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Craig Medred

Craig Medred

Posted: May 29, 2010 06:06 PM

Long before the Deepwater Horizon oil rig exploded in the Gulf of Mexico, caught fire, sank and loosed a gusher of oil that would flow into the biggest environmental disaster in U.S. history, the oil industry knew that -- in the now famous words of the Apollo 13 astronauts -- "Houston, we have a problem."

As oil drilling in the new millennium moved increasingly into deep waters off the North American and European coasts, oilfield workers recognized they were operating with less and less of a safety net. Shear ram technology needed to make blowout preventers into failsafe devices capable of preventing catastrophic blowouts was, they knew, lagging behind the rest of oilfield technology.

A U.S. Minerals Management Service study had demonstrated as much in 2002. A more thorough study in 2004 had only served to underline the weaknesses. By 2005, Oklahoma City-based Devon Energy Corp., then a force in offshore drilling, had begun working with Houston-based Cameron, the major producer of blowout preventers, to develop new and better shear and seal technology for wells.

Why the technology never made it into the oil patch is unclear. Nobody in the industry wants to talk about it at this juncture, though development reportedly is continuing. What would come to be called the alternative well kill system -- or AWKS -- is now being spearheaded by Chevron in partnership with Cameron. Devon began phasing out of offshore drilling earlier this year.

Ironically, it signed a $7 billion deal in March to sell its offshore assets in Brazil, Azerbaijan and the Gulf of Mexico to BP. Only about a month later BP was in charge of the Deepwater Horizon rig that blew up in the Gulf. London-based BP, the major player in the Alaska oil business, has ever since been battling to shut off an undersea volcano spewing beneath the sunken rig and deal with an oil slick that has grown to more than two times the size of the Exxon Valdez spill in Prince William Sound.

Cleanup and containment costs, at last report from BP, were approaching $1 billion and are expected to grow to orders of magnitude beyond that. This might all have been avoided if there had been a working, failsafe blowout preventer a mile deep on the ocean beneath the Horizon. There was a blowout preventer. Why it didn't work hasn't been fully determined, but the reasons why it might not work were known well before the Horizon accident.

Chevron noted in a presentation to the Norway Arctic Workshop in Tromso in January 2009 that existing BOPs have weaknesses. The company said in a PowerPoint presentation that it was working with Cameron on the AWKS to develop "simultaneous shear and seal capability on a broad range of tubulars -- unlike current shear rams." Everyone in attendance at the meeting knew what that last phrase meant.

A mini-study done for the MMS in 2002 and a lengthy "Shear Ram Capabilities Study" completed two years later had concluded that some of the new higher-grade steel being used in drill pipe couldn't be cut and sealed by existing rams. The study also noted the inability of existing rams to cut and seal pipe if there were tools inside, or slice through welded joints where sections of pipe were joined.

These inherent weaknesses in existing BOPs were the reason many Arctic nations -- although not the U.S. -- required oil companies to keep a second drill rig on location when drilling in case a relief well was needed to seal a blowout. BP, it should be noted, did not have a second rig on site in the Gulf of Mexico. BP has one there now, drilling a relief well. Everyone involved with the Gulf spill says a relief well is the only sure way to cap BP's undersea gusher. The relief well is expected to be completed in August. There is no telling how much crude could be washing around in the Gulf of Mexico by then -- or making its way into the Gulf Stream with potential oil spill consequences for Florida and the entire U.S. East Coast.

The reason BP failed to have a second drill rig standing by in the Gulf when the Deepwater Horizon was drilling is simple -- money. A drill rig costs about a half million dollars per day, according to oil industry officials. These costs are the reason that, although Shell planned to drill in the Chukchi and Beaufort seas off Alaska this summer, none of the oil companies holding leases off the Arctic coast of Canada planned any drilling.

Read more at Alaska Dispatch.

 
 
 
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08:33 PM on 06/01/2010
Open Letter to President Obama re: Gulf Oil Spill

I posted this to my Blog if anyone is interested in reading.
Just traded e-mail with a CNN reporter and also passed this along to him.

http://gil-gilsmusic.blogspot.com/2010/06/open-letter-to-president-re-gul-oil.html
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slogward
03:12 PM on 06/01/2010
Great piece. Marine explorers often have much to hide. Here's another marine co in the same boat:
http://nbyslog.blogspot.com/2010/06/world-exclusive-man-united-glazer.html
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PrometheanSalvation
Bringing fire to cleanse the land.
09:34 AM on 06/01/2010
I wish we would get the guts to get off oil.
02:12 PM on 06/01/2010
How would that be, pray tell? Coal to make electricity for electric vehicles?
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satanlite
Liberal blogger
01:54 PM on 06/02/2010
I already have as much as possible. Ride my bike instead of using my car (admittedly not possible for everyone - but those people should consider car pooling). Created a seedling solar power plant in my home (which I plan to expand as funds permit). It has to be done individually. Don't look at a government owned by megacorp and riddled with corporatist thugs to do anything while they are being paid by big oil. Everyone who sez they give a sh*t can do something. Problem is most of the people who scream don't do anything.
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PrometheanSalvation
Bringing fire to cleanse the land.
07:55 PM on 06/02/2010
I do what I can, to reduce my carbon consumtion as well as my footprint. However, there are a lot of technologies in existance, but not readily available or affordable. As individuals there are many contributions we can make towards solving our problems. As a society, though, we need the government to assume a leadership position on renewable energy sources. If we can move some pieces public funding of elections through the congress and harness the power of the people through representative democracy we could be most of the way out of this mess in relative short order. Fan #410
07:00 AM on 06/01/2010
No well being drilled anywhere has another rig standing by. It would not have helped in this case. It would only have been able to have started drilling the relief well sooner.

BP likely did not have a good well design and did not even follow their own procedures, but requiring oil companies to have two of these rigs on every well is not a serious solution to the problem.
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Jeff Sawyer
07:26 AM on 06/01/2010
I believe in Canada, the relief well has to be drilled as the main well is being drilled. That way if the main well has a blowout, the relief well would be able to fix it within a couple of weeks. My concern on that is, what happens if the relief well also has a blow out?
09:27 AM on 06/01/2010
Most other countries, by law, require that relief wells be constructed at the same time. It's called government oversight- something we haven't had in the US since the Carter administration.
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ladybug7
10 miles left of Palm Beach!
11:16 AM on 06/01/2010
We have a tendency to look the other way as long as everyone is making money. It takes disaster for us to pay attention to what any big corporation is doing that affects us. Look at the banks and derivatives.
11:54 AM on 06/01/2010
That is not correct. No country to my knowledge requires that a relief well be constructed at the same time.

Canadian regulations require the CAPABILITY to complete a relief well in the same season as they drill their working well.

https://www.one-neb.gc.ca/ll-eng/livelink.exe/fetch/2000/90463/589151/594086/594087/594075/A1R6K9_-_National_Energy_Board_to_Review_Northern_Drilling_Policy.pdf?nodeid=594076&vernum=0

"Same season relief well capability is the ability to drill a relief well in the same season in which the original well was drilled. The practice is intended to help control a blowout and reduce the impact of hydrocarbons being released into the Arctic Ocean. The NEB regulates these drilling activities under the Canada Oil and Gas Operations Act."

The oil companies have been lobbying Canada's NEB to remove the requirement for same season capability, in other words, should a blowout occur in the north, it could flow for a year before a relief well could be drilled. Their complaint is that this regulation would effectively require them to predrill the relief well and even then if the main well blew out at the end of the season (which is when a blowout would occur - when the bore reaches the reservoir) even a predrilled relief well still couldn't be completed in the same season. I think this is the source of your confusion.

But to reiterate, no simultaneous well has actually been drilled under this requirement.
10:48 PM on 05/31/2010
Here's some technology they aren't talking about google Alfa Laval DMNX 414 decanter centrifuge

the oil industry has used these centrifuge'es for years, for themselves of course. they can seperate water and oil at 200-600 gallons a minute !! a few dozen/hundred of these machines these would help trememdously a dozen could fit easily on one ship .

why does Washington sit on its ass!!??

please check out these machines for yourself and try to get the info to whomever you can
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bardgal
Shakespearean Jedi
01:46 AM on 06/01/2010
And what exactly is going to power "a few dozen/hundred of these machines" that you theoretically fit on a ship? How much energy do they take to run?

Just curious.

These centrifuges belong to the oil industry, not the government. So why is the oil industry sitting on it's ass? If it would work, they'd be all over it, since they're losing money with each barrel of oil that's leaking into the gulf.
06:23 AM on 06/01/2010
Stop it! Toooo much logic.
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shryock
It never is what it is anymore
07:34 AM on 06/01/2010
are you suggesting that washington should nationalize the oil industry? or just nationalize b.p.?
10:19 PM on 05/31/2010
Curious how we always heard about the "cheap", plentiful sources right in our own
backyard,.. was that with, or w/o responsible practices factored in?

Remember how cable tv was first promoted as commercial free? Funny how we're told
we're getting more for less and the exact opposite is true. Kinda like the family values
mantra being exploited by politics,.. the "Beast and the Harlot"?

By the way, where are all those Operation Rescue protesters for the unborn of the
gulf shores? Can't they find a "big oil" office?
07:59 PM on 05/31/2010
You mean that Gordon Gecco was wrong when he said, "Greed is good.". Somebody needs to tell BP's Mr Hay..., that quickly. Using the cheapest technique gets really expensive. Such as happened with BP's 4/20/10 ever growing oil spill into the Gulf of Mejico. It could get extremely expensive if BP's oil spill gets to the Gulf Stream & merges with it. Mr Campbell & QEII will be unhappy when BP's oil spill reaches the UK's shores. The rulers of North Western Europe will be livid if BP's oil spill reaches their Atlantic shores.
10:12 PM on 05/31/2010
You mean when.
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lynettema
Little old lady
12:24 AM on 06/01/2010
I fail to believe that BP will lose much money in the long run. Someone will bail them out - just hope it is not the American taxpayer. If the Republicans take over in Nov, I would expect that to happen behind the scenes -hidden in the Homeland Security Budget.
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booktone
10:40 AM on 06/01/2010
I'm afraid you're right. We will have to bail them out, not in the form of a gov't bailout, but gallon by gallon at the pump. Get ready for $7 a gallon, coming soon to a service station near you.
The conference call will go like this: "Hey guys, BP here....listen, we've gotta pay for this cleanup. Any of you have a problem with tripling the price at the pump? Didn't think so---thanks, see you in the Caymans."
04:49 PM on 05/31/2010
"The reason BP failed to have a second drill rig standing by in the Gulf when the Deepwater Horizon was drilling is simple -- money."

BP did have a drill rig standing by in the gulf. It was on location within a week and the first relief well spudded on May 2. It is now at around 13,000 feet and planned to intersect the well at 18,000 feet
A second relief well was started on May 16 and is at around 9,000 feet.
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08:08 PM on 05/31/2010
After the fact. They would not have deployed it if there had not been a disaster. They were betting and lost.
08:29 PM on 05/31/2010
?? No of course they would not have deployed it if there had not been a blowout. That's why it's
called standby. Ambulances and fire engines are on standby, they are deployed when needed.

Drilling a relief well if it is not needed is just drilling another hole with the potential to blowout
ThinkCreeps
Seriously, it's time.
06:19 AM on 06/01/2010
Absolutely correct reply. And where to start to drill the relief well at a moment's notice, saving precious hours in a weeks-long effort?
03:16 PM on 05/31/2010
I just wrote a blog post after reading this article about the AWKS and came across a report released by Chevron in 2009 that stated that they were real-world testing the AWKS in Arctic waters just last year. Check it: http://bit.ly/crJUQI
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realitytrumpsbull
Two 'alves of coconut!
02:22 PM on 05/31/2010
Well, if the pipe with the oil in the hole in the bottom of the sea is made out of high-grade steel, then that means that when they do finally come up with a 'plug' to stuff into the top of it, the material will lend itself readily to anchors. To wit: You build a plug, with a hollow center, with some one-way gaskets around the outside, that will roughly match the inner diameter of the pipe. Along the sides of the plug, you put some locking cams, that will resist any reverse movement of the plug in the pipe. On the top of the plug, you put a valve(open), then, carefully cutting away the bent metal at the end of the pipe, leaving a good, clean working surface, you put the plug in the pipe in the hole in the bottom of the sea, make sure it's secure against movement, and then shut the valve, and if all goes well, you've done the job. Maybe.
05:00 PM on 05/31/2010
You are describing something similar to the Lower Marine Riser Package (LMRP) Cap that is the next approach. The reason it wasn't tried before is that it requires removing the old riser which is providing some resistance to the oil flow. They wanted all the resistance they could get for the top kill.
Once the riser is cut the flow could increase.

http://www.bp.com/genericarticle.do?categoryId=9033657&contentId=7062491
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JessWonderin
01:58 PM on 05/31/2010
BP makes $3.9 MILLION profit per hour, so a "second rig" would have cost them about FIFTEEN MINUTES PROFIT a DAY . . . . or less than the daily corporate OFFICE payroll of the secretarial staff . . .
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JessWonderin
02:05 PM on 05/31/2010
That SAME "FIFTEEN MINUTES" would have covered the cost of a"blow out containment unit" . ..as REQUIRED by Brazil, Norway, UK, Venezuela, Indonesia, Sweden and Gulf States . . . those "less developed nations" . . .
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realitytrumpsbull
Two 'alves of coconut!
02:30 PM on 05/31/2010
Didn't they have such a piece of equipment, but it failed, basically?
01:05 AM on 06/01/2010
Corporations don't elect the governments of Brazil, Norway, UK, Venezuela, Indonesia, Sweden, and the Gulf (Arabian) States. Corporations elect the government of the United States, including state governments. We are not leaders in democracy which is one reason it's so difficult for us to sell in the Middle East.
01:26 PM on 05/31/2010
Even after catastrophe struck, BP is still doing things on the cheap.

BP did start work on TWO relief wells, as requested by the feds -- but the second has been shut down to cannabalize parts from it for the primary well kill effort.

see here: http://www.upstreamonline.com/live/article216214.ece

quote: BP has stopped drilling one of the relief wells to intercept the blown out Macondo bore so it can ready the rig's blowout preventer (BOP) to go on top of the crippled Macondo BOP.

Transocean boss Steve Newman told analysts today that Transocean semi-submersible rig Development Driller II had stopped drilling while BP tries a top kill to try to halt the flow of the Macondo well.

BP spokesman David Nicholas told UpstreamOnline that the rig was stopped so its BOP would be ready if needed.

end quote

President Obama needs to order BP to spend whatever money it takes to get another blow out preventer on site, to re-start work on the second pressure relief well. A recent blow-out off the coast of Australia required five pressure relief wells to successfully shut it down.

There is no more important operation in the Gulf now than these TWO pressure relief wells. Some other well should have been shut down and used for parts.

Demand BP spend the money required to restart work as soon as humanly possible!
06:14 PM on 05/31/2010
You have about a two week window where a BOP could be safely removed from a well. After that the well would be too close to the reservoir to do it safely or quickly. Likely no other BOP of the right specs was available on short notice, since Development II and Development III had taken two out of stock. It's not a question of money, there just isn't a huge stockpile of these things
01:08 AM on 06/01/2010
The way to accomplish this legally in the US is for BP to assume temporary control of BP's drilling operations in US waters. Otherwise, the US government can't simply order a company registered in another country and operating in US controlled water to do what the US wants to do. Our environmental laws are not that strong. We can order them to stop. But that is not the issue here. We want them to go faster!
12:05 PM on 05/31/2010
Obama should have used/ traded his endorsement of expansion of offshore drilling to demand/ institute stricter safety regulation. Having failed to do that, he can't let this crisis go to waste. He should use it to engage a "Southern Strategy" to help Democrats win in the south in the next two elections. He should call for turning over regulation supervision to an offshore oil and gas operations safety board, with members appointed by the states bordering the Gulf, who will have a direct, personal interest in enforcing the highest level of safety. He should also call for criminal pentalties for anyone violating safety regs.
01:09 AM on 06/01/2010
Obama never gets anything from big corporations. He never really tries.
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ladybug7
10 miles left of Palm Beach!
11:40 AM on 06/01/2010
No one in government does. They don't want to kill the golden goose of campaign contributions.
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darkstar528
12:05 PM on 05/31/2010
BP = 700-900 safety violations in Gulf
Next worst company = only 7-9 safety violations in Gulf
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Daphydd
Lets play some music
03:09 PM on 05/31/2010
Holy Smokes. Thanks for those numbers. BP is a disgrace, and should never be allowed to operate off our coasts again.
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Archivist1000
Informed World Citizen
08:00 PM on 05/31/2010
if you think that is bad, check out its record in Alaska!
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mcostello
It's just math
11:19 PM on 05/31/2010
I love their logo and ad campaign.
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timo96
mediocre poster, resplendently bald.
10:38 AM on 06/01/2010
yes. green logo = environmentally friendly!!!
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11:04 AM on 05/31/2010
as long as we feel helpless about this, we are helpless.

BP is incompetent to drill oil. Louisiana should be preparing a class action suit right now to file and get damages to their state and economy. The EPA is incompetent....the US goverment has deregulated the regulators.

but, big oil is over. watch www.TED.com for great new info.
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more5600
12:16 PM on 05/31/2010
Where is the Sarah Silverman video?
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realitytrumpsbull
Two 'alves of coconut!
02:32 PM on 05/31/2010
I hope so, because there's other great ways to produce energy.