BP wants to steam clean Louisiana beaches after Isaac. Objections raised to settlement of claims. Transocean proposes a $1.5 billion settlement, fights Brazilian injunction, and buys four new deepwater rigs. BP sells off some Gulf assets for a sh*tpile of cash. Shell begins Chukchi Sea drilling, but ice has other ideas. Bob Cavnar explains why the ice is a problem. And Tony H. is getting his life back, the little bastard.
You are in the current Gulf Watchers BP Catastrophe - AUV #596. AUV #595 is here.
Follow the Gulf Watchers tag by going clicking on the heart next to the Gulf Watchers tag at the bottom of this diary. |
Follow the Gulf Watchers Group by going here and clicking on the heart next to where it says "Follow" in the Gulf Watchers Group profile on the right. You will have to scroll down a little to see the profile. |
Bookmark this link to find the latest Gulf Watchers diaries. |
Gulf Watchers Diaries will be posted on every other Tuesday afternoon.
Part one of the digest of diaries is here and part two is here.
Please be kind to kossacks with bandwidth issues. Please do not post images or videos. Again, many thanks for this.
Okay. I am definitely not sure whether they actually believe this is a good thing.
BP proposes deep-cleaning Louisiana beaches.
The president of BP's Gulf Coast Restoration Organization proposed today that steam cleaning be used on Louisiana beaches to remove weathered oil and tar balls stirred up by Hurricane Isaac.
Mike Utsler on announced that the company has requested permission to "deep clean" beaches on Grand Isle, Grand Terre Island, Fourchon Beach and Elmer's Island.
Okay. It's a beach, asshole, not your living-room carpet.
The deep cleaning process is a beach equivalent of steam cleaning a home's carpet, but would wash sand deeper along the beach than had occurred in earlier removal efforts along those beaches. The process was used extensively along "amenity" beaches used by tourists in Mississippi, Alabama and the Florida panhandle.
Although the process had been used (thanks, Mr. Ex-Goobernator Barbour...) the process is environmentally damaging, since the heat from the cleaning kills microorganisms and small animals that live in the sand.
Well, DUH...
Utsler said initial indications are that there has been no additional oiling of inland wetlands in Louisiana, but that high water remaining in the wetlands continues to slow checks. He also said that the tar balls and tar mats found in the aftermath of Isaac were in areas where oil was known to have been onshore, and no new areas have been oiled.
Facepalm. No on the steam cleaning. |
Fishermen in Louisiana and Mississippi raise objections to proposed BP settlement of oil spill claims.
The possibility of a future fisheries collapse directly related to the Macondo gusher is causing fishermen in the affected areas to be reticent about accepting a settlement from BP.
Louisiana Attorney General Buddy Caldwell, in a brief filed in federal court Friday, said approval of the settlement, which includes a cap on payments to fishers, could leave the state holding the bag if a fishery collapses in the future as a result of the spill, as happened in Alaska three years after the 1989 Exxon-Valdez tanker spill.
"For example, if, as was the case in Alaska following the Exxon Valdez oil spill, the Gulf suffers a fisheries collapse as a result of the oil spill, threatening the economy and putting hundreds or thousands of Louisiana citizens out of work, it is the state (through the expenditure of taxpayer monies) that will be faced with the financial liability in the form of unemployment compensation benefits and job re-training services," said Caldwell's brief. His filing objects to a provision that would allow BP to make one-time "risk transfer premium" payments to fishermen.
Sounds pretty logical to me. Leave some legal pathways open in the event that outcomes a different than expected.
Caldwell also repeatedly criticized the Plaintiff Steering Committee, a group of lawyers representing the private claimants that worked out the settlement with BP, for failing to object to provisions of the settlement that would limit payments for future damages resulting from the spill.
The state also supported an earlier filing by U.S. Justice Department attorneys, who in their own objection to the proposed settlement accused BP of "gross negligence" in actions leading up to the spill. Such a finding could result in Clean Water Act fines of as much as $20 billion. Otherwise, the fines could approach only about $5 billion, based on the size of the spill.
In a similar filing, Mississippi Attorney General Jim Hood objected to the geographical zone system used in the settlement, saying several heavily oiled areas, including parts of Moss Point, Ocean Springs, Gautier and Pascagoula, were placed in zones that would result in property owners there receiving much smaller settlement payments.
The fact that studies of the environmental impact of the spill are still woefully incomplete necessitate flexibility.
The brief said BP's representations concerning environmental harm was mostly based on reports by Shoreline Cleanup Assessment Teams and Operational Science Advisory Teams, which were aimed at directing cleanup response efforts. Not included were still incomplete studies being conducted for federal and state trustees as part of a required Natural Resource Damage Assessment.
"It is clear that BP's motion (for approval of the settlement offer) contains little more than misrepresented, self-serving declarations designed to downplay its liability, the significant harm to the environment, and the amount of economic damages suffered by private citizens and governments," Caldwell said.
And just because BP was able to reach a settlement with attorneys representing a majority of the private claims, Caldwell said, U.S. District Judge Carl Barbier should not endorse their conclusions.
"Further, the PSC's failure to offer any evidence to rebut BP's opinions regarding the current and future health of the Gulf provides reason to question whether the negotiations between the parties truly occurred at arms' length," the brief said.
|
Transocean seeks settlement with DOJ.
Transocean, the Swiss-based offshore drilling contractor which operated the Deepwater Horizon, has approached the US Department of Justice with a proposal for a settlement that would absolve the company of certain federal civil and criminal claims resulting from the explosion on the rig.
The payout would total $1.5 billion over a period of years, but the company states that the settlement has yet to be negotiated.
“There can be no assurance that the parties will enter into agreements on the terms described or at all, nor any assurance regarding the timing of such agreements, the effect of such agreements on other claims arising out of the Macondo incident or that any court approvals required as conditions of such agreements will be obtained,” Transocean wrote in the filing.
The Justice Department has said that it intends to seek a gross negligence charge against both BP and Transocean for the incident that killed 11 workers and spilled millions of gallons of oil into the Gulf of Mexico.
Transocean is reported to have earmarked $2 billion for Deepwater Horizon-related claims.
|
The Transocean hits just keep on coming...
Transocean to fight Brazilian injunction.
An oil spill last November at Chevron’s Frade field project off the coast of Brazil has resulted in an injunction being filed yesterday in a Rio de Janeiro court, demanding that Transocean halt its operations off of Brazil’s coast for 30 days.
The injunction, issued against both Transocean and Chevron, has yet to be served on either company, according to the Securities and Exchange Commission.
The spill is thought to have occurred because the pressure of the reservoir being drilled was underestimated.
George Buck, chief operating officer for the Brazilian division of Chevron says that Chevron "takes full responsibility for this incident," and that "any oil on the surface of the ocean is unacceptable to Chevron."
Transocean “intends to vigorously pursue the overturning or suspension of this preliminary injunction,” the company said in the SEC filing. “While the company cannot predict or provide assurance as to the final outcome of these proceedings, if the preliminary injunction is upheld, it could have a material adverse effect on the company’s future consolidated statement of financial position, results of operations or cash flows.”
Underestimated the pressure of the formation, did they? Well, where have we heard that before... |
One...two...three in a row!
Since Transocean has had so much success with really extreme rigs...they are ready to just ditch that shallow stuff, and go full-tilt-boogie deep, since that's where the really lucrative stuff is. Damn the safety - full steam ahead!
Transocean in talks for four new deep-water rigs.
Transocean is in discussions with an integrated oil company for the construction of four new ultra-deep-water drillships, which will cost about $3 billion, the company said Monday.
The announcement came hours after Transocean said it would sell 38 shallow-water drilling rigs for about $1 billion, adding to an increased focus on the more-lucrative deep-water operations.
Transocean said it will issue senior notes to fund the construction of the new drillships, which will be capable of drilling in water depths of up to 12,000 feet and well depths of up to 40,000 feet, according to filings with the U.S. Securities and Exchange Commission. Transocean has not yet disclosed the value of the note offering.
I guess that is how they plan to finance their blood-money payoff and maybe stave off some perp-walksl...
The announcements will help the Transcocean boost its focus on its deepest operations, which are pulling in massive day rates as oil companies place larger bets on production from fields more than a mile underwater.
Transocean’s rates for all new contracts announced in August were up tens of thousands of dollars from their prior levels, including an increase of $142,000 a day for use of its Sedco 714 drillship in the North Sea. That ship will pull in $395,000 a day, according to the company’s latest fleet status update.
Wow, $395,000 a day. That's almost as much as the Mittbot 3.0 averages... |
Does BP feel the Gulf is bad luck for them, or are they just getting some cash off the top should they get taken to court? Inquiring minds want to know...
BP agrees to $5.5 billion deal for Gulf assets.
BP announced Monday it is selling offshore Gulf assets to Plains Exploration and Production for more than $5.5 billion in cash.
BP holds 100% interest in the Marlin, Dorado, King, and Horn Mountain field, and a 50% stake in the Holstein field, all in the Gulf.
“While these assets no longer fit our business strategy, the Gulf of Mexico remains a key party of BP’s global exploration and production portfolio and we intend to continue investing at least $4 billion there annually over the next decade,” said Bob Dudley, the company’s chief executive.
Under the terms of the deal, Houston-based Plains will pay $5.55 billion in cash for the assets. The deal is subject to regulatory approvals, pre-emption rights and customary post-closing adjustments, BP said.
The companies expect to close the deal by the end of 2012 and is part of a broader BP effort to sell $38 billion in assets by the end of 2013.
“This is a major program in BP; we are carrying out some of the largest changes in BP this company has seen in decades,” BP spokesman David Nicholas said in August, speaking of the divestiture program. “The upstream has been reorganized, and we have completely revamped safety and organizational risk. What we are doing at the moment is focusing the company for future growth.”
BP will still operate four large deep-water platforms — Thunder Horse, Atlantis, Mad Dog and Na Kika — in the Gulf. The company also has interests in three other hubs — Mars, Ursa and Great White.
All of the first four, IMHO, can be considered accidents waiting to happen. Atlantis has had problems not unlike the ones we know of on the Deepwater Horizon before the blowout.
|
Well hell, Shell... started up, then...crap, we gotta stop...
Shell begins drilling in the Chukchi Sea.
It’s the first time a drill bit has touched the sea floor in the U.S. Chukchi Sea in more than two decades. Today marks the culmination of Shell’s six-year effort to explore for potentially significant oil and gas reserves, which are believed to lie under Alaska’s Outer Continental Shelf.
In the days to come, drilling will continue in the Chukchi Sea, and we will prepare for drilling to commence in the Beaufort Sea.
This is an exciting time for Alaska and for Shell.
Oh, bullshit. Mama Nature has other plans!!!!!
Shell’s Arctic drilling temporarily stops.
Just one day after launching exploratory oil drilling on its Burger prospect in the Chukchi Sea, Shell has been forced to halt operations because of possibly encroaching sea ice.
Shell spokeswoman Kelly op de Weegh said the company would temporarily move the drillship Noble Discoverer off the day-old well “as a precautionary measure, and in accordance with our approved Chukchi Sea ice management plan.”
Op de Weegh said Shell began monitoring the ice when it was 100 miles away using a combination of satellite images, radar and on-site reconnaissance.
The 30-mile by 12-mile hunk of ice was roughly 10 miles away from the Burger well midday Monday.
“The wind began to shift, and we made the call to disconnect from the well,” Op de Weegh said. “Part of working in ice is having the ability to temporarily relocate.”
As of Monday afternoon, Shell was disconnecting the Discoverer’s anchors in preparation to flee the site. The company plans to reconnect and resume drilling once the ice has passed by. Because the ice accumulation is significant, work could be stopped for a couple days or more.
Shell executives have stressed that even with a limited drilling season in the Arctic, they can use the time to complete initial drilling on wells in the region and prove they can safely operate in the cold, remote waters north of Alaska.
Op de Weegh cast the development as proof that Shell has “the capability to identify and track the movement of sea ice” as well as “make adjustments to maintain safe operations.”
This is just the latest setback in Shell’s problem-fraught bid to drill in the Chukchi and Beaufort seas this summer.
Ha. Fucking. Ha...
Could it be that the universe is trying to tell you guys something? Ya think?
|
Speaking of the Chukchi Sea drilling, our own Bob Cavnar (eljefebob) has an informative piece on the problems inherent in extreme environments.
Shell Begins Drilling in the Chukchi Sea: The Details and the Risks.
Here he explains what has happened, and why the drilling had to stop...
Sea ice is a huge threat to operations in the Arctic offshore. Because the water is shallow, at 150 feet, huge sheets of ice actually drag across the sea floor, called "ice scour". Because of ice scour, the seafloor equipment, especially the blowout preventer (BOP), is threatened with destruction from the incredible forces created by sea ice being pushed across the bottom. To mitigate against this very real risk, shell designed a "mudline cellar" that actually puts the top of the BOP, which could be as tall as a 5 story building, below the seafloor, protecting it from the ice.
Read his entire piece here... It is simultaneously fascinating and horrifying that extraction is even attempted in these extreme conditions. |
And our old friend Tony Hayward... who should be in an orange jumpsuit by now...is back in the oil bidness...in Iraq.
Tony Hayward Gets His Life Back.
And for your listening pleasure while you read this last story, here's the new mix from Crashing Vor...Hey Tony...I want my life back, too...
Two years after being shown the door at BP, in one of the most ignominious corporate exits in recent memory, Mr. Hayward is back in the oil game. Not at an oil major like BP nor, for that matter, in the gulf, where oil rigs and refineries were being tested anew last week, this time by Hurricane Isaac. No, Tony Hayward is hoping to strike it rich in, of all places, the oil fields of northern Iraq.
He has some deep pockets behind him. They include a scion of the Rothschild banking dynasty, a former dealmaker at Goldman Sachs and two Turkish tycoons with a foothold in the wild and wildly contentious world of Iraqi oil. It’s a dangerous game, financially and otherwise. But despite sectarian bombings and political deadlock, Iraq’s crude oil production is soaring. In July, the nation produced more than three million barrels of oil a day, the most in a decade, eclipsing Iran and shaking up the old order in OPEC.
I'm not sure it is possible for me to hate another individual any more than this rat-bastard upper-class twit... |