Category Archives: marine pollution

Fuel Fix: Black Elk Energy: Fatal fire hit finances, production

http://fuelfix.com/blog/2013/08/16/black-elk-energy-fatal-fire-hit-finances-production/

Posted on August 16, 2013 at 7:30 am by Jennifer A. Dlouhy in Gulf of Mexico, Offshore

Houston-based Black Elk Energy says it is still dealing with financial fallout from last year’s fatal explosion at one of its Gulf of Mexico production platforms, even as federal investigators continue to probe the company’s overall safety.

The company said the accident hurt its financial results, that oil production slowed when the accident led to delays in obtaining permits for ordinary maintenance work and that it spent more than expected for “non-recurring regulatory, legal and platform restoration costs” tied to the incident. Black Elk provided the updates in investor guidance for the second half of 2013.

The company forecast that for July through December of this year, its daily production will average 13,500 to 14,500 barrels of oil equivalent, capital expenditures will be $45 million to $55 million and earnings before interest, taxes, depreciation and amortization will be $75 million to $85 million.

Legal fallout: Oil platform owner sued over blast in Gulf

Three people died and several others were injured in the explosion and fire last Nov. 16 at Black Elk’s West Delta 32 production platform 18 miles off the Louisiana coast. The federal Bureau of Safety and Environmental Enforcement still is probing the incident, but the company has said a cutting torch may have ignited flammable vapors on the platform standing in 56 feet of water. Black Elk Energy has promised to release the report from a third-party investigation the company commissioned.

At the safety bureau’s request, Black Elk Energy gave the federal regulators a “performance improvement plan” last December and submitted an analysis of its previous violations in January. Facilities that were not producing at the time of the explosion were forced to stay offline temporarily .

The firm had racked up more than 300 documented mistakes and violations offshore before the fatal fire, and a safety bureau official said Thursday that the rates of those incidents – called incidents of non-compliance – have not declined since.

“We still have a lot of concerns,” the official said, who spoke on condition of anonymity because the investigation is ongoing.

“Black Elk has met most of the requirements that were stipulated,” the official said, but the company “has not done enough to demonstrate to us that their overall performance is improving to the point we think it should be.”

Related story: Black Elk CEO vows vindication

Regulators have not given Black Elk Energy approval to resume production at its damaged platform, but they allowed repairs to begin in May. Those repairs are complete, the company said in a statement, adding:
“Over the past eight months, Black Elk officials, staff and advisers have worked cooperatively with government officials at the local, state and federal level to provide support for the victims and their families, analyze the underlying causes of the incident and implement policy and procedural improvements to minimize the risk of similar incidents in the future.”

The company otherwise had no response to the comments from the regulatory official.
The Black Elk explosion was the first in a recent spate of accidents in shallow Gulf of Mexico waters that have revived concerns about the risks of oil and gas production close to shore.

Last month, a gas well in the Gulf of Mexico blew out, forcing the evacuation of 44 workers and igniting a fire that raged for nearly two days.

Just weeks before, a briny mix of gas, light condensate and salt water began leaking out of a 40-year-old Energy Resource Technology well while workers were trying to permanently plug it.

Founded in 2007 by a former BP and Amoco executive, Black Elk now holds interests in more than 1,000 wells connected to 176 platforms in the Gulf of Mexico. It has been operating facilities in the Gulf of Mexico since 2010.

Its aggressive acquisition strategy has focused on buying old facilities and reworking offshore wells to eke out more hydrocarbons.

Special thanks to Richard Charter

Nola.com: Making industry pay its share

http://www.houmatoday.com/article/20130809/LETTERS/130809591/-1/living?Title=Making-industry-pay-its-share

Published: Friday, August 9, 2013 at 10:00 p.m.
Last Modified: Friday, August 9, 2013 at 10:31 p.m.

The lawsuit against major oil companies by the Southeast Louisiana Flood Protection Authority-East is long overdue.

For years we have seen how offshore oil exploration and production have damaged our wetlands.

Yet no statewide politician except Gov. Dave Treen has tried to hold the industry accountable.

Our elected officials want to blame the federal government.

Certainly its construction of levees to control the Mississippi River robbed the delta of land-building sediment.

But the people of Kansas, Vermont and the other states did not cut oilfield canals through our marsh, drill oil wells in our wetlands and pump oil out of the ground until it sinks into the Gulf.

Why do Louisiana politicians ignore the oil companies and put the burden of coastal restoration on American taxpayers?

Could it be that they depend on oil-industry contributions?

I served in the Louisiana Senate for 27 years and on the Public Service Commission since 2003.

In that time, Treen has been virtually the only Louisiana politician to ask the oil companies to pay for the damage they caused.

When Treen introduced his Coastal Wetlands Environmental Levy, the oil companies that helped elect him became his enemies in a matter of days.

Bobby Jindal argued against suing the tobacco companies in the 1990s when he was secretary of health and hospitals.

Fortunately the state didn’t listen, and we got $4 billion from Big Tobacco to help treat people in state hospitals with illnesses from smoking.

Jindal represents the special interests. First it was the tobacco companies, now it’s the major oil companies.

As for the claim that this lawsuit will “shut down” the oil industry, consider that Louisiana and Texas have 40 percent of U.S. refining capacity, and these plants are running wide open.

Louisiana has the Mississippi River to transport products, 50,000 miles of pipeline and some of the world’s most-productive oil and gas fields off our coast.

Can anyone seriously say the industry is leaving?

The Southeast Louisiana Flood Protection Authority-East has drawn a line in the dirt.
Its suit against major oil companies for their role in coastal erosion challenges the politicians of Louisiana to defend our state like they would defend their own property.

If Bobby Jindal, Mary Landrieu, David Vitter or any other politician were to suffer damage to their own property like we have seen in the wetlands, would they look the other way?

Foster Campbell
Public service commissioner
Bossier City

Special thanks to Richard Charter

Hamptonroads.com: Groups say drilling tool will disturb Va. marine life

http://hamptonroads.com/2013/08/groups-say-drilling-tool-will-disturb-va-marine-life

NORFOLK August 3, 2012

While oil rigs drilling off the coast of Virginia are still a question mark in the near future, local environmental groups will be making noise about the possibility today.

Beginning at noon, members of Oceana and the Sierra Club will blow horns and clang pots and pans at Waterside Festival Marketplace to symbolize the loud noises made by seismic air guns – devices used to identify oil and gas reserves in the ocean.
“The point is to be noisy,” said Eileen Levandoski, assistant director of the Virginia Chapter Sierra Club. But it won’t be a literal simulation. “We’d be too loud,” she said.

Surveyors use seismic air guns to send blasts toward the sea floor and measure their echoes to identify drilling prospects. The industry says the method hasn’t been shown to hurt marine life and is necessary to open drilling. But environmentalists say it could injure animals and disrupt migration and mating patterns.

“The unique part about this technology is that not only is it that first step (toward offshore drilling), but in and of themselves, the air guns are really, really dangerous and destructive,” said Caroline Wood, Virginia organizer for Oceana’s climate and energy campaign.

The U.S. government has estimated that 138,500 whales and dolphins in the Atlantic Ocean will be deafened, injured or killed by the blasts, according to the Virginia Chapter Sierra Club website. The North Atlantic Right Whale – of which only about 500 remain – is among the species at risk. The demonstration, which will be held from noon to 1:30 p.m., is one of many on the East Coast, Wood said, adding that similar demonstrations will take place in Virginia Beach and Alexandria.

Debate over offshore drilling, which is years away even under supporters’ most optimistic scenarios, is coming to a head this year. The U.S. House in June approved a bill to lift a moratorium on drilling in Virginia waters. The federal government will release a report this fall outlining the environmental impact of East Coast drilling.
Offshore drilling has the potential to create 18,000 jobs in Virginia by 2030, according to Nicolette Nye, vice president of communications and external relations of the National Ocean Industries Association.
Locally, drilling faces opposition beyond environmentalists: The Navy has opposed it in the offshore areas it uses, and the federal government has been reluctant to share royalties with coastal states, which local legislators say is key to their support.

Still, the environmental groups say they will keep making a clatter.
“We just want to make a lot of noise to get people’s attention,” Wood said.

Special thanks to Richard Charter

Huffington Post: Gulf Of Mexico Oil Sheens Likely Came From Deepwater Horizon Wreckage, Study Shows

http://www.huffingtonpost.com/2013/07/16/gulf-of-mexico-oil-sheens_n_3605468.html

By MICHAEL KUNZELMAN 07/16/13 11:47 AM ET EDT

NEW ORLEANS – A team of researchers has concluded that pockets of oil trapped in the wreckage of the sunken Deepwater Horizon are the likely source of oil sheens that have been spotted in the Gulf of Mexico near the site of the deadly 2010 explosion on the BP-leased drilling rig.

A newly published study by the Woods Hole Oceanographic Institution and the University of California at Santa Barbara rules out BP’s sealed-off Macondo well and natural oil seeps as possible sources of the sheens.

The researchers said their conclusions are based on an analysis of 14 sheen samples collected from the surface of the water during two trips to the Gulf.

Last year, BP PLC said it capped an abandoned piece of equipment that was believed to be the source of a sheen.

Special thanks to Richard Charter

Live Science: Oil Sheens Near Deepwater Horizon Spill from Sunken Rig

http://www.livescience.com/38200-deepwater-horizon-oil-sheen-source.html

Douglas Main, Staff Writer | July 16, 2013 10:29am ET

deepwater-horizon-oil-sheen
Oil sheens overlying the wreckage of the Deepwater Horizon, first spotted in September 2012. The oil is coming from the wreckage of the rig, new research shows.
Credit: David Valentine, UCSB

Recurrent sheens of oil in the Gulf of Mexico near the site of 2010’s Deepwater Horizon oil spill have baffled researchers and led to fears that oil may once again be spewing from the seafloor well.
But a study published this week in the journal Environmental Science and Technology shows that there is no new leak: The oil is coming from isolated tanks and pockets within the wreckage of the sunken rig, according to a statement from the National Science Foundation (NSF), which funded the research.

The mysterious sheens of oil were first reported in September 2012. To find out their provenance, researchers took samples of the sheens and compared them against others taken from various sources, including floating pieces of wreckage recovered shortly after the Deepwater Horizon drilling rig exploded and sunk on April 20, 2010.

“This appears to be a slow leak from the wreckage of the rig, not another catastrophic discharge from a deep oil reservoir,” David Valentine, a geochemist at the University of California at Santa Barbara, said in the statement. “Continued oil discharge to the Gulf of Mexico from the wreckage of the Deepwater Horizon rig is not a good thing, but there is some comfort that the amount of leakage is limited to the pockets of oil trapped within the wreckage of the rig.”

Using a technique developed by Woods Hole Oceanographic Institution researcher Chris Reddy, the scientists found that the oil from the sheens reported last fall matched those taken from the floating wreckage. The samples both contain uniform amounts of olefins, a chemical used in drilling fluids, according to the statement. Olefins are not found in crude oil, meaning the sheens aren’t likely to originate from the Macondo well or any other natural oil seep in the Gulf, the NSF reported.

When the rig sunk, it held tanks containing hundreds of barrels filled with a mixture of drilling mud and oil. Researchers speculate that these tanks are leaking after being gradually corroded by seawater, according to the statement.

The Deepwater Horizon oil spill was the biggest in American history, releasing about 205 million gallons (776 million liters) of oil. The area of the Gulf near the spill has been negatively affected ever since; tar balls containing dangerous bacteria have washed up on beaches in the area and there has been an unusually high death rate for dolphins.

Email Douglas Main or follow him on Twitter or Google+. Follow us @livescience, Facebook or Google+. Article originally on LiveScience.com.
– See more at: http://www.livescience.com/38200-deepwater-horizon-oil-sheen-source.html#sthash.M2hByyJZ.dpuf

Special thanks to Richard Charter