First Deepwater Drilling Permit Since BP Spill Goes to ... a Well Co-Owned by BP
Offshore drilling regulators this week approved the first deepwater drilling permit since BP’s Deepwater Horizon disaster, and as many have pointed out, it’s going to a well owned and operated by Noble Energy.
But here’s a lesser-noticed fact, which Reuters reported today: BP co-owns the well—46.5 percent of it, to be exact. The Bureau of Ocean Energy Management, the revamped offshore drilling agency, made no mention of BP’s ownership of the well in its press release, which touted the newly approved permit as a “an important step towards safely developing deepwater energy supplies offshore.”
(BP confirmed with us its stake in the well, but referred further questions about its involvement in operating the well and its expected revenue to Noble Energy.)
Regulators had asked oil companies to prove their ability to contain oil spills occurring in deep water before granting any more permits for deepwater drilling, and two systems have been proposed—one by a company called Helix Energy Solutions and another by the Marine Well Containment Company, a group of oil companies led by Exxon. Just last month, Bromwich said that neither system was ready yet and allowing deepwater drilling would be "simply irresponsible." He stated this week that Noble—which has a contract with Helix—"is capable of containing a subsea blowout."
“This permit was issued for one simple reason: the operator successfully demonstrated that it can drill its deepwater well safely and that it is capable of containing a subsea blowout if it were to occur,” said agency chief Michael Bromwich. He said the agency expects more deepwater permits to be approved in the "coming weeks and months."
Gulf lawmakers and industry leaders welcomed news of the approved deepwater permit and called on regulators to move more quickly with their approvals, reported the Houston Chronicle.
What’s still unclear is whether regulators are adequately prepared to do so. Last month, the Government Accountability Office, the federal government’s internal watchdog, identified “significant problems with Interior’s management of federal oil and gas resources” and designated it a “high-risk” area.
Another GAO report released today suggests that the Interior Department still faces ongoing problems with royalty collection and inadequate staffing. It expressed concerns—given the recent reorganization within the department—about whether the department can adequately balance oil and gas development with environmental stewardship. As we've noted and as the BP disaster revealed, they've not done this so well in the past.
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7 comments
Susan Meeker-Lowry
March 1, 2011, 8:43 p.m.
This was a foregone conclusion. It was only a matter of when. So despite everything that has happened, all the destruction, we have learned nothing.
Shelley Ottenbrite
March 2, 2011, 4:56 a.m.
What a slap in the nation’s face, that BP co-owns the first deep water well to be approved after their assault on the Gulf ecosystem. The timing couldn’t be better what with dolphin fetuses littering the beaches. Why can’t we consider Macondo an act of war and go after BP like we do illusive terrorist organizations? Oh yeah, money and power make ‘em too big to nail.
bonnie Weller
March 2, 2011, 11:54 a.m.
If this ill-advised approval is happening with our offshore drilling regulators, then can’t the same sort of slipshod approval happen with regulators in other U.S. industries? If that’s all it is - slipshod approval.
Stephen L Nance
March 2, 2011, 4:02 p.m.
The real question is “How much longer are we going to let the richest 1% of the countries population tell us and show us what they can do.”...We the people are obviously not in control of our own destiny…I understand our dependence on oil but at what cost ? We have shown this to be a risky venture.. We have decimated one of the most eviromentally, socially and economically diverse coast lines in the world and the fact that our goverment and regulators let it continue has left me speechless…..well almost…...What did I do with my Senator’s # ?
Paul bp
March 2, 2011, 4:59 p.m.
To assume that Helix, or any other company for that matter, is capable of containing a subsea blowout is laughable. This would imply they can foresee any and all potential circumstances and outcomes in a fluid, dynamic environment 7000 + feet below the surface…truly an ignorant assumption. More likely, with oil now north of $100/barrel, the pressure on the administration to resume drilling has crushed what little moral resolve they may have had towards this issue. Sad to say the least.
James B Storer
March 3, 2011, 11:15 a.m.
“This permit was issued for one simple reason: the operator successfully demonstrated that it can drill its deepwater well safely and that it is capable of containing a subsea blowout if it were to occur,” said agency chief Michael Bromwich.
Paul bp (comment 2 Mar), you mirror my feelings concerning the above drivel when you wrote “To assume that Helix, or any other company for that matter, is capable of containing a subsea blowout is laughable. This would imply they can foresee any and all potential circumstances and outcomes in a fluid, dynamic environment 7000 + feet below the surface…truly an ignorant assumption.”
Mr Bromwich, please make liars out of us by providing at least something specific as to how (and exactly by whom) this “capability” was actually “demonstrated.”
Susan Meeker-Lowry (comment 1 Mar) and Shelley Ottenbrite (2 Mar), your comments are right on. Isn’t it sad that we constantly feel compelled to make our thoughts known concerning the unbelievable nonsense “they” expect us to believe.
Most media make news of things like this and then drop it. We are fortunate to have ProPublica, who continue to maintain current information pertaining to its reports from beginning to end.
Skartishu,
Granby MO
Scott Amos
April 2, 2011, 3:46 p.m.
It is no secret that BP (British Petroleum) is a major backer and contributor to Obama, and to the democratic party in general. How do you say “cronyism” when Obama still won’t let AMERICAN companies drill?