What if this is the end of deepwater drilling?
Deleted: Dupe post.
I do not believe it is correct to say that 3 Mile Island disaster and the subsequent stoppage of the building new nuclear plants had very much to do with our reliance on foreign oil. Very little of our electricity is produced by oil. Our oil usage is in large measure devoted to transportation.
Almost immediately Mary Landrieu and others not only from Louisiana said this would not stop offshore drilling. In this case I will take them at their word.
My view is that we have a vastly different social conscience than what existed in the 60’s and 70’s. Many more people were engaged in social causes then especially environmental ones. THe current generation is more interested in how to get through college and get a good job. Witness the lack of outrage or demonstrations about the bailouts, stimulus, wars etc. If this were the 60’s we would have seen much more protesting. The work of Edward Bernays has had 30 + years to hypnotize virtually the entire nation.
The amount of oil already spilled will be grossly underestimated. Settlements will be paltry and bidness will continue as usual. The court system is controlled as is every other aspect of our political and social lives by the Fascist corporatocracy.
Of course you could always come back from Asia and whip the sheeple into a frenzy to take back the country…………nah.
This is amazing… Bloomberg is reporting operation top kill a success! It’s all better now! And this is CONFIRMED by both LA times and the Coast Guard!
Meanwhile, the live video they are showing depicts oil continuing to spew out! The reporters are saying “And don’t worry, that substance you see coming out now isn’t oil – it’s drilling mud, which is 100 times heavier than water…”
Ok, forgive me for letting the laws of nature get in the way of a good story, but if the substance that looks just like oil that is coming out is 100x heavier than water drilling mud, why is it very rapidly flowing UP and being displaced by the “lighter” sea water around it? Just asking…
Lets hope it is drilling mud! The sources are of course suspect. As regards your initial post I can only add that the sooner we deal with the facts of our predicament the better chance we stand to choose the outcome.
I would add that ending DWD would be a desirable outcome of this event. It is also my opinion that when the reality of peak oil becomes MSN that all restrictions will likely be lifted in order to “save the world” from the ravages caused by the “energy shortage”.
Man probably has a few more evolutionary steps to take before he would be up to the task of effectively dealing with the real issues of our predicament. IMHO, those that are still standing after this upcoming transition should have a fresh understanding of the role of man on this finite planet!
This will never happen. There is no way they are going to stop drilling where there are resources and possibly able to extract whether its DWD or not. Like LogansRun say, I think they might outlaw it but only because they will do it secretly without letting the masses know. If we don’t drill that means the US government is finally aware about the fact that a huge transition and a change of structure needs to take place as we are getting lower on resources. Good luck with that. The US is never going to give up on their military might and oil is the key to staying on top as far as that goes.
Obama Announces Slowdown on New Drilling http://www.cnbc.com/id/37379618
President Barack Obama says a moratorium on new deepwater oil wells will be extended for six months while further investigations of the disaster in the Gulf of Mexico can be conducted.
He also said he was suspending planned exploration drilling off the coasts of Alaska and Virginia and on 33 wells currently being drilled in the Gulf of Mexico.
The president spoke Thursday at a press conference in the White House. He’s visiting the Gulf on Friday.
Before Obama spoke, the government said it would announce Thursday that as part of a six-month moratorium on deep water oil and gas drilling, exploratory wells already operating in deep waters will have to stop operations and implement new safety measures.
Companies operating wells at depths lower than 1,000 feet (305 metres) will have to stop at first safe opportunity and then get approval from Interior to restart their rigs after they have met new safety requirements.
The president also said that regulators must have more time to review permits for drilling and must pay closer attention to environmental laws. He decried what he called a “scandalously close relationship” between regulators and oil companies and said that would be stopped.
“The American people should know that from the moment this disaster began, the federal government has been in charge of the response effort,” Obama said. He was responding to criticism that his administration had been slow to act and had left BP in charge of plugging the leak.
Obama said many critics failed to realize “this has been our highest priority.” He conceded that “people are going to be frustrated until it stops.”
Obama went on to say he would use the full force of the federal government to protect citizens and that BP
would be required to reimburse all claims.
“We’re exploring any reasonable strategies to try and save the Gulf from a spill that may otherwise last until the relief wells are finished and that’s a process that could take months,” Obama said.
Obama says right now only BP and other oil companies have that technology—and that’s why the White House has to rely on BP to try to fix the disaster.
Obama said he wants to explore ways the federal government could develop a team to directly respond to oil spills and not have to rely on oil companies.
Offshore oil drilling is a key part of Obama’s efforts to rejig the country’s energy policy. But the spill has forced him and fellow Democrats to rethink their support for such an expansion, which many environmentalists oppose.
Obama has established a presidential commission to investigate the causes of the spill, which by government estimates is the country’s largest ever.
His announcement on a new moratorium Thursday was meant to amplify his administration’s response before that panel draws its own conclusions on what went wrong. The Obama administration ordered a halt in new drilling permits after the BP’s oil rig, owned by Transocean,
exploded in the U.S. Gulf on April 20.
BP, which has been publicly scolded by the president, was working Thursday to plug the leaking well in a procedure known as “top kill.” Some U.S. lawmakers have called on the administration to lift the permit ban, at least for exploration in the shallow waters of the Gulf while keeping it in place in deeper waters where BP was operating.
Mike Breard, an analyst at Hodges Capital Management, said the decision would force companies to move rigs to places such as Brazil, increasing the possibility of tanker accidents instead of offshore ones. “You’re trading a risk of one type of spill for another type of spill,” Breard said.
The energy bill, which ramps up domestic production of renewable fuel sources and sets limits on greenhouse gas emissions blamed for global warming, is currently languishing in the U.S. Senate.
Democrats hoped increased drilling would attract Republican support for the bill. Political fallout has not been limited to legislation.
Interior Secretary Ken Salazar said Liz Birnbaum, the head of the agency that oversees U.S. offshore oil drilling, had resigned. Salazar briefed Obama and his advisers about the contents of a report about the spill and the deadly blast aboard the Deepwater Horizon rig, which was leased by BP late Wednesday.
Now that’s what I call great leadership. LOL
You’re doing a helluva job Brownie
ps How do you know when Obama is lying? His lips are moving
I think we should discuss what it would mean to the economy and the world if deep water offshore oil exploration were outlawed in the wake of the Deepwater Horizon oil rig disaster in the Gulf of Mexico.
For the short term, I do not see any economical alternative viable enough to end Deep Water Drilling. I do believe that the era of Cheap Peak Oil is here and worldwide economic growth, at least up to 2007, has precipitated the need for viable and reliable sources of oil. It is only by technology driven resources that the oil industry is even able to employ the necessary capacity today to search for oil reserves below massive salt structures 18,000’ to 20,000’ deep in the sub strata. By all indications, 5000’ of water is rather shallow when more prolific reservoirs have been discovered in water depths of 8000’ or more. The average spread costs to find these reservoirs is $1 million dollars per day with the average well taking as much as 100 days to drill. Only the megolithic econimies of scale and vertically integrated oil companies can undertake such an enormous venture.
In the short term, the expense to find these reservoirs is financed by the cash flow of the mega oil companies that often partner with other mega oil companies to spread the costs around. However, the possibility of finding a viable reservoir with enormous capacity of oil storage goes up exponentially to ameliorate the costs over time. The Chevron Jack 2 discovery in 2004 in 6000’ of water and geological formations 65 million years old has the potential reserve capacity of 15 billion barrels. Just that one reservoir online will complement the USA’s total reserve structure by 50%. Apologetics be damned, but are there any other accessible and viable areas in this country that can deliver these kind of results?
The Gulf of Mexico is also unique in that it is a massive salt-domed sedimentary deposition with readily recoverable reserves that are driven by massive reservoir pressures. It is the perfect recipe for the extraction of oil. As strange as it may seem, costs for a barrel of oil from the GOM is essentially lower over time because of this natural phenomenon and the enormity of the reserve base.
What the major oil companies are missing in the rush to find reserves replenishment is a fail-safe method of protecting the workers and the environment. That necessary implementation will be forthcoming in the days and months ahead that I hope will be a catalyst that the world can learn from. Soon all 33 DWD rigs will be shut down till an acceptable answer for this calamity is found and methods put in place that are reliable. It will happen as a part of our workable future. A new paradigm is upon all of us and that includes our government as well. I need not remind anyone that billions of dollars of offshore Federal lease payments have lined to pockets of the Federal Treasury desperately lacking revenues today.
What our country needs is a bridge to the future that will allow our economy to transcend to the next energy infrastructure that is clean and renewable. At the current pace “green energy” has to be subsidized by taxes to remain sustainable and cheap. The net energy equation also rules the economic viability of such a venture. After all, solar and wind only supply about 1% of our total energy needs. The path to renewable energy also has to traverse a course sustained by carbon fuel. Any extraction, manufacturing, pharmaceutical, cosmetic, fertilizer, or synthetic industries are intricately supported by petroleum and carbon products. I fear the road to our energy future is paved by the asphaltic roads of petroleum. Like it or not.
So, the question I have, Erik, is “Will the government continue to over react when ‘Black Swan’ events such as Three Mile Island, Chernobyl, Exxon Valdez, and the Horizon rear its tragic head?” We do not over react to airplane crashes and it is stilled deemed as the safest form of transportation. What alternatives do we have?
Since you and many others here are very involved in the markets, I wonder if anyone noticed any unusual stock trades in regards to BP or the other criminal elements involved in this incident, a la 9/11
Here is a comment on the latest update about top kill from someone on the oil drum:
[quote] what has happened essentially is
Top Kill Attempt No 1 failed last night….they pumped 30000 bbl of kill mud in 10 hrs ……thats 50 bbl per min ….or 2100 gal per min …..and if they really had to go upto 2100 gal per min to jam the mud downhole that means they are loosing a lot of kill fluid through the leaks and not enough is making its way downhole or they are loosing ti all in the formation..
going forward for top kill attempt no 2
the only thing left to even try is ….pump junk in the BOP ….hope a few pieces stick and provide enough coverage on the leaks that when they pump mud again it goes downhole….this is the only logical attempt they have
we are in 10% or less success chances range here folks…no mistake [/quote]
Thoughts on this?
What if it ends up like the Indonesia mud volcano. As for the topic, I am personally in favour of anything which removes our ability to use more oil. Books like “The Limits to Growth – 30 year update” clearly show, the sooner we transition away from oil and coal the better it is for our future. Or put another way, if we use every short term gain to keep on pushing to the bitter end, it will be exactly that, the end. As Richard Heinberg said, “The Party’s Over”. Like the Titanic, it is better to leave early than try to find a lifeboat which no longer exists near the end.