April 29, 2010
Posted: Thu Apr 29, 2010 10:54 am
The gang we now have in Washington will have a field day with the GOM oil spill.
Make no mistake about it, this is a major problem for BP and there is the potential for it to become a significant environmental problem. The company has estimated it is now costing them $6 Million per day for the efforts to contain the spill. That is a drop in the bucket compared to the lawsuits to follow.
BP said yesterday that they are making progress on the construction of a subsea oil collection device that could be installed in as little as two weeks. A drilling rig has moved into place that was set to begin drilling a relief well. It is likely to take several weeks to stop the leaking well that is now putting 1,000 to 5,000 bopd into the water. The oil sheen already covers a large area in the GOM and it will get worse. If it drifts into the coastal areas it will get nasty in the press.
This is the first major oil spill in the Gulf of Mexico since 1979. Despite an excellent safety record the industry will once again be labeled a "boggy man" by Washington. Politicians just can't stand to waste a good disaster if there is political gain to be had.
Senator Bill Nelson, D-Florida, a longtime drilling opponent said "all along the Gulf Coast business leaders are scared to death that the oil is moving toward them" and "If this thing keeps leaking thousands of barrels of oil a day for months it will drive a stake in the hearts of any drilling close to Florida shores." Senators negotiating a broad climate change and energy bill have included expanded offshore drilling in the plan in an effor to lure enough support from Republicans and oil-patch Democrats to pass the legislation. If even a few senators withdraw their support from the bill because of the drilling issue, the whole compromise could unravel. A month ago it appeared there was a very good chance the moratorium on offshore drilling would be lifted. Now that is in serious doubt.
Offshore drilling is risky business. Eleven men lost their lives in this accident. Our prayers go out to those families.
We need to develop our country's offshore oil & gas reserves. We need to do it safely. We need leaders that can avoid using each disaster for their own political gain.
Dan
Make no mistake about it, this is a major problem for BP and there is the potential for it to become a significant environmental problem. The company has estimated it is now costing them $6 Million per day for the efforts to contain the spill. That is a drop in the bucket compared to the lawsuits to follow.
BP said yesterday that they are making progress on the construction of a subsea oil collection device that could be installed in as little as two weeks. A drilling rig has moved into place that was set to begin drilling a relief well. It is likely to take several weeks to stop the leaking well that is now putting 1,000 to 5,000 bopd into the water. The oil sheen already covers a large area in the GOM and it will get worse. If it drifts into the coastal areas it will get nasty in the press.
This is the first major oil spill in the Gulf of Mexico since 1979. Despite an excellent safety record the industry will once again be labeled a "boggy man" by Washington. Politicians just can't stand to waste a good disaster if there is political gain to be had.
Senator Bill Nelson, D-Florida, a longtime drilling opponent said "all along the Gulf Coast business leaders are scared to death that the oil is moving toward them" and "If this thing keeps leaking thousands of barrels of oil a day for months it will drive a stake in the hearts of any drilling close to Florida shores." Senators negotiating a broad climate change and energy bill have included expanded offshore drilling in the plan in an effor to lure enough support from Republicans and oil-patch Democrats to pass the legislation. If even a few senators withdraw their support from the bill because of the drilling issue, the whole compromise could unravel. A month ago it appeared there was a very good chance the moratorium on offshore drilling would be lifted. Now that is in serious doubt.
Offshore drilling is risky business. Eleven men lost their lives in this accident. Our prayers go out to those families.
We need to develop our country's offshore oil & gas reserves. We need to do it safely. We need leaders that can avoid using each disaster for their own political gain.
Dan