Gulf of Mexico

Thu, 2014-12-11 09:00Steve Horn
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Obama Signals Keystone XL "No" on Colbert Report As Enbridge "KXL Clone" He Permitted Opens

In his December 8 “Colbert Report” appearance, President Barack Obama gave his strongest signal yet that he may reject a presidential permit authorizing the Alberta to Cushing, Oklahoma northern leg of TransCanada's Keystone XL tar sands pipeline. 

Yet just a week earlier, and little noticed by comparison, the pipeline giant Enbridge made an announcement that could take the sails out of some of the excitement displayed by Obama's “Colbert Report” remarks on Keystone XL North. That is, Enbridge's “Keystone XL Clone” is now officially open for business

“Keystone XL Clone,” as first coined here on DeSmogBlog, consists of three parts: the U.S.-Canada border-crossing Alberta Clipper pipeline; the Flanagan, Illinois to Cushing Flanagan South pipeline; and the Cushing to Freeport, Texas Seaway Twin pipeline.

Enbridge announced that Flanagan South and its Seaway Twin connection are now pumping tar sands crude through to the Gulf of Mexico, meaning game on for tar sands to flow from Alberta to the Gulf through Enbridge's pipeline system.

Alberta Clipper, now rebranded Line 67, was authorized by Hillary Clinton on behalf of the Obama State Department in August 2009 and got a quasi-official permit to expand its capacity by the State Department over the summer. That permit is now being contested in federal court by environmental groups.

Flanagan South, meanwhile, exists due to a legally contentious array of close to 2,000 Nationwide Permit 12 permits handed out by the U.S. Army Corps of Engineers, which — as with Alberta Clipper expansion — has helped Enbridge usurp the more democratic and transparent National Environmental Policy Act (NEPA) review process

Sat, 2014-12-06 07:00Farron Cousins
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Contrary To BP PR, Most Oil Spill Claims Are Legit

For more than a year, oil giant BP has waged a massive public relations battle to convince Americans that the company has been bamboozled by the oil spill claims process relating to the 2010 Deepwater Horizon oil rig blowout.

This BP PR campaign has involved full-page newspaper ads paid for by the company suggesting it is being swindled by Gulf Coast residents who were not affected by the oil spill. BP spokesepeople have appeared in the media to argue that the claims process has been “absurd.” And evidence even suggests that the company has employed online “trolls” to attack legitimate victims on social media websites.

BP has spent hundreds of millions of dollars on this PR blitz, all because they want to avoid paying out any more claims to Gulf Coast residents. But the problem the company is running into now is that independent investigations have shown that the claims process is not rife with fraud, as BP has claimed.

At least 99.5% of the claims that have been filed are legitimate, according to an audit.

Wed, 2014-10-29 22:25Farron Cousins
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BP’s Bathtub Ring Of Gulf Oil Uncovered

Less than a week after Politico allowed BP communications vice president Geoff Morrell the space to tell Americans that there are no lingering effects from the BP oil spill in the Gulf of Mexico, scientists and researchers have brought in new evidence to show that Morrell’s claims are completely fabricated.

According to the peer-reviewed Proceedings of the National Academy of Science, millions of gallons of BP from the 2010 Macondo well blowout have settled along the floor of the Gulf of Mexico, creating a “bathtub ring” of oil around the site of the blowout.

How much oil are they talking about? Think Progress reports that about 10 million gallons of coagulated crude sits on the Gulf floor, blanketing an area of more than 1,235 square miles. To put that into perspective, Think Progress says that the oil on the floor is enough to completely cover the city of Houston, Texas, or the entire state of Rhode Island.

Fri, 2014-09-05 12:00Mike Gaworecki
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Federal Judge: BP's "Willful Misconduct," "Gross Negligence" Led To Deepwater Horizon Disaster

A federal judge in New Orleans minced no words in handing down a ruling this week that found BP's “willful misconduct” and “gross negligence” caused the worst offshore oil spill in U.S. history.

The ruling is the result of a jury-less trial to determine who was at fault for the 2010 Deepwater Horizon disaster and oil spill. The trial was held by District Judge Carl Barbier in New Orleans.

A blowout at BP's ultra-deepwater Macondo well in the Gulf of Mexico on April 20, 2010 caused an explosion that took the lives of 11 workers on the Deepwater Horizon rig, which then sank to the bottom of the Gulf, some 5,000 feet below, leaving the well to spew oil for 87 days until it was capped.

Barbier rejected BP's assertion that Transocean, which leased the Deepwater Horizon rig to BP, and Halliburton, which was contracted by BP to do cement work on the well, deserved equal shares of blame. “BP's conduct was reckless,” Barbier wrote in his 153-page ruling. “Transocean's conduct was negligent. Halliburton's conduct was negligent.”

The judge assigned 67 percent of the fault to BP, 30 percent to Transocean, and 3 percent to Halliburton. According to Bloomberg, this makes BP liable for as much as $18 billion in fines. Having been found merely negligent, Transocean and Halliburton aren't facing such hefty punitive damages.

Thu, 2014-08-28 11:06Steve Horn
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Obama Opened Floodgates for Offshore Fracking in Recent Gulf of Mexico Lease

In little-noticed news arising out of a recent Gulf of Mexico offshore oil and gas lease held by the U.S. Department of Interior's Bureau of Ocean Energy Management, the floodgates have opened for Gulf offshore hydraulic fracturing (“fracking”).

With 21.6 million acres auctioned off by the Obama Administration and 433,822 acres receiving bids, some press accounts have declared BP America — of 2010 Gulf of Mexico offshore oil spill infamy — a big winner of the auction. If true, fracking and the oil and gas services companies who perform it like Halliburton, Baker Hughes and Schlumberger came in a close second.

Gulf of Mexico Oil Lease Map August 2014
Map Credit: U.S. Bureau of Ocean Energy Management

On the day of the sale held at the Superdome in New Orleans, Louisiana, an Associated Press article explained that many of the purchased blocks sit in the Lower Tertiary basin, coined the “final frontier of oil exploration in the Gulf of Mexico” by industry analysts.

“The Lower Tertiary is an ancient layer of the earth's crust made of dense rock,” explained APTo access the mineral resources trapped within it, hydraulic fracturing activity is projected to grow in the western Gulf of Mexico by more than 10 percent this year, according to Houston-based oilfield services company Baker Hughes Inc., which operates about a third of the world's offshore fracking rigs.”

Mon, 2014-07-28 16:00Farron Cousins
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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
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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
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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
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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
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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.

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