Tag Archives: enforcement

Oil companies aren’t happy that the government is making them fix defective offshore rig parts

Oil companies aren’t happy that the government is making them fix defective offshore rig parts

The U.S. government has asked Chevron, Shell, and our old friends at Transocean to halt drilling on wells in the Gulf of Mexico. Why? Because the systems connecting the rigs to the ocean floor contain defective parts.

From Bloomberg:

[The companies] have been directed by U.S. regulators to suspend work aboard rigs that employ General Electric Co. devices connecting drilling tubes to safety gear and the seafloor. The equipment must be retrieved so defective bolts can be replaced, the U.S. Bureau of Safety and Environmental Enforcement said in an alert issued on Jan. 29. …

The defect was discovered last month after a leak of drilling fluid was linked to bolts that failed because of stress corrosion, according to the Jan. 29 alert. The regulator didn’t identify the owner of the rig or which oil company was leasing it. GE declined to identify the manufacturer of the bolts.

Thanks for your help, GE.

How big a deal is this for the companies?

Installing new bolts and resuming drilling may take as long as three weeks for each rig, Credit Suisse Group AG said. For oil companies paying upwards of $600,000 a day to rent the most-sophisticated deep-water vessels and another $500,000 a day to staff and supply each of them, the delays may be significant, said Craig Pirrong, director of the University of Houston’s Global Energy Management Institute.

“This certainly will be costly for the industry,” Pirrong said in a telephone interview yesterday. “This is a result of increasing government scrutiny of deep-water activities. The question is, will the increased costs be so onerous that they discourage some companies” from searching the deep oceans for crude.

1. You know what’s more expensive than spending $1.1 million a day to replace faulty bolts? Massive oil spills.

2. If a company is going to be discouraged from drilling offshore because it might have to fix defective, leaky parts, it’s probably for the best.

Source

U.S. Halts Drilling on Gulf Wells With Flawed Bolts, Bloomberg

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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Oil companies aren’t happy that the government is making them fix defective offshore rig parts

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Oil company foils government inspectors with high-tech gadgets (coffee filters)

Oil company foils government inspectors with high-tech gadgets (coffee filters)

For those of you who sleep well at night knowing that the government is competently and robustly working to protect the health of our environment, you may want to stop reading now. Here’s a story that flew under the radar last week from WWLTV in New Orleans:

An oil company admitted Thursday that coffee filters were used to doctor water samples and cover up the fact that it was dumping oil and grease into the Gulf of Mexico on its platform 175 miles south of New Orleans. …

[W&T Offshore] contractors used coffee filters to clean the water samples before submitting them to regulators.

Also, the company admitted that when they spilled some oil in November 2009, they not only failed to report it to the Coast Guard, but sprayed the oil into the Gulf and then hired a company that worked for three days to clean the platform to make it look like there never was a spill.

The company was fined $700,000 and will pay “$300,000 in community service,” whatever that means.

jlodder

The criminal mastermind’s tool for evading government oversight

Just to be clear, the reporting process goes like this.

  1. Company takes water sample.
  2. Company sends water sample to government.
  3. Government looks at submitted water sample and says OK.

And in order to get that OK, the company need only add step 1a: Pass them through a semiporous piece of paper. Got it.

How was W&T caught?

Inspectors from the Bureau of Safety and Environmental Enforcement still found oil staining on the platform deck and visible sheen in the water, all of which W&T failed to report as required.

Thank God for irredeemable idiocy.

Source

Oil company admits using coffee filters to doctor water samples, WWL TV

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Oil company foils government inspectors with high-tech gadgets (coffee filters)

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Shell VP: Yeah, we’re gonna spill some oil in the arctic

Shell VP: Yeah, we’re gonna spill some oil in the arctic

Your quote of the day comes from the BBC.

There’s no sugar-coating this, I imagine there would be spills, and no spill is OK. But will there be a spill large enough to impact people’s subsistence? My view is no, I don’t believe that would happen.

That’s Shell’s Alaska vice president, Pete Slaiby, discussing the company’s new, fraught drilling operations off the North Slope of Alaska. During the summer, the company had a neardaily series of screwups that did little to inspire confidence in its ability to successfully extract oil from the ocean floor without spilling it all over themselves and the ocean and the animals in the ocean and probably you, too, somehow. So I’m not sure if Slaiby’s admission is a refreshing demonstration of realism or a heart-attack-inducing statement of indifference.

artic pj

The Arctic Ocean, where drilling is probs no big deal.

I do however love his statement that, yeah, there’ll be spills, but, don’t worry: minor ones. How … does that work? The entire context for the BBC article is that Native populations in Alaska are nervous about the prospect of drilling and a spill.

“We are the oldest continuous inhabitants of North America,” says Point Hope’s Mayor Steve Oomituk. “We’ve been here thousands of years.”

Oomituk shares the fear of many in the small community — population 800 — that offshore drilling by Shell could destroy the food chain that they rely on for survival. Over 80% of the food eaten in Point Hope is caught by the people themselves. …

“If an oil rig spilled and made a mess of the ocean, how am I ever going to eat a whale that’s not contaminated? Crude oil stays on the bottom of the ocean,” [local resident Patrick Jobstone] says.

To which Shell responds, in essence: Don’t worry your pretty little heads.

The brashness of the dismissal is ridiculous for several reasons. First, this is one of the most remote, unforgiving parts of the world. It took months to stop a spill 100 miles from one of the busiest regions in the United States during warm weather. How long would it take to get spill-response equipment and material in place off the Alaskan coast?

And, second, Shell’s clownish failures over the summer included its inability to demonstrate that its containment system worked. Earlier today, details of that failure were released. From KUOW.org:

Before Shell can drill for oil in the Arctic Ocean, it needs to prove to federal officials that it can clean up a massive oil spill there. That proof hinges on a barge being built in Bellingham, [Wash.,] called the Arctic Challenger. …

According to [Bureau of Safety and Environmental Enforcement] internal emails obtained by KUOW, the containment dome test was supposed to take about a day. That estimate proved to be wildly optimistic.

Day 1: The Arctic Challenger’s massive steel dome comes unhooked from some of the winches used to maneuver it underwater. The crew has to recover it and repair it.
Day 2: A remote-controlled submarine gets tangled in some anchor lines. It takes divers about 24 hours to rescue the submarine.
Day 5: The test has its worst accident. On that dead-calm Friday night, Mark Fesmire, the head of BSEE’s Alaska office, is on board the Challenger. He’s watching the underwater video feed from the remote-control submarine when, a little after midnight, the video screen suddenly fills with bubbles. The 20-foot-tall containment dome then shoots to the surface. The massive white dome “breached like a whale,” Fesmire e-mails a colleague at BSEE headquarters.
Then the dome sinks more than 120 feet. A safety buoy, basically a giant balloon, catches it before it hits bottom. About 12 hours later, the crew of the Challenger manages to get the dome back to the surface. “As bad as I thought,” Fesmire writes his BSEE colleague. “Basically the top half is crushed like a beer can.”

But don’t worry, Native people. A spill will be nothing to worry about. Like Shell’s massive 2011 spill in the North Sea, labeled the worst spill in the region in a decade. No bigs.

Here’s a thought, Shell/Slaiby. If “no spill is OK,” don’t fucking drill.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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The government scolds the company responsible for last week’s rig explosion

The government scolds the company responsible for last week’s rig explosion

U.S. Coast Guard

The Department of the Interior has some harsh words for Black Elk Energy, the company responsible for last week’s explosion on an oil  rig in the Gulf of Mexico. Well, actually, not really harsh at all.

From a letter from Interior’s Lars Herbst to Black Elk’s CEO [PDF]:

This letter is to notify you that the Bureau of Safety and Environmental Enforcement (BSEE) has determined that the operating performance of Black Elk Energy Offshore Operations, LLC (Black Elk) must be improved immediately.

Or, ideally, a week ago.

The letter outlines things that Black Elk needs to do to improve worker safety, outlining previous incidents in which the company had safety issues — all of which has a distinctly “you shouldn’t have done that” feel. Like when you were a kid and you made a little ramp and rode your bike toward it and you wiped out and then your parents were like, “Well, that was a bad idea. You shouldn’t have done that.” Yeah? No kidding? Thanks, Mom.

Don’t get me wrong. Of course Black Elk should, at a minimum, upgrade its worker safety systems. A system under which an employee dies probably requires improvement. But, barring doing nothing, this is the absolute least that the government could do. Why let Black Elk keep operating until it submits its plan for improvement? Why not crack down on a company with repeated violations before contractors it employs are forced to leap off of a burning platform in the Gulf?

The letter ends with this:

In addition, in an April 2012 meeting, Lake Jackson’s District Manager warned Black Elk that it would be placed on notice if it did not improve its operations.

And now that you have blood on your hands, we’d like to reiterate that vague threat.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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The government scolds the company responsible for last week’s rig explosion

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