Tag Archives: Gulf of Mexico

Deepwater Horizon may cost BP $53.8 Billion – 43.1% of it’s current value

Image of the fire from the oil spill

Deepwater Horizon Spill in 2010. Photo: Gerald Herbert, AP.

11 Crew were lost in the explosion and fire on the Deepwater Horizon rig on April 20, 2010. In addition, roughly 5.2 million barrels of oil poured into the Gulf of Mexico during the 87 days between April 20, 2010 when the explosion occurred and July 15, 2010 when the well was capped.

BP, found guilty of “Gross Negligence” and “Willful Misconduct” in the Deepwater Horizon oil spill, (BBC, EcoWatch), has agreed to pay $18.7 Billion over the next 15 years (BP Press Release, Reuters) to settle various claims with the United States, the states of Florida, Alabama, Mississippi, Louisiana and Texas, and others.  This amounts to 14.8% of BP’s current market capitalization.

Pursuant to the agreements, BP will pay $1.1 Billion per year over the next 15 years. While the $18.7 Billion amounts to 14.8% of BP’s current market capitalization of $125.59 Billion, the $1.1 Billion per year is only a loss of 0.88% of BP’s current market capitalization each year.

However,

Continue reading →

The Deepwater Horizon – The Good, The Bad, & The Ugly

Oil Eating Bacteria

Oil Eating Bacteria

The good news is that newly discovered bacteria biodegrade oil in the oceans, and have been chowing down on the oil spilled from the Deepwater Horizon  (Earth and Sky, NPR, PBS, SFGATE) and from oil seeps for millions of years.

While it’s unexpected and wonderful that bacteria are biodegrading the oil, is begs the question:

Do we want to fill the seas with oil and oil-eating bacteria or oceans of clean water, coral, oysters, fish, turtles, and dolphins?

And how quickly can they consume the 5.1 million barrels that gushed into the Gulf at a rate of 60,000 barrels per day for 85 days begining April 20, continuing thru May and June, and ending July 15, 2011?

I suspect it will take more than a few weeks, months, or years.

And do those bacteria break down dispersants?

John Ehrenfeld defines “Sustainability” as “Flourishing.” Because they are small and short-lived, shrimp can handle a higher level of toxics than say dolphins, turtles, etc. We will know the Gulf is clean when there are flourishing populations of dolphins, turtles, and larger and longer-lived fauna, and when they have lower concentrations of heavy metals and petrochemicals in their tissues. Continue reading →

Crisis (Mis) Management and the Gulf Oil Spill

 

What BP and the Government Could Have Done and Should Be Doing (updated 10/7/10)

The handling of the Deepwater Horizon catastrophe is a textbook study of how not to manage a crisis. The government and the Obama Administration seems to have understated the problem and ceded responsibility to BP, which seems to have acted to protect the Macondo oil field rather than the Gulf of Mexico and the Gulf Coast.

Continue reading →

Gulf Oil Emergency Phone Numbers.

* Report oiled shoreline or request volunteer information: (866) 448-5816
* Submit alternative response technology, services or products: (281) 366-5511
* Submit your vessel for the Vessel of Opportunity Program: (281) 366-5511
* Submit a claim for damages: (800) 440-0858
* Report oiled wildlife: (866) 557-1401
* Medical support hotline:  (888) 623-0287