Category Archives: marine pollution

NPR: For BP Cleanup, 2013 Meant 4.6 Million Pounds Of Gulf Coast Oil

http://www.npr.org/

by DEBBIE ELLIOTT
December 21, 2013 5:14 AM

As we near the end of 2013, NPR is taking a look at the numbers that tell the story of this year. They’re numbers that, if you really understand them, give insight into the world we live in. On a breezy December morning, a work crew is scouring the surf line on Grand Isle, La., scooping up tiny tar balls and collecting them in a basket. Foreman LeRoy Irving keeps track of what the 14-person team has collected as in a half day. “If I had to guess, maybe 10 pounds,” he says.

These patrol and maintenance teams as they’re called are out four days a week, combing Grand Isle and nearby beaches on this stretch of south Louisiana that continue to be a trouble spot for oiling, now approaching four years since the BP oil spill.

Gulf Coast Cleanup In Numbers
4.6 million pounds – oily material collected from Gulf Coast shoreline in 2013
106,465 tons – total oily material collected from Gulf Coast shoreline since Deepwater Horizon exploded in 2010
55 miles – shoreline in active cleanup response in Dec. 2013
4,377 – miles of shore surveyed since 2010
40,096 – holes and pits dug and sampled to look for buried oil in 2013
47,000 – total personnel working on cleanup at the peak of the response
420 – terabytes of electronic data generated (including: 10 billion pages of textual records, 12 million maps and charts, 25 million still photos and graphs, 300,000 reels of motion picture film, 400,000 video and sound recordings)
$14 billion – amount BP says it has spent on cleanup and response activities*
70 million – personnel hours BP says it has put in on cleanup and response*
Source: U.S. Coast Guard Gulf Coast Incident Management Team
*Source: BP

This year, crews have collected 4.6 million pounds of oily material from the Gulf Coast shoreline. Coastal residents are asking how long they’ll be living with the effects of BP’s 2010 oil spill in the Gulf of Mexico. “A lot of people don’t realize that the Deepwater Horizon response is still going on,” says Coast Guard Petty Officer 1st Class Michael Anderson with the Gulf Coast Incident Management Team. “It’s been a marathon, not a sprint.”

Oil In The Breaches
The active cleanup is now down to 55 miles here in south Louisiana – out of more than 4,300 in the immediate aftermath of the spill. Tar balls still wash ashore on beaches in Alabama and Mississippi but now only get cleaned up when a report is called in to the National Response Center. Anderson says the active cleanup is now focused on harder-to-find oil. Tropical storms have buried it under layers of sand and sediment, both on beaches and in marshes. On Fourchon Beach, just west of Grand Isle, a fleet of trucks and front-end loaders work removing heavy oily muck that was recently uncovered here. Anderson says crews were surprised to find giant tar mats buried deep in breaches after Tropical Storm Karen in October. “The breach is actually an area that’s been worn away by the water so you have an open channel or trench between the ocean and the marshes behind,” Anderson says. More than 1.5 million pounds of oily material have been recovered in the breaches.

BP officials declined to be interviewed for this story, but in a statement, the company says it’s confident that contractors have “located substantially all the material that is feasible to recover in Louisiana.” To date, BP has spent more than $14 billion on response and cleanup activities.

‘They Killed The Fish And They Put Oil On The Beach’
But environmentalists say the fact that 4.6 million pounds was collected this year – more than three years after the disaster – is telling. “You put that much oil into an ecosystem, and you’re going to be living with the consequences of it for a long, long time,” says David Muth with the National Wildlife Federation in New Orleans.

On Elmer’s Island, a state-owned spit of land on the Gulf, Muth spots a host of shorebirds: pelicans, cormorants, terns, even the endangered piping plover. “We’re watching birds all along this beach throughout the marches, throughout the bays, in the open gulf, that are actively feeding, and the question is how much of that residual oil, oil byproduct, are they picking up?” Muth asks.

Jonathan Henderson of the Gulf Restoration Network documents the ongoing impacts of the BP oil spill. On Elmer’s Island, he’s armed with a specimen jar and blue latex gloves – and picking through tar balls in the tide line. “You can look in this line, you can see they’re everywhere. So there’s literally thousands and thousands and thousands of them,” he says. He filled his jar in about three minutes with tar balls ranging from the size of a dime to a silver dollar. “You crack them open and you can see they’re kind of brownish and sandy on the outside, but open, they’re black in the middle. You can smell it right away once you crack it open, the fumes start coming out of them,” Henderson says. Henderson also does regular flyovers of the Gulf’s oil production platforms, looking for evidence of leaks that might not make the headlines that BP did. “Any time could turn into something bigger. Clearly one of the dangers of deepwater drilling like this is once you have a blowout the damage is really going to be done and it’s going to stick with you for a long time,” he says.

That’s been a hard lesson for Dean Blanchard, a shrimp processor on Grand Isle. “Basically they turned us into a ghost town,” Blanchard says. “The thing to do down here was to fish and to lay on the beach. They killed the fish and they put oil on the beach.” There’s no reason for people to come now, he says, unless they work on an oil cleanup crew.

Special thanks to Richard Charter

Save the blue.org: Can We “Save the Blue” by Dumping Old Drilling Rigs into the Ocean? by Richard Charter

http://www.savetheblue.org/articles-dumping-old-drilling-rigs-into-the-ocean.html

How Oil Companies Plan to Maximize Their Profits at the Expense of Our Coastal Waters

By Richard Charter, for the H2oover Foundation

Exploration of natural gas and oil brings with it numerous and diverse environmental and human health problems. With so much attention focused on a long list of issues including oil spills, tar sands, fracking, carbon emissions, etc., little attention is being paid to the removal of thousands of offshore oil and gas structures.

Removing disused offshore drilling rigs from U.S. federal waters after the economic life of a seafloor oilfield has concluded is established public policy. In the U.S. Exclusive Economic Zone, beyond state waters that extend for three miles from shore off most coastal states and for ten miles off Texas and Florida’s Gulf Coast, longstanding federal regulations have required full decommissioning and removal of obsolete oil platforms.

Drilling platform support “jackets” that are no longer in use have long been required to be disposed of by being cleaned of oils, cut up, and either recycled for metals or transferred to landfills, while any remaining seafloor oil well casings have had to be sealed and severed 15 feet below the mud line. In each of the original Outer Continental Shelf (OCS) lease contracts executed between the Department of Interior and the petroleum industry, the companies willingly agreed to carry out eventual terrestrial decommissioning as part of the legally binding terms of their lease. In certain sensitive areas off of Southern California, this written contractual commitment by industry to eventually restore the seabed to “as-near-prelease conditions as possible” played an instrumental role in enabling drilling to proceed in the first place.

Old non-producing platforms have logically been slated for removal because they can create serious safety, environmental, and navigational risks, and often deteriorate in ways making them more susceptible to structural failure, leading to substantial liability issues for the rig owner or the government agency administering the lease. On November 10, 2012 a barge loaded with five million gallons of fuel oil hit a submerged oil platform in the Gulf of Mexico, 30 miles south of Lake Charles, Louisiana. The platform had been damaged by Hurricane Rita and was marked with unlit buoys. The 150,000-barrel double-hull barge DBL 152 suffered a 35’×6′ gash in one of its cargo tanks after striking the West Cameron 229A platform, leaking an estimated 1.3 million gallons of oil into the Gulf. Efforts to remove remaining oil from the barge were still underway a month after the collision.

In the past, parts of the Gulf of Mexico have been littered with disused offshore drilling rigs. In some instances leftover damaged wellheads have continued to leak oil for years into the Gulf, and some are still leaking even now. In response to the problems created by these kinds of orphaned rigs in the Gulf, the Interior Department has had to initiate what it calls the “Idle Iron” policy, requiring removal and careful plugging and abandonment of old wells within a certain timeframe with penalties for noncompliance.

An Industry Dodging Fiscal Responsibility:

The immense potential cost savings to the petroleum industry to be gained by not removing old rigs that have made immense profits for companies over the decades has led oil interests to undertake a slick public relations campaign as they try to break their promises. Financially motivated to avoid about 50% of their obligated decommissioning costs, the drillers cleverly anointed their effort to circumvent federal decommissioning requirements with the name Rigs-to-Reefs. Thus altering the “life cycle costing” considerations for a company as it evaluates whether or not to bid on a particular future drillsite can change a bidding decision considerably when the drilling company knows it will not be required to remove and recycle the rig itself at the end of its useful lifetime. This means that sensitive waters like the Arctic Ocean, the California coastline, and Florida’s long-protected Gulf Coast and Panhandle, for example, will be placed at increased jeopardy as industry bids more aggressively on challenging or remote drilling targets with the foreknowledge that the company will ultimately be able to just cheaply discard a platform in the ocean near the drilling site.

The petroleum industry has spent a lot of money and focus group message-testing as part of their nationwide Rigs-to-Reefs greenwashing effort, aimed primarily at the recreational fishing industry and at policymakers, trying to gain federal approval for their proposal. Once the oil industry figured out how much money they could save by simply dumping their cut-off steel jackets – or even by cutting them off “in-situ” below the water line and leaving the wreckage in place on site – an elaborate promotional effort was put into motion. Sadly, some of the most vocal advocates for the Rigs-to-Reefs concept have apparently not turned out to be among the most responsible operators in the Gulf of Mexico.

In response to political pressure from the oil industry, the Interior Department has initiated its own version of a Rigs-to-Reefs program, designed to interact with state programs in states that have passed specific legislation to establish programs for dealing with old oil and gas platforms, including Louisiana, Texas, Mississippi, and most recently, California. Under certain limited conditions, the Interior Department can now waive existing federal law requiring full decommissioning and “donate” the spent rig to one of these states for offshore abandonment in a state-designated “reefing site”.

With the exception of Florida, the Gulf Coast states that are still reeling economically from the disastrous BP Gulf Oil Spill find the powerful combination of the long-entrenched political persuasion of the petroleum industry and the pressure from the similarly influential sportfishing lobby combine to force them to embrace Rigs-to-Reefs with little objective scientific scrutiny, since few studies are available that have not been designed and paid for by the oil companies. First dozens, then hundreds, and eventually thousands of offshore rigs and related subsea pipelines and other petroleum infrastructure facilities will eventually need to be decommissioned, with Rigs-to-Reefs representing a potential savings to the industry amounting to billions of dollars. Even for the 23 rigs nearing obsolescence and facing near-term abandonment in federal waters off of California, the lure of potential future state funding that might someday be derived from even a fraction of industry’s cost-savings motivated the state legislature and former Governor Arnold Schwarzenegger’s administration to gloss over what was admittedly only a cursory literature review and become the latest guinea pig for the Rigs-to-Reefs scheme. California’s petroleum interests, joined by well-compensated sportfishing lobbyists and at least one normally-cautious conservation group, managed to dominate the debate and to obscure legitimate public concerns about the plan. Going forward, at least California agencies will supposedly be required to perform a case-by-case evaluation for each of the discarded rigs off the state’s coast, some of which are immense structures located in 400 to 1000 feet of water.

Hidden Adverse Impacts:

There are several underlying problems inherent in enabling the industry to avoid their prior requirement for full decommissioning of spent platforms. At the site of many offshore drilling rigs in relatively shallow water, seafloor obstructions consisting of drill mud mounds containing toxic substances often remain behind. Studies conducted around offshore drilling rigs in the Gulf of Mexico have revealed small amounts of mercury with the potential to bio-accumulate in the fisheries food chain leading to humans. This mercury pollution is thought to originate from mercury contained in spent barite drill muds used to cool and lubricate the drill bit, after which the used muds are discharged into the water column and dumped on the seafloor. Other toxic, carcinogenic, and mutagenic chemicals often remain in the seafloor wastes accumulated from years of drilling and oil production. Concentrations of these discharged oil-related pollutants do not need to be particularly high to be of serious biological concern. Research on oil pollution in Alaska’s Prince William Sound since the 1989 Exxon Valdez oil spill has provided compelling evidence that very low levels of PAH compounds (polycyclic aromatic hydrocarbons) associated with the spilled oil are causing life-cycle mutagenic damage to the eggs of Pink salmon at levels of two parts-per-billion. Dilution, it turns out, is not the solution for toxic pollution that bio-concentrates in the marine food chain.

Beyond the toxic chemical components found in the mud mounds, these seafloor snags also represent physical obstructions to the activities of commercial fishermen.

Can Oil Companies Really “Improve on Nature”?

There is also an ongoing dispute about the efficacy of the much-touted “artificial reef” functions supposedly provided by abandoning discarded drilling rigs in the marine environment. The oil industry’s Rigs-to-Reefs advertising claims that the dumped rigs reliably attract fish in various ecological settings. The state of current science, however, provides ample contrary evidence indicating that while their abandoned drilling structures might sometimes attract certain species of fish, in many locations these fish are not necessarily “new” fish biomass, but are instead coming from natural hard-rock seafloor substrate or other nearby natural habitat. Certain species are simply being aggregated around the dumped rig components in a manner that makes the fish easier prey for sportfishing interests normally precluded from fishing in close proximity to an active rig due to the usual closure zone surrounding an operating platform. There is no evidence that either operational or discarded platforms provide net ecological benefits to the marine ecosystem as a whole, relative to parts of the ocean left in a natural state.

Each proposed platform abandonment location in the Gulf of Mexico and off of Southern California is necessarily unique in terms of ecological setting and the specific types of marine species found in surrounding waters. No matter how carefully considered, not all artificial reefs are functional contributors to marine health. A 176-acre rocky-bottom fish habitat that Southern California Edison Company built a half-mile off San Clemente in 2008, supposedly “replacing” fish lost due to operations at the company’s nearby nuclear power plant, has recently been found to be failing to propagate enough fish to meet the agreed-to mitigation requirements.

The vision of a restored ocean returning to vibrant and healthy productivity after offshore rigs are removed is proving an elusive one in the face of a lopsided debate being dominated by petro-dollars, but for many states and for much of the American ocean, the fate of our marine environment is yet to be decided.

Promises Not Kept:

The word “ecosystem” finds its meaning in the Greek word oikos, defining a “house, dwelling place, or habitation.” The ocean is a key part of our collective home. In ecosystems, diversity is closely connected with network structure. A diverse ecosystem is resilient because it contains many species with overlapping ecological functions that can partially replace one another. We ourselves are living with, and literally living as part of, the Earth’s ocean ecosystem.

Left alone by human intervention and absent polluting activities, the ocean environment can prove to be a powerful and pervasive self-healing mechanism, and the case could be made that the ecosystem design that preceded the age of offshore oil development was likely the most successful biological niche that could have evolved in a particular location. Ultimately allowing the marine environment to restore itself was the stated rationale for the decommissioning contracts that the drillers originally accepted and signed when they began to explore and develop the offshore sites now in question, and there is no conclusive evidence that Rigs-to-Reefs is a beneficial use of spent drilling rigs for anyone but the accounting department of an oil company.

If our society allows the petroleum industry and their captive scientists to determine the fate of our sustaining hydrocommons in the oceans, decisions made by this special interest lobby will not be in the public interest, but made instead in the interest of maximizing industry profits by avoiding remediation of corporate messes and by circumventing willingly-accepted corporate responsibilities for rig removal.

In the event that we arbitrarily extend the duration of the impacts of the industrial detritus of the fleeting carbon age in our oceans, we are denying our grandchildren the possibility of experiencing the ocean we inherited from our ancestors. We are instead allowing the ocean itself to become a vast corporate chemical and biological experiment, with no coherent vision or sound science to tell us what the results might turn out to be over the long term.

Enabling the drilling industry to avoid keeping their solemn promise of full decommissioning of spent rigs, aside from the trail of pollution that would be left behind, particularly endangers ever more sensitive places in our coastal waters by making them more economically attractive for exploitation while arbitrarily incentivizing their unnecessary sacrifice. Our ocean, while appearing deceptively uniform when viewed from above the sea surface, actually embodies a wide diversity in seafloor habitats, species composition, and water column conditions, and an approach to dealing with obsolete drilling infrastructure that might at first appear to be effective in one location may not work at all elsewhere. The petroleum industry has an obligation to society to follow the precautionary principle that they themselves often espouse and to honor their original agreements to remove spent drilling rigs and restore the seafloor as much as possible to pre-drilling conditions when an oil field is depleted, lest Americans someday wake up to a polluted ocean haunted by thousands of dumped rigs comprising an offshore junkyard of epic proportions.

Richard Charter is a Senior Fellow with The Ocean Foundation and has worked for 35 years on offshore drilling safety, oil spill response, and ocean protection issues with local and state governments and the conservation community. Richard currently serves on the Methane Hydrates Advisory Committee to the U.S. Department of Energy and on NOAA’s Gulf of the Farallones National Marine Sanctuary Advisory Committee.

“The wise use of water is quite possibly the truest indicator of human intelligence, measurable by what we are smart enough to keep out of it. Including oil, soil, toxics, and old tires.”
-David Orr, Reflections on Water and Oil

E&E: Green group reveals offshore fracking chemicals, says many pose hazards

Anne C. Mulkern, E&E reporter
Published: Friday, November 15, 2013

Unconventional oil drilling in the waters off Southern California uses
several chemicals considered hazardous, including at least one that a
federal agency connects to increased cancer risk, an environmental
group said yesterday.

The Center for Biological Diversity (CBD) in a 28-page letter asked the
California Coastal Commission to block offshore hydraulic fracturing,
or fracking, and cited a list of potential perils.

The green group identified chemicals used in offshore operations after
looking at oil and natural gas company disclosures on FracFocus.org.

“The fracking chemicals known to be used in California state waters are
alarming,” Emily Jeffers, Center for Biological Diversity’s staff
attorney, Oceans Program, wrote in the letter. “The Center’s analysis
of chemicals used in 12 wells and disclosed by the voluntary reporting
site FracFocus reveals that almost all of the chemicals used are
suspected of causing gastrointestinal, respiratory, and liver hazards,
as well as skin, eye, and sensory organ risks.

“More than half of the chemicals are suspected of being hazardous to
the kidneys, immune and cardiovascular systems, and more than one-third
are suspected of affecting the developmental and nervous systems,” the
letter added. “Between one-third and one-half of the chemicals used are
suspected ecological hazards.”

The green group said that the California Coastal Commission should use
its authority to prohibit fracking in waters off the Golden State
because it threatens coastal resources.

The commission has not had the chance to review the letter that arrived
yesterday, said Sarah Christie, the agency’s legislative director.

“The Commission staff is in the process of evaluating all of the
available information on offshore fracking, and will be discussing the
topic, as well as our role in the regulatory process, when the
Commission meets next month in San Francisco,” Christie said in an
email. “The Commission is committed to protecting coast and ocean
resources consistent with its mandate and authority in the Coastal Act
and the Coastal Zone Management Act.”

The commission had already planned to talk about offshore oil drilling
at its meeting next month, Christie said. It’s a follow-up to a meeting
in August, when the agency launched an investigation into how much
hydraulic fracturing is happening offshore and what power the
commission has to control it.

That followed a news report that regulators have allowed drilling using
fracking in the Pacific Ocean at least a dozen times since the late
1990s. The Associated Press unearthed the data through a Freedom of
Information Act request.

At that August meeting, Alison Dettmer, chief deputy head of the
commission’s Energy and Ocean Resources division, said the agency lacks
key data related to fracking, in which companies blast water laced with
sand and chemicals at high pressure to break apart rock formations and
release oil or natural gas.

In waters controlled by the federal government, there are 23 platforms
with outer continental shelf (OCS) plans granting approval for
exploration. Thirteen of those were authorized by the Coastal
Commission, Dettmer said in August. Of those, a dozen “have done some
form of fracking in the last 25 years,” she said. In addition, it has
been approved for Platform Gilda off Santa Barbara.

Dettmer will review the CBD letter before next month’s meeting,
Christie said.

Oil and natural gas industry trade group Western States Petroleum
Association did not respond to inquiries about the CBD letter and
claims on chemicals used.

Chemicals listed as hazardous

The Center for Biological Diversity in its letter said many of the
dozen wells where fracking is underway use chemicals with risks.

The green group lists seven chemicals that it said are most commonly
used in offshore wells. It said there are known health risks with those
compounds.

The ones listed include crystalline silica or X-Cide, which CBD’s
letter said is “classified as a hazardous substance under both the
Occupational Safety and Health Act (OSHA) and the Comprehensive
Environmental Response, Cleanup, and Liability Act (CERCLA, or
Superfund).”

The chemical is “harmful to skin, eyes and other sensory organs,
respiratory system, immune system and kidneys; mutagen. Known human
carcinogen,” the letter said. CBD drew that information from the
Endocrine Disruption Exchange Inc., or TEDX, which describes itself as
an organization “that focuses primarily on the human health and
environmental problems caused by low-dose and/or ambient exposure to
chemicals that interfere with development and function, called
endocrine disruptors.”

OSHA has issued a hazard alert on respirable crystalline silica, which
said that “hydraulic fracturing sand contains up to 99 percent silica.
Breathing silica can cause silicosis. Silicosis is a lung disease where
lung tissue around trapped silica particles reacts, causing
inflammation and scarring and reducing the lungs’ ability to take in
oxygen.”

The alert, which addresses the issue of worker exposures only, added
that “workers who breathe silica day after day are at greater risk of
developing silicosis. Silica can also cause lung cancer and has been
linked to other diseases, such as tuberculosis, chronic obstructive
pulmonary disease, and kidney and autoimmune disease.”

CBD’s letter also said offshore wells use methanol, which the green
group quoted TEDX as saying is “harmful to skin, eyes and other sensory
organs, respiratory system, gastrointestinal system and liver, brain
and nervous system, immune system, kidneys, reproductive and
cardiovascular system; mutagen.”

The letter also named glyoxal, sodium tetraborate, 2-butoxyethanol,
methyl-4-isothiazolin and ethoxylated nonylphenol as chemicals used in
the offshore wells.

“The chemicals used in the fracking process are extremely dangerous,
but the fate of their ultimate disposal is of even greater concern,”
the letter said. “Releases of fracking fluids onshore have led to fish
kills in freshwater bodies. Spilling or leaking of fracking fluids,
flowback, or produced water is also a huge problem. Spills can occur at
the surface, and there is a risk of underground migration of fluids.
Also, many fluids must be transported to and/or from the well,
presenting additional opportunities for spills.”

Special thanks to Richard Charter

Business Week: Oil Drillers Rush Back to the Gulf of Mexico

http://www.businessweek.com/articles/2013-11-14/2014-outlook-gulf-of-mexico-oil-patch-gushes-again

By Edward Klump November 14, 2013
The Gulf of Mexico has been left for dead more than once over the past half-century. It’s now roaring back to life with at least 10 recent mega-discoveries that have renewed oil explorers’ enthusiasm for the region. Billions of dollars are being poured into new wells in the ultra-deep waters off Texas and Louisiana, fueling a resurrection that could set a production record this decade and complete a recovery from the worst offshore oil spill in U.S. history.

In 2014, output from the deepest parts of the Gulf, where the water is more than 1,300 feet deep, will be equivalent to about 1.5 million barrels of oil a day, 15 percent more than this year, according to estimates by energy consultants Wood Mackenzie. By 2020, the firm says, the deepwater Gulf, which accounts for about half the Gulf’s 252,000 square miles of federal waters, is expected to produce an average of more than 1.9 million barrels a day, a new high. “Investors should not sleep on the Gulf of Mexico,” says Brian Youngberg, an analyst with Edward Jones in St. Louis. “Onshore shale is obviously the main driver in the growth in U.S. production, but going forward, the Gulf of Mexico should start contributing to that.”

U.S. crude production has surged in recent years, largely because companies used hydraulic fracturing and advanced drilling technology to open onshore shale formations. Now producers including Chevron (CVX), Royal Dutch Shell (RDS/A), and Anadarko Petroleum (APC) are preparing to surpass the Gulf’s 2009 peak; production collapsed after BP’s (BP) 2010 spill. That disaster, and the five-month drilling moratorium that followed, led to an exodus of rigs and drilling equipment as regulators bolstered safety requirements. As large oil companies have begun drilling again, so has BP, which remains a major operator in the deep Gulf. It was the biggest producer there in 2012 and has ownership stakes in more than 650 leases.

In the late 1970s energy companies began referring to the Gulf as “the Dead Sea.”

Shallow-water wells drilled decades earlier were tapering off, and the industry lacked the technology to find oil in the deeper waters. New seismic equipment has since let explorers see through once-opaque layers of rock. Engineering innovations enable companies to lower their drills through 10,000 feet of water to the seabed. There the drills penetrate 5 miles into the earth’s crust, where temperatures are hot enough to boil water and high pressures approach the weight of four cars resting on one square inch. That seismic and drilling technology has improved even since the 2010 oil spill, allowing ventures into deeper and deeper waters.

Chevron, with a company-record five rigs drilling, is among the most bullish. The company expects its $7.5 billion Jack/St. Malo platform to begin producing oil and gas in 2014, with a long-range target of 177,000 barrels per day. Other deep-water projects that may begin producing in the Gulf next year include Anadarko’s Lucius, Hess’s (HES) Tubular Bells, and Murphy Oil’s (MUR) Dalmatian. Gulf projects can cost $15 billion for infrastructure, wells, and facilities, and take more than a decade to bring into production.

The U.S. Department of the Interior estimates the Gulf has 48 billion barrels of oil yet to be discovered. “What catches our attention,” says Robert Ryan, vice president for global exploration at Chevron, “is the potential-billions of barrels right in our own backyard.”

Special thanks to Richard Charter

UPI.com: Black Elk Energy opposes rig disaster findings

http://www.upi.com/Business_News/Energy-Resources/2013/11/18/Black-Elk-Energy-opposes-rig-disaster-findings/UPI-53011384781827/?spt=rln&or=1

Nov. 18, 2013 at 8:37 AM

HOUSTON, Nov. 18 (UPI) — Black Elk Energy said it didn’t agree with violations outlined by a federal safety regulator in response to a deadly fire on an offshore platform in 2012.

Three of the 24 rig workers on a platform operated by Black Elk Energy died in a November 2012 accident off the coast of Louisiana.

The U.S. Interior Department’s Bureau of Safety and Environmental Enforcement said Nov. 4 the company lapsed on several safety requirements on the rig and operated “a climate in which workers feared retaliation if they raised safety concerns.”

Black Elk said in a statement Friday it was committed to a safe and compliant offshore working environment.

“Black Elk Energy does not agree with the basis for the [incidents of noncompliance order issued by BSEE] and is evaluating its options for response,” the company said.
In August, Black Elk said a third-party investigation found contractors failed to follow basic safety standards.

Special thanks to Richard Charter