Gulf of Mexico

Mon, 2014-07-28 16:00Farron Cousins
Farron Cousins's picture

Has The Gulf Of Mexico Hit Peak Oil?

There are enough articles on the “myth of peak oil” floating around the Internet to fill a book; and there are enough books on the subject to fill a small library.  One of the common threads throughout these publications is their lack of credible sources, because not only is peak oil real, but we’re rapidly approaching that threshold. 

An example that is smacking the United States and the oil industry in the face right now is floating in the Gulf of Mexico. 

According to a new government report, oil and natural gas production in the Gulf has been steadily declining for the last decade. The report looked at oil production in the Gulf of Mexico on federal lands only, not any privately-held lands where production is taking place. Since 2010, according to the report, the annual yield of oil from the Gulf has fallen by almost 140 million barrels. 

While the Gulf region still accounts for 69% of U.S. oil produced on federal lands, the dramatic decline in production tells a story that the oil industry doesn’t want us to hear.  Peak oil is clearly beginning to play a role in U.S. exploration.

Contrary to what some of the peak oil deniers want the public to believe, peak oil does not mean that we’re about to run out of oil. What it means is that the United States is running out of easily accessible, financially viable oil. As that easy to retrieve oil disappears, companies have to drill deeper and deeper or in otherwise inaccessible places in order to get their oil. 

This makes the process much more expensive and drives costs up to the point that profits are hard to come by. And this is what we’re beginning to see in the Gulf of Mexico.

Wed, 2014-07-23 14:16Steve Horn
Steve Horn's picture

Not Just the Atlantic: Obama Leasing Millions of Gulf Acres for Offshore Drilling

Deploying the age-old “Friday news dump,” President Barack Obama's Interior Department gave the green light on Friday, July 18 to companies to deploy seismic air guns to examine the scope of Atlantic Coast offshore oil-and-gas reserves.

It is the first time in over 30 years that the oil and gas industry is permitted to do geophysical data collection along the Atlantic coast. Though decried by environmentalists, another offshore oil and gas announcement made the same week has flown under the radar: over 21 million acres of Gulf of Mexico offshore oil and gas reserves will be up for lease on August 20 in New Orleans, Louisiana at the Superdome. 

On July 17, the U.S. Department of Interior's Bureau of Ocean Energy Management (BOEM)  announced the lease in the name of President Obama's “all of the above” energy policy

“As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, BOEM…today announced that the bureau will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area,” proclaimed a July 17 BOEM press release.

The release says this equates to upwards of 116-200 million barrels of oil and 538-938 billion cubic feet of natural gas and falls under the banner of the U.S.-Mexico Transboundary Hydrocarbon Agreement

That Agreement was signed into law on December 26, 2013. It served as a precursor to the recently-passed Mexican oil and gas industry privatization reforms, which have opened the floodgates to international oil and gas companies to come into Mexico for onshore and offshore oil and gas exploration and production.  

Tue, 2014-06-03 18:00Steve Horn
Steve Horn's picture

Days Before Obama Announced CO2 Rule, Exxon Awarded Gulf of Mexico Oil Leases

On Friday May 30, just a few days before the U.S. Environmental Protection Agency announced details of its carbon rule proposal, the Obama Administration awarded offshore oil leases to ExxonMobil in an area of the Gulf of Mexico potentially containing over 172 million barrels of oil.

The U.S. Department of Interior's (DOI) Bureau of Ocean Energy Management (BOEM) proclaimed in a May 30 press release that the ExxonMobil offshore oil lease is part of “President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production.” 

Secretary of Interior Sally Jewell formerly worked as a petroleum engineer for Mobil, purchased as a wholly-owned subsidiary by Exxon in 1998.

Dubbed a “Private Empire” by investigative reporter Steve Coll, ExxonMobil will now have access to oil and gas in the Alaminos Canyon Area, located 170 miles east of Port Isabel, Texas. Port Isabel borders spring break and tourist hot spot South Padre Island.


Map Credit: U.S. Bureau of Ocean Energy Management

ExxonMobil originally won the three leases at the Western Planning Area Sale 233, held on March 19. BOEM records show ExxonMobil was the only company to participate in the bid and paid over $21.3 million.

Mon, 2014-04-21 14:14Julie Dermansky
Julie Dermansky's picture

Four Years After the BP Oil Disaster, A Look Back in Photographs

Just prior to the four-year anniversary of the BP oil spill, BP and the Coast Guard issued press releases. BP announced the  “active cleanup” in Louisiana is over, while the Coast Guard stated the clean up response is far from over.  “We are absolutely committed to continuing the clean-up of Deepwater Horizon oil along the Gulf - for as long as it takes,” Coast Guard Capt. Thomas Sparks wrote. 

The Washington Post reported on the “dueling press releases.”  But Geoff Morrell, BP Senior Vice President for US Communications & External Affairs, told DeSmogBlog,  

“We have never suggested the work of the U.S. Coast Guard or BP is over. Our announcement Tuesday merely highlighted the end of active clean up of the Gulf shoreline. We believe that is a very significant achievement that resulted from four years of sustained work with the USCG. However, that accomplishment has not in any way diminished our commitment to the Gulf. To the contrary, we will continue to work with the USCG, primarily in responding to reports of any residual Macondo oil and taking action where removal is required.”

BP's claim that it would  “make things right” still echoes from its advertising campaign. But scaling back clean-up operations means the burden of oil sighting reports will fall more on the public. The Gulf Restoration Network, a nonprofit environmental group, is dismayed. GRN spokesman Raleigh Hoke told the Washington Post,  “It’s clearly premature to end the active cleanup.” 

Plaquemines Parish Coastal Zone Director P. J. Hahn, who continues to monitor the effects of the BP spill, pointed out last year that oil sightings come from fishermen and environmental groups more often than from the Coast Guard or BP.

Hahn has led a crusade to save two barrier islands that were bird rookeries before the spill. For the first two years after the spill, the birds returned, but by 2013 the birds had almost nowhere left to nest and abandoned the islands.  

The oil that hit the island killed the roots of marsh grass and mangrove trees that held the islands together, speeding up coastal erosion that was already eating away at the islands.

By now, the islands have all but disappeared.  No birds were found on the two islands this year that have all but disappeared. Instead Hahn and reporter Bob Marshall found some birds nesting on another barrier island nearby in a rookery that is not nearly as large as the ones that Hahn still hopes to restore. 

How prepared are oil companies and the Coast Guard for spills?

DeSmogBlog put that question to Dr. Riki Ott, a marine toxicologist and Exxon Valdez survivor who has been monitoring the Valdez oil spill. Ott says, “We are less prepared now to respond to an oil spill than we were 25 years ago.”

Sun, 2014-04-20 13:01Farron Cousins
Farron Cousins's picture

Deepwater Horizon: BP’s Toxic Legacy

It has now been four years since the Deepwater Horizon oil rig exploded, killing 11 men and leaking an estimated 210 million gallons of crude oil into the Gulf of Mexico.  The media attention has disappeared, but the oil that continues to wash up along the Gulf Coast is a constant reminder to those who call this area home of BP’s toxic legacy.

In spite of the massive evidence of fraud and malfeasance on behalf of BP, Transocean, and Halliburton, only one set of criminal charges was filed in the four years since the disaster.  Those charges were filed against BP engineer Kurt Mix, who has since been found guilty of obstruction of justice for deleting text messages about the true size of the oil leak.  However, Mix has yet to be sentenced, and the judge is currently weighing a defense motion to dismiss the charges altogether. 

The three companies involved — BP, Transocean, and Halliburton — have paid criminal fines for their actions, money that is supposed to go to states and individuals for the damage they suffered as a result of the spill.  But thanks to the dirty tricks employed by BP, those payments have slowed to a trickle.

Late last year, as their fines and legal payments began to exceed their original expectations, BP launched a massive PR blitz to demonize “greedy” oil spill victims who were seeking compensation.  The oil giant took out full-page ads in major newspapers like the Washington Post claiming that the spill claims process was riddled with fraud, and that the company was being raked over the coals by fraudulent payments.  The company successfully managed to stall payments for a while, with a judge recently ordering the company to continue making payments.

But for all of their crying over allegedly unfair payments, BP has made out like a bandit in the years since the company destroyed the Gulf of Mexico.  For starters, they avoided charges of manslaughter for criminal negligence that led to the death of the 11 rig workers.  Since the spill, the company has pulled in a net income of $38 billion over the last three years, and was recently granted the ability to resume drilling in the Gulf of Mexico.  For BP, everything has returned to normal.

Mon, 2014-03-17 13:39Steve Horn
Steve Horn's picture

Why ExxonMobil's Partnerships With Russia's Rosneft Challenge the Narrative of U.S. Exports As Energy Weapon

In a long-awaited moment in a hotly contested zone currently occupied by the Russian military, Ukraine's citizens living in the peninsula of Crimea voted overwhelmingly to become part of Russia.

Responding to the referendum, President Barack Obama and numerous U.S. officials rejected the results out of hand and the Obama Administration has confirmed he will authorize economic sanctions against high-ranking Russian officials.

“As I told President Putin yesterday, the referendum in Crimea was a clear violation of Ukrainian constitutions and international law and it will not be recognized by the international community,” Obama said in a press briefing. “Today I am announcing a series of measures that will continue to increase the cost on Russia and those responsible for what is happening in Ukraine.” 

But even before the vote and issuing of sanctions, numerous key U.S. officials hyped the need to expedite U.S. oil and gas exports to fend off Europe's reliance on importing Russia's gas bounty. In short, gas obtained via hydraulic fracturing (“fracking”) is increasingly seen as a “geopolitical tool” for U.S. power-brokers, as The New York Times explained. 

Perhaps responding to the repeated calls to use gas as a “diplomatic tool,” the U.S. Department of Energy (DOE) recently announced it will sell 5 million barrels of oil from the seldom-tapped Strategic Petroleum Reserve. Both the White House and DOE deny the decision had anything to do with the situation in Ukraine.

Yet even as some say we are witnessing the beginning of a “new cold war,” few have discussed the ties binding major U.S. oil and gas companies with Russian state oil and gas companies.

The ties that bind, as well as other real logistical and economic issues complicate the narrative of exports as an “energy weapon.”

Sun, 2014-03-02 19:45Farron Cousins
Farron Cousins's picture

Mardi Gras: Beads, Bands…And BP Oil

More than one million tourists have flocked to the South for Mardi Gras, and hundreds of thousands of those revelers have settled in for a few days along the Gulf Coast.  Those who decided to enjoy the festivities along the Gulf of Mexico might be in for something they didn’t expect: oil tar mats.

On Thursday of last week, workers on Pensacola Beach, Florida spotted and brought to shore a 1,200 pound oil tar mat, which officials say accounted for about 90% of the total size of the mat.  While the bulk of the mat was a mixture of sand and other debris, scientists ran tests and were quickly able to determine that the oil in the mat was a perfect match for the oil released into the Gulf of Mexico during the 2010 Deepwater Horizon oil disaster, as the Pensacola News Journal explains:

The weathered oil from the tar mat was confirmed to be MC-252 oil from the 2010 Deepwater Horizon oil spill. Although the waters of the Gulf of Mexico were once scoured regularly for residual oil from the spill, physical searches were phased out as the number of sightings began to dwindle.

In the summer of 2013, BP pulled their cleanup crews from the Gulf Coast, assuring residents and tourists alike that the oil spill was all cleaned up.  A few months later, the U.S. Coast Guard made similar claims to the public.

Furthermore, the public was assured as early as May 2010 — just one month after the oil leak began — that the majority of the oil would simply “dissolve” into the Gulf of Mexico.  This latest tar mat is undeniable evidence that oil from BP’s disaster still remains in the Gulf.

Tue, 2014-02-25 05:00Farron Cousins
Farron Cousins's picture

Gulf Of Mexico: Open For Dirty Energy Exploitation Again

It has been nearly four years since BP’s Deepwater Horizon oil rig explosion and oil disaster in the Gulf of Mexico, and neither the dirty energy industry nor politicians in Washington, D.C. have learned anything from that tragedy.  Even with new evidence showing that the entire ecosystem in the Gulf has been disrupted as a result of the oil spill, companies are about to receive a massive gift in the form of new oil drilling leases.

Both the Interior Department and the Bureau of Ocean Energy Management (BOEM) have agreed to lease 40 million acres of water space in the Gulf of Mexico next month to support President Obama’s “all of the above” energy policy, which is quickly beginning to look more like a “drill, baby, drill” policy.  The leases will be good for five years’ worth of exploration in the Gulf.

Fri, 2013-12-20 05:00Farron Cousins
Farron Cousins's picture

BP Attempts To Misdirect Public With Claims Of Fraud

Oil giant BP is again attempting to convince the public that the oil spill settlement process for their destruction of the Gulf of Mexico resulting from the 2010 Deepwater Horizon oil rig explosion and leak, is completely riddled with fraud.

The company filed a fraud lawsuit earlier this week to stop payments on the claim process while investigators look into the fraud allegations. According to BP, one of the law firms representing oil spill victims has been submitting and receiving payment for claimants who don’t actually exist. 

The specific payments that BP is hoping to stop come from the Seafood Compensation Fund, a fund that was set up to pay fishermen and others who rely on the seafood industry as their source of income. The company says that Louisiana attorney Mikal Watts has filed 648 claims on behalf of seafood industry workers, and that 8 of those have been verified as accurate with 17 more still pending approval. 

Watts’ attorney has fired back at BP, saying that Watts did nothing illegal during the spill process, and submitted the appropriate documentation for every spill claim that he has filed. BP insists that at least half of Watts’ clients don’t exist.

Mon, 2013-09-30 11:25Julie Dermansky
Julie Dermansky's picture

Oil Blights Louisiana's Coast as Second Phase of BP Oil Spill Trial Begins

The toxic mess left in the wake of the BP Deepwater Horizon oil disaster continues to negatively impact Gulf Coast ecosystems as the second phase of the BP trial begins in New Orleans. 

Billions of dollars
are on the line in the trial following the explosion of the Macondo well that took 11 lives and damaged the Gulf Coast’s economic and environmental health.  

On September 27th, Plaquemines Parish Coastal Zone Director P.J. Hahn took a trip to survey some of the areas most devastated by the oil spill, including Bay Jimmy and Cat Bay. Oil remains in the marsh, and coastal erosion continues at an accelerated rate.  

Coastal erosion, a major environmental challenge even before the spill, became a bigger problem when oil washed onto the barrier islands, killing the roots of marsh grass and mangrove trees that helped to hold the land together.

Since the spill, Hahn has been documenting two barrier islands in Cat Bay that had active bird rookeries. The rookeries had been host to spoon bills, egrets and brown pelicans, the Louisiana state bird that only recently was taken off the endangered species list.

Pages

Subscribe to Gulf of Mexico