Posts tagged “oil spill”
BP may have agreed to the largest criminal settlement in United States history over its ownership of the Macondo well that exploded in the Gulf of Mexico, sinking the Deepwater Horizon rig and spilling more than 4.5 million barrels of oil, but the company could yet face billions more in financial responsibility.
Resolving a criminal inquiry into the 2010 oil spill, one of the worst in history, BP agreed last week to pay $4.5 billion in fines, but the ongoing Securities and Exchange Commission investigation could still result in up to $17.6 billion in additional fines and tariffs. The company will now seek to resolve claims made against it for violations of the Clean Water Act, with both the federal government and that of the state of Louisiana pursuing the energy company as cleanup efforts on the Gulf coast continue.
Justice Department disputes claims by BP that region is recovering
The ongoing investigation into the cause of and reaction to the BP oil spill in the Gulf of Mexico in 2010 is seeing the United States Department of Justice (DOJ) continue its hard stand against the fuel company, with newly released court documents condemning BP for what it is calling “gross negligence.”
Swiss-based Transocean Ltd, the owner of the Deepwater Horizon platform that caused the spill, is also named by U.S. officials as being responsible alongside BP for a series of testing errors that proved to be costly after a methane gas explosion rocked the rig in question as it dug more than a mile deep off of the coast of Louisiana. The resulting damage would cause the rig to sink within 48 hours, leaving an open well that proceeded to gush more than 4.9 million barrels of crude oil into the Gulf of Mexico over an 87-day span.
BP claims that the region has since exhibited signs of promising resilience, but the DOJ is urging the judge in the case to carefully weigh claims made by the oil company concerning the recovery of life in the affected area.
The following guest essay was written by David Whelpton. David is a private investor in the oil and gas industry. His blog is Knowledge and Investing. Below, David goes through the highlights of the report to the President on the Deepwater Horizon disaster, explaining the commission’s findings of what went wrong, and detailing some specific differences between BP and some other oil companies that may have led to a deficient safety culture. ————————– A Closer Look at The Commission Report on the Deepwater Horizon Disaster The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling has released its report to the President entitled, “Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling.” It is… Continue»
Shortly after the Deepwater Horizon disaster in the Gulf of Mexico, I wrote the following: BP’s Oil Rig Disaster May Bring an End to Support for New Offshore Exploration “I believe the long term implications of this incident will be to exacerbate our slide down the backside of peak oil. Fields take a long time to develop, and fields being developed now may have been producing oil in 5 or 10 years. But I believe this window of opportunity has now closed, and it will be much more difficult to find broad support for expanded drilling.” I held this view because I believed the disaster would sharply shift the debate on drilling, giving drilling opponents fresh ammunition and pushing even… Continue»
The Leak Appears to be Sealed Today comes news that there is light at the end of the tunnel over the leak in the Gulf of Mexico: Allen: ‘High confidence’ no more oil will flow into Gulf Retired Coast Guard admiral Thad Allen said Wednesday he has “high confidence” no more oil will leak from BP’s Gulf of Mexico well. Hours earlier, BP announced that the well had reached “static condition” after heavy drilling mud was pumped into it. This is without a doubt good news. However, the longer term ramifications remain the same in my mind: BP is going to have a very difficult time repairing their brand. I still believe that a substantial fraction of their assets —… Continue»
BP admitted last week that the SEC and the Department of Justice were conducting “informal inquiries into securities matters arising in relation” to the offshore rig explosion and subsequent spill.
The Missing Oil I just wanted to briefly touch on three energy stories that were in the news over the past week. The first is that the oil flowing into the Gulf of Mexico seems to be slowing: BP Oil Spill: Clean-Up Crews Can’t Find Crude in the Gulf Thousands of small oil patches remain below the surface, but experts say an astonishing amount has disappeared, reabsorbed into the environment. “[It's] mother nature doing her job,” said Ed Overton, a professor of environmental studies at Louisiana State University. Experts stress that even though there’s less and less oil as time goes on, there’s still plenty around the spill site. And in the long term, no one knows what the impact… Continue»
Hayward’s new position will be as a non-executive director on the board of TNK-BP, Russia’s third-largest oil company.
Claims like “BP will file for Chapter 11 by July 9,” and that “the ‘real, untold story’ is another leak that is 5-7 miles away spewing 120,000 barrels per day” are ruining Matt Simmons’ credibility.
Robert Dudley, currently heading BP’s Gulf Coast restoration efforts, is seen as Hayward’s most likely successor.