Hospitals
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Deepwater Horizon Spill Response Solution HA-8-6-10
By Anthony J. Sanders
On April 20, 2010, the Deepwater
Horizon oil platform, located in the
Although initial reports indicated that relatively little
oil had leaked, by April 24 it was discovered that approximately 1,000 barrels (42,000 gallons) of oil per day
were issuing from the wellhead, a mile below the surface on the ocean floor. By April 29, the U.S.
Government revised their estimate to approximately 5,000 barrels of oil per day
(210,000 gallons). A research vessel commissioned by NOAA to scour
the area discovered evidence of a second oil leak, “a gigantic
plume” about five to seven miles from the initial leak that BP has focused on
fixing, so large that the initial one is “minor: in comparison. The oil field the Deepwater
Horizon had tapped is said to be the second largest deposit in the world,
covering an estimated 25,000 square miles, from the inlands of
Estimated
Volume of Spill April 20 – Aug 20, 2010 |
|||||
Volume
of Oil Spill Low - High |
April
20 |
April
20 – May 20 30 days |
May 21
– June 20 60 days |
June 21
– July 21 90 days |
July
21- Aug. 20 120 days |
Tons |
1,637 –
2,592 |
49,110
– 77,760 |
98,220
– 155,520 |
147,330
– 233,280 |
196,560
– 311,040 |
Barrels |
12,000
– 19,000 |
360,000
– 570,000 |
720,000
- 1,140,000 |
1,080,000
– 1,710,000 |
1,440,000
– 2,280,000 |
Gallons |
504,000
– 798,000 |
15,120,000
– 23,940,00 |
30,240,000
– 47,880,000 |
45,360,000
– 71,820,000 |
60,480,000
– 95,760,000 |
* One tonne of crude oil is roughly equal to 308 US gallons, or 7.33 barrels; One Barrel Equals 42 gallons and 0.136 tons at 60 degrees Fahrenheit Source: Examiner.com National. NOAA projections for BP oil spill (Sliding Scale, Digital Image 3) http://www.examiner.com/x-33986-Political-Spin-Examiner~y2010m6d3-NOAA-projections-for-BP-oil-spill-is-world-wide-catastrophe |
Six weeks
to the day after Deepwater Horizon sank, and five days after BP and the
government gave up hope for killing the well with blasts of drilling mud, the top
hat offered the best chance so far of capturing the leaking oil before it can
pollute the gulf further.
The first attempt at containment in mid-May went
awry because the large dome lowered over the main leak in the pipe had no
mechanism for limiting the amount of water mixing with the oil and gas. The
very cold water and gas combined to form slushy methane hydrates that clogged
the dome and made it buoyant, so that it wanted to float away from the leak. On the night of June 3rd BP engineers guided a containment
dome onto the hydrocarbon geyser shooting from the
Nothing
has gone according to plan in the subsea environment
as, on the surface, the oil has hit more than 100 miles of
Source: Examiner.com National. NOAA digital sliding scale projections for BP oil spill (Video) http://www.examiner.com/x-33986-Political-Spin-Examiner~y2010m6d3-NOAA-projections-for-BP-oil-spill-is-world-wide-catastrophe
Oil spill model systems are used by industry and government to assist in planning and emergency decision making. Of critical importance for the skill of the oil spill model prediction is the adequate description of the wind and current fields. NOAA's Office of Response and Restoration uses Environmental Sensitivity Index (ESI) maps made up of information within the following three categories: shoreline type, and biological and human-use resources. NOAA updates these maps daily to inform the fishing industry which waters are closed to fishing, the animal rescue crews where injured animals are likely to be found and to inform the Natural Resource Damage Assessment (NRDA). Under the 1990 Oil Pollution Act (OPA), a Natural Resource Damage Assessment (NRDA) is a legal process to determine the type and amount of restoration needed to compensate the public for harm to natural resources and their human uses that occur as a result of an oil spill. The trustees seek from the responsible party the costs of conducting the assessment and restoration planning. The trustees also seek damages to implement the restoration, and if the responsible party does not agree to damages, the trustees and/or the United States may bring suit or submit a claim for damages to the Oil Spill Liability Trust Fund (Fund), administered by the USCG’s National Pollution Funds Center.
The oil slick spreading from the Deepwater Horizon disaster threatens fisheries, tourism and the habitat of hundreds of bird species. Oil spills deeply impact the ecosystem they contaminate. The oil penetrates bird plumage, reducing its insulating ability, and so making the birds more vulnerable to temperature fluctuations and much less buoyant in the water. It also impairs birds' flight abilities to forage and escape from predators. As they attempt to preen, birds typically ingest oil that covers their feathers, causing kidney damage, altered liver function, and digestive tract irritation. This and the limited foraging ability quickly cause dehydration, and metabolic imbalances. Hormonal balance alteration including changes in luteinizing protein can also result in some birds exposed to petroleum. Most birds affected by an oil spill die unless there is human intervention. Marine mammals exposed to oil spills are affected in similar ways as seabirds. Oil coats the fur of Sea otters and seals, reducing its insulation abilities and leading to body temperature fluctuations and hypothermia. Ingestion of the oil causes dehydration and impaired digestions. Because oil floats on top of water, less light penetrates into the water, limiting the photosynthesis of marine plants and phytoplankton. This, as well as decreasing fauna populations, affects the food chain in the ecosystem, including fish.
NOAA Fishery Closure Area June 4, 2010
Source: NOAA. June 4, 2010. Closure area updated daily as necessary High resolution [pdf]
NOAA works closely with the U.S. Food and Drug Administration and the states to ensure seafood safety, by closing fishing areas where tainted seafood could potentially be caught, and assessing whether seafood is tainted or contaminated to levels that pose a risk to human health. The Official Deepwater Horizon Response Unified Command receives calls about Report oiled shoreline or request volunteer information: (866) 448-5816 and oiled wildlife at (866) 557-1401 and is believed to begin their count from May 4th when NOAA began collecting animals. The daily updated report indicates that of the 820 birds collected, 223 were alive, 597 were dead and 28 were released. Of 289 sea turtles, 46 were alive, 243 were dead and 3 were released. Of 33 sea mammals, including dolphins, collected, 2 were alive, 30 were dead, and none were released. One reptile was collected alive. Most of the dead animals were discovered without visible signs of being oiled.
While
there might be skepticism of the danger of the oil spill to wildlife regarding
natural causes of death one should probably err on the side of caution in
regards to the danger of consuming seafood caught in affected areas where there
was no visible signs of oil pollution. A
recent surveying mission of the
Fishermen who wish to contact BP
about a claim should call 800-440-0858. BP
said today it will be sending a second advance payment during June to
individuals and businesses along the
An oil spill is the release of a liquid petroleum hydrocarbon into the environment due to human activity, and is a form of pollution. The term often refers to marine oil spills, where oil is released into the ocean or coastal waters. Most human-made oil pollution comes from land-based activity, but public attention and regulation of oil spills has tended to focus most sharply on seagoing oil tankers. Spills take months or even years to clean up. Many spills are contained and cleaned up by the party responsible for the spill; some spills require assistance from local and state agencies, and occasionally, the federal government. Oil also enters the marine environment from natural oil seeps. By observing the thickness of the film of oil and its appearance on the surface of the water, it is possible to estimate the quantity of oil spilled. If the surface area of the spill, and the thickness of the film, is also known, the total volume of the oil can be calculated. Alternatively if the total volume of oil and surface area of the spill are known the thickness of the film can be predicted, although there are other variables such as wind, current and degradation of the oil.
Oil Spill Film Thickness Observation Chart |
||||
|
Film thickness |
Quantity spread |
||
Appearance |
mm |
gal/sq mi |
L/ha |
|
Barely visible |
0.0000015 |
0.0000380 |
25 |
0.370 |
0.0000030 |
0.0000760 |
50 |
0.730 |
|
First trace of color |
0.0000060 |
0.0001500 |
100 |
1.500 |
0.0000120 |
0.0003000 |
200 |
2.900 |
|
Colors begin to dull |
0.0000400 |
0.0010000 |
666 |
9.700 |
0.0000800 |
0.0020000 |
1332 |
19.500 |
|
Source: Environmental Protection Agency |
Product |
Toxicity |
Effectiveness (%) |
|||
Menidia |
Mysidopsis |
|
|
Average of |
|
BIODISPERS |
5.95 |
2.66 |
51.00 |
63.00 |
57.00 |
COREXIT®EC9500A |
2.61 |
3.40 |
45.30 |
54.70 |
50.00 |
COREXIT®EC9527A |
4.49 |
6.60 |
37.40 |
63.40 |
50.40 |
DISPERSIT SPC 1000™ |
7.90 |
8.20 |
40.00 |
100.00 |
73.00 |
FINASOL OSR 52 |
5.40 |
2.37 |
32.50 |
71.60 |
52.10 |
JD-109 |
3.84 |
3.51 |
26.00 |
91.00 |
58.50 |
JD-2000™ |
3.59 |
2.19 |
60.40 |
77.80 |
69.10 |
MARE CLEAN 200 |
42.00 |
9.84 |
63.97 |
84.14 |
74.06 |
NEOS AB3000 |
57.00 |
25.00 |
19.70 |
89.80 |
54.80 |
NOKOMIS 3-AA |
34.22 |
20.16 |
63.20 |
65.70 |
64.50 |
NOKOMIS 3-F4 |
100 |
58.40 |
62.20 |
64.90 |
63.55 |
SAF-RON GOLD |
9.25 |
3.04 |
84.80 |
53.80 |
69.30 |
SEA BRAT #4 |
23.00 |
18.00 |
53.55 |
60.65 |
57.10 |
SEACARE ECOSPERSE 52 (see FINASOL®OSR 52) |
5.40 |
2.37 |
32.50 |
71.60 |
52.10 |
SEACARE E.P.A. (see DISPERSIT SPC 1000™) |
7.90 |
8.20 |
40.00 |
100.00 |
73.00 |
SF-GOLD DISPERSANT (see SAF-RON GOLD) |
9.25 |
3.04 |
84.80 |
53.80 |
69.30 |
ZI-400 |
8.35 |
1.77 |
50.10 |
89.80 |
69.90 |
ZI-400 OIL SPILL DISPERSANT (see ZI-400) |
8.35 |
1.77 |
50.10 |
89.80 |
69.90 |
Source: Environmental Protection Agency. National Contingecy Plan.
Subpart J. Toxicity and Effectiveness Summaries. http://www.epa.gov/emergencies/content/ncp/tox_tables.htm
|
Dispersants act as detergents, clustering around oil globules and allowing them to be carried away in the water. This improves the surface aesthetically, and mobilizes the oil. Smaller oil droplets, scattered by currents, may cause less harm and may degrade more easily. But the dispersed oil droplets infiltrate into deeper water and can lethally contaminate coral, oyster fields and other underwater ecosystems. Recent research indicates that some dispersant are toxic to corals. A sheen is usually dispersed (but not cleaned up) with detergents which makes oil settle to the bottom. Oils that are denser than water, such as Polychlorinated biphenyls(PCBs), can be more difficult to clean as they make the seabed toxic. When this crisis occurred, Coast Guard and EPA granted BP authorization to use an approved dispersant on oil present on the surface of the water in an effort mitigate the impact of the spill. Should data indicate that the dispersants are causing significant environmental damage that outweighs the benefits of their use, EPA and the Coast Guard reserve the right to discontinue use. Although the crude oil is more toxic than the authorized dispersants, much is unknown about the long term environmental impacts of dispersants when used in these unprecedented volumes on the surface and in the subsea. Because of this and due to the effectiveness of subsea applications, EPA and the U.S. Coast Guard directed BP to significantly ramp down their use of dispersants. BP has complied and has significantly reduced dispersant use. The E.P.A. approved dispersant is SEACARE E.P.A. (see DISPERSIT SPC 1000™) with a 100% effectiveness rating and low toxicity.
Toxicity and Effectiveness of
Bioremediation Agents
Product |
Toxicity* |
Effectiveness (28 day) |
||
Menidia (96-hr) |
Mysidopsis (48-hr) |
Alkanes |
Aromatics |
|
B&S INDUSTRIAL (see STEP ONE) |
NA |
NA |
44.03 |
54.51 |
BET BIOPETRO |
NA |
NA |
99.00 |
67.00 |
BILGE CLEAR (see S-200) |
25.33 |
17.67 |
98.00 |
10.40 |
BIOWORLD BIOREMEDIATION TREATMENT PRODUCTS |
13.90 |
7.10 |
97.00 |
88.00 |
GENISIS WE-F (see OPPENHEIMER FORMULA) |
NA |
NA |
89.10 |
38.20 |
INIPOL EAP 22 (no longer manuf.) |
125.00 |
35.00 |
93.87 |
23.25 |
JE1058BS |
8.68 |
2.44 |
92.6 |
39.0 |
LAND AND SEA RESTORATION PRODUCT 001 (VELITE) |
NA |
NA |
42.92 |
31.92 |
MICRO-BLAZE® |
NA |
NA |
94.10 |
47.60 |
MIGHTY MIKE BPT (see OPPENHEIMER FORMULA) |
NA |
NA |
89.10 |
38.20 |
NATURAL ENVIRO 8000 BIOREMEDIATION (see OPPENHEIMER
FORMULA) |
NA |
NA |
89.10 |
38.20 |
OPPENHEIMER FORMULA |
NA |
NA |
89.10 |
38.20 |
OIL SPILL EATER II (OSE II) |
NA |
NA |
89.80 |
89.60 |
PETRO-TREAT (see OPPENHEIMER FORMULA) |
NA |
NA |
89.10 |
38.20 |
PRISTINE SEA II (no longer manuf.) |
NA |
NA |
NA |
NA |
S-200 |
25.33 |
17.67 |
98.00 |
10.40 |
S-200C (see S-200) |
25.33 |
17.67 |
98.00 |
10.40 |
SHEENCLEAN (see S-200) |
25.33 |
17.67 |
98.00 |
10.40 |
SPILLREMED (MARINE)® |
37.50 |
22.40 |
97.00 |
47.00 |
STEP ONE |
NA |
NA |
44.03 |
54.51 |
SYSTEM E.T. 20 |
NA |
NA |
99.10 |
77.00 |
*VB591™, VB997™, BIONUTRIX® |
NA |
NA |
96.80 |
73.10 |
WMI-2000 |
NA |
NA |
60.30 |
33.30 |
Source:
Environmental Protection Agency. National Contingecy Plan. Subpart J. Toxicity and Effectiveness Summaries. http://www.epa.gov/emergencies/content/ncp/tox_tables.htm
|
Product |
Toxicity |
|
Menidia (96-hr) |
Mysidopsis (48-hr) |
|
AQUACLEAN |
6.50 |
2.10 |
BG-CLEAN™ 401 |
13.10 |
2.86 |
BIOSOLVE® HYDROCARBON MITIGATION™ AGENT |
7.40 |
1.30 |
CLEAN SPLIT (see SPLIT DECISON SC) |
0.25 |
2.06 |
CN-110 |
7.40 |
1.19 |
COREXIT® EC7664A |
15.16 |
18.34 |
COREXIT® EC9580A |
13.20 |
9.06 |
CYTOSOL |
24.30 |
7.00 |
DO ALL #18 |
9.38 |
0.57 |
DUO-SPLIT (see SPILT DECISION SC) |
0.25 |
2.06 |
E-SAFE© |
8.77 |
14.20 |
ENVIROCLEAN |
8.13 |
1.76 |
F-500 |
<10.00 |
32.00 |
FIREMAN'S BRAND SPILLCLEAN (see SPILLCLEAN) |
3.30 |
1.30 |
FM-186-2SW (voluntary removal) |
160.70 |
329.90 |
GOLD CREW SW |
6.34 |
2.70 |
MICRO CLEAN (see NATURE'S WAY HS) |
3.91 |
1.07 |
NALE-IT |
3.82 |
1.84 |
NATURE'S WAY HS |
3.91 |
1.07 |
NATURE'S WAY PC (see NATURE'S WAY HS) |
3.91 |
1.07 |
NOKOMIS 5-W |
3.07 |
2.24 |
PETRO-CLEAN |
115.00 |
105.00 |
PETRO-GREEN ADP-7 |
10.95 |
1.12 |
PETROTECH 25 |
3.40 |
1.00 |
POWERCLEAN (see NATURE'S WAY HS) |
3.91 |
1.07 |
PREMIER 99 |
8.20 |
2.50 |
PROCLEANS |
4.78 |
11.68 |
SC-1000™ |
4.72 |
2.13 |
SHEEN-MAGIC© |
7.82 |
5.75 |
SIMPLE GREEN® |
8.30 |
4.40 |
SPILLCLEAN |
3.30 |
1.30 |
SPILLCLEAN ["Concentrate"] (see SPILLCLEAN) |
3.30 |
1.30 |
|
0.25 |
2.06 |
SUPERALL #38 (see TOPSALL #30) |
4.60 |
5.00 |
SX-100 (voluntary removal) |
26.00 |
32.00 |
TOPSALL #30 |
4.60 |
5.00 |
Source:
Environmental Protection Agency. National Contingecy Plan. Subpart J. Toxicity and Effectiveness Summaries. http://www.epa.gov/emergencies/content/ncp/tox_tables.htm
|
Product |
Toxicity |
Effectiveness (%) |
|
Menidia (96-hr) |
Mysidopsis (48-hr) |
||
ELASTOL |
8.20 |
3.70 |
NA |
LIQUID ELASTOL (see ELASTOL) |
8.20 |
3.70 |
NA |
MARI-ZYME (see ZYME-FLOW) |
8.70 |
1.60 |
NA |
PES-51 |
435.00 |
14.50 |
NA |
PX 700™ |
5.65 |
2.77 |
NA |
SEPARATE (see ELASTOL) |
8.20 |
3.70 |
NA |
UNITED 658 PETRO-ZYME (see ZYME-FLOW) |
8.70 |
1.60 |
NA |
ZYME-FLOW |
8.70 |
1.60 |
NA |
ZYME-TREAT (see ZYME-FLOW) |
8.70 |
1.60 |
NA |
Source: Environmental Protection Agency. National Contingecy Plan. Subpart J. Toxicity and Effectiveness Summaries. http://www.epa.gov/emergencies/content/ncp/tox_tables.htm
|
Product |
Toxicity |
Effectiveness (%) |
|
Menidia (96-hr) |
Mysidopsis (48-hr) |
||
ALSOCUP |
14.00 |
10.00 |
NA |
AQUA N-CAP™ POLYMER |
22.50 |
2.13 |
NA |
CIAGENT |
5.93 |
1.73 |
NA |
RAPIDGRAB 2000™ |
4.07 |
2.60 |
NA |
WASTE-SET 3200® |
552.00 |
58.00 |
NA |
WASTE-SET 3400® |
442.00 |
36.00 |
NA |
Source: Environmental Protection Agency. National Contingecy Plan. Subpart J. Toxicity and Effectiveness Summaries. http://www.epa.gov/emergencies/content/ncp/tox_tables.htm |
Oil drilling is a risky occupation,
the extraction of volatile substances sometimes under extreme pressure in a
hostile environment is dangerous, accidents and tragedies occur regularly. The advent of offshore drilling, in 1891,
didn’t cause a problem until the wells became deeper and pumping capacity
increased, whereupon safety became a serious issue. Reclaiming oil by hand is not a particularly
risky seasonal work by comparison, and no deaths or permanent disabilities
amongst clean up crews have been reported.
Between 2001 and 2010 the U.S. Minerals Management Service reported 69
offshore deaths, 1,349 injuries, and 858 fires and explosions on offshore rigs
in the
Oil spills of over 100,000 tonnes or 30 million US gallons, ordered by tonnes |
|
||
Spill / Tanker |
Location |
Date |
*Tons of crude
oil |
BP Deepwater Horizon, oil platform |
|
April 20, 2010 |
98,000 – 311,040 |
Exxon Valdez, oil tanker |
|
1989 |
35,714 11 million gallons |
|
|
March 2, 1992 |
285,000 |
Gulf War oil spill |
|
January 21, 1991 |
116,883,116 (36 billion gallons) |
ABT Summer |
700 nautical miles (1,300 km) off |
1991 |
260,000 |
Amoco Haven tanker disaster |
Mediterranean Sea near
|
1991 |
144,000 |
Odyssey |
700 nautical miles (1,300 km) off |
1988 |
132,000 |
Castillo de Bellver |
|
August 6, 1983 |
252,000 |
Nowruz oil field |
|
February 1983 |
260,000 |
Irenes Serenade |
|
1980 |
100,000 |
Ixtoc I oil well |
|
June 3, 1979–March 23, 1980 |
454,000–480,000 |
Atlantic Empress/ Aegean Captain |
|
July 19, 1979 |
287,000 |
Amoco Cadiz |
Brittany, France |
March 16, 1978 |
223,000 |
Sea Star |
|
December 19, 1972 |
115,000 |
Urquiola |
A Coruńa, |
May 12, 1976 |
100,000 |
|
Scilly Isles, |
March 18, 1967 |
80,000–119,000 |
Source: Wikipedia
-* One tonne of crude oil is roughly equal to 308 |
For those not content to wait for
conventional oil drilling technology the Nuclear Age Peace Foundation advocated for the
"nuclear option". Similar to
what was theoretically used to trigger the recent Haitian and Chilean quakes. A
Russian newspaper, Komsomoloskaya Pravda argued earlier this month
Deepwater
Horizon was a fifth-generation, RBS-8D design, ultra-deepwater,
dynamically positioned, column-stabilized, semi-submersible drilling rig. This
type of rig does the initial drilling, then other rigs
are used to produce oil from the completed wells. The rig was 396 feet (121 m)
long and 256 feet (78 m) wide and according to Billy Nungesser, the president of
Designed originally for R&B
Falcon, Deepwater
Horizon was built by Hyundai Heavy Industries in
At the
time of the explosion, the Deepwater Horizon was drilling
an exploratory well at a depth of approximately 5,000 feet
(1,500 m) in the Macondo Prospect, in
Legal Planet reported that the malfunctioning blow-out prevent (BOP) was manufactured in 2001 and because this safety device failed, lawyers assure us, the manufacturer (Cameron out of Houston, Texas) will likely have major liability, as will BP, and Halliburton, to cover for the limited liability of Transocean L.L.C. and the e-drilling monitoring service in Houston, Texas. The BOP is a huge block of steel and valves that that holds the well pipe. The BOP has the ability to slice through the pipe and seal the well. The BOP used by the Deepwater Horizon was with the rig for nine years and had passed inspection 10 days before the accident. The $600 million oil rig is Transocean’s. BP leases it for some $500,000 a day. Most of the 100+ people on the rig are Transocean’s. At the time of the explosion, the rig was actively drilling but was not in production according to a spokesman for Transocean Ltd. On April 20, 2010, the Deepwater Horizon, an offshore drilling rig owned by Transocean Limited, exploded with at least 126 people onboard. 11 people were killed. At the time of the accident executives were reported to have come aboard to celebrate the high marks the platform had earned on a recent safety inspection.
On April 19, 2010 Halliburton workers had finished pumping cement to fill the space between the pipe and the sides of the hole and had begun temporarily plugging the well with cement; the cement job was finished, and pressure testing occurred. Despite there being problems with the pressure testing, Transocean and BP chose to continue displacing the mud, as if the cement job had been successful. This was a grave error. For cementing to be effective, the right mix must be used, and the cement must have time to harden. Most blowouts that occur offshore historically are the result of a cementing issue, or a BOP failure. Deepwater Horizon seems to have been the result of both. According to eyewitnesses, prior to the pressure "kick," no alarms sounded. On April 20, at around 10 p.m. (central time) a fire was reported on the rig. Eleven workers were killed. The rig had been drilling 8,000 barrels of oil per day, and had 700,000 gallons of diesel fuel on board. After a large conflagration on April 22 the Deepwater Horizon sank. Unfortunately, because the Deepwater Horizon now is under the ocean, in 5,000 feet of water, proof of the exact cause of this disaster, will cost hundreds of thousands of dollars to discover.
The Center for Public Integrity, a nonprofit investigative news organization, published an account of Coast Guard logs that indicated the Coast Guard knew within 24 hours of the explosion that the rig's BOP had failed and that the well could leak as much as 8,000 barrels a day. The center obtained the logs from Rep. Darrell Issa (R-Calif.), who said in a statement, "These documents raise new questions about whether the White House was slow to respond to an incident that was quickly recognized by the Coast Guard as a potentially catastrophic threat to the environment." Until April 23 the Coast Guard reported that no oil is leaking and not until April 24 that the Coast Guard reversed its earlier statement that there was no oil leaking and Guard officials conservatively estimated 1,000 barrels of oil per day are coming out of the well head on the ocean floor, 5,000 feet below water. On April 28 the Coast Guard announces that 5,000, not 1,000, barrels a day of oil are spilling, citing a new NOAA estimate. And on May 3 the current worst case scenario of BP, is that sealing the 12-19,000 barrel a day leak might take 2-3 months.
The Oil Pollution Act (OPA) was signed into law in August 1990, in response to rising public concern following the Exxon Valdez incident, it has subsequently been amended several times and is much different than when it was written. The OPA improved the nation's ability to prevent and respond to oil spills by establishing provisions that expand the federal government's ability, and through the liability of responsible parties, provides the money and resources necessary, to respond to oil spills. The OPA created the national Oil Spill Liability Trust Fund, which is available to provide up to one billion dollars per spill incident. OPA increased penalties for regulatory noncompliance, broadened the response and enforcement authorities of the Federal government, and preserved State authority to establish law governing oil spill prevention and response. The National Oil and Hazardous Substances Pollution Contingency Plan (NCP) has been expanded in a three-tiered approach whereby the Federal government is required to direct all public and private response efforts for certain types of spill events; Area Committees -- composed of federal, state, and local government officials -- must develop detailed, location-specific Area Contingency Plans; and owners or operators of vessels and certain facilities that pose a serious threat to the environment must prepare their own Facility Response Plans. Under the National Contingency Plan, EPA is the lead federal response agency for oil spills occurring in inland waters, and the U.S. Coast Guard is the lead response agency for spills in coastal waters and deepwater ports.
The Key Provisions of the Oil
Pollution Act provides at Title 33 USC (40) §2702, that the responsible party for a vessel or facility from
which oil is discharged, is liable for removal costs and damages, including damage
to natural resources, to real or personal property, to subsistence use of
natural resources, to revenues lost, profits and earning capacity, and the cost
of public services used to redress the damage caused by the oil spill. Under 33 USC (40) §2718 States may impose additional liability (including unlimited
liability), funding mechanisms, requirements for removal actions, and fines and
penalties for responsible parties. The
administration is keeping close tabs on expenses. The Coast Guard sent BP a
bill on June 3rd for $69 million giving it until July 1 to reimburse
the government for military, National Guard and federal agency efforts to cope
with the oil spill.
As a
rule of thumb it costs $1,000 in 1990 dollars to clean up one +/- $70 barrel of
oil, if it spills.
We are looking at a spill of one to two million barrels and
preliminary damage estimates for BP are already estimated to be around $10
billion for the entire restoration. The
federal government and the four affected States, Louisiana, Alabama,
Mississippi and Florida, are due compensation for damages, as are all private
claimants whose property or livelihoods were damaged by the oil spill or who
materially assisted in the solid waste removal.
The plan is to train more than 4,500 workers in the
three states in the Mobile Sector (1,500 in
BP Financial Information 2007-2009 in
millions |
|||
|
2007 |
2008 |
2009 |
Revenues |
291,438 |
367,053 |
246,138 |
Profit |
21,169 |
21,666 |
16,759 |
Source: BP Financial and Operating Information 2005-2009 http://www.bp.com/assets/bp_internet/globalbp/STAGING/ global_assets/downloads/F/FOI_2005_2009_full_book.pdf |
It should not be difficult for BP
to bear the $10 billion cost of the cleanup.
It will however take more than half of their 2010 profits. In 2009 BP made $16.76 billion in profits, had
a market capitalization of $181 billion, revenues of $239 billion, employing
80,300, not including contractors. Oil,
natural gas and energy revenues declined dramatically in 2009, after a two year
surge in oil and energy prices. Despite a 9-10 percent rise
worldwide in 2010 demand versus 2009, demand is still 10 percent below the peak
in 2008. The International Energy
Association projected, there will not be much of an
increase in exploration and development investments in the next five
years. Hit
by investor jitters, oil tumbled 26 percent to a low of $64.24 in intraday
trade on May 20, from a year-high of $87.15 a barrel on May 3. On Friday,
Top World Oil
Producers, Exporters, Consumers, and Importers, 2006
(millions of barrels per
day)
|
|||||||
Producers |
Total oil |
Exporters |
Net oil |
Consumers |
Total oil |
Importers |
Net oil |
1. |
10.72 |
1. |
8.65 |
1. |
20.59 |
1. |
12.22 |
2. |
9.67 |
2. |
6.57 |
2. |
7.27 |
2. |
5.10 |
3. |
8.37 |
3. |
2.54 |
3. |
5.22 |
3. |
3.44 |
4. |
4.12 |
4. |
2.52 |
4. |
3.10 |
4. |
2.48 |
5. |
3.71 |
5. |
2.52 |
5. |
2.63 |
5. |
2.15 |
6. |
3.84 |
6. |
2.20 |
6. |
2.53 |
6. |
1.89 |
7. |
3.23 |
7. |
2.15 |
7. |
2.22 |
7. |
1.69 |
8. |
2.94 |
8. |
2.15 |
8. |
2.12 |
8. |
1.56 |
9. |
2.81 |
9. |
1.85 |
9. |
2.12 |
9. |
1.56 |
10. |
2.79 |
10. |
1.68 |
10. |
2.07 |
10. |
0.94 |
11. |
2.67 |
11. |
1.52 |
11. |
2.03 |
|
|
12. |
2.44 |
12. |
1.43 |
12. |
1.97 |
|
|
13. |
2.16 |
13. |
1.36 |
13. |
1.82 |
|
|
14. |
2.01 |
14. |
1.11 |
14. |
1.71 |
|
|
Source: Energy Information Administration (EIA). Country Energy Profiles. www.eia.doe.gov/emeu/cabs/ |
The
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