Rift Grows Between Government and BP

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Yesterday afternoon, an anonymous US Government official leaked to the press that a sea floor seep had been discovered near BP's blown out Mississippi Canyon Block 252 well.  A media frenzy ensued, and my phone began to ring.  Reporters wanted to know how significant this seep was, whether the well was leaking, and what should be done next.  AP had broken the story about 5:00 PM my time, citing the unnamed official complaining that BP is not complying with the government's demand for more monitoring.  BP responded in character, saying, "we continue to work very closely with all government scientists on this."  Yes, working very closely.  They're working so closely with the government that Adm Allen fired off a tersely worded letter to Bob Dudley about an hour later ordering BP to report all leaks within 4 hours of discovery and to also provide a statement of their intentions with 24 hours of the letter.   This last communication came on the heels of a statement from Adm Allen reasserting authority over BP's operations after Doug Suttles' Sunday morning McBriefing that caused a morning media storm when he stated that they could just keep the well shut in until the relief well is completed.  Just your normal Sunday in BPworld.

Last night, government scientists held a conference call with BP to discuss the seep and, I would assume, other issues.  This morning, Adm Allen issued yet another statement saying that he had authorized another 24 shut in (I'm not sure when that started) after he got commitment from BP to meet his monitoring and reporting requirements.  Of course, after making this commitment, BP promptly announced that they were canceling this morning's McBriefing.  It's actually no great loss, since during these "technical briefings", they give little to no real information, and refuse to answer the few questions they allow through the electronic iron curtain.

In the oil and gas business, oil companies often keep information about a well secret, or "tight".  A "tight hole" is a well where no information is disclosed and all contractors are required to stay mum in order to be allowed to work on that well.  A decades-long game that is played in the industry is to get well specific information about  these "tight holes".  In the old days, oilfield "scouts" would show up on drilling rigs to visit, and they would frequent cafes and bars where workers would congregate.  It is said that a good scout could pull information out of a worker "through his nose" if given enough time (and booze).  In the afternoons, they would traditionally show up at the same bar for "scout check", to exchange information and gossip; some also just showed up to drink, the national passtime of the oilfield.  Scout checks still happen today, but with many of the big wells now offshore, much of the information gathered is between geologists, engineers, and drillers, often at fancy dinners or on the golf course rather than on the rigs themselves.  But, I digress.

BP is treating this catastrophe like a tight hole.  They are giving little to no relevant information about the well, refusing to give even basic data such as pressures.  They freely admit that they have engineers and scientists glued to video screens and data feeds, but won't disclose any of that information.  Up until now, the government has been the enabler rather than the watchdog, at least as far as we can tell.  Since the government is also withholding information, we don't know what they've received and what they haven't.  One thing BP has proven without a shadow of a doubt, however; if you don't ask the right question, they are more than happy to just sit there and not answer the relevant questions.

There are 2 conclusions one could draw since this new anonymous "federal official" came forward about the seep; first, the government scientific team is getting frustrated by BP's lack of cooperation with concerning data and management of this disaster; or, that Adm Allen is firing a shot across BP's bow.  As we know, Adm Allen signed off on a risky procedure in this "well integrity test"; information that I've gathered tells me this procedure included taking at least one component, the flex joint, above designed MWP (maximum working pressure).  I'm not sure Adm Allen or his team realized that, and I don't know if BP made sure he did realize that.  Maybe somebody on the government team woke up yesterday after Suttle's McBriefing. 

With the creeping 24 hour extensions Adm Allen has been giving BP, and their flagrant tight-holing of information from the public, it's become clear that BP has successfully boxed in the government, forcing them into the position of having to order them to begin containment.  If that happens, then they can then argue that any more oil that goes into the Gulf is not their fault.  BP's primary goal here is to keep the video of oil spewing into the Gulf off of national television; their secondary goal is to shift as much blame for this to others, as well as making it impossible to calculate the total amount of oil that they've allowed to pollute our Gulf of Mexico.  They have successfully rope-a-doped Allen now for over a week, and he has allowed himself to be boxed in.  By not forcing them to contain and measure the flow of the well from the new capping stack, he has blundered into the position of now having to make the decision to reopen the well, a decision that is not without risk.  By design, BP has set up their containment system that supposedly requires them to open the well into the water rather than to the attached ships to get the well flowing (I don't buy that, but apparently Adm Allen has).  By now forcing Allen to give the order, they have him checkmated in this high stakes chess game. 

Maybe, just maybe, Allen's finally getting fed up.  He's just too late.  I just wish that there were more experienced oil and gas specialists on his team, not just a bunch of academics or researchers.  He needs gray-haired field operations hands here, not teachers or Nobel Prize winners.  We have enough of those.
 
Oh, BTW, there's a leak on the new capping stack.  It looks minor, but leaks never get better.  I'll post about that later today.

More on The Daily Hurricane Energy page.

10 Comments

Obama's Gulf War –
Lord Brownie's Legacy
An unbridled desire to cut costs

According to BP there's less oil to recover.
Are Taiwanese skimmers that great or what?
And with hundreds of miles of Beach Berm Boondoggles,
The Gulf's perfectly safe. No if, and or but?

But, who is reluctant to restart the flow?
And who is afraid of more oil being lost?
Who dreads the expense of collecting it all
And learning how much this fiasco will cost?

Of course there's no way they can hook up those hoses
The way they had planned if a hurricane hits,
Or have tankers close by to handle the maximum
Quantities captured by a tight cap that fits.

Without those numbers they can argue forever
Over how much they spilled and how much they'll pay.
So how big a bonus will their execs get
For staging an infinite tanker delay?

Bob Carlson
www.politicalboondoggles.com
7/19/10
To 'Rift Grows Between Government and BP'
To 'BP Hopes to Keep Gulf Well Closed'
To 'BP dispersant use makes super skimmer ineffective in the Gulf'
To 'Photos show vanishing oil berm'
To 'Sand berms partially political'
To 'In BP’s Record, a History of Boldness and Costly Blunders'
To 'British Petroleum Incompetence'
To 'Why Is BP's Former Boss a U.K. Hero?'

"but with many of the big wells now offshore, much of the information gathered is between geologists, engineers, and drillers, often at fancy dinners or on the golf course rather than on the rigs themselves"
- - - - - - - - - - - - - - - - - - - - - - - - - -
ok jefe, dust off that tux and pay up your country club dues:) btw, any chance you would consider running against cornyn?

How is BP or anyone else going to control THIS TYPE OF PRESSURE?

let's see - if BP's lawyers say " o.k., open 'er up " their client will very likely be liable for a $4300/bbl in fines for violating the Clean Water Act, and the gov't will likely get a critical missing piece to be able to tell exactly how many barrels the run-away produces, as well as a good guess-timate of the previous 90 days' epic flow.

if BP's lawyers say " nope, leave 'er capped " then either the equipment will hold fine, a leak/seep will develop or be aggravated thru a side blow-out (which the gov't will have to prove to BP is coming from the well), or p.s.i. wil build up until the BOP and/or capping stack give way (not likely, since p.s.i. appears stable from what we've been told).

of these 4 possible scenarios, likely the only way BP will remove the cap is if they first negotiate a reduced fine with the Feds down from the $4300/bbl. - even then you can probably count on BP's level of execution being equivalent to your teen-ager's enthusiasm for mowing the lawn on a hot afternoon when all the other kids are next door at a pool party.

it's too-big-to-fail, GofM style.

still want to know the effect of setting another 75 tons of equipment atop a 450-ton BOP stack that Adm. Allen had reported in the Times-Picayune as leaning at 10.5-11 degrees, twice the lean of the Tower of Pisa.

also, isn't the British Prime Minister due in the U.S. soon, and when are BP's earnings announced ?

White House confirms , as per Gibbs , that not only is the BOP leaking but there is seepage two miles away - interesting that the WH is linking the seafloor leak to the DHW gusher. Further indication that the pressure is too much for the ravaged BOP are the leaks confirmed occurring on the BOP itself - not clear if the flex joint is involved yet.... what are they waiting for to disconnect the cap , relieve the pressure and contain on the surface ? BTW , if the wellbore / casing / related BOP was to rupture now , as part of this USCG / Gov't approved operation , who has liability along withbP - as in is the government liable for approving the actions of BP ? If the government cannot be liable under sovereign immunity or any other limit to liability , is this a mitigating facto for BP ?

Hi Bob,
Me thinks BP is playing Brer Rabbit and pleading "please don't throw me in the briar patch"....... As long as the well is shut in the surveys of the sea floor can continue and if there is leakage coming from somewhere the longer it remains closed the better the chance of discovering the leaks. If the well is opened and containment resumes then it may never be determined if there was any oil coming form somewhere other than the well pipe.
`

It's a pity that Adm Allen can't cancel a few BP leases as needed to insure proper compliance.

Bob, there’s a story, and I don’t know if it’s true or not, but it sounds like it ought to be.

Lyndon Johnson accepted the vice presidency under John Kennedy much to Sam Rayburn’s dismay. Rayburn was Johnson’s mentor and a very wise old man. When Lyndon got back from the first meeting with the Kennedy team, he immediately called Rayburn and reported that there were very smart people in the room. “Mr. Sam,” Lyndon said proudly, “there were people from Harvard, Yale, and Princeton in that room. I’ve never seen that many highly educated people in one place.”

There was a moment of silence and then Mr. Sam replied, “I just wish to hell that at least one of them had ever been a goddam county commissioner or sheriff.”

I'm with you on the gray headed well supervisors.

I can't help but wonder if the politically connected BP is going around Admiral Allen and doing a little direct negotiation with, say, the Dept of Interior. I think BP may still find a sympathetic ear attached to Ken Salazar, who in turn might filter "suggestions" through BOEMRE to the Admiral. Both BP and the Administration would consider video feeds of a renewed gusher to be a public relations disaster.

Have you been able to confirm that the pressure readings on the well are now not being publicized?

If they are not, is it cause for additional concern about seepage (near M252 or distant)?

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