Friday, January 07, 2011

OIL SPILL - Update, Stark Warnings

"Oil Disaster Report Preview Spreads Blame, Offers Stark Warning" PBS Newshour Transcript 1/6/2011

Excerpts

RAY SUAREZ (Newshour): This image of the Deepwater Horizon oil rig on fire in the Gulf of Mexico is now a memory, but the president's commission warns, it could all happen again.

The final report is not due until next week, but a 48-page excerpt was released publicly today. The panel concluded that, "Absent significant reform in both industry practices and government policies, a disaster might well recur."

All three companies involved with the well, BP, Transocean and Halliburton, were cited for cutting corners to save time or money. The report said those choices led to the flooding of the Gulf with more than 200 million gallons of oil.

Last November, the commission's lead investigator had testified he found no evidence of wanton wrongdoing.
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RAY SUAREZ: Instead, the report says the problem was much bigger than any individual, and that the root causes are systemic.

As evidence, the commission counted nine decisions on engineering that it said increased the risk of a blowout, many of them regarding the well's cement job, done by Halliburton. But the new report also cites BP's decision to cut the number of centralizers used to center the well pipe during the cement work.

The panel referred to this e-mail from a BP engineer, who wrote: "Who cares? It's done, end of story. We will probably be fine, and we will get a good cement job."

In a statement issued Wednesday, BP said it's working with regulators to improve operations. But Halliburton and Transocean, the rig owner, again faulted BP engineers for bad decisions.

Questions remain about the blowout preventer, which failed to stop oil from spewing into the Gulf. An analysis of why it failed may not be ready until next month.

For more on what we learned from the commission's early excerpt, we are joined by Joel Achenbach of The Washington Post.

And, Joel, looking over this early release, what would you say is the key finding?

JOEL ACHENBACH, The Washington Post: I think they're saying that this wasn't really an accident, in the classic sense of a freak event. They're not -- they're saying that there wasn't just one bad actor, there wasn't one rogue company, but, rather, this tragic incident emerged from a system. It was a systemic failure.

If you go back to early May, late April, I think, it was one of the senior people for BP said what we had here with the Deepwater Horizon disaster was a failed piece of equipment. BP blamed the blowout preventer down on top of the well.

And what the commission is saying is, no, it's not a single piece of equipment. It's not even one company, which is actually music to BP's ears. This is BP, it's Halliburton, it's Transocean, it's the government regulators, it's the industry allowed this event to happen.
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RAY SUAREZ: How was the government cited for its shortcomings? What did they say it should have been doing that it didn't do?

JOEL ACHENBACH: Well, I think the government comes off as fairly useless. I think the government comes off as -- with the Minerals Management Service, as being a weak, borderline feeble, regulatory agency, that it didn't have enough people to do all the work it needed to do.

You had people flying out on a helicopter to land on a rig to inspect the rig in a matter of hours. I mean, these are huge contraptions. I mean, these things are -- they're 25 stories tall or 35 stories tall. The blowout preventer is at the bottom of the sea. How you going to inspect that?

I mean, this is a tough job. The pay isn't as great for these regulators as it would be in private industry. If you're getting out of school, do you want to go work for the government for $45,000, $50,000 a year, or make twice that or much more with the industry?

So, I think that the government agency does want come off well in the presidential commission report.

RAY SUAREZ: Did the report cite specific violations of the code or regulations, or was it more the idea that they were just taking risks that weren't necessarily against the law, but was kind of a fingers-crossed approach toward building and running these rigs?

JOEL ACHENBACH: Well, it had worked before.

I mean, it's a case of they had drilled wells in shallow water, and they gradually went into deeper and deeper water. And, as they did this, they didn't suffer a catastrophic event. And so you keep going into deeper water.

And at the Macondo well, the Deepwater Horizon was drilling at 5,000 feet. But the tools they had were the same tools that they had used in the shallow water, the tools to control the well and then the tools to then try to plug the well after the blowout.

And, somewhere along the line, I think the industry needed to realize, hey, we have gone to a different planet here. This is a different environment. Maybe we need a more robust set of instruments and tools and hardware and robotic submersibles, and just need a different skill set in dealing with the deep water, because I think one lesson is that the depth matters.

Bold-blue emphasis mine

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