work, it said.

‘At least 50 percent of the oil that was released is now completely gone from the system,’ said Jane Lubchenco, head of the National Oceanic and Atmospheric Administration.

‘And most of the remainder is degrading rapidly, or is being removed from the beaches.’
But Lubchenco was quick to stress that scientists will not be able to determine for a long time the full extent of the damage.

‘The oil that was released and has already impacted wildlife at the surface, young juvenile stages and eggs beneath the surface, will likely have very considerable impacts for years and possibly decades to come,’ she told reporters at the White House briefing.

The problem, she explained, is that oil is still toxic even when it has been broken down into very small droplets.

About 24 percent of the Gulf’s federal waters remain closed to fishing, and even when fishermen are able to fill their nets they fear consumers might not believe the seafood is safe to eat.

With tourists likely to avoid Gulf beaches for years and oil industry jobs under threat from Obama’s moratorium on new deep sea drilling permits, the future remains bleak for many coastal communities.

BP, meanwhile, is hoping to rebuild its shattered reputation but must also meet the claims of thousands of individuals and businesses whose livelihoods have been washed away, while a mammoth civil trial looms.

BP senior vice president Kent Wells expressed relief that 20 days after the flow of oil in the sea was stemmed with a temporary cap ‘it’s very difficult for us to find any oil anywhere on the surface.’

He refused, however, to declare victory until the well is permanently sealed.
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04
Aug
10

BP says “static kill” operation at ruptured U.S. oil well

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BP says “static kill” operation at ruptured U.S. oil well
Obama says long battle in Gulf close to end
New Report: 74% of Oil in BP Deepwater Horizon Oil Spill has been Contained or Mitigated

Wednesday, August 04, 2010

About three-quarters of the oil spilled from the ruptured BP well in the Gulf of Mexico has disappeared, a top U.S. official said Wednesday.

‘The scientists are telling us about 25 percent was not captured or evaporated or taken care of by mother nature,’ said Carol Browner, a top energy adviser to U.S. President Barack Obama, on the ABC network’s Good Morning America program.

‘This is an initial assessment by our scientists in the government and outside the government. We think it’s important to make this available to the public. That’s what we’ll be doing today.’

Browner said the report to be released later on Wednesday was ‘encouraging’ but that more clean-up will be needed.

‘Mother nature will continue to break it down,’ she said.

‘But some of it may come onshore, as weathered tar balls. And those will be cleaned up. They can be cleaned up. And we will make sure they are cleaned up.’

An estimated 4.9 million barrels of oil leaked into the Gulf of Mexico over a period of 87 days after an explosion on a BP-leased offshore rig on April 20.

The leak was capped on July 15, and on Wednesday BP said it succeeded in controlling the pressure in the ruptured well through a procedure called a ‘static kill.’

The New York Times said the report from the National Oceanic and Atmospheric Administration, indicated that fears that a huge underwater glob of oil would surface at some point to tar Gulf beaches looked increasingly unlikely.

‘There’s absolutely no evidence that there’s any significant concentration of oil that’s out there that we haven’t accounted for,’ Jane Lubchenco, head of the agency, was quoted as saying.

Today, a panel of government scientists released a report which said that the vast majority of the oil from the Deepwater Horizon oil spill has either evaporated or been burned, skimmed, recovered from the wellhead or dispersed much of which is in the process of being degraded. A significant amount of this is the direct result of the federal government’s aggressive response to the spill.

The chart below outlines the breakdown of what has happened to the oil released into the Gulf of Mexico since the oil spill began in April:

These interagency findings were generated using a scientific tool called the Oil Budget Calculator, which employs a combination of direct measurements and the best scientific estimates available. The calculator is based on 4.9 million barrels of oil released into the Gulf, the government’s latest estimates of the flow rate from Monday. More than 25 of the best government and independent scientists contributed to or reviewed the calculator and its calculation methods. Scientists from the National Oceanic and Atmospheric Administration (NOAA), the Environmental Protection Agency (EPA) and the Department of Energy (DOE), as well as academic scientists are continuing to work to refine these calculations.

While we welcome the news contained in this report, we continue to be extremely concerned about what this oil spill means for the health of the Gulf ecosystem and the millions of people who depend on the Gulf for their livelihoods and enjoyment. To that end, our response effort will continue until the well is killed, the oil is cleaned up and until all of the people are made whole again.

For more information about the ongoing Administration-wide response to BP Oil Spill, visit RestoreTheGulf.gov.
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03
Aug
10

BP Agrees to Sell Colombian Business to Ecopetrol and Talisman

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BP Agrees to Sell Colombian Business to Ecopetrol and Talisman

Tuesday, August 03, 2010

British oil giant BP says it will sell its Colombian business for a total of $1.9 billion.

The divestment is part of BP’s recently announced plans to sell off up to $30 billion of assets, as it struggles with the soaring cost of the Gulf of Mexico oil spill disaster.

‘BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia’s national oil company (51 percent), and Talisman of Canada (49 percent),’ it said in a statement.
‘The two companies will pay BP a total of 1.9 billion dollars in cash… for 100 percent of the shares in BP Exploration Company (Colombia) Limited (BPXC), the wholly-owned BP subsidiary company that holds BP’s oil and gas exploration, production and transportation interests in Colombia.’

The transaction, which is subject to regulatory and other approvals, is expected to complete by the end of 2010.

News of the sell-off comes one week after BP’s vilified chief executive Tony Hayward resigned in the wake of a record second-quarter loss of $16.9 billion – the biggest quarterly loss in British corporate history.

Hayward will step down in October and hand over the reigns to American executive Bob Dudley.
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• Source(s): BP PLC
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03
Aug
10

BP gears up to plug ‘world’s biggest’ oil spill

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BP gears up to plug ‘world’s biggest’ oil spill
A deadly addiction: figures confirm BP spill is biggest in history

Tuesday, August 03, 2010

The U.S. government says BP’s ruptured well in the Gulf of Mexico gushed an estimated 4.9 million barrels of oil, making it the largest accidental spill ever.

‘Overall, the scientific teams estimate that approximately 4.9 million barrels of oil have been released from the well,’ the joint response command that includes BP and the U.S. government said in a statement describing the new estimate.

‘Not all of this oil and gas flowed into the ocean; containment activities conducted by BP under US direction captured approximately 800,000 barrels of oil prior to the capping of the well,’ they said.

The 4.9 million barrels is at the upper end of an earlier official estimate, which said that between 3 million and 5.3 million barrels had spewed from the well between April 20, when the BP-leased Deepwater Horizon rig exploded, and July 15, when a cap placed over the wellhead was finally sealed.

The refined estimates ‘are the most accurate to date and have an uncertainty of plus or minus 10 per cent’, according to the statement.

The 4.1 million uncontained barrels estimated to have spewed into the water make the spill the biggest accidental oil disaster in the history of the petroleum industry, and second only to the intentional release of crude by Iraqi forces during the 1991 Gulf War.

The previous largest accidental spill was a 1979 disaster – also in the Gulf of Mexico – in which 3.3 million barrels gushed from the Ixtoc-1 well after an explosion on a rig operated by Mexican state oil company Pemex.
The BP spill revision was based on ‘new pressure readings, data and analysis’ of oil reservoir modeling studied by teams comprised of federal and independent U.S. scientists, including a Department of Energy team of scientists led by President Barack Obama’s energy secretary, Steven Chu, the statement said.

‘The revised estimates are part of this administration’s ongoing commitment to ensuring that we have the most accurate information possible,’ Chu said.

When the well first ruptured, ‘62,000 barrels of oil per day were leaking from the well’, beyond the 35,000 to 60,000 barrels most recently estimated by U.S. authorities, but the flow rate decreased to 53,000 barrels per day just before the well was capped, the statement said.

‘As a result of depletion of the hydrocarbon reservoir, the daily flow rate decreased over the 87 days prior to the well’s closure,’ according to the statement.

The new figures are based in part on analysis of high-resolution videos taken by remotely operated underwater vehicles, acoustic technologies, measurements of oil collected by vessels on the surface, and readings of pressure measurements inside the containment cap.

‘Government scientists will continue to analyse data and may in time be able to further refine this estimate,’ the statement said.
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02
Aug
10

BP begins ‘static kill’ operation in bid to finally seal Gulf of Mexico oil well

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BP begins ‘static kill’ operation in bid to finally seal Gulf of Mexico oil well
The key lesson of the BP oil spill? Don’t panic spiked’s prediction that this was not ‘the worst environmental disaster’ in U.S. history has been proven right.

Monday, August 02, 2010

BP will know within hours on Tuesday whether its attempt to plug the Macondo well in the Gulf of Mexico has worked.

Company engineers are preparing to pump heavy drilling mud and cement into the well in a procedure known as “static kill”.

Retired coast guard admiral Thad Allen, the U.S. official overseeing the federal spill response, said that the operation would begin either Monday night or early Tuesday morning.

A week later, mud and cement will be pumped in from below, via a relief well that has been dug deep into the earth, to seal the leak permanently.

Oil has stopped gushing from the well for the past two weeks after a temporary cap was placed on top of it. BP’s Deepwater Horizon rig exploded and sank on 20 April, causing what is thought to be the U.S.’s worst environmental disaster in history.
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02
Aug
10

Doug Suttles happy to eat Gulf seafood

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Doug Suttles happy to eat Gulf seafood
BP executive ‘absolutely’ would eat Gulf seafood

Monday, August 02, 2010

Earth

One of BP’s top executives said that not only would he eat Gulf seafood, but he would feed it to his family too. While many fear that the unprecedented amount of chemical dispersants, such as Corexit, in the water has turned it into a toxic soup, more water has been opened.
Fears run high, but many in the seafood industry give a different point of view. While acknowledging the amount of toxic chemicals (over 1 million gallons of Corexit) is unprecedented and unlike anything ever seen before; the rigorous testing by the EPA, NOAA and U.S. Fish and Wildlife fisheries have caused some to conclude that seafood is safer than it has ever been.
Water tests, air quality samples and soil tests have been conducted regularly and the data is used to determine which federal and state waters would be closed or opened. With the high amount of testing, some feel the seafood is the safest it’s been.
Others disagree. They want to know exactly what is being tested. What byproducts result from Corexit and oil and are they being tested in the seafood?
Though NOAA has opened more federal waters and people are returning to beaches, there are many who will not eat Gulf Coast seafood, regardless of what Doug Suttles chooses to feed his family.
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02
Aug
10

Final efforts to permanently seal BP oil well in Gulf of Mexico begin soon

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Final efforts to permanently seal BP oil well in Gulf of Mexico begin soon
Static kill could start Monday, Allen says

Monday, August 02, 2010

After months of uncertainty and frustration, crews are ramping up efforts to permanently seal the ruptured Gulf of Mexico oil well as early as Monday night.

The operation is one of two bids to definitively ‘kill’ the damaged well, which has spewed noxious crude into the sea since April, devastating fragile habitats and bringing financial ruin to many residents along the U.S. Gulf Coast.

BP officials in recent days said they hoped the ‘static kill’ operation would take place on Tuesday, but on Sunday the U.S. point man for the spill response, Coast Guard admiral Thad Allen, said it ‘could start as early as Monday night, depending on final testing of the mud injection systems’.

If successful, the ‘static kill’ will allow crews to plug the well from above with cement, but the procedure is untested and similar to a previous ‘kill’ attempt that failed at the end of May.

Still, 104 days into the spill, Americans are desperate for a sign that the leak will soon be permanently capped, allowing the full focus of BP and government officials in the region to shift to clean-up operations and repairing the economic damage caused by the worst oil disaster in U.S. history.

Somewhere between three million to 5.3 million barrels leaked into the Gulf between April 20 and July 15, when a cap placed over the wellhead was sealed, fully containing the flow of oil for the first time.

Locals are eager to see the well plugged for good, but there are fears that a successful kill operation will prompt a mass exodus of officials brought into the region to respond to the crisis.

Crews have already begun collecting some of the millions of feet of protective boom after skimming vessels said they were having difficulty finding spilled crude on the sea surface anymore.

But the president of Plaquemines Parish in Louisiana told CNN it was too early to scale back those operations.

‘The oil is out there,’ Billy Nungesser insisted, saying that he had ordered his parish sheriff to stop 12 trucks carrying boom from leaving the area.

BP, which leased the Deepwater Horizon rig that exploded on April 20, killing 11 workers and sparking the spill, has sought to reassure residents it will remain engaged and work to restore the area.

‘We’ve had some good news on the oil … but that doesn’t mean we’re done. We’ll be here for years,’ said Bob Dudley, an American chosen to replace the gaffe-prone Briton Tony Hayward as BP’s chief executive, as the energy giant tries to salvage what is left of its reputation.

Many fishermen whose grounds were closed in the wake of the spill due to food safety concerns have found work assisting the clean-up effort, but face an uncertain future.

They could soon lose their jobs again as there is less oil to mop up and there are no guarantees they will be able to return to fish soon in Gulf waters that could be contaminated for months or even years to come.

Documents released by Congress on Saturday detailing the use of chemical dispersants in the Gulf added to concerns about the long-term effects for the region.

‘BP carpet-bombed the ocean with these chemicals, and the Coast Guard allowed them to do it,’ said Democratic Representative Edward Markey, chairman of the House energy and environment subcommittee.
BP and the U.S. response team have said more than 1.8 million gallons of dispersants have been used to break up the oil, but Markey said studies show the amount could be far higher.

‘The validity of those numbers are now in question,’ he said.

Admiral Allen addressed the concerns on Sunday, insisting to reporters that he was ‘satisfied that dispersants were only used when needed’, and that it was the U.S. government on-scene coordinator’s decision to use dispersants and not BP’s.

Meanwhile on Sunday engineers were carrying out final tests to ensure the integrity of the wellhead, BP said.

Once the static kill is underway, engineers will pump heavy drilling fluid called ‘mud’ into the cap in a bid to push the oil back down into the well reservoir.

If that works, crews will then seal the well from the top with cement.

Then, as early as next weekend, BP plans to begin a ‘bottom kill’ by intercepting the damaged well deep below the seabed with a nearly completed relief well.

Engineers plan to first drill into the pipe to check the ‘static kill’ has worked before cementing in the outer well bore and blocking the oil reservoir once and for all.
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01
Aug
10

U.S. Owners Of BP Stations Seek Rebranding

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U.S. Owners Of BP Stations Seek Rebranding

Sunday, August 1, 2010

Earth BP is reportedly facing pressure to rename its U.S. petrol stations under their old Amoco brand as the backlash in America shows no sign of easing.

The distributors who control most of BP’s U.S. forecourts are pushing the group to revert back to the traditional American Amoco branding for fear of further sales pain following the Gulf of Mexico oil spill, according to The Sunday Telegraph.

BP shed the Amoco brand shortly after merging with the U.S. oil group in 1998, but the 475 distributors believe its revival across petrol stations could help bring customers back.

They are reportedly seeing sales fall by up to 40 percent in the worst hit sites as Americans shun the BP brand.

The firm’s petrol stations in the U.S. are also said to be suffering growing instances of vandalism and protests.

John Kleine, executive director of the BP Amoco Marketers Association, which represents U.S. distributors, told The Sunday Telegraph in Britain: ‘They (the distributors) are interested in where the brand is going and want it to be returned to its premier place.’
He added: ‘Those fires have been fueled in the last week by a former Amoco executive (Bob Dudley) being named to assume the role of chief executive.’

A separate report also suggested BP may be forced to wind down its operations in the Gulf of Mexico after American lawmakers passed a bill that could halve its production there.

The Gulf accounts for 10 percent of BP’s global production, but the legal move proposed freezing the firm out of new drilling leases for seven years.

BP last week confirmed Mr. Dudley would take over from under-fire boss Tony Hayward in October as it revealed a $32.2 billion blow from the spill.

The group is understood to be preparing to ‘static kill’ the leaking well this week.

The well erupted when the Deepwater Horizon rig exploded and sank on April 20, killing 11 workers and triggering the worst oil spill in U.S. history.

BP was not immediately available for comment.
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31
Jul
10

Engineers prepare to seal ruptured oil well

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Engineers prepare to seal ruptured oil well

Saturday, July 31, 2010

Earth

••• Engineers are preparing a plan to permanently seal a damaged Gulf of Mexico well, despite delays to the process caused by debris left behind by a recent tropical storm.

As the work continues, incoming BP boss Bob Dudley has vowed his company will not abandon residents affected by the spill after the well is finally sealed.

BP hopes to drown the well in an operation dubbed a ‘static kill’ in which mud and cement will be injected down into the ruptured wellhead via a cap installed on July 15.

Dudley said on Friday the operation had been pushed back a day, saying ‘we are hopeful by Tuesday the static kill will have been performed’.

The U.S. pointman on the crisis, Coast Guard Admiral Thad Allen, said on Friday the delay was needed to allow engineers to clear debris from the damaged wellhead caused by Tropical Storm Bonnie, which briefly halted spill operations.

But BP senior vice president Kent Wells said the company was confident the static kill would proceed successfully.

A cap in place for two weeks has shown no sign of leaks, ‘giving us more confidence that this well has integrity’, which is a positive sign for the operation, Wells said at a technical briefing on Friday.

Wells said BP hopes the static kill will be able to overcome the flow of oil, but that a second sealing method – via an intercept through a relief well – will go ahead afterwards regardless.

BP said the relief well is likely to intersect the existing well deep below the ocean floor within eight to 10 days, allowing the second sealing process – a bottom kill – by the end of August.

Making his first trip to the region since being named to replace outgoing BP CEO Tony Hayward, Dudley said on Friday the firm’s focus will shift to long-term recovery for the region now the spill is being contained.

‘We’ve had some good news on the oil… but that doesn’t mean we’re done,’ Dudley told reporters in Mississippi, one of the five states hit by the massive oil spill.

‘We’ll be here for years,’ he said, as BP announced a $100 million charitable fund to aid unemployed rig workers who are experiencing economic hardship due to the US government’s ongoing moratorium on deepwater drilling.

Dudley will take over as BP’s chief executive on October 1, when Hayward, who was widely criticised for his handling of the crisis, hands over the reins.

With the focus now moving towards mitigating the long-term impact of the worst-ever US oil spill, Dudley said there will be signs that the operation is changing.
Miles of protective boom will be withdrawn from coastlines, and fewer clean-up crews in hazmat suits will be seen on beaches as oil stops washing ashore.

‘So you’ll probably see that kind of a pullback. But commitment, absolutely no pullback,’ he pledged.

It remains unknown just how much oil has spilled into the Gulf since the BP-leased Deepwater Horizon rig exploded and sank in April, killing 11 workers. Best estimates put the amount at between three and 5.3 million barrels.

Allen said a team of experts is carrying out an ‘oil budget’ to calculate how much was released, how much was captured and how much has evaporated, adding he hopes the report will be released in the coming days.

‘It’s something we ultimately need to know,’ Allen said.

In another encouraging sign, the NOAA said southern Florida and the U.S. eastern seaboard is not likely to experience any effects from the remaining surface oil, as had been feared, as the ‘oil continues to degrade and is hundreds of miles away from the loop current’.

With the leak capped, ‘the light sheen remaining on the Gulf’s surface will continue to biodegrade and disperse but will not travel far’, said Jane Lubchenco, the National Oceanic and Atmospheric Administration chief.
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30
Jul
10

Fishermen fear for livelihoods as Gulf focus shifts

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Fishermen fear for livelihoods as Gulf focus shifts

Friday, July 30, 2010

••• U.S. officials sought on Thursday to reassure fishermen they will not lose out in the next phase of the Gulf of Mexico oil clean-up, while legal wranglings began for the BP trial of the decade.

As final preparations were put in place for operations next week to permanently kill the well, U.S. spill chief Thad Allen convened a meeting of parish presidents in New Orleans to discuss how best to safeguard local jobs going forward.

With less oil floating in the Gulf, there are fears BP might scrap its ‘Vessels of Opportunity’ program which employs more than 1500 boats, providing desperate fishermen with vital skimming and boom-laying work.

‘If BP uses the capping of the well as an excuse to minimize its clean-up operations, then shame on them,’ said Captain Mike Frenette, whose five boats in Venice, Louisiana missed an entire summer’s fishing due to the disaster.

Frenette had to apply four times before getting two of his five boats onto the program, which pays between $600 and $3500 a day, depending on the size of the boat.
‘The paperwork kept getting lost,’ he said. ‘And all that our Vessels of Opportunity work is doing is counting against our compensation claim. We’re not making any money, here, we’re just trying to keep our heads above water.’

A large portion of the Gulf waters remain closed to commercial and recreational fishing and with lingering doubts about seafood safety, fishermen could effectively end up losing their jobs for a second time.

‘The fishermen have missed a year, and we don’t know what the impact is going to be next year, or the year after that,’ said Marty O’Connell, an environmental scientist at the University of New Orleans.

Clean-up crews are collecting samples of fish and shrimp at depths of between 30 and 360 feet to test them for contaminants, but it will take years to fully know the impact of the oil disaster on Gulf fisheries.

Allen pledged earlier this week to keep as many ‘Vessels of Opportunity’ as possible, hoping they could be redeployed to test for any underwater plumes.
A massive task also lies ahead in picking up some 3 797 miles of protective boom laid to protect Gulf shores from the once-giant slick that has now diminished to just a few patches of light sheen.

Ahead of the meeting with Allen, Saint Tammany parish president Kevin Davis, said he was against reducing any oil-fighting resources for the time being.

‘Although the well is capped, we cannot let down our guard until we are absolutely certain that no oil lingers under our waters,’ he said.

Meanwhile, BP lawyers were set to come face-to-face on Thursday with victims of the spill during a first court hearing into the case, which is likely to become the trial of the decade.

The hearings in Boise, Idaho, will examine whether complaints submitted by some 200 plaintiffs can be consolidated.

A decision is expected around two weeks after the hearing, but the session will give trial lawyers a test run for the arguments they will make during what could be years-long legal proceedings.
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27
Jul
10

BP well-killing process scheduled to start in a week

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BP well-killing process scheduled to start in a week

Tuesday, July 27, 2010

••• U.S. officials laid out on Monday a detailed timeline of how BP plans to permanently plug the Gulf of Mexico oil well, saying the all-important ‘static kill’ would begin in one week’s time.

By Saturday or Sunday at the latest, a final 656 yards of casing will be inserted into the bottom of the relief well to strengthen it so it can withstand the long-awaited ‘static kill’ intact.

Some 12 hours after the cement has set, engineers will begin the crucial operation to pump mud and cement down through the cap on the damaged well, which finally cut off the flow of crude earlier this month.

‘That’s an attempt to fill the inside of the well from the top down and then cement to secure it and make it stable,’ explained Thad Allen, the retired Coast Guard admiral leading the U.S. response to the disaster.
While it is hoped this operation can effectively plug the well, the ‘static kill’ will be followed five days later by a ‘bottom kill’ operation just to make sure.

Engineers will drill through the relief well into the annulus at the bottom of the damaged well. The annulus is the area between the pipe and the outside of the well bore.

The ‘static kill’ can only plug the area inside the pipe, while the ‘bottom kill’ also aims to cement over the annulus to be certain the oil reservoir is permanently sealed.

‘So when we enter the well bore of the Macondo well we will first fill the annulus full of mud and then cement it in,’ said Allen.
‘When that cement dries then we will go back and drill through it again and into the pipe.

‘We will ascertain at that point whether or not the top kill or static kill have actually killed it or whether we have to do more. That’s when we will know absolutely that the well’s been killed.’

If all goes according to plan, the leaking well could be plugged once and for all during the second week of August.

If upper estimates above four million barrels are confirmed, the disaster that began on April 20 with an explosion on the BP-leased Deepwater Horizon rig will be the biggest accidental spill ever.
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27
Jul
10

BP boss Hayward to get job in BP-Russian venture

NEWS
BP boss Hayward to get job in BP-Russian venture
BP boss Tony Hayward resigns

Tuesday, July 27, 2010

BP says CEO Tony Hayward will step down on October 1.

He’ll be succeeded by American Robert Dudley.

It is understood he will be offered a job on the board of the companies Russian arm.

BP is jettisoning CEO Tony Hayward, whose verbal blunders have made the oil giant’s image even worse as it struggles to contain the Gulf of Mexico oil spill, and will assign him to a key job in Russia, a person familiar with the matter says.

Hayward is set to step down in October and take a post at TNK-BP, the company’s joint venture in Russia, a source told the Associated Press on Monday, speaking on condition of anonymity because an official announcement had not been made by the British company’s board.

Other news reports said Hayward could be cut loose by the British energy giant as early as Tuesday, when BP announces its quarterly earnings and battles to rebuild its reputation amid the worst environmental disaster in U.S. history.

Hayward could get a payoff and pension package worth about $18.67 million, The Times and the Financial Times newspapers reported in London.

His reported payoff would be the equivalent of one year’s salary plus a guaranteed pension for the 53-year-old who started his career with the firm 28 years ago and took over as chief executive in 2007.

According to the BBC, Hayward will get an immediate annual pension worth about $1.614 million when he leaves in October.

BP said, however, there was no decision on Hayward, whose string of public relations gaffes during the crisis include telling reporters ‘I want my life back’ and joining a yacht race as Gulf residents battled the massive oil spill.

‘BP confirms that no final decision has been made on these matters,’ a spokesman for the energy giant said on Monday.

‘Any decisions will be announced as appropriate.’

BP’s board met on Monday, and a statement was expected early Tuesday, when the company files its second quarter results – which are expected to reveal a $30 billion provision for funding the disaster.

Hayward is expected to be replaced by Bob Dudley, who grew up in Mississippi and is now in charge of the oil cleanup operation.

BP has said Dudley has a ‘deep appreciation and affinity for the Gulf Coast’.

Hayward left BP’s headquarters after Monday’s board meeting without speaking to reporters.

His silver Lexus was mobbed by photographers, who chased the car down the street in central London.

Hayward has drawn criticism in recent months from U.S. President Barack Obama – who said he would have fired him – and other senior U.S. figures and Gulf residents over his handling of the aftermath of the disaster.

The White House Monday warned BP that any decision to replace Hayward would not change its obligation to clean up the Gulf of Mexico and compensate victims.

In Washington, a key Democratic congressman called on BP to withhold any big payouts to the chief executive.

‘BP should be dedicating its resources to compensating the residents of the Gulf Coast who are the victims of this tragedy, not handing out multi-million-dollar golden parachutes,’ Representative Ed Markey said.

‘At a time when BP should be devoting every possible resource to ending the spill, cleaning up the Gulf and fully compensating the residents who have had their livelihoods impacted, I find it extremely troubling that BP’s board would consider providing such a large severance package to Mr Hayward,’ he added.

BP has already agreed to set up a $20 billion fund to pay for the Gulf clean-up and compensation, as it works to plug the BP well that ruptured in the April explosion and sinking of its leased Deepwater Horizon rig that killed 11 workers.

Coast Guard Admiral Thad Allen, who is leading the U.S. government’s response to the oil spill, said on Monday that efforts to kill the damaged well for good would not likely start before next week.

Originally expected as early as Tuesday, Allen said BP had given a ‘refined and revised’ timeline as it redeployed vessels and personnel following a recent storm in the region.

Even if BP then manages to kill the well, Allen warned there was ‘the possibility that shore will be impacted I guess for the next four to six weeks.’

The ruptured wellhead was sealed on July 15 with a giant cap, which for the first time in three months halted the flow of oil into the sea. But up to four million barrels of crude is already estimated to have spewed into the Gulf.

Toxic crude has washed up on the shores of all five US states on the Gulf Coast and vital tourism, fishing and oil industries in the region have been hit hard.

BP faces hundreds of pending lawsuits into the cause of the April 20 rig blast that should determine eventual liability.

It’s not yet clear what Hayward’s role will be with TNK-BP, but the job suggests BP still holds more faith in Hayward than much of the U.S. public and political establishment do.

Analysts consider the Russian venture one of BP’s crown jewels; it accounts for a quarter of the company’s production.

Repeated calls to TNK-BP‘s offices in Moscow went unanswered on Monday.
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26
Jul
10

‘No final decision’ made over Tony Hayward

NEWS
‘No final decision’ made over Tony Hayward
BP Boss Hayward ‘To Take Russian Role’

Monday, July 26, 2010

BP has said no decision has been taken over the future of beleaguered chief executive Tony Hayward, amid reports he is about to depart with a pension of almost $ 17.05 million.

Mr. Hayward’s fate looks set to be finalised at a board meeting in London, with a formal announcement on his future expected soon afterwards.

The oil firm’s current managing director, Bob Dudley, is the favourite to succeed him.

‘BP notes the press speculation over the weekend regarding potential changes to management and the charge for the costs of the Gulf of Mexico oil spill,’ the company said in a statement.

‘BP confirms that no final decision has been made on these matters.’

Mr. Hayward – who even very recently was told he had the ‘full support’ of the board and senior management – was reported to be discussing his severance package with senior management over the weekend.

His employment terms entitle him to a payout of at least $1.55 million, but The Daily Telegraph has reported the figure could reach as much as $16.73 million.

‘Tony Hayward’s departure as BP’s chief executive will, as I’ve reported several times during the last 36 hours, not be formally ratified until the oil company’s board meets,’ Kleinman said.

‘Even then, a number of factors could intervene to delay his resignation or conspire to manufacture another outcome altogether.’

A U.S. government official briefed by senior BP figures confirmed to the Associated Press news agency a change of leadership was under way.
BP chief executive Tony Hayward is to step down from the top job, but he will be put forward for the board of the oil firm’s Russian operations.

He exclusively revealed that along with details of his plans to step down, BP would also announce that Mr Hayward was likely to be proposed for a non-executive role on the board of Russian venture TNK-BP.

‘The role on the TNK-BP board is not about keeping Hayward sweet,’ said Kleinman.

‘Much more importantly, if it is confirmed as I expect in the next 12 hours or so, it would underline the streak of realpolitik that courses through the veins of all multinational companies.’

BP’s current managing director Bob Dudley is the favorite to succeed Mr Hayward following the crisis that has engulfed the company since the Deepwater Horizon rig exploded in April.

But as the head of TNK-BP in 2008, Mr. Dudley had a huge falling-out with the Russian authorities and ended up fleeing the country in fear for his safety.

‘At a time when BP is already fighting one political fire on one international front, in the US, there has to be a risk that Dudley’s appointment as chief executive ignites another,’ commented Kleinman.

‘That’s where Hayward comes in.’

‘He may be damaged goods in Washington, but BP insiders say that one of his significant achievements during his three years as chief executive was helping to negotiate a new governance structure at TNK-BP.’

‘His relationships in Moscow are said to very strong.’

Mr. Hayward was reported to be discussing his severance package with senior management over the weekend.

His employment terms entitle him to a payout of at least $1.55 million, but his pension pot from a 28-year career with BP is around $16.73 million and he has also received impressive numbers of shares in recent years.
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• Source(s): Sky News / BskyB / News Corporation
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25
Jul
10

BP to Discuss CEO Hayward’s Exit on Monday

NEWS
BP to Discuss CEO Hayward’s Exit on Monday
BP chief Tony Hayward ‘negotiating exit deal’

Sunday, July 25, 2010

The boss of troubled oil giant BP, Tony Hayward, is poised to quit within days, the Sunday Telegraph newspaper reports.

Hayward, who has been heavily criticized over his handling of the Gulf of Mexico oil spill crisis, is set to step down before BP announces its half-year results on Tuesday, the paper said.

Reports have suggested for days that Hayward would resign at some point in the coming weeks as British-based BP battles to recover its reputation in the wake of the spill.

The Sunday Telegraph said that there could be wrangling over Hayward’s severance package, under which he is likely to be paid a minimum figure just over £1.045 million ($1.614 million).

BP has said that Hayward ‘has the support of the board and management’ but has declined to make further comment on media reports.
The Press Association learned that the BP board will meet ahead of Tuesday’s release of the oil giant’s latest interim results.

Meanwhile the BBC has claimed that Hayward is currently in talks over a compensation deal, with the outcome likely to be settled and made public by the close of tomorrow.

A spokesman for BP maintained that the chief executive continued to have the ‘full support of the board and senior management’ and that the company would not comment on ‘speculation.’
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• Source(s): Telegraph Media Group Ltd., Press Association, British Broadcasting Corporation and Independent Television News
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12
Jul
10

Oil spill hopes raise with BP’s latest effort to fix it

NEWS
Oil spill hopes raise with BP’s latest effort to fix it

Monday, July 12, 2010

Earth••• BP reported good progress on its high-stakes effort to fully contain the Gulf of Mexico oil leak by fixing a tighter cap over the giant gusher.

Operations have reached a critical phase as engineers race to take advantage of a stretch of fine weather in the midst of the Atlantic hurricane season to install a new system with the potential to capture all the leaking crude.

Expected to take between four and seven days, the round-the-clock work began at midday on Saturday when the old, less efficient cap was ripped off a fractured pipe 1.6km down on the sea floor by robotic submarines.

‘We are pleased with our progress,’ BP Vice President Kent Wells told journalists almost 24 hours in. ‘We have carefully planned and practised this whole procedure. We’ve tried to work out as many of the bugs as we can.’

Sunday’s operations saw a transition spool being lowered into place which must be bolted onto the leaking pipe before a gigantic funnel – weighing 68 tonnes and dubbed the ‘Top Hat 10’ – can be installed.

The old ‘Top Hat’ system collected roughly 25,000 barrels of crude every day, but estimates suggest that could be less than half the leak.

BP says the new cap and the deployment of a third containment ship called the Helix Producer will raise the system’s capacity to between 60,000 and 80,000 barrels a day, enough to capture all the leaking oil.

The new system has also been designed so it can be disconnected and reconnected more easily in the case of a hurricane and has a built-in device that should give the first precise estimate of the overall flow.
No permanent solution is expected until mid-August at the earliest when the first of two relief wells is due to be completed – allowing drilling fluids to be injected into the well, which would then be sealed with cement.

The decision to remove the old cap and allow most of the oil to pour unchecked into the sea was approved by Admiral Thad Allen, the former Coast Guard chief leading the US government’s response to the disaster.

Although the removal of the cap forced the suspension of the main containment operation, a separate siphoning system is taking a smaller proportion of the oil to be flared off on a surface vessel.

Wells said two more ships would join a fleet of 46 skimming vessels scooping up oil off the sea and said 15 controlled burns of the surface crude had been carried out on Saturday.

Oil has washed up on beaches in all five Gulf states – Texas, Louisiana, Mississippi, Alabama and Florida – forcing fishing grounds to be closed and threatening scores of coastal communities with financial ruin.

The man charged with doling out compensation to victims of the spill said he could not estimate whether the initial $20 billion fund set up by BP would be enough to pay compensation claims.

‘If they are eligible, we will give them up to six months emergency (compensation),’ Kenneth Feinberg told CNN, adding: ‘I can’t help people if they don’t file.’

Many fishermen and others who work in the Gulf get paid in cash and do not have paperwork to back up their claims. Some are also worried that if they ask for compensation, the government will seek taxes for previous income.
While the containment effort and the claims process continued apace, the attorney general said the Justice Department was also still considering whether to bring criminal charges against the culprit or culprits.

‘The investigation is ongoing. We are in the process of accumulating documents, talking to witnesses on both the criminal side and the civil side,’ Eric Holder told CBS’s Face the Nation program.

Holder was quick to stress that when he announced the probe on June 1, he had been careful not to mention BP by name as it was not the only party involved with the Deepwater Horizon rig.

At congressional hearings back in May, BP, rig owner Transocean and oil services provider Halliburton blamed each other for the spill as executives from all three oil titans were grilled by U.S. lawmakers.

The man charged with doling out BP’s compensation to victims of the Gulf oil spill said on Sunday he is prepared to pay up to six months of expenses in advance, but getting people to file claims is a struggle.

Kenneth Feinberg told CNN he wanted to provide ‘some degree of financial certainty’, to people who have found their livelihoods hurt by the massive oil spill. ‘If they are eligible, we will give them up to six months emergency (compensation).’

But, he lamented, ‘I can’t help people if they don’t file.’

Many of the fishermen and others who work in the Gulf region regularly get paid in cash and do not have paperwork to back up their claims of lost income. They are also worried that if they ask for compensation, the government will seek taxes for previous income.

The BP-leased rig exploded on April 20 killing 11 workers. It sank two days later, unleashing the nation’s worst ever environmental disaster.
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07
Jul
10

Oil comes ashore in Texas as BP dismisses money fears

NEWS
Oil comes ashore in Texas as BP dismisses money fears

Wednesday, July 7, 2010

Earth••• Clean-up efforts in the Gulf of Mexico oil spill extended Tuesday to Texas and Lake Pontchartrain, Louisiana, as BP dismissed reports of deeper financial woes.

Officials said crews collected tar balls and waste from Lake Pontchartrain, the vast estuary near New Orleans, as rough weather continued to hamper the containment and skimming effort near the spill site in the Gulf.

U.S. Coast Guard Admiral Thad Allen said the huge spill was now threatening all the states along the Gulf coast from Florida to Texas and that rough seas since the passage of Hurricane Alex had hurt the effort.

The first Atlantic hurricane of the year passed through the Gulf of Mexico last week without too much alarm for the oil containment efforts, but Allen said two nearby storm systems were being closely watched.

‘We’re watching very, very closely the swells and waves that might be generated by this current storm system,’ he said.

‘Sometime in the seven to 10 days we’ll look for a window of opportunity to put the containment cap on at the same time we will go on and continue with the drilling of the relief well.’
A BP spokeswoman in London denied the firm was planning to sell new stock to a strategic investor to raise money, amid reports the British government is working on a crisis plan if the company is sunk by the disaster.

‘We are not issuing any new equity,’ she said. ‘We welcome new shareholders to come onto the shareholder register and we welcome existing shareholders who want to take a bigger amount of shares.’

The Times newspaper in London reported that officials at the Department of Business and the Treasury were already considering contingencies for BP’s potential collapse.

‘It is not clear how bad this will get, but the government needs to be prepared for any eventuality,’ an anonymous source said to be familiar with the talks was quoted as saying.

BP has forked out some $3.12 billion in spill-related costs and has promised to pay another $20 billion into an escrow fund to compensate Americans affected by the spill.

The BP-leased Deepwater Horizon rig sank on April 22, two days after an explosion that killed 11 workers, unleashing the worst environmental disaster in U.S. history.
On Sunday, tar balls from the spill arrived on beaches in Texas, more than 310 miles away, though it was unclear how the crude got there.

Tests showed they did come from the BP Deepwater Horizon well but scientists and officials were working to determine if they arrived in Texas by currents or via ships operating in the vicinity of the well head.

The tar balls in Lake Pontchartrain were also being tested.

Some 492 miles of Gulf Coast shoreline has been oiled, and fishing ground closures and tourist cancellations threaten financial ruin for residents who have reacted angrily to BP’s failure to cap the spill.

Up to 60,000 barrels of oil a day is believed to be leaking into the Gulf of Mexico, far outpacing the collection efforts of a system that is capturing around 25,000 barrels a day.

Officials hope to more than double that capacity to some 53,000 barrels a day by hooking up a third containment vessel, the Helix Producer, to the system that captures and siphons away the crude.

‘There is a partial hookup right now and they can sustain that unless they have really severe sea states,’ said Allen, the U.S. official coordinating the spill response.

‘We won’t know for several hours whether they’re able to do it. It currently is a work in progress.’
Officials were also testing a mega-tanker, A Whale, which could boost efforts to skim spilled crude from the sea surface.

The ship is believed to be able to suck up to 500,000 barrels of oily water a day through its ‘jaws’, a series of vents on the side of the ship.

By comparison, more than 500 smaller vessels in 10 weeks have only managed to collect some 31.3 million gallons of oil-water mix between them and high waves forced most of the boats to halt operations on Tuesday.

It will likely be mid-August at the earliest before the ruptured well is permanently capped by injecting mud and cement with the aid of relief wells.

The high end of the oil leak estimates means it has now surpassed the 1979 Ixtoc blowout, which took nine months to cap and dumped an estimated 3.3 million barrels into the Gulf of Mexico.

It is topped only by the deliberate release of six to eight million barrels of crude by Iraqi troops who destroyed tankers and oil terminals and set wells ablaze in Kuwait during the 1991 Gulf War.
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04
Jul
10

Rough seas halt U.S. spill clean-up as crews test mega-skimmer

NEWS
Rough seas halt U.S. spill clean-up as crews test mega-skimmer

Sunday, July 4, 2010

Earth••• Clean-up work resumed in some areas of the Gulf of Mexico oil spill, but heavy swells kept many boats docked, halting efforts to fight the ecological disaster.

A Taiwanese mega-skimmer dubbed the ‘A Whale’ was in position near the site of the leak and set to undergo 48 hours of ‘proof of concept’ testing, Coast Guard spokeswoman Ayla Kelley said.
The 903 feet long tanker can vacuum up 21 million gallons of oily water a day, separating oil from water and spitting the seawater back out.

Small skimming boats that have been patrolling the Gulf for the past 10 weeks have only collected 28.2 million gallons of oily water to date, and rough weather made seas off Louisiana too choppy for them to even go out on Saturday.

Coast Guard Petty Officer Kelly Parker at a Houma, Louisiana information centre said crews were resetting protective booms along fragile coastal areas, but skimming and controlled burns of spilled crude had been halted.

However, around the Chandeleur Islands, a chain of uninhabited barrier islands and wildlife refuge at Louisiana’s easternmost point, boom and skimming operations resumed on Friday, said a representative of Admiral Thad Allen, the top official overseeing the spill response.

‘These are the most environmentally sensitive areas. The good news is that we saw only light oil and there were hundreds of boats working in the area resetting boom and skimming,’ rear admiral Paul Zunkunft told reporters after he flew over the islands.

‘The areas are critical to defend because they are home to turtles, shrimp and other wildlife,’ Zukunft said.
Despite containment efforts, he warned: ‘We are not out of the woods yet.’

An estimated 35,000 to 60,000 barrels of oil per day has gushed from the ruptured well since the BP-leased Deepwater Horizon drilling rig sank on April 22, some 50 miles off the coast of Louisiana.

A containment system has captured about 557,000 barrels of oil, but rough seas delayed the deployment of a third vessel that could boost capacity from 25,000 barrels to 53,000 barrels a day.

That means an estimated 1.9 to 3.6 million barrels – or 79.5 to 153 million gallons – of oil has now gushed into the Gulf.

Using the high end of that estimate, the spill has now surpassed the 1979 Ixtoc blowout, which took nine months to cap and dumped an estimated 3.3 million barrels (140,000 million gallons) into the Gulf of Mexico.

It is topped only by the deliberate release of six to eight million barrels of crude by Iraqi troops who destroyed tankers and oil terminals and set wells ablaze in Kuwait during the 1991 Gulf War.
And it will likely be mid-August at the earliest before the Gulf well is permanently capped by injecting mud and cement with the aid of relief wells.
Skimmers had been collecting about 12,000 barrels of oil a day before they were sent back to port after Hurricane Alex whipped up waves earlier this week, while about 8,000 barrels of oil was being burned off the surface.
But the spill has so far oiled at least 450 miles of U.S. shorelines, 74 days into the worst environmental disaster in U.S. history.

Admiral Allen said he hoped to have the third containment vessel, the Helix Producer, in place by Wednesday.

Once the Producer is working, officials will also have a better sense of just how much crude is leaking, ‘just by the visual evidence of how much oil is actually coming out around that cap’, Allen said.

They will then have to decide if the existing system should stay in place, or if it would be best to undergo a risky procedure to replace the cap with another system capable of capturing up to 80,000 barrels of oil a day.

‘The decision window associated with that would be sometime in the next, I would say, seven to 10 days,’ Allen said in a conference call on Friday.

In addition to boosting capacity, the new system would also greatly reduce the amount of time oil could gush freely into the sea if crews had to evacuate due to a bad storm.

Meanwhile, Environmental Protection Agency chief Lisa Jackson was headed to Pensacola, Florida to oversee coastal clean-up operations in the state, where tourist draws Miami and the Florida Keys face the likelihood of fouled beaches.
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30
Jun
10

Obama slams Republicans over BP ‘apology’ and economy

NEWS
Obama slams Republicans over BP ‘apology’ and economy

Wednesday, June 30, 2010

••• U.S. President Barack Obama lampooned Republicans over the Gulf of Mexico oil spill on Wednesday, seeking to turn a disaster that has been a political liability for him into a political weapon.

Obama cited a gaffe by a leading Republican politician who said the US government’s hardline tactics were a ‘tragedy’ for BP, to lambast the opposition party as the pace heats up ahead of November’s mid-term elections.

He said some Republicans opposed raising the legal cap on liabilities BP must pay to clean-up America’s worst environmental disaster and a $20 billion BP escrow compensation fund for businesses victimised by it.

‘The top Republican on the energy committee even had the nerve to apologise to BP for the fact that we made them set up this fund,’ Obama said in remarks released by the White House prior to a presidential event in Wisconsin.

‘Apologise to BP! He actually called the fund a tragedy. A tragedy? A tragedy is what the people of the Gulf are going through right now.

‘That’s the tragedy. And our government has a responsibility to hold the corporations accountable that caused it. They want to take us backwards. We want to move forward.’

Democrats are mercilessly using comments by Republican Representative Joe Barton, who offered them a golden opening by apologising to BP for the escrow fund, which he called a $20 billion White House ‘shakedown’ of BP.

Barton has retracted the remarks, and his party leaders have condemned them, but the comments are bound to be seized upon often by Democrats in the run-up to November’s congressional polls, in which the party fears heavy losses.
Obama’s switch to full bore politicking mode over the oil spill reflects the way both political parties will try to use the disaster for political advantage. Republicans have accused Obama of being too passive in the crisis.

Recent polling give the president poor to moderate ratings on how he has handled the oil spill, though his management of the crisis is much preferred by Americans to the performance over BP during the disaster.

Forty-four per cent of those asked in a Gallup poll this month approved of Obama’s efforts, while 48 per cent disapproved.

BP and other oil firms are currently bound under U.S. law to pay all related clean-up costs from a spill, but the limit on liability for compensation and other claims is set at $75 million.

Democratic efforts to raise the cap took another step forward on Wednesday as the Senate Environment and Public Works committee approved a bill retroactively removing the cap for BP.

The bill now heads to the full chamber for debate.

‘As we see the images and read the stories from the Gulf Coast night after night, it could not be clearer that coastal families and taxpayers are the ones who need protection, not oil companies,’ the bill’s sponsor Robert Menendez said.
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