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June, 2010:

BP Is Pursuing Alaska Drilling Some Call Risky

Last updated: June 23, 2010

Source: The New York Times

The future of BP’s offshore oil operations in the Gulf of Mexico has been thrown into doubt by the recent drilling disaster and court wrangling over a moratorium.

The BP drilling station on the artificial island in the Beaufort Sea. Because of its location on the artificial island, it has been exempted from the moratorium on offshore drilling.

But about three miles off the coast of Alaska, BP is moving ahead with a controversial and potentially record-setting project to drill two miles under the sea and then six to eight miles horizontally to reach what is believed to be a 100-million-barrel reservoir of oil under federal waters.

All other new projects in the Arctic have been halted by the Obama administration’s moratorium on offshore drilling, including more traditional projects like Shell Oil’s plans to drill three wells in the Chukchi Sea and two in the Beaufort.

But BP’s project, called Liberty, has been exempted as regulators have granted it status as an “onshore” project even though it is about three miles off the coast in the Beaufort Sea. The reason: it sits on an artificial island — a 31-acre pile of gravel in about 22 feet of water — built by BP.

The project has already received its state and federal environmental permits, but BP has yet to file its final application to federal regulators to begin drilling, which it expects to start in the fall.

Some scientists and environmentalists say that other factors have helped keep the project moving forward.

Rather than conducting their own independent analysis, federal regulators, in a break from usual practice, allowed BP in 2007 to write its own environmental review for the project as well as its own consultation documents relating to the Endangered Species Act, according to two scientists from the Alaska office of the federal Mineral Management Service that oversees drilling.

The environmental assessment was taken away from the agency’s unit that typically handles such reviews, and put in the hands of a different division that was more pro-drilling, said the scientists, who discussed the process because they remained opposed to how it was handled.

“The whole process for approving Liberty was bizarre,” one of the federal scientists said.

The scientists and other critics say they are worried about a replay of the disaster in the Gulf of Mexico because the Liberty project involves a method of drilling called extended reach that experts say is more prone to the types of gas kicks that triggered the explosion on the Deepwater Horizon.

“It makes no sense,” said Rebecca Noblin, the Alaska director for the Center for Biological Diversity, an environmental watchdog group. “BP pushes the envelope in the gulf and ends up causing the moratorium. And now in the Arctic they are forging ahead again with untested technology, and as a result they’re the only ones left being allowed to drill there.”

BP has defended the project in its proposal, saying it is safe and environmentally friendly. It declined to respond to requests for further comment.

Extended-reach drilling has advantages. Drilling at an angle might be less threatening to sensitive habitats. But engineers say that this type of drilling is riskier and more complicated than traditional drilling because it is relatively new and gas kicks are more frequent and tougher to detect.

And because of the distance and angles involved, drilling requires far more powerful machinery, putting extra pressure on pipes and well casings.

Several companies have built artificial islands to drill offshore in the Arctic and elsewhere, in part because surging ice floes can destroy conventional floating or metal-legged offshore drilling platforms.

Critics say that such islands are so tiny that a large oil spill will quickly flow into the surrounding waters.

BP officials say that by accessing the Liberty oil field from far away, the project reduces its environmental impact in the delicate North Shore area.

The Liberty field lies about five miles from land under the shallow waters of the Beaufort Sea in an area populated during the winter by seals and polar bears and covered by thick floating ice.

During the summer, bowhead whales migrate through the region.

“The overall Liberty Project has been planned and designed to minimize adverse effects to biological resources,” BP wrote in 2007 in the development proposal to federal regulators. “Impacts to wetlands have been significantly reduced including shoreline and tundra habitat for birds and caribou.”

The project will also involve nearly 400 workers in a region where jobs are scarce, according to BP.

But concerns exist about the project’s oversight and critics say the project offers another example of dangerous coziness between industry and regulators.

For example, the federal scientists say that BP should never have been allowed to do environmental reviews that are the responsibility of the regulators. And yet, the language of the “environmental consequences” sections of the final 2007 federal assessment and BP’s own assessment submitted earlier the same year are virtually identical.

No such overlap existed in the documents for other major projects approved by the same office around the same time, a review of the documents shows.

Both assessments concluded that the effects from a large spill potentially could have a major impact on wildlife, but discounted the threat because they judged the likelihood of spill to be very remote.

They also asserted that BP’s spill response plan would be able to handle a worst case — which BP estimated as a spill of 20,000 barrels per day.

Officials from the minerals agency declined to answer questions about the handling of the BP’s environmental assessment, but they added, “In light of the BP oil spill in the gulf and new safety requirements, we will be reviewing the adequacy of the current version of the Liberty project’s spill plan.”

In promotional materials, BP acknowledges that the Liberty project will push boundaries of drilling technology.

To reduce weight on the rig, BP has developed a new steel alloy for the drill pipe.

So much force is needed to power a drill over such long distances that BP had to invest more than $200 million to have a company build what it describes as the largest land rig in the world.

The drill’s top drive is rated at 105,000 foot-pounds of torque, while North Slope rigs are typically rated at 40,000 foot-pounds.

“It will take all of this technology that we’ve developed and exploited in Prudhoe Bay and extend it to a new realm,” Gary Christman, BP’s director of Alaska drilling and wells, told Petroleum News in 2007.

But engineers say that realm includes greater risk.

John Choe, an expert in extended-reach drilling and director of the department of energy resources at Seoul National University, said that it was less safe than conventional types of drilling because gas kicks that can turn into blowouts are tougher to detect as they climb more slowly toward the rig.

“So, you may not detect it until it becomes serious,” he said. “In that case, the kick or drilling related problems become too big to be managed easily.”

A 2004 study commissioned by the Minerals Management Service came to a similar conclusion.

“A gas kick represents probably the most dangerous situation that can occur when drilling a well since it can easily develop to a blowout if it is not controlled promptly,” it said. Extended-reach drilling wells “are more prone to kicks and lost-circulation problems than more conventional and vertical wells, but have some advantages when the well takes a kick because gas migration rates are lower.”

Despite these concerns, the Liberty’s 614-page environmental assessment says nothing about how the project would handle the unique risks posed by this type of drilling.

Mike Mims, a former owner of a company that specialized in extended-reach drilling, said he believed that the worries about this type of drilling were overblown. “The kicks can occur but they move slower and the bubbles don’t expand as fast,” he said.

“It all comes down to personnel,” he added, “If your people understand the risks and handle the work carefully, this drilling is entirely safe.”

BP discovered the Liberty oil field in 1997, began construction of a rig there in 2008, and was nearing final preparations this April when the Deepwater Horizon rig exploded in the Gulf of Mexico.

Two weeks after the Obama administration declared a moratorium on offshore drilling on May 27, BP announced that the Liberty project would continue, with drilling scheduled to start in the fall, generating its first oil production by 2011. By 2013, BP estimates, Liberty will yield 40,000 barrels of oil per day.

If approved, the Liberty will be the longest horizontal well of its kind in the world. BP’s production plan for the Liberty notes that drilling studies only support horizontal wells up to 8.33 miles. Any horizontal wells longer than that, the plan says, “have not been studied.”

State regulators have faulted BP for not being prepared to handle a spill at a similar, though less ambitious project, known as the Northstar field. That project involves vertical drilling and sits on an artificial island six miles northwest of Prudhoe Bay in the Beaufort Sea.

The Liberty project will tie into the Endicott pipeline when complete. On April 20, the federal Pipeline and Hazardous Materials Safety Administration warned BP that it was in “probable violation” of federal standards because of corrosion found on its Endicott oil pipeline and a lack of records indicating corrosion protection and monitoring efforts.

BP has faced a number of challenges at its Alaska facilities. The company sustained two corrosion-caused leaks in its rigs in Prudhoe Bay in 2006, including a leak of over 200,000 gallons that cost the company around $20 million in fines and restitution. This was the largest spill to have occurred on Alaska’s North Slope.

Electrify the Roads

Last updated: June 22, 2010

Source: Truthout

My magic wand is on the fritz, otherwise we’d have a big, new federal program to free America from its dependence on oil. Like other environmentalists, I’m sad that the calamity in the Gulf of Mexico hasn’t spurred Washington to more vigorously promote America’s exit from this curse.

The fault may lie with President Obama’s timidity, a public scared by major new government programs or fossil-fuel interests flashing their campaign dough. Probably it’s all three, but the bottom line is this: An all-out effort to unchain America from hydrocarbons is essential to national security, a healthy environment and economic prosperity in the 21st century. But it’s not politically possible.

And so we must look at what’s passable. Fortunately, there’s one piece to the escape strategy that business leaders, military brass and the buying public all like — and would create jobs. Most importantly, it has bipartisan support in Congress.

We speak of electric cars, specifically the “Electric Vehicle Deployment Act of 2010.” Sponsored by Sens. Byron Dorgan, D-N.D., Lamar Alexander, R-Tenn., and Jeff Merkley, D-Ore., the bill’s goal is to electrify half of America’s cars and trucks within 20 years. That, its backers say, would cut America’s dependence on petroleum by a third. Similar legislation is before the House.

The Senate bill would name at least five communities to be models for electric-vehicle transportation. They would build stations where motorists could recharge their cars’ batteries. Residents would be offered a $10,000 tax credit to buy electric cars. And the federal government would put $1.5 billion into research for improving electric-car technology.

Electric cars don’t appear to be a very hard sell to those who would buy them. The first all-electric model, the Nissan Leaf, will hit the U.S. market at the end of the year. (The batteries will be made in Smyrna, Tenn.) But you won’t be able to just pick one up, because the year’s production is already sold out. More than two-thirds of the 19,000 preorders are from the United States.

The Chevy Volt will reach showrooms around that time. Its battery range of 40 miles is considerably smaller than the Nissan Leaf’s 100 miles, but the Volt has a small gasoline engine to keep the car going if a recharging station is not handy.

In any case, more than 75 percent of Americans commute 40 miles or less a day. That means most of them could plug in their Volts at the end of the day and drive off fully charged in the morning.

Being both an environmentalist and a fan of high automotive performance can be awkward. But car makers are learning to put zoom into their fuel-efficient models. The Ford Fusion Hybrid, for example, gets 41 miles-a-gallon in the city, but can pull away from a stoplight at a respectable pace. “Sustainable mobility solutions” need not be as boring as they sound.

What about the source of the electric power? Although an all-electric vehicle puts out zero emissions, that is probably not true of the plant that provides the electricity. While California has moved its mix of electricity sources toward clean, renewable energy, other parts of America are still highly dependent on dirty, coal-powered plants.

However, electric cars cut global warming pollution even where coal supplies the power, according to a study by the Pacific Northwest National Laboratory in Richland, Wash. That’s because cars plugged in overnight employ unused capacity in the current electric system.

So let the brawl over cap-and-trade proceed. Outside of the oil business, most everyone seems enthusiastic about accelerating a move toward electric cars. Nothing should stop Congress from revving up the process. Right?

BP and Sado-Messochism

Last updated: June 22, 2010

Source: Institute for Policy Studies

Have the messes we’ve been making finally reached a point where they can’t be cleaned up?

Aside from the occasional asteroid and volcanic outburst, human beings are responsible for the greatest messes on the planet. We’ve polluted the air and water, punched holes in the ozone, and pumped enough carbon into the atmosphere to overwhelm the global thermostat. Nor is this merely a modern attribute of homo sapiens. As Jared Diamond points out in his book Collapse, we’ve repeatedly taxed the limits of our environment, from the heart of the Mayan civilization to far-flung Easter Island. We’ve hunted countless species into extinction and exhausted the soil to feed burgeoning populations. And what we once did on a local basis, we are now applying on a global scale.

There is certainly an element of sadism in how humans have behaved toward other species. But the messes we have created throughout our relatively brief reign on Earth have also been self-inflicted. We are consummate sado-messochists: We specialize in inflicting messes on ourselves. Has any other species been so thoroughly successful in fouling its own nest?

Which brings me to BP and the latest oil spill in the Gulf of Mexico.

The pursuit of oil and the price paid in human suffering is well known to all those who saw the film There Will Be Blood, or read recent books by Peter Maass, Antonia Juhasz, and others. BP is no exception to this rule. It made its money on oil extracted — stolen, really — from what would later become Iran. These enormous profits sustained the British Empire in its dotage. When Iranian leader Mohammad Mossadegh threatened to nationalize Iranian oil in 1953, BP was a key reason behind the Anglo-American destabilization of his democratically elected government. Later, BP would make out like a bandit during the wars in Iraq and Afghanistan through its sales of bulk oil to the Pentagon.

Nor is BP a stranger to environmental disasters, considering its oil spills in 2000 and 2005, and the Texas City refinery explosion that killed 15 workers in 2005. In the last three years, two BP refineries were alone responsible for 97 percent of the worst environmental and safety violations in the industry. And now BP is behind the greatest environmental disaster in U.S. history. The gush in the Gulf sends the equivalent of one Exxon Valdez into the waters every four days.

There are many villains in this tragedy. BP executives promised “safety first” and instead pursued profits first. The Minerals Management Service granted exemptions for the environmental impact statements that should have been required for the Deepwater Horizon rig (among others). The Obama administration, attempting to curry favor with the “drill, baby, drill” faction, opened up previously off-limits waters along the East Coast and the Gulf Coast to offshore drilling only a few weeks before the disaster. The financial crisis was a result of a go-go spirit infecting Wall Street; the BP disaster was a result of a go-go spirit infecting Big Oil.

But really the biggest villain is us: our voracious desire for energy. We want energy to be like breakfast at Bob’s Big Boy: lots of it at a rock-bottom price. Yes, Americans want an alternative energy future, but we also refuse to pay more at the pump to fund research into creating this future. This bottomless pit of need has pushed us into what Michael Klare calls an era of “extreme energy.” We’ve already extracted the easy stuff. Now we’re pushed to the margins — the Arctic, the bottom of the ocean — to get at what remains at the bottom of the bottle. We’re pumping toxic cocktails deep into the ground to release natural gas from shale: a disaster in the making for our water supply. Our relentless pursuit of coal has already produced fly-ash spills that have done more damage to our environment than the Exxon Valdez. And of course we expend hundreds of billions of dollars to fight wars in energy-rich lands.

We believe, in our naïveté, that we can operate safely and effectively on the margins. “This Gulf coast crisis is about many things — corruption, deregulation, the addiction to fossil fuels,” writes Naomi Klein in The Guardian. “But underneath it all, it’s about this: our culture’s excruciatingly dangerous claim to have such complete understanding and command over nature that we can radically manipulate and re-engineer it with minimal risk to the natural systems that sustain us.” The serial messes we’ve made do little to undermine this false confidence.

Those who made the messes are often quick to promise to make things whole again. But that rarely happens. The environmental movement, it’s true, has worked long and hard to restore devastated areas like the Adirondacks and the Hudson River. We can plant trees and dredge rivers. But we can’t magically bring back old-growth forests or remove all the PCBs from the river. The Gulf, meanwhile, was already compromised before the oil spill. To give only one example, agricultural and livestock industries along the Mississippi have been dumping nitrogen into the river that produce an oxygen-poor area known as a “dead zone,” which stretches as much as 7,000 square miles along the Gulf Coast.

We are, in other words, piling messes on messes. Stricter regulations, a sustainable energy program, making an example of BP so that others toe the line: all of this is necessary to rid ourselves of these sado-messochistic tendencies. But we might have passed the point of no return.

According to folk wisdom, if you put a frog in a pot of water and gradually (and sadistically) increase the temperature, the frog will not notice and eventually boil to death. Frogs, it turns out, are not that stupid. We homo sapiens, on the other hand, will climb into the pot and jack up the temperature all by ourselves. Then, instead of climbing out, we argue among ourselves. “The water isn’t getting hotter at all,” says one group. “Great hot tub!” says another. “Don’t worry,” opines a third, “Mr. Market will come along eventually and turn down the temperature.” And now BP has added tens of thousands of gallons of oil to the simmering soup that we find ourselves in.

At this point the great sage Oliver Hardy would look us in the eye and conclude, “Here’s another fine mess you’ve gotten us into.”

The Messes Continue

We’re currently making another mess of our relationship with Mexico. In the last month, U.S. Border Patrol has killed two Mexican citizens. As Foreign Policy In Focus columnist Laura Carlsen explains, the deaths have elicited a strong reaction from the Mexican government, which is already upset about rising anti-immigrant sentiment in the United States.

“The growing criminalization and dehumanization of Mexican undocumented immigrants has fomented a legal limbo where human rights, including the right to life itself, fall prey to ill-defined national security concerns,” she writes in Lethal Force on the Border. “It has fostered a political climate where security forces and vigilantes argue openly that fatal attacks on citizens from other countries in a non-war context are justified simply because they lack a visa. Such governance without respect for basic human rights is nothing but a dangerous lie.”

The U.S. military continues to kill numerous civilians during operations in Afghanistan, Iraq, and Pakistan. This has prompted FPIF senior analyst Adil Shamoo to ask whether the U.S. government simply values U.S. lives over the lives of others. “[The] mechanization of war has also resulted in treating other nations’ citizens as less than equal to citizens of the United States,” he writes in Are Foreign Lives of Equal Worth to Ours? “U.S. military actions kill innocent civilians in a repeated and almost routine manner. However, modern communications are informing people around the world that U.S. policies value other citizens less than” U.S. citizens.

Jeju Island is located just off the coast of South Korea. It’s a semi-tropical location beloved of South Korean honeymooners. And it’s also the location of proposed naval base that will, in part, advance U.S. security interests.

As FPIF contributor Kyouneun Cha explains in Jeju and a Naval Arms Race in Asia, South Korea “has indicated its interest in becoming more integrated into the U.S. missile defense system. In this way, by becoming caught in a conflict between China and the United States, the naval base could endanger Jeju Island and the national security of South Korea. According to Lee Tae-ho, deputy secretary general of People’s Solidarity for Participatory Democracy in South Korea, ‘The Chinese government has a response strategy that first attacks U.S. missile defense in the case of an emergency. That means that the Jeju naval base will be targeted in an armed conflict between the United States and China.’ Even short of war, the base will create tension among China, Japan, and Korea, which could escalate into a naval arms race in the Asia-Pacific region.”