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Original estimates of the amount of oil pouring into the Gulf of Mexico of 1,000 barrels per day have been revised by experts (ie. people not working for BP) and the figure is now estimated to be somewhere from 12,000 - 25,000 barrels PER DAY. This is absolutely terrifying.
Just to put into perspective the potential damage to the environment we're looking at here, consider the following: the blowout occurred on April 10th . Both cut-and-cap efforts have failed. The top-kill attempt has failed. The only reliable recovery procedure left now is to build a relief well which will essentially drain enough oil from the well in an attempt to either lower pressure and kill the leak, or to suck the oil supply dry completely. BP has already started digging relief wells in the area, only problem is they're not expected to be complete until AUGUST.
This is a very optimistic timeline. In order for the relief well to be successful, it must tap into the original reservoir which is very difficult to locate. Compare it to finding a spot the size of a small window, 5,000ft below the ocean. Experts predict that the chances of BP finding the right location first try is all but statiscally impossible. A failed attempt spells further delays. Meanwhile oil keeps pumping into the gulf at an unprecedented rate.
The sad thing is, the damage to the environment and eco-system is irreversible. We can shovel the oil out of the sand, we can place absorbent booms in the water to soak up minor quantities, we can wash the crude oil off the areas native birds - but the Louisiana marshes which provide a natural buffer during hurricane season will most likely die. On top of that, nobody knows how to extract all that crude oil out of the water. I'm dead serious. There's no scientist with some magical powder to sprinkle into the water to clean it.
Which begs the question: how can an oil company drill off-shore at 5,000ft and not have anything aside from a few valves and saws as safety? The answer is very complicated and involved but the gist is... they never had to think about it. The very same methods being used by BP now, are identical to the ones used to maintain oil spills 20-30 years ago. But surely technology has advanced since then you ask? Surely now that Oil companies are drilling at greater and greater depths, new safeguards have been developed, new solutions? The answer is no. Governements have given permits for off-shore drilling regardless, so there never has been any incentive to pump money into research and development, so why affect the bottom-line?
How is this even justifiable? Well again the answer is a bit tricky but it boils down to the relationship the US government has had with Big Oil for decades. A common element is: money. The government provides subsidies to oil companies as an incentive to well... find oil. The country runs on oil, and they want it bad. In return, Oil companies shower the government with gifts and royalties. If you ever get a job in a government department which is in charge of oil safety regulations or royalties collection, expect representatives to arrive at your door with offers of cushy jobs and perhaps some crystal meth to close the deal. Tie this with favourable legislation such as the Bush Oil Tax cuts and you have a winning combination.
As it stands companies like BP have a liability cap on how much they are enforced to pay when an oil spill occurs - $75 million. What happens if damages exceed that figure? Well, congress shells out tax dollars from an Oil recovery fund. Current attempts to lift the cap in congress have met resistance from Republicans as doing so would be an unfavourable deterrent for "smaller oil companies". So let's put this in perspective: the Republicans want small companies in off-shore drilling situations where if anything goes wrong, they wont be able to cover damages financially. Genius! Forget their constant whining about government spending, when there's billions of dollars flowing into the oil industry in the form of tax subsidies. Forget their incessant need to shoot down government regulations, and antagonise "big government" when there are huge oil companies to needlessly prop up and protect... but I'm getting off track.
Anyway, back to Deepwater Horizon - How much will the disaster cost and how much is BP liable for? Under the Clean Water Act of 1972, a fine of $4,000 per barrel applies for oil leaked into US waters. Calculations place the total fine BP is facing at a conservative $10 billion or as high as $60 billion, depending on when the leak actually stops. Now this is putting aside any criminal charges induced by the federal government, personal liability claims by private residents, compensation to local and state governments to cover losses in tourism/fishery revenue as well as a whole myriad of damages from other law-suits. Meanwhile BP price share keeps on plummeting.
Kind of bittersweet really - one hopes that karma swings back around to slap BP on the face and that the company goes under.... but then who picks up the bill? Even more distressing, will the Gulf ever recover from the pollution, and will the government take measures to make sure this doesn't happen again? Who knows?
TL;DR - BP sucks.
Just to put into perspective the potential damage to the environment we're looking at here, consider the following: the blowout occurred on April 10th . Both cut-and-cap efforts have failed. The top-kill attempt has failed. The only reliable recovery procedure left now is to build a relief well which will essentially drain enough oil from the well in an attempt to either lower pressure and kill the leak, or to suck the oil supply dry completely. BP has already started digging relief wells in the area, only problem is they're not expected to be complete until AUGUST.
This is a very optimistic timeline. In order for the relief well to be successful, it must tap into the original reservoir which is very difficult to locate. Compare it to finding a spot the size of a small window, 5,000ft below the ocean. Experts predict that the chances of BP finding the right location first try is all but statiscally impossible. A failed attempt spells further delays. Meanwhile oil keeps pumping into the gulf at an unprecedented rate.
The sad thing is, the damage to the environment and eco-system is irreversible. We can shovel the oil out of the sand, we can place absorbent booms in the water to soak up minor quantities, we can wash the crude oil off the areas native birds - but the Louisiana marshes which provide a natural buffer during hurricane season will most likely die. On top of that, nobody knows how to extract all that crude oil out of the water. I'm dead serious. There's no scientist with some magical powder to sprinkle into the water to clean it.
Which begs the question: how can an oil company drill off-shore at 5,000ft and not have anything aside from a few valves and saws as safety? The answer is very complicated and involved but the gist is... they never had to think about it. The very same methods being used by BP now, are identical to the ones used to maintain oil spills 20-30 years ago. But surely technology has advanced since then you ask? Surely now that Oil companies are drilling at greater and greater depths, new safeguards have been developed, new solutions? The answer is no. Governements have given permits for off-shore drilling regardless, so there never has been any incentive to pump money into research and development, so why affect the bottom-line?
How is this even justifiable? Well again the answer is a bit tricky but it boils down to the relationship the US government has had with Big Oil for decades. A common element is: money. The government provides subsidies to oil companies as an incentive to well... find oil. The country runs on oil, and they want it bad. In return, Oil companies shower the government with gifts and royalties. If you ever get a job in a government department which is in charge of oil safety regulations or royalties collection, expect representatives to arrive at your door with offers of cushy jobs and perhaps some crystal meth to close the deal. Tie this with favourable legislation such as the Bush Oil Tax cuts and you have a winning combination.
As it stands companies like BP have a liability cap on how much they are enforced to pay when an oil spill occurs - $75 million. What happens if damages exceed that figure? Well, congress shells out tax dollars from an Oil recovery fund. Current attempts to lift the cap in congress have met resistance from Republicans as doing so would be an unfavourable deterrent for "smaller oil companies". So let's put this in perspective: the Republicans want small companies in off-shore drilling situations where if anything goes wrong, they wont be able to cover damages financially. Genius! Forget their constant whining about government spending, when there's billions of dollars flowing into the oil industry in the form of tax subsidies. Forget their incessant need to shoot down government regulations, and antagonise "big government" when there are huge oil companies to needlessly prop up and protect... but I'm getting off track.
Anyway, back to Deepwater Horizon - How much will the disaster cost and how much is BP liable for? Under the Clean Water Act of 1972, a fine of $4,000 per barrel applies for oil leaked into US waters. Calculations place the total fine BP is facing at a conservative $10 billion or as high as $60 billion, depending on when the leak actually stops. Now this is putting aside any criminal charges induced by the federal government, personal liability claims by private residents, compensation to local and state governments to cover losses in tourism/fishery revenue as well as a whole myriad of damages from other law-suits. Meanwhile BP price share keeps on plummeting.
Kind of bittersweet really - one hopes that karma swings back around to slap BP on the face and that the company goes under.... but then who picks up the bill? Even more distressing, will the Gulf ever recover from the pollution, and will the government take measures to make sure this doesn't happen again? Who knows?
TL;DR - BP sucks.
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