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Deepwater Horizon Update June 22,2010

Published Jan 25, 2011 12:41 PM by The Maritime Executive

  • Federal estimate remains at around 60,000 barrels a day leaking from the well


  • Internal BP documents suggest that in the worst case scenario 100,000 barrels per day could spill into the sea. An estimate from May that they now claim was hypothetical and is now no longer relevant. The document was released Sunday by Rep. Edward Markey (D) of Massachusetts, chairman of the Select Committee of Energy Independence and Global Warming.


  • Under the Oil Pollution Act (OPA) of 1990 BP can be fined up to $1,000 per barrel of oil that spills into the gulf. In the case of gross negligence the fine can increase as high as $3,000 per barrel.

    Click here to read some of the key provisions OPA.


  • Today (June 22), U.S. Federal District Court Judge Martin Feldman issued a preliminary injunction against the May 28th drilling moratorium. The ruling comes after a group of oil companies challenged the administration's ban on offshore drilling. The White House has already said it will be appealing the decision.


  • Kenneth Feinberg, the official in charge of administering the $20bn compensation fund for victims of the oil spill, reportedly questioned whether the fund was large enough.


  • BP CEO, Tony Hayward, cancelled an appearance at a conference to talk about the global responsibility of international oil companies last night to concentrate on the accident.


  • BP’s tab to date is $2 billion, this includes claims, and clean up costs


  • BP has lost half its market value since the Deepwater Horizon Explosion on April 20, estimated at $100 billion.


  • Thursday Rep. Joe Barton (R) apologized to BP, calling the $20bn account for victims a White House shakedown. Barton received much criticism from both Republicans and Democrats for his comments.


  • The crude oil leaking into the gulf contains 40% methane. U.S. Geological Survey's "flow team" that 2,900 cubic feet of natural gas are escaping for every barrel of oil. Scientists estimate that methane makes up between 40 percent and 70 percent of what is spilling into the Gulf. Small microbes that live in the sea have been feeding on the oil and natural gas in the water and are consuming larger quantities of oxygen, which they need to digest food. As they draw more oxygen from the water, it creates two problems. When oxygen levels drop low enough, the breakdown of oil grinds to a halt; and as it is depleted in the water, most life can't be sustained.


  • NOAA Research vessels have found evidence of dead zones (oxygen depleted areas) in the gulf where no life can be sustained. More research is being done to find the extent and cause of the dead zones.


  • Two systems continue to collect oil and gas flowing from the MC252 well and transport them to vessels on the surface. The first is the lower marine riser package (LMRP) containment cap located on top of the Deepwater Horizon’s failed blow-out preventer (BOP). This system, which was installed on June 3, takes oil and gas to the Discoverer Enterprise. A second system, which started on June 16, is connected directly to the BOP and carries oil and gas through a manifold and hoses to the Q4000 vessel on the surface. The Q4000 uses a specialized clean-burning system to flare both oil and gas captured by this second system.

    Click here to view live footage of the leaking well.


    • Administration Wide Response
    UPDATED June 21, 2010 7 PM, In the Past 24 Hours:

    Admiral Allen Provides Operational Update on the BP Oil Spill Response
    National Incident Commander Admiral Thad Allen provided a briefing to inform the American public and answer questions on the progress of the administration-wide response to the BP oil spill. A transcript is available here.

    Administration Sends Third Bill to BP for $51.4 Million
    The Obama Administration today sent a third bill for $51.4 million to BP and other responsible parties. As a responsible party, BP is financially responsible for all costs associated with the response to the spill, including efforts to stop the leak at its source, reduce the spread of oil, protect the shoreline and mitigate damages, as well as long term recovery efforts to ensure that all individuals and communities impacted by the spill are made whole.

    In order to provide full transparency of the ongoing efforts and to ensure that the American public is not held accountable for the costs of response and recovery activities, the federal government bills BP and the other responsible parties regularly. BP and other responsible parties have paid the first two bills in full—totaling $70.89 million.

    Secretary Salazar Swears In New Offshore Energy Management Leader
    Secretary of the Interior Ken Salazar today swore-in former Justice Department Inspector General Michael Bromwich to lead reforms that will strengthen oversight and policing of offshore oil and gas development. Bromwich will oversee the fundamental restructuring of the former Minerals Management Service, which was responsible for overseeing oil and gas development on the Outer Continental Shelf.

    A Secretarial Order (pdf) signed by Salazar renames the Minerals Management Service the Bureau of Ocean Energy Management, Regulation and Enforcement as it undergoes reorganization and reform.

    NOAA Research Ship Thomas Jefferson Releases Initial Observations
    The NOAA Ship Thomas Jefferson returned to Galveston, Texas, on June 11 from an eight-day research mission to investigate the presence and distribution of subsurface oil from the Deepwater Horizon/BP oil spill. While initial observations found the presence of anomalies in the water column, further analysis of water samples from Jefferson and the NOAA Ship Gordon Gunter is required before drawing conclusions.

    NOAA continues to conduct a variety of research missions to study the impacts of the BP oil spill on the Gulf of Mexico—part of the federal government’s ongoing effort to engage the best scientific minds to inform response and recovery efforts.

    Federal and Local Officials Hold Open House Meeting for Louisiana Residents
    As part of continued efforts to inform Louisiana residents on the BP oil spill response and available assistance, representatives from the Coast Guard, Fish and Wildlife Service, EPA and state and local governments today held their fourth open house meeting in Jefferson Parish.

    Experts from the various agencies participating in the BP oil spill response were on hand to discuss a variety of topics with Parish residents—including the claims process, volunteer and contracting opportunities, environmental quality, worker safety and the various tools, equipment and strategies being used in the response. Previous meetings were held in Cameron Parish, St. Bernard Parish, and St. Mary’s Parish.

    NOAA Expands Fishing Restriction in the Gulf; More than 64 Percent Remains Open
    As part of continued efforts to ensure the safety of seafood from the Gulf of Mexico and protect consumers, NOAA has expanded the closed fishing area in the Gulf of Mexico to capture portions of the oil slick moving beyond the current boundaries off the Florida panhandle and due south of Mississippi. The closed area now represents 86,985 square miles—approximately 36 percent—of federal waters in the Gulf of Mexico. This closure does not apply to any state waters. This leaves more than 64 percent of Gulf federal waters available for fishing. Details can be found at http://sero.nmfs.noaa.gov/.

    Fish and Wildlife Continues Efforts to Recover and Rehabilitate Oiled Wildlife
    The U.S. Fish and Wildlife is leading wildlife and habitat recovery efforts in response to the BP oil spill—which includes aerial and ground surveys to assess the damage and recover oiled or injured wildlife and rehabilitation centers, where animals are cared for in preparation for release into their natural habitat.

    On Sunday, FWS released 38 brown pelicans and one tern at the Aransas National Wildlife Refuge and rescue and recovery teams responded to a total of 95 calls to the Wildlife Hot Line reporting oiled or injured wildlife along the Gulf Coast—including 25 in Alabama, nine in Louisiana, 20 in Florida, and six in Mississippi. To report oiled wildlife, call (866) 557-1401.

    Successful Controlled Burn
    In recent days, favorable weather conditions have allowed responders to conduct successful controlled burn operations. As part of a coordinated response that combines tactics deployed above water, below water, offshore, and close to coastal areas, controlled burns efficiently remove oil from the open water in an effort to protect shoreline and wildlife. In total, 255 burns have been conducted to remove more than 6.3 million gallons of oil from the water.

    BP Continues to Optimize Oil Recovery Rates from its Leaking Well
    Under the direction of the federal government, BP continues to capture some oil and burn gas at the surface using its containment dome technique.

    In addition to the Discoverer Enterprise, which is linked by the riser pipe to the wellhead, and the Q4000, which continues to flare off additional oil and gas being brought up through the choke lines—a method that was also put in place at the government’s direction.

    Approved SBA Economic Injury Assistance Loans Surpass $5.5 Million
    SBA has approved 88 economic injury assistance loans to date, totaling more than $5.58 million for small businesses in the Gulf Coast impacted by the BP oil spill. Additionally, the agency has granted deferments on 441 existing SBA disaster loans in the region, totaling more than $1.96 million per month in payments. For information on assistance loans for affected businesses, visit the SBA’s Web site at www.sba.gov/services/disasterassistance, call (800) 659-2955 (800-877-8339 for the hearing impaired), or email [email protected].

    Administration Continues to Oversee BP’s Claims Process
    The administration will continue to hold the responsible parties accountable for repairing the damage, and repaying Americans who’ve suffered a financial loss as a result of the BP oil spill. To date, 66,825 claims have been opened, from which more than $111.1 million have been disbursed. No claims have been denied to date. There are 720 claims adjusters on the ground. To file a claim, visit www.bp.com/claims or call BP’s helpline at 1-800-440-0858. Those who have already pursued the BP claims process and are not satisfied with BP’s resolution can call the Coast Guard at (800) 280-7118. Additional information about the BP claims process and all available avenues of assistance can be found at www.disasterassistance.gov.