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6 Years From The BP Deepwater Horizon Oil Spill - What We'Ve Learned?
6 Years From The BP Deepwater Horizon Oil Spill - What We'Ve Learned?
6earfromthePDeepwaterHorizonoilpill:What
wevelearned,andwhatwehouldntmiundertand
CharleK.ingerWedneda,April20,2016
ix years ago today, the BP Deepwater Horizon oil spill occurred in the U.S.
Gulf of Mexico with devastating effects on the local environment and on
public perception of offshore oil and gas drilling. The blowout sent toxic uids
and gas shooting up the well, leading to an explosion on board the rig that killed 11
people and injured an additional 115 crew members, some seriously. Two days later,
ironically on Earth Day 2010, the rig sank, breaking off the pipe connection to the well
and jettisoning 4.9 million barrels of oil into the Gulf of Mexico for a period of nearly
three months until it could be contained. Very quickly the disaster became the worst oil
spill in the history of the United States, far exceeding the Exxon Valdez tanker spill of
11 million gallons in 1989, and the second largest oil spill in the world, falling behind
only the Ixtoc well offshore Mexico in 1979.
Prior to the collapse in oil prices, the answer to the above question was:
1. Soaring North American production of shale oil and Canadian oil sands;
2. Deep offshore in the Gulf of Mexico and West Africa;
3. The pre-salt offshore Brazil;
4. The Arctic; and
5. The Persian Gulf, with both Iraq and Iran possibly to become major oil producers.
Today, with the collapse of oil prices, in almost every one of these regions outside the
Middle East, production has been placed on the back burner. Even in the Persian Gulf,
given the political volatility, it seems unlikely that Iraq and Iran will reach the levels of
production justi ed by their oil reserves.
Adding to the above uncertainty is the fact that with the collapse in oil prices, capital
budgets for new exploration and production have been slashed. As the world would
need to nd nearly 3 mmbd of new production just to replace the oil consumed each
year, these falling expenditures after two to three years will come back to haunt us as
global demand continues to climb by 1 mmbd per annum, leading to the world market
coming back into balance by late 2017 to 2018.
Of course there is always the possibility that the roughly 2.5 mmbd of oil currently shut
in around the world owing to political con icts in Libya, South Sudan, Syria, Yemen,
Nigeria, Kuwait, and Venezuela could come back on line, leading to low prices
remaining a bit longer.
partners who placed short-term pro ts against technically sound drilling practices,
with untold damage in the public trust of the entire petroleum industry, an industry on
which the worlds future lies.
Workers clean up oil balls from the Deepwater Horizon oil spill as the surf brings more onto a beach in Waveland, Mississippi
As noted, demand for oil will outpace current available resources, and outlawing
offshore drillinga policy advocated by several presidential candidateswould be
hugely detrimental not only to enabling access to important resources for energy
development but also for the many Americans whose jobs and livelihoods are directly
tied to the industry. Finally, the major lesson of Macondo for the future of Arctic
offshore drilling once prices justify renewed interest in the region is that the U.S.
government should use this period to develop the requisite infrastructure (ports,
harbors, the prepositioning of vital equipment such as capping stacks, etc.) and
detailed contingency planning before any new permits should be given. There are
avenues policymakers and private sector entities can take to ensure a Macondo never
happens again, but only by committing to regulation today.
PlanetPolicy
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