Tag Archives: Gulf Oil Spill

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,

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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 →

It's Like a Bad High School Math Problem

Oil Spill

Oil and Oceans Don't Mix. From Mining News.

“If oil gushes into the Gulf of Mexico at a rate of 60,000 barrels per day, and it takes 84 days to achieve a capability of “process” the spilled oil at a rate of 30,000 barrels per day, how long does it take to “process” the spilled oil?”

It takes two days to process each day’s gushed oil. So the answer is “2N + 188” where “N” equals the number of days oil gushes into the Gulf beyond the 84 days it took to achieve a processing capability of 30,000 barrels a day. If BP or the government stops the spill effective July 15, 2010, then they will process the oil spilled into the Gulf of Mexico by January 20, 2011. If they are able to stop the flow of oil by August 1, 2010, then it will be Feb 19, 2011, before the spilled oil is “processed.” (Source of image)

And what exactly do they mean by “Process the spilled oil?”

People cleaning up the spill

People cleaning up the spilled oil.

Here’s another problem: “What is the toxicity for people cleaning up, or “processing,” the spilled oil? How much exposure can an average person tolerate? Is BP providing adequate safety gear and instructions? If people working to clean up the spill are reporting “light-headedness” and other symptoms, is that an indication that they have sustained a toxic exposure?” For more details, here is Melissa Taylor’s article, “Doctors call for help protecting Gulf oil spill workers.”

This Like a Bad High School Math Problem, is ninth in the series on the Deepwater Horizon / Macondo oil well disaster which began after Earth Day. Other posts include:

  1. Fossil Fuels and a Walk on the Moon,
  2. Drill Baby Drill or Drill Baby Oops,
  3. The Magnitude of the Spill,
  4. One Month After,
  5. The Chernobyl of Fossil Fuels?,
  6. Magnitude, Part 2,
  7. After Macondo, and
  8. Deepwater Horizon – Bombs and Hurricanes.