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15 May 2010
By Stephen Lendman On
April 22, AP reported the news - an initial April 20
explosion, then a larger one igniting Deepwater
Horizon's oil drilling platform that burned for more
than a day before sinking and releasing thousands of
barrels of oil daily into surrounding waters, enough
potentially to cause the greatest ever environmental
disaster if not sealed in time to prevent.
Transocean Ltd. owned and operated the Deepwater
Horizon platform under contract to BP Exploration and
Production Inc., a division of BP - 4th on Fortune
Global 500 with $239 billion in 2009 operating revenue
and $14 billion in profits. It ranked fourth behind
Royal Dutch Shell, Exxon Mobil and Wal-Mart. Of the
world's 10 largest companies, six are oil giants.
Transocean, an offshore drilling contractor, owns
operates about 140 drilling rigs. More on its
culpability below. On
April 29, the Institute for Southern Studies published
"Facts and Figures" about the Gulf explosion and
emerging disaster saying: --
the rig operated 41 miles off Louisiana's coast; --
the explosion and fire occurred on April 20; --
126 crew members operated the platform, 11 remain
missing and are presumed dead; --
since 2001, 69 deaths and 1,349 injuries have occurred
from Gulf drilling operations as a result of 858 fires
and explosions on 90 big rigs and 3,500 production
platforms; --
the US Minerals Management Service (MMS) issued 150
reports "documenting non-compliant offshore drilling
operations;" --
172 Gulf spills exceeding 2,100 gallons have occurred
in the past decade; --
as of late April, the National Oceanic and Atmospheric
Administration (NOAA) estimated about 5,000 barrels a
day being leaked; new information places it much
higher; more on than below; --
at first, BP officials lied in reporting leakage of
1,000 barrels a day; they're still lying about the
problem's severity; so is the complicit Obama
administration and major media to cover up the
magnitude of the crisis; --
investigative journalist Wayne Madsen calls it a
potential "mega-disaster....volcanic-level in size
(that if) not stopped within 90 days (will cause)
irreversible damage to the marine eco-systems (in the
Gulf), north Atlantic Ocean, and beyond (and,
according to) some Corps of Engineers experts....it
could take two years to cement (the) gaping chasm;" --
the Gulf threatened area is top ranked "with the
largest total seafood landings in the lower 48
states;" it produces 50% of the nation's wild shrimp
and contains over 400 species, now threatened; --
in total, the Gulf accounts for about 20% of America's
commercial fishing; the growing slick threatens to
devastate it and the regional economies; continuing to
spread, NOAA reported that it threatens the coastal
areas of Louisiana, Alabama, Mississippi, and
potentially Texas, Florida's east and west coasts, its
Keys, and beyond.
Obama Administration Complicity On
May 11, 2009, Interior Secretary, Ken Salazar
(rancher, former Colorado senator, and notorious
pro-business flack with a dismal environmental
record), filed a legal brief in the US Court of
Appeals for the District of Columbia to overturn or
amend an earlier ruling blocking new drilling in the
Gulf's outer continental shelf, including the
Deepwater Horizon site. In July, it was partly
approved provided an environmental impact study
assessed the risks and found them acceptable. It's not
been completed and perhaps never seriously undertaken. Like
its predecessors since at least the 1980s, the Obama
administration has close industry ties across the
board, including Big Oil. It thus bears equal
responsibility for the consequences as a willing
co-conspirator. In fact, it actively intervened to
exempt BP from preparing an environment assessment on
the Deepwater Horizon site, and after the incident
continues to grant "categorical exemptions" for deep
water drilling - 27 in all, according to the Center
for Biological Diversity. In
March, Obama exceeded the oil-run Bush administration
in proposing offshore exploration from Delaware to
Florida as well as the latter state's Gulf coast.
Those plans are on hold but remain in place unless
state officials can stop them. Avoidable accidents
happen because of decades of regulatory laxity and
oversight, at least since the Carter administration,
in deference to powerful industry interests, including
Big Oil. BP's
History of Violations On
May 5, Public Citizen's Tyson Slocum reported that BP
has "the worst safety and environmental record of any
oil company operating in America." In recent years
alone, it pled guilty to two crimes (among many),
paying over $730 million in fines and settlements to
the federal and state governments and civil lawsuits
for "environmental crimes, willful neglect of worker
safety rules, and penalties for manipulating energy
markets." It
paid the largest fine in OSHA history ($87 million)
for willful negligence, causing the deaths of 15
workers and 170 injured from its March 2005 Texas City
Refinery explosion. In September 2005, OSHA cited BP
for 296 "Egregious Willful Violations" and others
related to the explosion, fining the company another
$21 million. In
August 2006, spills caused by pipeline corrosion shut
its Prudhoe Bay, Alaska operation. In March 2006,
National Geographic News reported the spillage of
267,000 gallons (about one million liters) in the
North Slope's tundra, "raising a new round of
questions from environmental groups about proposed
plans to open more land" to drilling. In
September 2001, OSHA fined BP $141,000 after an
explosion killed three workers at its Clanton Road
facility. OSHA levied additional fines in September
2005 for 301 violations, and in April 2006 for two
"willful violations" over its shutdown procedures. In
2009, OSHA found BP in non-compliance of 270
"notifications of failure to abate" and 439 new
"willful violations," resulting in the $87 million
fine. In
2007, a US Chemical Safety & Hazard Investigation
Board concluded that: "The Texas City disaster was
caused by organizational and safety deficiencies at
all levels of the BP Corporation." Warning signs were
there, but company management ignored them. In 2004,
OSHA fined BP $63,000 for violations at the same
facility. In December 2009, a Texas jury awarded
workers $100 million for their injuries at Texas City.
At
the time, Bloomberg.com reported that victims accused
BP of having "a long 'rap sheet' and a disturbing
pattern of violations and unfulfilled promises to
correct them," saying that "Meaningful change will
occur only if forced by strict oversight through the
court system." Unfortunately, the courts, especially
federal ones, are stacked with pro-business justices
so getting their help rarely happens and almost never
enough to matter. In
April 2010, OSHA fined BP $3 million for "willful
safety violations" at one of its Ohio refineries. In
April 2006, it paid a $2.4 million fine for similar
safety and health violations at the same facility. In
1999, the EPA cited BP Exploration & Oil for chemical
violations at 24 of its Ohio facilities, assessing
over $295,000 in fines. It also issued a 926 count
administrative complaint against the company. In
March 2003, California sued BP for $319 million over
thousands of clean air violations at its Carson
refinery. The south Coast Air Quality Management
District accused the company of repeatedly breaking
rules on its storage tanks over an eight year period. In
2004, Alaska state regulators accused BP of safety
violations, proposing to fine the company for the
second time. The other was for earlier August 2002
violations causing a well explosion that seriously
injured a worker.
Minerals Management Service (MMS) fined BP numerous
times: --
in February 2001, $20,000 for workplace violations
causing a serious injury; --
in January 2002, $20,000 for workplace violations
causing another one; --
in May 2002, $23,000 for a workplace safety violation
causing a worker injury; --
in September 2002, $39,000 for missing 13 monthly
tests of an "oil low level sensor;" --
in January 2003, $70,000 for a faulty fire water
system; in the same month, another $80,000 for
bypassing "Relays for the Pressure Safety High/Low for
four producing wells;" --
in November 2003, $25,000 for a subsurface safety
valve "blocked out of service;" --
in February 2004, $25,000 because "The Rig's Gas
Detection System was bypassed with ongoing drilling
operations being conducted;" --
in July 2004, $190,000 for safety violations related
to a fire; --
in October 2006, $25,000 for unsafe operations;
another fine in October 2007 for various safety
violations; and --
in the same month, $41,000 for similar safety
violations. BP's
Deepwater Horizon site didn't have a remote-control
shut-off switch, an acoustic device some other oil
producing countries require (including Brazil and
Norway) to protect against underwater spills. When
they occur, they work automatically to prevent small
problems from becoming greater. BP
has also been charged with numerous environmental
violations, felonies and at least one criminal
misdemeanor, paying out about $153 million in fines,
penalties and settlements. It was fined another $363
million for "price-gouging consumers and taxpayers."
Nonetheless, it legally avoided paying $172.5 million
in taxpayer royalties on its Gulf operated leases.
BP
is a serial scofflaw, earning billions while assessed
pocket change in fines, penalties and settlements for
a company its size. Despite its history of repeated
violations, it's allowed to conduct business as usual
because effective crackdowns aren't imposed in an
environment of regulatory laxity. And, of course, it's
as true across the board in deference to all predatory
giants in all sectors, preying on the public and
environment for profit with complicit government help. BP
Whistleblower Warns of More to Come In
his April 30 Truthout article, Jason Leopold cited a
whistleblower (unnamed for his protection), saying to
expect more Gulf catastrophes based on BP's history of
breaking federal laws and its own internal procedures.
He
"first raised concerns about safety issues related to
BP Atlantis, the world's largest and deepest
semi-submersible oil and natural gas platform, located
about 200 miles south of New Orleans, in November
2008." He
"was hired to oversee the company's databases,"
containing Atlantis project documents. On the job, he
learned "that the drilling platform had been operating
without a majority of the engineer-approved documents
it needed to run safely, leaving the platform
vulnerable to a catastrophic disaster," as bad or
potentially worse than the current spill. BP
knew of the problem, yet did nothing to address it,
showing its reckless disregard for public and
environmental safety and its own employees. Once a
violator, always one, short of regulatory crackdowns
and criminal prosecutions, telling all violators what
to expect. Not in America, a scofflaw's paradise.
Transocean's Troubled History On
May 10, Wall Street Journal writer Ben Casselman
headlined, "Rig Owner Had Rising Tally of Accidents,"
saying:
"Nearly three of every four incidents that triggered
federal investigations into safety and other problems
on (Gulf) deepwater drilling rigs....since 2008 have
been on rigs" the company operates, according to
federal data. Its
oil company clients also saw a drop in its safety
performance. From 2005 - 2007, "a Transocean rig was
involved in 13 of the 39 deep-water drilling incidents
investigated by MMS...." After merging with rival
GlobalSantaFe, MMS found that it "accounted for 24 of
the 33 incidents." It
raises troubling questions of company negligence
related to the current spill. So far, no cause has
been determined, but at least two areas will be
investigated - a cement seal in place to keep oil and
gas from escaping, and the blowout preventer, ocean
floor valves meant to close off the well in an
emergency. MMS records show Transocean's troubled
history with both, including in 2006 when regulators
found a blowout preventer failed, partly from poor
maintenance. In 2005, a failed cement seal caused
drilling fluid to leak.
Until now, company violations have been minor, but
small problems warn of potentially greater ones, the
current incident a prime example.
Transocean "specializes in a new frontier, drilling
from huge floating rigs that are either anchored to
the sea floor or kept in place with
satellite-controlled thrusters." BP is its biggest
Gulf client. Although its overall safety record,
measured by injuries per hour worked, surpasses the
industry average, it's especially worse than
competitors on deep water projects. In
recent years, this type drilling has increased
rapidly, forcing operators to compete for a limited
number of skilled workers. As a result, less
experienced ones are used, suggesting a greater
potential for accidents, including serious ones like
on April 20.
After its 2007 GlobalSantaFe merger, Transocean's
rankings were close to the bottom in many categories
of customer satisfaction. In 2008 and 2009, it ranked
last among deep water drillers for "job quality" and
second last in "overall satisfaction." Pre-merger, it
was near top ranked on both measures - more evidence
of the destructiveness of monopoly or oligopoly size
and the best reason to break up giants in all sectors
to prevent it.
The Halliburton
Connection
Besides its war-profiteering history, Halliburton's
notoriously shoddy on-the-job performance was
suggested in Russell Gold and Ben Casselman's April 30
article titled, "Drilling Process Attracts Scrutiny in
Rig Explosion," saying with regard to the Gulf
incident:
Halliburton's role in a cementing procedure "is coming
under scrutiny as a possible cause of the explosion
(resulting in) one of the biggest oil spills in US
history, drilling expert said Thursday (April 29)."
Cementing is done to prevent oil and gas leakages by
filling gaps between "the outside of the well pipe and
the inside of the hole bored into the ocean floor."
Cement is also used to plug wells once drilling is
completed. For
Deepwater Horizon, cementing was finished and the
required areas temporarily plugged, but it's not known
if the entire process was done before the explosion.
Regulators found cementing problems the cause of other
well blowouts, "in which oil and natural gas surge out
of a well with explosive force." When cementing is
improperly done and cracks develop, it happens, and
because gas is highly combustible, it's "prone to
ignite."
Halliburton is the largest company in the global
cementing business. It was contracted for the
Deepwater Horizon rig. Transocean said the process was
completed. According to Robert MacKenzie, FBR Capital
Markets Managing Director of energy and natural
resources: "The
likely cause of gas coming to the surface had
something to do with the cement."
Other drilling experts agree, saying a faulty bottom
of well cement plug may be to blame. In 2007, a
Minerals Management Service (MMS) study found that
faulty cementing was a factor in 18 of 39 Gulf
blowouts over a 14 year period. Halliburton was
involved before - one instance being a major 2009
Timor Sea explosion, causing fire and tens of
thousands of barrels leaked for over 10 weeks. MMS'
recently retired regulatory affairs head, Elmer
Danenberger, believes poor Halliburton cementing
caused the Timor problem. It's
shoddy work may be a factor in the Gulf, but
Transocean and BP share culpability, based on their
disturbing histories, besides regulatory and oversight
laxity allowing it.
A Much Greater
Disaster than Reported
According to Ian MacDonald, Florida State University
biological oceanographer, about one million gallons of
oil are leaking daily, based on NASA data he studied.
If so, the incident already exceeds the 1989 Exxon
Valdez catastrophe (topping 11 million gallons) from
which affected areas haven't recovered and won't for
decades, perhaps longer, from any spill that large.
Already, said MacDonald, as of May 7, around 6,200
square miles are affected, a figure growing daily as
long as leakage continues.
Other scientists agree, suggesting an estimated 25,000
daily barrels spilled, or over one million gallons.
The National Oceanic and Atmospheric Administration (NOAA)
reports a worse potential if a so-called bent "riser
pipe" deteriorates further. If so, daily leakage could
more than double to over two million barrels.
Already, vast parts of the Gulf are at risk as well as
marshes, other type wetlands, estuaries, beaches,
fishing, wildlife, the mouth of the Mississippi River,
East Coast, Florida Keys and Everglades, parts of the
Atlantic up to the Grand Banks off Newfoundland and
beyond if Gulf Stream currents are affected, as well
as inland cities, towns, rivers, and lakes if Gulf
hurricanes spread oil-contaminated rain - a vast
ecosystem threatened by corporate criminal negligence
and government complicity, the usual combination
behind virtually all destructive acts.
Public health is also affected from contaminated fish,
water, rain, and air from oil smoke and vapors -
problems that won't abate for years because oil is a
toxic brew and enough contaminating the environment
causes an array of health problems, including
potential chemical poisoning (hydrocarbon pneumonia).
According to Columbus, Ohio Nationwide Children's
Hospital Pharmacology and Toxicology head, Dr. Marcel
Casavant:
"Smoke from burning oil contains many chemicals; some
are potentially lethal poisons and some are nuisance
irritants, but even these....can trigger breathing
problems in people with asthma or emphysema or other
lung disease(s)." Why
is because burning oil smoke contains carbon dioxide,
carbon monoxide, sulfur dioxide, nitrogen oxides,
volatile organics, and other toxins - all harmful to
human health. Once ingested, serious problems can
result affecting the heart, lungs, gastrointestinal
tract, liver, pregnancy, other bodily functions, and
the potential for cancer and other diseases. It'll be
years before the full impact is known, but it's
already clear what happens when government and
business share the same bed. The public always suffers
- this time, like others, disastrously.
Stephen Lendman lives in Chicago and can be reached at
lendmanstephen@sbcglobal.net. Also visit his blog site
at sjlendman.blogspot.com and listen to cutting-edge
discussions with distinguished guests on the
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