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How Halliburton is profiting from the Gulf oil spill
By Matt Rocheleau | CSM
Shortly before the Deepwater Horizon blowout, Halliburton bought an oil spill prevention firm. The oil-services industry is consolidating, which is not necessarily good news for quality, experts say.
Eleven days prior to the April 20 Deepwater Horizon blowout, Halliburton Co., the contractor in charge of cementing the rig's well, agreed to purchase a little-known company.
The firm, Boots and Coots, focuses on oil spill prevention and blowout response. Now, it is assisting with the relief well work – under contract to BP – to help stop the Gulf oil spill.
What appears to conspiracy theorists as more than a coincidence is nothing out of the ordinary, say oil-industry experts. Increasingly, oil-industry titans are buying up smaller companies that provide all manner of services.
But this trend is worrying in itself, the experts say. As companies grow and work both to drill wells and potentially clean up their own mistakes, the result can be unintentional, but riskier decisionmaking over time due to a lack of focus – particularly in an industry that is poorly regulated. Read more.
It is an overlooked danger in oil spill crisis: The crude gushing from the well contains vast amounts of natural gas that could pose a serious threat to the Gulf of Mexico's fragile ecosystem.
The oil emanating from the seafloor contains about 40 percent methane, compared with about 5 percent found in typical oil deposits, said John Kessler, a Texas A&M University oceanographer who is studying the impact of methane from the spill.
That means huge quantities of methane have entered the Gulf, scientists say, potentially suffocating marine life and creating "dead zones" where oxygen is so depleted that nothing lives.
"This is the most vigorous methane eruption in modern human history," Kessler said.
Methane is a colorless, odorless and flammable substance that is a major component in the natural gas used to heat people's homes. Petroleum engineers typically burn off excess gas attached to crude before the oil is shipped off to the refinery. That's exactly what BP has done as it has captured more than 7.5 million gallons of crude from the breached well.
A BP spokesman said the company was burning about 30 million cubic feet of natural gas daily from the source of the leak, adding up to about 450 million cubic feet since the containment effort started 15 days ago. That's enough gas to heat about 450,000 homes for four days.
But that figure does not account for gas that eluded containment efforts and wound up in the water, leaving behind huge amounts of methane. Read more.
Below are a few media reports from September 2009 discussing the BP Gulf of Mexico Tiber Oil Field find when it originally hit the newswires. This was the deepest oil and gas well in human history, going to a depth of 35,000 feet. Exploratory drilling began in March 2009. Deepwater Horizon did not commence until September 2009. Only the second story from Bloomberg hints at the "volatility" related to the find and the need for "caution."
This was a giant field and the third biggest find in the US after Prudhoe Bay, also a BP find and the older Spraberry Trend in West Texas. Ostensibly, quelling oil "volatility" ie reaping profits from oil price spikes is the impetus behind these kinds of risky projects. But, this field could not have been found or developed without the advent of deepwater drilling. BP used the Deepwater Horizon rig that was also used just months later for the deepwater drilling in nearby Macondo Prospect in Mississippi Canyon where tragedy struck. Read more.
An Exclusive (Somewhat Apocryphal) Interview With Stephen Hawking on the British Petroleum Gulf Oil Spill Event - Deepwater Horizon
An Exclusive (Somewhat Apocryphal) Interview With Stephen Hawking on the British Petroleum Gulf Oil Spill Event - Deepwater Horizon
By Gary Corseri
All this nambypambyism about the Gulf Oil Spill has got me down, so I figured I’d go to the smartest guy on the planet to get his what’s what.
I met Stephen Hawking at his perch at the Mt. Palomar observatory. It took me a few moments to get used to his computer-generated voice, but once I did, it was the only voice I could imagine being attached to that kind of cerebrum.
“I like to look at the stars,” he told me. “It puts our little mortal lives into high relief.”
“I would have thought they would shrink our little lives.”
“That, too. … It’s all a matter of perspective.”
The Sovereign State of BP - Down for the Count?
By Michael Collins | Election Fraud News | June 16, 2010
British Petroleum has operated as though it were a sovereign state since its inception. When they blew the well at their Macondo Prospect in the Gulf of Mexico, it never occurred to them that they would have to take orders from anybody. But that may change largely due to their inability to stop the flow of oil after nearly sixty days of gushing.
President Obama was clear in his speech last night. If any entity is going down as a result of the catastrophe, it will be BP. Today, Obama meets with BP's Chairman of the Board, Carl-Henric Svanberg, and the man he told the chairman to fire, Chief Executive Officer Tony Hayward.
Two sovereign states will collide. The outcome is a foregone conclusion.
BP's Global Reign
British Petroleum began under another name in the oil rich section of Iran. Britain's William Knox D'Arcy convinced Iran's leader to grant an exclusive concession for the tidy sum of £20,000 in 1901 ($16 million current). BP grew on Iran, infecting its politics and economy to assure that the flow of oil never stopped.
By 1953, Iran's new democracy had a movement and leader that lost tolerance for BP's strangle hold on Iranian oil. The government nationalized BP assets. Undeterred by the will of the Iranian people, the company was the beneficiary of the British secret service-CIA staged Operation Ajax; a not-so-covert plan that deposed Iran's duly elected Prime Minister, Mohammed Mossadegh, and installed a puppet regime.
Iran's emerging democracy was assassinated in the service of BP oil assets and income.
There was just one hitch in the post-coup arrangement with Iran. The Shah's government got 50% of the take and BP no longer had a monopoly. They had to share the concession with U.S. oil companies, thus ending their exclusive control of Iranian oil.
TomDispatch: Nick Turse: Kick Ass or Buy Gas?, How Taxpayers Are Subsidizing BP's Disaster Through the Pentagon
From TomDispatch today: a revelatory report on the staggering sums the Pentagon pays BP to buy the fuel it needs to conduct its wars -- and the unwillingness of either the Pentagon or the White House to make cutting off those contracts part of the response to the disaster in the Gulf -- Nick Turse, "Kick Ass or Buy Gas?, How Taxpayers Are Subsidizing BP's Disaster Through the Pentagon."
In a striking post this morning, Nick Turse offers a report on the extremely lucrative relationship BP has with the Pentagon. As he points out, America’s two spreading disasters -- in the Gulf of Mexico and Afghanistan -- are not only out of control and seemingly unstaunchable, but more intimately connected than we might imagine. The American disaster in Afghanistan runs, in significant part, on BP-produced fuel, and government payments for that fuel are bolstering BP while it lives through its purgatory in the Gulf.
Turse begins: "Residents of Louisiana, Mississippi, Alabama, and Florida are livid with BP in the wake of the massive, never-ending oil spill in the Gulf of Mexico -- and Barack Obama says they ought to be. But there’s one aspect of the BP story that most of those angry residents of the Gulf states aren’t aware of. And the president hasn’t had a thing to say about it.
"Even as the tar balls hit Gulf beaches, their tax dollars are subsidizing BP and so far, President Obama has not shown the slightest indication that he plans to stop their flow into BP coffers, despite the recent call of Public Citizen, a watchdog group, to end the nation’s business dealings with company. In fact, the Department of Defense, which has a longstanding, multi-billion dollar business relationship with BP, tells TomDispatch that it has no plans to sever current business ties or curtail future contracts with the oil giant."
The rest of this startling report lays out just how much fuel the Pentagon, one of the great gas-guzzling institutions in history, needs and how much it relies on the giant oil companies, despite much publicity about its efforts to "green" the military. Between 2007 and 2010, "BP received around $5.7 billion in federal contracts, according to official government data. In fact, the $2.2 billion the Pentagon paid to the oil giant in 2009, accounted for almost 16% of the company’s nearly $14 billion in annual profits. This fiscal year, the U.S. military has already awarded the company more than $837 million, inking its latest deal with BP in March."
This is one of the hidden BP stories that should truly see the light of day. Don't miss it. Read it now.
Why did the Obama administration just approve more than 400 new leases for oil companies to operate in the Gulf of Mexico?
At his long-awaited press conference on the Gulf oil disaster last month, President Obama announced a moratorium on new oil drilling and exploration for six months. "We can't do this stuff if we don't have confidence that we can prevent crises like this from happening again," he declared. But while existing rigs may be out of commission for the near future, the administration hasn't exactly put the brakes on new oil and gas drilling ventures. In recent weeks, the government has quietly approved the sale of more than 400 new leases for vast swaths of the Gulf of Mexico. And these contracts—which mark the first step in the drilling process—were subjected to the same slapdash environmental oversight that failed to prevent the BP catastrophe.
The region was included in a plan created by the Bush administration's Department of the Interior to lease new areas of the Gulf to the oil and gas industries. But it was Obama's Interior secretary, Ken Salazar, who gave the go-ahead for the sale of Lease 213—6,800 tracts covering 36 million acres off the coasts of Louisiana, Mississippi, and Alabama in November 2009. The sale—which was held on March 17 this year in the New Orleans Superdome—attracted $1.3 billion in bids. Since then, the Department of the Interior's Minerals Management Service (MMS) has approved the sale of 448 of those tracts, 198 of them in deepwater, which is defined as more than 656 feet below the sea. BP is the proud new leaser of 13 of those tracts.
The lease sale is the first step in the oil drilling process. Companies must first obtain the right to drill the tracts before they can devise exploration plans, which must be approved by MMS.
And that's where the problem lies. MMS has been notorious for rubber-stamping the oil industry's plans. The lease for the well that's spewing oil into the Gulf, the Macondo, was sold in March 2008. The exploration plan for that well was granted a "categorical exclusion" from the requirements of the National Environmental Policy Act (NEPA) in April 2009, paving the way for drilling to begin. Read more.
Distraught Shrimper Disrupts BP CEO Tony Hayward Testimony | Press Release
Demanding Hayward’s Arrest and Permanent Moratorium on Offshore Drilling
Diane Wilson, a fourth generation shrimper from Texas, confronted BP CEO Tony Hayward during his testimony this morning, to advocate for his arrest as well as a permanent moratorium on offshore drilling. She stood up and shouted “Arrest this man, he is a criminal, his company is stealing the livelihoods of thousands of us in the Gulf and killing our coasts. Tony Hayward should be arrested.” Instead, Wilson was arrested and it is unclear when she will be released. Wilson was also arrested in Congress on June 9 for dousing herself with oil to protest BP's dumping on the shrimpers.
Before the hearing Diane made this statement: I came to DC to confront Tony Hayward for the devastation his company has brought to the fishing communities along the gulf. BP is a criminal company that has ignored safety regulations at the health of our oceans and even its own workers. Tony Hayward and BP need to be held accountable for their criminal activities as well as paying every last cent they may have to the families in the Gulf affected by their willful, criminal neglect. Our message to Obama, and Congress: BP must pay to clean up this mess and our government must move to end offshore drilling and move us into a new century of clean energy.” She added, “Pouring a jar of fake oil on myself I can get a year in jail. Tony Hayward’s company is pouring millions of gallons of oil into the gulf every day. He should be the one going to jail.”
Wilson is also a co-founder of the organization CODEPINK Women for Peace. She was in front of BP HQ in Houston, Texas two weeks ago to protest the oilspill and draw attention to BP’s legacy of negligence. Read her most recent article, “The BP oil gusher is just the latest in a long line of assaults on the Gulf of Mexico” published on Grist.com.
Barton Well-Funded By Big Oil, Including BP; Barton Apologizes to BP: "Sorry...Shakedown...Slushfund"
Rep. Joe Barton, R-Texas, set off a mini-storm with his apology to BP for its dealings with the Obama administration.
Federal Election Commission records show that during the current 2009-10 campaign cycle, the oil and gas industry has been the second-biggest contributor to Barton, at $100,470, behind only the electric utility industry ($162,800).
FEC records show that BP has given Barton an average of $1,350 a year since 1990.
Public Campaign, which calls itself a nonpartisan advocate for reducing campaign costs, said its analysis shows that he has received $27,000 in contributions from BP since taking office in 1985.
Corporate Apocalypse vs. Solartopian Survival
By Harvey Wasserman
BP’s apocalyptic Gulf gusher has put our ability to survive in serious doubt.
We have no reason to believe the end is near---or even in sight. Nor can we begin to calculate the damage to our Mother Earth…to her oceans, to the core of her being…and to each of us as individual organisms.
Only one thing IS clear: we cannot ultimately survive without a rapid conversion to a Solartopian economy that is totally green-powered. That transformation will be forced by biological imperatives, not money or markets.
The powers that be studiously avoid the core reality that this disaster stems from the ability of large corporations to make all of us pay for their irresponsible greed.
The black poisons killing our global body are gushing from a system that grants corporations human rights but does not demand human responsibility.
BP: Eco-Terrorism Inc. They Should be Prosecuted, Tried and Convicted Under Eco-Terrorism Laws Passed by the Right Wing
For many years, as part of the right wing thuggish putsch in America -- and their great skills at "framing" public policy issues -- environmentalists trying to aggressively save our natural heritage and keep our lives free of industrial toxins have been increasingly classified -- with legal punishments -- as "environmental terrorists." This has included every one from people who sit in trees to try and prevent excessive and ruinous logging to Greenpeace activists merely painting messages against deep sea oil drilling or trying to prevent the killing of whales.
In fact, BuzzFlash just a short time ago awarded our coveted "Wings of Justice Award" to 7 Greenpeace Activists who -- during the height of the BP oil Gulf catastrophe -- were arrested and threatened with being charged as eco-terrorists for painting an anti-deep sea drilling message on the side of an oil company ship docked in a Louisiana port. As we noted on May 25 of this year:
7 Greenpeace protestors were arrested in Louisiana for an act of civil disobedience: painting an offshore drilling message on the side of a ship that will assist Shell Oil in drilling in the Arctic. They should have been given a parade and welcomed as heroes instead of being charged with "crimes" that could net them up to 7 years in prison. Read more.
"Halliburton & BP, You Suck!"
Ho Hum. Yet another problem we're handling brilliantly with the very top experts, so you riff raff can calm down.
It's perfectly safe to breathe the chemicals.
The national guard is busy elsewhere but we'll let the Navy run the crowd control, I mean cleanup.
BP will pay everybody, unless they refuse to. But no prosecutions while we're looking forward.
Except for in the deepest water for 6 months, it's drill baby drill.
Oil is going to kill us all. Anybody have any ideas?
Missing the Real Drama of the Deepwater Horizon Blowout
By Bill McKibben | Huffington Post
All of these, it seems to me, could be considered parts of the Deepwater Horizon story because they demonstrate that fossil fuel is everywhere dirty. They change the political question from "is Obama angry enough" to "can Obama lead a credible fight for real energy and climate legislation?" More to the point, they connect with the mood of existential despair and anger that the oil spill has set off across the country. People are sad and bitter only in part because they see those pelicans oiled; mostly, they sense correctly that our leaders have yet to deal with what is clearly the biggest problem we face: the transition off of fossil fuels.
When a well started spewing oil off Santa Barbara in 1969, it spurred the first Earth Day, which in turn launched the environmental movement and a fundamental questioning of the balance between humans and the rest of nature. It turned out, in other words, to be a real Moment.
It makes one wonder if there really shouldn't be a little more depth to the endless coverage of the Deepwater Horizon blowout in the Gulf. (Which, just to be semantic for a moment, isn't really a "spill," or a "leak," unless you'd also call a knife wound a "bloodspill," or a gunshot to the carotid a "bloodleak." BP has punched a hole in the bottom of the sea.) Read more.
The Spill, The Scandal and the President
The inside story of how Obama failed to crack down on the corruption of the Bush years – and let the world's most dangerous oil company get away with murder
By Tim Dickinson | Rolling Stone | June 24, 2010
On May 27th, more than a month into the worst environmental disaster in U.S. history, Barack Obama strode to the podium in the East Room of the White House. For weeks, the administration had been insisting that BP alone was to blame for the catastrophic oil spill in the Gulf – and the ongoing failure to stop the massive leak. "They have the technical expertise to plug the hole," White House spokesman Robert Gibbs had said only six days earlier. "It is their responsibility." The president, Gibbs added, lacked the authority to play anything more than a supervisory role – a curious line of argument from an administration that has reserved the right to assassinate American citizens abroad and has nationalized much of the auto industry. "If BP is not accomplishing the task, can you just federalize it?" a reporter asked. "No," Gibbs replied.
Now, however, the president was suddenly standing up to take command of the cleanup effort. "In case you were wondering who's responsible," Obama told the nation, "I take responsibility." Sounding chastened, he acknowledged that his administration had failed to adequately reform the Minerals Management Service, the scandal-ridden federal agency that for years had essentially allowed the oil industry to self-regulate. "There wasn't sufficient urgency," the president said. "Absolutely I take responsibility for that." He also admitted that he had been too credulous of the oil giants: "I was wrong in my belief that the oil companies had their act together when it came to worst-case scenarios." He unveiled a presidential commission to investigate the disaster, discussed the resignation of the head of MMS, and extended a moratorium on new deepwater drilling. "The buck," he reiterated the next day on the sullied Louisiana coastline, "stops with me." Read more.
This added Corporate Incompetence is going to take much more than resilience as to the Gulf Waters, the Gulf Coast and the Gulf People, directly affected! This will affect the whole country, especially the Eastern States, as the other Industries and Corporations already have, and this will be felt in many ways as well! Seafood stocks as well as other food sources, weather and the moisture of that comes out of the Gulf and covers Florida as well as the Eastern States, and many other issues way to many to list.
At 2:40 in the video clip, Sen. Bill Nelson of Florida says there are now reports of oil coming through the sea floor.
B.P, Halliburton and Transocean have unleashed Armageddon and now there is no stopping it. Senator Bill Nelson has told us how bad it is.
This is our worst nightmare. The oil industry has killed the Gulf of Mexico.
My worst fears have been realized. If this link is true and the oil is coming through the sea floor, they have either blown out the formation or blown out the cement (which we know they did anyway to get the blowout to occur). I am beginning to realize why they have not wanted to close the valves on the cap. The more they close it, the more oil is going to come up through the sea floor, next to the well casing. I listed 12 points in my attached article. The really big concern here is that their directional wells are now pointless. They are GUARANTEED to fail because you can not pump mud or cement into a blown out well. It just does not set with oil and gas roaring past.
The next biggest concern is that they have to get 8 new wells in immediately to relieve the background oil and gas pressure. The oil is going to start coming up at an ever increasing rate along the casing and the blowout preventer.The oil and gas is going to act as a high pressure washer and erode away all the sandstone and mudstone. There is nothing they can do about it.
This is also the end of B.P. The claims will go on forever.
What these guys do not understand is that it is much worse than they think. Here is the reason why. Read more.
They showed this last night, you might want to watch the video report. This is one issue nobody has really been touching on, while as much as can be should be burned off so it doesn't reach the shore line, these 'burn offs' are creating possible other unknown problems for much of the country. They're creating huge plumes of toxic substances being spread in the air. Many of the moisture laden storms hitting FL as well as the East Coast come out of the Gulf, some even traveling the whole Eastern U.S.. The contaminants are within these storms and dropping with the rains wherever they hit, i.e. acid rain!!
Study: Well most likely spewing more than 1M gallons of oil a day
By Joel Achenbach, Juliet Eilperin and David Fahrenthold | Washington Post
The Deepwater Horizon well has most likely spewed 25,000 to 30,000 barrels of oil a day, more than previously estimated, according to one of several teams of scientists appointed by the federal government to study the flow from the dark geyser at the bottom of the Gulf of Mexico.
If the team's estimate is correct, and the flow has been more or less consistent, approximately 1.3 million to 1.5 million barrels, or 53.6 million to 64.3 million gallons, of oil have emerged from the well since the April 20 blowout. That is roughly five to six times the amount spilled in Alaskan waters in 1989 by the Exxon Valdez.
These new numbers hardly close the books on the size of the spill. The "plume team," which has examined video of the leaking well, is just one of four teams studying the flow rate. Another team, which analyzed satellite images and tried to correct for oil skimmed, burned and dispersed, has also refined its earlier estimate of 12,000 to 19,000 barrels a day. The team has now concluded that the flow is about 12,600 to 21,500 barrels a day.
Much of the oil flowing into the gulf has been skimmed, burned, or dispersed with chemicals, and the well is now capped and partially contained, with 15,800 barrels siphoned to a ship at the surface on Wednesday. But the new figures, obtained Thursday by The Washington Post and soon to be made public in a progress report from national incident commander Adm. Thad Allen, indicate that early estimates of the flow rate by the federal government and oil giant BP were not even close to the mark. Read more.
The government and university researchers confirmed Tuesday that plumes of dispersed oil were spreading far below the ocean surface from the leaking well in the Gulf of Mexico, raising fresh concern about the potential impact of the spill on sea life.
The tests, the first detailed chemical analyses of water from the deep sea, show that some of the most toxic components of the oil are not necessarily rising to the surface where they can evaporate, as would be expected in a shallow oil leak. Instead, they are drifting through deep water in plumes or layers that stretch as far as 50 miles from the leaking well.
As a rule, the toxic compounds are present at exceedingly low concentrations, the tests found, as would be expected given that they are being diluted in an immense volume of seawater.
“It’s pretty clear that the oil that has been released is becoming more and more dilute,” Jane Lubchenco, head of the National Oceanic and Atmospheric Administration, said in an interview. “That does not mean it’s unimportant — far from it. The total amount of oil out there is likely very large, and we have yet to understand the full impact of all that hydrocarbon on the gulf ecosystem.” Read more.
Fifty-one days after oil began gushing out of the ocean floor and into the Gulf of Mexico, Congress has extended a request that, in political parlance, is more of a demand: that Tony Hayward, the much maligned CEO of British Petroleum (BP), play question-and-answer before the Senate Energy and Commerce Committee June 17 on Capitol Hill.
The request is a terse, three-paragraph letter addressed to Hayward and signed by Reps. Henry A. Waxman (D-California) and Bart Stupak (D-Michigan), who chair the Committee on Energy and Commerce and its Subcommittee on Oversight and Investigations. The invitation is relatively opaque, providing the time and location of the hearing and advising Hayward that the committee may have some questions of a technical nature.
This seemingly rote invitation dovetails with a similar request from the chairmen - also dated June 8 - to John Bresland, chairman of the US Chemical Safety Board (CSB), the group that investigated two previous BP incidents: a 2006 leak in a BP pipeline which poured about 200,000 gallons of oil into Alaska's Prudhoe Bay, and an explosion at the Texas City Oil Refinery in 2005, also owned by BP, in which 15 workers were killed.
Unlike the letter to Hayward, the note to the CSB's Bresland gets down to brass tacks. Among Waxman and Stupak's questions: Did BP put money before safety? Was the company invested in its safety culture? Did BP provided adequate contractor oversight? Read more.