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Obama Opened Floodgates for Offshore Fracking in Recent Gulf of Mexico Lease

12:22 pm in Uncategorized by Steve Horn

An offshore oil platform glows in the dark

Is widespread offshore fracking in America’s future?

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.

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 AP. ”To 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.”

Unlike other Gulf oil and gas, Lower Tertiary crude is located in ultra-deepwater reservoirs, industry lingo for oil and gas located 5,000 feet — roughly a mile — or deeper under the ocean.

Just over a week before the lease, the Mexican government passed energy reform legislation that will prop open the barn door for international oil and gas companies to sign joint ventures with state-owned oil company Pemex, including in Mexico’s portion of the Gulf of Mexico.

Baker Hughes Fracks the Tertiary

The May edition of World Oil explains that Baker Hughes has lead the way in technology innovation to tap into Lower Tertiary oil and gas, described as existing within “harsh HPHT conditions,” or high pressure, high temperature conditions.

Using offshore fracking techniques, Baker Hughes has aided Petrobas in developing a test well in the Cascade offshore field. The company believes the recent Gulf acreage sale by the Obama Administration will serve as a boon for further offshore fracking in the months and years to come.

“We expect that there will be more offshore stimulation in coming years,” Douglas Stephens, president of pressure pumping at Baker Hughes, told the AP in the lease’s aftermath.

Baker Hughes maintains roughly one-third of the world’s offshore fracking operations.

Fracking as “Next Frontier for Offshore Drilling”

Two weeks before the lease, Bloomberg published an article declaring that fracking could serve as the “next frontier for offshore drilling.” That next frontier will come at a steep cost: $100 million spent per well, according to Bloomberg.

Even Halliburton, key innovator of onshore fracking technology and the force behind the “Halliburton Loophole” within the Energy Policy Act of 2005, admits offshore fracking is risky business.

“It’s the most challenging, harshest environment that we’ll be working in,” Ron Dusterhoft, an engineer at Halliburton, told Bloomberg. “You just can’t afford hiccups.”

The article further explained that the oil industry at-large, and not just Baker Hughes and its fellow oil services companies, stand to win big from the push to frack the Gulf of Mexico.

“Those expensive drilling projects are a boon for oil service providers such as Halliburton, Baker Hughes Inc. and Superior Energy Services Inc. Schlumberger Ltd., which provides offshore fracking gear for markets outside the U.S. Gulf, also stands to get new work,” Bloomberg reported.

“And producers such as Chevron Corp., Royal Dutch Shell Plc and BP Plc may reap billions of dollars in extra revenue over time as fracking helps boost crude output.”

According to lease statistics made public by BOEM, 42 of the 81 blocks of oil and gas auctioned off on August 20 sit in water depths of over 1600 meters (roughly a mile, or 5,280 feet).

“All of the Above”

BOEM press release declared the Gulf lease falls under the broad umbrella of President Obama’s “all of the above” energy policy, which critics point to as a form of climate change denial.

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Firm with History of Spill Cover-Ups Hired to Clean Up North Dakota Oil Spill

3:54 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Tesoro Logistics — the company whose pipeline spilled more than 800,000 gallons of fracked Bakken Shale oil in rural North Dakota in September — has hired infamous contractor Witt O’Brien’s to oversee its clean-up of the biggest fracked oil spill in U.S. history.

The oil was obtained via hydraulic fracturing (“fracking”) in the Bakken Shale basin.

As revealed after ExxonMobil hired the same firm in the aftermath of a 210,000-gallon tar sands oil spill in April 2013, Witt O’Brien’s —formerly known as OOPS, Inc. — is a firm with a history of oil spill cover-ups dating back to the Exxon Valdez oil spill. It also oversaw the spraying of toxic oil dispersants into the Gulf of Mexico during BP’s summer 2010 mega-spill and a literal cover-up of Enbridge’s massive “dilbit disaster” tar sands pipeline spill in Michigan.

Witt O’Brien’s also won a $300,000 contract to develop an emergency response plan for TransCanada’s Keystone XL tar sands export pipeline in August 2008.

The same firm is now maintaining Tesoro’s website dedicated to offering updates — also known as crisis communications management — for the massive spill’s recovery efforts at TesoroAlert.com.

Buried at the bottom of the website is a mention that the site is “powered by the PIER System.” PIER — short for “Public Information Emergency Response” — is owned by Witt O’Brien’s.

PIER in a Nutshell

A glance at PIER’s website suggests it is much more focused on image clean-up than it is on actually cleaning up oil spills.

“We believe that responding effectively and communicating your efforts are two sides of the same coin,” explains Witt O’Brien’s website. “And since others will be telling your story, from the professional media to citizen reporters with camera phones, you must be prepared and ready to respond.”

“PIER™ (Public Information Emergency Response) provides flexible solutions for handling internal and external communications, making it easier to deliver messages, streamline processes, automate tasks, and prevent inaccuracy during routine events, minor incidents, and major catastrophes.”

Brad Johnson, at the time a writer for Think Progress, explained BP used PIER for “media and public information management” during the 2010 Gulf oil spill disaster.

Winter Whitewash in the Works?

In a November 1 DeSmogBlog article covering the North Dakota fracked oil spill, Kris Roberts, environmental response team leader for the North Dakota Department of Health’s Division of Water Quality, said his department would be “putting [the oil] to bed for the winter” in an interview.

“We’ll continue to recover any free oil, but essentially because winter is days away if not already there, they’re basically just putting it back to bed, ensuring it’s properly contained and monitored,” Roberts said.

“They will hopefully get some natural remediation over the winter below the frost zone when the indigenous bacteria start flourishing, that’ll probably help a little bit cleaning up. But for the most part, everything is pretty much on hold and active remediation is going to be on hold until next spring.”

In the midwest, winter has arrived. The question remains: will the massive amount of snow allow for a literal and figurative whitewash by Tesoro — working with Witt O’Brien’s — of the largest fracked oil spill in U.S. history?