Get News & Views Updates
Most Popular This Week
Popular content
Today's Top News
BP 'Staked Future on Expanding Offshore Drilling'
Document reveals that the company marked out 'expanding deepwater' as its number one area for long-term growth
BP staked its future on expanding offshore drilling a month before the catastrophic explosion on the Deepwater Horizon triggered the United States' worst environmental disaster, according to company documents revealed yesterday.
The Deepwater Horizon oil rig burning. The battle over the future of offshore drilling continued yesterday as the country's biggest business lobby said it would step up its campaign to force the Obama administration to lift its six-month ban on drilling new wells in the Gulf of Mexico. (Photograph: Gerald Herbert/AP) The investigative web site ProPublica published a March 2010 strategy document in which BP named "expanding deepwater" as its number one area for long-term growth.
But even as the document was drawn up, engineers were struggling to control the Macondo well in the Gulf of Mexico, which had already gained a reputation as a risky operation, according to industry sources.
The strategy paper claimed BP now held a global lead over its competitors in deepwater production – even though its costs were considerably lower. Earlier this month the executives of BP's rivals, including Exxon and Chevron, told a congressional hearing they would have taken more safeguards on the doomed Deepwater Horizon rig.
The battle over the future of offshore drilling continued yesterday as the country's biggest business lobby said it would step up its campaign to force the Obama administration to lift its six-month ban on drilling new wells in the Gulf of Mexico.
The Chamber of Commerce, which has strenuously fought efforts to introduce climate change legislation, said Obama's decision to halt new projects for an overhaul of safety regulations had had a "chilling" effect on the Gulf economy.
"We must avoid snap decisions following the spill that would threaten US energy security and harm our economy," Karen Harbert, a Chamber official, said.
Meanwhile, there was fresh speculation about the professional future of BP's chief executive after a senior Russian cabinet minister reportedly said he was expecting Tony Hayward to introduce a successor during a scheduled meeting in Moscow.
And the first hurricane of what is expected to be a very active season in the Gulf began moving up towards north-western Mexico and Texas. Forecasters said Tropical Storm Alex was likely be upgraded to a hurricane tomorrow.
It is expected to pass well to the west of the site of the ruptured well, but the disturbance could still set back efforts to contain oil from the gusher and to drill a new relief well for as much as two weeks, the coastguard said at the weekend.
Officials said they would pull out heavy equipment and clean-up personnel from the area around the ruptured well if forecasts suggest the approach of a storm with winds higher than 46 miles per hour
The potential for delays in clean-up operations comes at a critical time. BP officials say the relief well seen as the only surefire way of containing the gusher is within 20ft, horizontally, of the ruptured well.
BP's senior vice-president Kent Wells said engineers were going to drill an additional 900ft down before trying to intersect the ruptured well with heavy mud. He indicated it would take time to bridge that seemingly short distance. BP has said it hopes to complete the relief well by August.
"This is the point in time we have to be very good at what we're doing," Wells said.
- Posted in
Comments
Note: Disqus 2012 is best viewed on an up to date browser. Click here for information. Instructions for how to sign up to comment can be viewed here. Our Comment Policy can be viewed here. Please follow the guidelines. Note to Readers: Spam Filter May Capture Legitimate Comments...

14 Comments so far
Show AllKill one person, you're a murderer. But kill 11 people, destroy the economy of hundreds of miles of coastline, and decimate the ecosystem of an entire body of water that you can easily see from another planet, and you're considered to be a cherished part of our national security. Go figure.
Pathology is spreading deeper, faster and wider than the oil.
Yup! That's no lie, vaialdiavolo.
The whole American experiment should be put out of commission.
In the CNN video below, Cousteau mentions that the oil is going to get into the Gulf Stream and travel to the Caribbean, UK, France, Spain, Portugal.
Plankton and the entire food chain will be affected .... for decades.
His own efforts to help have been blocked by BP but that section was cut from the earlier CNN video which is now very short:
http://www.cnn.com/video/#/video/us/2010/06/27/nr.cousteau.oil.disaster.cnn
--
The news about this is extremely censored.
--
BP has paid only $128m to date to those who have lost their jobs, etc.
See: http://www.guardian.co.uk/environment/2010/jun/28/bp-oil-spill-bill-100m-day
"The oil giant spent $300m on containing the oil spill in the past three days. Its total bill is up from Friday's figure of $2.35bn. That includes the cost of trying to cap the well, clean up the environmental damage caused by the leak and pay compensation to those affected. BP has paid out more than $128m to fishermen and others." [snip]
--
WDSU News reports on sickness among BP oil spill workers (primarily fishermen who have been put out of work by the spill): http://www.youtube.com/watch?v=L20Au98qniA&feature=related
--
This is a clear case of criminal negligence. "Prosecute BP" should be the stance of every sane person. Jail them. Seize their assets. BP does not have the resources the repair this damage. The US government is working for BP, not for US citizens, not for the wildlife. The roots of corruption run deep, old-growth rot.
You say: This is a clear case of criminal negligence. "Prosecute BP" should be the stance of every sane person. Jail them. Seize their assets. BP does not have the resources the repair this damage. The US government is working for BP, not for US citizens, not for the wildlife. The roots of corruption run deep, old-growth rot."
Obama says: BP should "remain a strong and stable company".
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7857981/BP-oil-spill-Barack-Obama-and-David-Cameron-agree-BP-must-not-collapse.html
Yup the government is working for BP not us...
Regarding the drilling ban, I heard on MSNBC all the economic impact fear mongering as overblown. Of the over 3500 platforms in the gulf only about 33 of them are _drilling_ platforms the remainder are _production_ platforms and would not be affected by the ban.
Can anyone comment as to whether this is true?
And the US should take over BP before they try some bankruptcy type legal shenanigans to avoid their financial obligations.
Regardless of how many drill rigs there are (I heard the number was just over 100), NONE of them are drilling for more than a few million barrels each. When you consider that the USA, alone, consumes between 25 and 40 million barrels a DAY, those rigs in the Gulf are not exactly preserving our way of life.
One problem, though, is that this BP reserve has not yet been "proven", which means that BP really doesn't know how bit the pool really is. And so what's being UNDERblown, are the very real risks of this particular leak. Unbridled release of pressure from a pool of oil that is experiencing a few tons of pressure per square INCH bearing down on it from above can cause a huge crack in the seabet's crust. And if it does, untold millions of barrels of oil leak out into the Gulf and the Gulf becomes the scum swamp of the planet. Not to mention a massive earthquake and flood that could wash completely over the Florida peninsula, from the Gulf to the Atlantic. And considering that the oil is superheated to 450 degrees F (the earth's crust is pretty thin at that location, which is one reason they can't use explosive measures to stop the leak), the heat will totally destroy life as we know it in the Gulf and will create an entirely new ecosystem which most likely will not be human-friendly.
The white man comes.
The white man kills the buffalo...
The sixth extinction. Inevitable.
BP gave Obama what we refuse to talk about.
$70,000 to his campaign. Does he owe them?
Imagine what their check to his 2012 will be.
Will BP promise to 'pay for' all the damage that will occur to other countries that withstand damages due to the spreading of the spill as well? Now that the hurricane season is here and already threatening Cuba and Mexico, will BP have the resources to handle these expanding crises?
Is there a plan B?
Peak Oil is here. BP desires to have its own source of crude. Otherwise it becomes just another refiner, like Sunoco and Hess (and China), bidding on the gradually dwindling middle east crude. The North Sea and Prudhoe Bay will soon be as depleted as Texas and Oklahoma. The Gulf will be depleted eventually, too.
Future oil finds will be fewer, smaller, riskier and dirtier. Technology for forcing the last bits of oil out of old wells will improve and help a little. The pressure to drill off Florida and California will continue, and the destruction in Alberta will move to the Colorado watershed, then coal liquifaction.