Obama scolds BP

President Obama vented his frustration Friday during a statement to the press he issued from the White House Rose Garden.

Flanked by cabinet members and other administration officials overseeing the federal response to the blow-out, he lit into industry representatives who appeared at congressional hearings on the spill earlier this week.

"I did not appreciate what I consider to be a ridiculous spectacle during congressional hearings into this matter," he said. "You had executives of BP and Transocean and Halliburton falling over each other to point the finger of blame at somebody else."

Nor did federal regulators escape the tongue-lashing. The president criticized what he termed "a cozy relationship" between oil companies and federal regulators in which "permits were too often issued based on little more than assurances of safety from oil companies" and oil companies exploited loopholes that "allowed some oil companies to bypass some critical environmental reviews," Obama said.

Part of the challenge – and the frustration – in coping with the blow-out lies in determining just how much oil the submarine gusher is releasing.

Official estimates from the federal government and BP, which owns the oil lease the Deepwater Horizon was working, place the leak rate at some 5,000 barrels (210,000 gallons) of oil a day. That alone is has been enough to trigger a regional emergency response.

But independent experts say the leak rate is likely to be much larger.

A week ago, Florida State University marine scientist Ian McDonald put the leak rate at around 25,000 barrels a day.

And in a report Friday morning, National Public Radio cited estimates from three independent scientists who say at least 50,000 barrels of oil a day are flowing into the Gulf waters. That would imply that the Deepwater Horizon disaster could be releasing at least the equivalent of one Exxon Valdez spill every five days.

These estimates have wide margins of error, cautions Timothy Crone, a scientist at Columbia University's Lamont-Doherty Earth Observatory in Palisades, N.Y.

In an email exchange, Dr. Crone, one of the three scientists NPR contacted, noted that his approach honed on estimating the material spewing from deep-sea hydrothermal vents.

He says that videos of the blow-out taken by robotic cameras at the well head lack the detail needed for more precise estimates of the flow. Moreover, the material emerging from the well head is a mix of methane, mud, and oil.

Taking all that into account, he puts the flow rate at roughly 50,000 barrels of oil a day.

"My numbers should be viewed with caution," he warns, but adds, "the flows are almost certainly higher than 5,000 barrels a day."

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Hayward applauds President's statement on oil spill
Release Date: 02 May 2010
“The US government leadership here has been excellent since day one. I agree with the President that the top priority right now is to stop the leak and mitigate the damage. I reiterated my commitment to the White House today that BP will do anything and everything we can to stop the leak, attack the spill off shore, and protect the shorelines of the Gulf Coast. We appreciate the tireless efforts of the many federal, state and local responders and the volunteers, men and women who have worked tirelessly since the date of the accident to mitigate the damage. Our teams are working hand in hand and we look forward to hearing more recommendations for action from the President’s visit today.”



-Tony Hayward, from Houma, Louisiana






Hayward Comments on President Obama's Statement
Release Date: 14 May 2010
Tony Hayward, BP Group Chief Executive, today said:

“We absolutely understand and share President Obama’s sense of urgency over the length of time this complex task is taking. We want to thank the President and his administration for their ongoing engagement in this effort.

“BP - working closely with scientists and engineers from across the whole oil industry, from government agencies and departments, and with local officials along the Gulf Coast - is focused on doing everything in our power to stop the flow of oil, remove it from the surface, and protect the shoreline. We are working with state and community leaders to mitigate the impact on the lives and livelihoods of those who have been affected.

“And while we continue in these efforts, we are participating fully in investigations that will provide valuable lessons about how to prevent future incidents of this nature.”

Riser Insertion Tube

Graphic depicting the Riser Insertion Tube method to contain oil leaking from the riser of the Deepwater Horizon Well. This technique is one of several that technicians and engineers have developed to slow or stop oil from leaking into the Gulf of Mexico.


For information about the response effort, visit www.deepwaterhorizonresponse.com.

BP says Gulf blow out preventer had been modified

WASHINGTON, May 11 (Reuters) - The blow-out preventer that was supposed to help protect against the oil spill disaster in the Gulf of Mexico had been modified, BP America Inc (BP.L: Quote, Profile, Research) President Lamar McKay told a senate panel on Tuesday.
"I have reason to believe the BOP had been modified," McKay told the Senate Committee on Energy and Natural Resource, which held its first hearing into the causes of the spill that killed 11 workers and caused a leak that is still releasing thousands of barrels of oil per day.

Steven Newman, the president and chief executive of Transocean Ltd (RIGN.S: Quote, Profile, Research) said the blowout preventer had been modified in 2005 at the request of BP.
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WASHINGTON – Rep. Henry Waxman says that his committee's investigation into the Gulf oil spill reveals that a key safety device, the blowout preventer, had a leak in a crucial hydraulic system.

The California Democrat said in a hearing Wednesday that the investigation also discovered that the well had failed a negative pressure test just hours before the April 20 explosion.

He cited BP documents received by the Energy and Commerce Committee that showed there was a breach in the well integrity that allowed methane gas and possibly other hydrocarbons to enter the well.

Gulf of Mexico Oil Spill Response

Keep Up with the latest progress on the response efforts in the gulf.

Deep Water Horizon Oil Spill Response

BP stops one of three Deepwater Horizon oil leaks

"We made good progress yesterday, including the cap on the drill pipe," BP spokesman John Curry wrote in an email, referring to shutting off one of the leaks.

Doug Suttles, BP chief operating officer, had said on Tuesday that although the undersea repair work on the riser pipe was expected to plug one of the three leaks, "I don't believe that will change the total amount leaking".

US authorities and BP are racing to try to contain a huge oil slick from the ruptured well that is threatening four Gulf coastal states.

BP stems one of three Deepwater Horizon oil leaks, US coastguard saysWork unlikely to reduce overall oil flow into the Gulf of Mexico, but will ease efforts to contain the slick

Boats with oil booms try to contain oil spilled from the explosion and collapse of the Deepwater Horizon rig in the Gulf of Mexico Photograph: Gerald Herbert/AP

The US coastguard says BP has managed to cap one of three leaks from its stricken deepwater oil well, but the work is not expected to reduce the overall flow of oil into the Gulf of Mexico.

The work should reduce the number of leak points that need to be fixed on the ocean floor, making it easier to drop a containment dome to bottle up the disastrous oil spill threatening sealife and livelihoods along the Gulf Coast.

Since an explosion on 20 April, 50 miles off the coast of Louisiana, the Deepwater Horizon well has been spewing at least 800,000 litres a day.

Experts say the best short-term solution is to drop a specially built giant concrete-and-steel box designed to siphon the oil away over the breach.

Crews for Wild Well Control, a contractor, are putting the finishing touches on the 100-ton containment dome, which is expected to be taken to the leak site today. John Curry, a BP spokesman, said it would be deployed on the seabed by tomorrow.

It's the latest attempt by BP engineers to stem the oil from the rig, which killed 11 workers when it exploded. It sank two days later, and oil started pouring into the Gulf. BP is in charge of the cleanup and President Barack Obamasays the company is responsible for the costs.

Officials said that capping one of the three leaks was a step towards stemming the flow. "It doesn't lessen the flow, it just simplifies the number of leak points they have to address," David Mosley, a coastguard petty officer 1st class, said.

A rainbow sheen of oil has reached land in parts of Louisiana, but the gooey rafts of coagulated crude have yet to come ashore in most places. Forecasts showed the oil wasn't expected to come ashore until at least tomorrow.

"It's a gift of a little bit of time, I'm not resting," said Mary Landry, a US coastguard rear admiral.

In their worst-case scenario, BP executives told members of a congressional committee that up to 9.5m litres a day could spill if the leaks worsened, though it would be more like 6.5m litres.

The worst oil spill in US history resulted from the 1989 grounding of the Exxon Valdez oil tanker in Alaska. It leaked nearly 11m gallons (41 million litres) of crude.

Containment domes have never been tried at this depth, about 5,000ft (1,500m) because of the extreme water pressure. The dome, if all goes well, could be fired up early next week to start funnelling the oil into a tanker.

It was not clear whether the equipment would work, said Bill Salvin, a BP spokesman. "What we do know is that we have done extensive engineering and modelling, and we believe this gives us the best chance to contain the oil, and that's very important to us."

Yesterday seas calmed allowing more conventional methods to contain the spill to get back on track as businesses and residents kept an eye on the ocean currents, wondering when the sheen washing ashore might turn into a heavier coating of oil. Crews put out more containment equipment and repaired some booms damaged in rough weather over the weekend. They also hoped to again try to burn some of the oil on the water's surface.

Chemical dispersants piped 1,500m to the main leak have significantly reduced the amount of oil coming to the surface, BP said. The company also hoped to shut off one of the smaller of three leaks, though it may not reduce the flow very much, said Doug Suttles, BP's chief operating officer.

From the air yesterday, the site of the Deepwater Horizon explosion looked similar to a week ago, except for the appearance of a massive rig brought in to drill a relief well to shut off the spewing oil. However, that would take months.

People along the Gulf Coast have spent weeks living with uncertainty, wondering where and when the oil may come ashore, ruining their beaches and their livelihoods.

The anxiety is so acute that some are seeing and smelling oil where there is none. And even though the dead turtles and jellyfish washing ashore along the Gulf of Mexico are clean, and scientists have yet to determine what killed them, many are sure the flow of crude is the culprit.

The rig was owned by Transocean. Some of the 115 surviving workers aboard when it exploded are suing the company and BP. In lawsuits filed yesterday, three workers say they were kept floating at sea for more than 10 hours, while the rig burned uncontrollably. They are seeking damages.

Guy Cantwell, a spokesman for Transocean, defended the company's response, saying 115 workers got off alive. Two wrongful death suits have also been filed.

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A subcontractor Transocean reportedly modified the BOP without the knowledge or permission of BP

Exclusive from Andrew Halcro

In what stands to be one of the biggest oil spills in the history of the United States, the possible cause of the spill now appears to be an unauthorized modification of the blow out prevention (BOP) valve.

Oil rig explosionBP's Deep Water Horizon oil rig exploded and sank off the cost of Louisiana last week. Eleven rig workers are missing, which was operated by Swiss-based Transocean Ltd, the largest independent driller in the world.

A subcontractor Transocean reportedly modified the BOP without the knowledge or permission of BP, to the government regulators who okayed the modified BOP, to the Obama administration who wants to look tough on BP even thought the company had no culpability, everyone but BP is running for cover.

New evidence shows BP will eventually be exonerated.



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This document is also packed full of information concerning the blast aa well as pictures of the Horizon

PLAN B- When AGIA Fails

There is no doubt that the long-desired pipeline to carry gas from Alaska, through Canada, to the Lower 48 -- the so-called "Big Line" -- is in significant trouble.

To be sure, the Parnell administration has attempted to convince Alaskans otherwise to justify the state government's continued $500 million subsidy of TransCanada's project under the Alaska Gasline Inducement Act. However, the observations of as diverse a group as the highly respected Potential Gas Committee, the federal Energy Information Administration and long-time and widely regarded consultant (sometimes to the Alaska government) Daniel Yergin clearly demonstrate the gravity of the situation.

In a November article in The Wall Street Journal that summarized the effects of what Yergin terms the shale gas "revolution," he concluded, "[a]t current levels of demand, the U.S. has about 90 years of proven and potential supply -- a number that is bound to go up as more and more shale gas is found." Against those numbers, is it realistic to think that producers will risk the $25 billion to $30 billion necessary to build an Arctic pipeline to attempt to penetrate an already oversupplied Lower 48 market? Not really.

So what happens to North Slope gas -- which is almost as important going forward to the Alaska economy as incentivizing continued development of Alaska oil -- if the Big Line fails (or to use the EIA's gentler term in a November study, if it is "significantly deferred")? Because the groundwork is in the process of being laid now, Alaskans should focus on -- and ask those who propose to lead them -- what is "Plan B?"

Three scenarios -- all led by various government components -- are materializing. The first two focus on other methods for developing a market for Alaska's North Slope gas. Oddly, the third scenario goes in reverse, and proposes steps that undermine monetizing Alaska's North Slope gas.

The two that develop a market for Alaska's gas are the Alaska Gasline Port Authority's Valdez liquefied natural gas project, which is the centerpiece of Bill Walker's campaign for governor, and the North Slope to Southcentral bullet line, most recently in the news as a result of Harry Noah's resignation from the Department of Natural Resources.

Of these, the bullet line clearly creates the best future for Alaska in a Plan B world.

Why is the bullet line the best? That is easy. The bullet line bundles a number of markets together in one project, and by doing so achieves the lowest cost for all users. It supplies gas to Fairbanks -- which needs a cleaner fuel to address the area's increasingly worrisome environmental issues. It brings gas to Southcentral -- which even the Parnell administration is now beginning to admit needs new gas supplies to offset declines in Cook Inlet production.

The Bullet line also creates the potential for a value-added industry in Alaska, such as the proposed, large scale gas-to-liquids project, which depends on the Cook Inlet's depleted oil and gas reservoirs to store the carbon dioxide produced from the process. The bullet line additionally brings a supply of gas to the Pebble Project, which because of the size of its demand for gas, would significantly reduce the transportation costs borne by other Southcentral consumers. Also, the bullet line provides a means for monetizing Alaska's North Slope gas on a large scale by moving it to tidewater (albeit the Cook Inlet), paving the way for an LNG export project.

By bringing all of these requirements together, the bullet line produces the lowest cost transportation option for all users, and, in doing so, creates the greatest potential that each project it touches clears its economic hurdles.

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