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ABC News: Tests on Gulf Oil Superskimmer Inconclusive

http://abcnews.go.com/US/wireStory?id=11090860

NEW ORLEANS (Reuters) – Tests on a supertanker adapted to skim large quantities of oily water from the surface of the Gulf of Mexico are inconclusive because of high seas, ship owner TMT Shipping Offshore said on Monday.

Tests on the so-called “super skimmer” conducted just north of the blown out BP Plc well were supposed to be completed on Monday but have been extended because of the weather, said spokesman Bob Grantham.

“After an initial 48-hour testing period results remain inconclusive in light of the rough sea state we are encountering,” Grantham said.

“Therefore, working in close coordination with the U.S. Coast Guard, we will be undertaking an additional testing period to make operational and technological adjustments aimed at improving skimming effectiveness given the actual conditions we are encountering in the Gulf,” he said.

He said smaller skimming vessels were also struggling to operate in the conditions caused by the aftermath of Hurricane Alex, which passed through the Gulf last week.

The 1,100-foot (335 meter)-long ore and oil carrier named “A Whale” is seen as a potential savior of efforts to clean the oil pollution because it can collect 500,000 barrels (21 million gallons) per day of contaminated water.

It operates by allowing oily surface water into the ship through a series of 12 horizontal slits on the port and starboard sides of the ship near the bow. The liquid is then decanted through a series of tanks to separate oil and water.

Though the total amount of oil and water mix in the Gulf remains unknown, the ship’s capacity would vastly increase what is currently being skimmed by smaller vessels.

The “A Whale” underwent an initial test off the coast of Portugal where it was fitted out for its new role and passed with flying colors, crew members said.

As a result, the company expected little difficulty in proving that it could work in the Gulf.

If it passes the test, the Taiwanese parent company TMT hopes to secure a contract with BP to skim oil and it is also preparing two additional ships for the task.

Washington Post: Recovery effort falls vastly short of BP’s promises

http://www.washingtonpost.com/wp-dyn/content/article/2010/07/05/AR2010070502937.html?hpid=topnews&sid=ST2010070502831

By Kimberly Kindy
Washington Post Staff Writer
Tuesday, July 6, 2010

In the 77 days since oil from the ruptured Deepwater Horizon began to gush into the Gulf of Mexico, BP has skimmed or burned about 60 percent of the amount it promised regulators it could remove in a single day.

The disparity between what BP promised in its March 24 filing with federal regulators and the amount of oil recovered since the April 20 explosion underscores what some officials and environmental groups call a misleading numbers game that has led to widespread confusion about the extent of the spill and the progress of the recovery.

“It’s clear they overreached,” said John F. Young Jr., council chairman in Louisiana’s Jefferson Parish. “I think the federal government should have at the very least picked up a phone and started asking some questions and challenged them about the accuracy of that number and tested the veracity of that claim.”

In a March report that was not questioned by federal officials, BP said it had the capacity to skim and remove 491,721 barrels of oil each day in the event of a major spill.

As of Monday, with about 2 million barrels released into the gulf, the skimming operations that were touted as key to preventing environmental disaster have averaged less than 900 barrels a day.

Skimming has captured only 67,143 barrels, and BP has relied on burning to remove 238,095 barrels. Most of the oil recovered — about 632,410 barrels — was captured directly at the site of the leaking well.

BP officials declined to comment on the validity of early skimming projections, stressing instead the company’s commitment to building relief wells intended to shut down the still-gushing well.

“The numbers are what they are,” said BP spokesman Toby Odone. “At some point, we will look back and say why the numbers ended up this way. That’s for the future. Right now, we are doing all we can to capture and collect the oil through various methods. We will make sure all the oil is ultimately dealt with.”

BP began downgrading expectations only two days after the rig explosion. Although its projections reported to the federal government were only weeks old, the company cited a greatly reduced number in a news release filed with the federal Securities and Exchange Commission. It projected that it had “skimming capacity of more than 171,000 barrels per day, with more available if needed.”

The release presented an optimistic picture of a company scrambling to clean up the mess, mobilizing a “flotilla of vessels and resources that includes: significant mechanical recovery capacity.”

In truth, the skimming effort was hampered from the start by numerous factors, including the slow response of emergency workers, inadequate supplies and equipment, untrained cleanup crews, and inclement weather. Greatly compounding the problem was the nature of the spill, with much of the oil never surfacing.

The poor results of the skimming operations have led to a desperate search for solutions. The world’s largest skimmer, owned by the Taiwanese, is on site and undergoing Coast Guard safety tests. The 10-story-high ship, which is the length of three football fields, was touted as having the ability to remove oil at the rate of tens of thousands of barrels every day. Thus far, it has been unable to produce those results in the gulf.

About 90 percent of the mixture is water, so the true amount of oil skimmed is relatively small — roughly 67,143 barrels of oil. Had the estimated amounts in the March response plan been accurate, 38 million barrels of oil could have been removed by now.

“This has been a cat-and-mouse game since March when they put out these estimates,” said Earthjustice attorney Colin H. Adams. “We want real figures instead of inflated estimates on what they are cleaning up and deflated estimates on how much is gushing out.”

In response to criticism that the government did not challenge crucial aspects of BP’s recovery plans, the Coast Guard this week is scheduled to announce creation of an expert panel to conduct a “preparedness review” for Deepwater Horizon.

“I think this will fundamentally change the lay of the land when it comes to oil spill preparations,” said Greg Pollock, deputy commissioner of the Oil Spill Prevention and Response Program at the Texas General Land Office. “Unfortunately, it’s taken a catastrophic spill to get us to look at it.”

BP’s March response plan was filed with the federal Minerals Management Service, which has oversight over oil drilling. BP said it would reach the stated goal largely by deploying two companies that have the necessary expertise, trained staff and equipment: the nonprofit Marine Spill Response Corp. and for-profit National Response Corp.

But Marine Spill Response said it was never asked whether it could hit the optimistic marks set by BP. National Response declined to comment.

“Not at any time were we consulted with what was in the plan either by MMS or by our customer,” said Marine Spill Response spokeswoman Judith Roos.

Daily reports from the federal government and BP’s Joint Operations Center in Louisiana quickly showed that retrieval efforts were falling far short of promises. After the first week, just 100 barrels of oil had been skimmed from the gulf, while the broken well continued to pour as much as 200,000 barrels of oil into the water.

It wasn’t until mid-June that BP’s daily report noted the collection of 485,714 barrels — roughly the amount it said it could retrieve in a day. But the June figure was for an oil-water mixture, which is about 90 percent ocean water.

Meanwhile, BP also kept revising its estimate of the amount of oil leaking into the gulf. In the early days after the spill, BP and federal officials placed the daily flow rate from the ruptured rig at 1,000 barrels a day, and then raised it to 5,000 barrels a day. In late May, a group of scientists charged by the government with estimating the flow said the rate was 12,000 to 25,000 barrels a day. And in June, the official estimated rate jumped to 35,000 to 60,000 barrels a day.

Because of these changing numbers and wide ranges, the amount of uncollected oil might be as low as 1.1 million barrels and as high as 4 million barrels.

Earthjustice, which has joined with the Sierra Club and other environmental groups to sue the federal government over BP’s response plan, warns that because these estimates continue to climb, the spillage numbers could go higher.

Earthjustice also says spill damage is being obscured by misleading numbers.

On Monday, the joint operations center for the federal government and BP reported that more than 671,428 barrels of an oil-water mixture have been captured and stored.

The figures clearly have confused journalists, with many media outlets reporting the figures as solid oil recovery numbers.

In a statement, the U.S. Coast Guard and the Minerals Management Service (recently renamed the Bureau of Ocean Energy Management, Regulation and Enforcement) said they are reviewing how cleanup estimates are crafted and the government’s role in reviewing them.

“Without question, we must raise the bar for offshore oil and gas operations, hold them to the highest safety standards,” the statement said.

Seattle Times: Officials say BP spill now hitting all Gulf states

http://www.chron.com/disp/story.mpl/ap/top/all/7095131.html

Originally published Monday, July 5, 2010 at 4:03 AM

Tar balls from the Gulf oil spill found on a Texas beach were confirmed Monday as the first evidence that gushing crude from the Deepwater Horizon well has reached all the Gulf states.

By JUAN A. LOZANO
Associated Press Writer

TEXAS CITY, Texas –
Tar balls from the Gulf oil spill found on a Texas beach were confirmed Monday as the first evidence that gushing crude from the Deepwater Horizon well has reached all the Gulf states.

A Coast Guard official said it was possible that the oil hitched a ride on a ship and was not carried naturally by currents to the barrier islands of the eastern Texas coast, but there was no way to know for sure.

The amount discovered is tiny in comparison to what has coated beaches so far in the hardest-hit parts of the Gulf coast in Louisiana, Mississippi, Alabama and the Florida Panhandle. It still provoked the quick dispatch of cleaning crews and a vow that BP will pay for the trouble.

“Any Texas shores impacted by the Deepwater spill will be cleaned up quickly and BP will be picking up the tab,” Texas Land Commissoner Jerry Patterson said in a news release.

The oil’s arrival in Texas was predicted Friday by an analysis from the National Oceanic and Atmospheric Administration, which gave a 40 percent chance of crude reaching the area.

“It was just a matter of time that some of the oil would find its way to Texas,” said Hans Graber, a marine physicist at the University of Miami and co-director of the Center for Southeastern Tropical Advanced Remote Sensing.

About five gallons of tar balls were found Saturday on the Bolivar Peninsula, northeast of Galveston, said Capt. Marcus Woodring, the Coast Guard commander for the Houston/Galveston sector. Two gallons were found Sunday on the peninsula and Galveston Island, though tests have not yet confirmed its origin.

Woodring said the consistency of the tar balls indicates it’s possible they could have been spread to Texas water by ships that have worked out in the spill. But there’s no way to confirm the way they got there.

The largest tar balls found Saturday were the size of ping-pong balls, while the ones found Sunday were the size of nickels and dimes.

Galveston Mayor Joe Jaworski said he believed the tar balls were a fluke, rather than a sign of what’s to come.

“This is good news,” he said. “The water looks good. We’re cautiously optimistic this is an anomaly.”

The distance between the western reach of the tar balls in Texas and the most eastern reports of oil in Florida is about 550 miles. Oil was first spotted on land near the mouth of the Mississippi River on April 29.

The spill is reaching deeper into Louisiana. Strings of oil were seen Monday in the Rigolets, one of two waterways that connect the Gulf with Lake Pontchartrain, the large lake north of New Orleans.

“So far it’s scattered stuff showing up, mostly tar balls,” said Louisiana Office of Fisheries Assistant Secretary Randy Pausina. “It will pull out with the tide, and then show back up.”

Pausina said he expected the oil to clear the passes and move directly into the lake, taking a backdoor route to New Orleans.

The news of the spill’s reach comes at a time that most of the offshore skimming operations in the Gulf have been halted by choppy seas and high winds. A tropical system that had been lingering off Louisiana flared up Monday afternoon, bringing heavy rain and winds.

Forecasters at the National Hurricane Center said there was a 60 percent of the storm becoming a tropical cyclone.

Last week, the faraway Hurricane Alex idled the skimming fleet off Alabama, Florida and Mississippi with choppy seas and stiff winds. Now they’re stymied by a succession of smaller storms that could last well into this week.

Officials have plans for the worst-case scenario: a hurricane barreling up the Gulf toward the spill site. But the less-dramatic weather conditions have been met with a more makeshift response.

Skimming operations across the Gulf have scooped up about 23.5 million gallons of oil-fouled water so far, but officials say it’s impossible to know how much crude could have been skimmed in good weather because of the fluctuating number of vessels and other variables.

The British company has now seen its costs from the spill reach $3.12 billion, a figure that doesn’t include a $20 billion fund for damages the company created last month.

The storms have not affected drilling work on a relief well that BP says is the best chance for finally plugging the leak. The company expects drilling to be finished by mid-August.

Associated Press writers Tom Breen and Mary Foster in New Orleans contributed to this report. Special thanks to Richard Charter

Truthout: BP Used Oil Industry Tax Break to Write Off Its Rent for Deepwater Rig

http://www.truth-out.org/bp-used-oil-industry-tax-break-write-off-its-rent-deepwater-rig61062

Monday 05 July 2010

by: Pat Garofolo | ThinkProgress | Report

Transocean, the company that owns the failed Deepwater Horizon rig that caused the Gulf oil spill, used well-known tax havens in the Cayman Islands and Switzerland to lower its U.S. corporate tax rate by almost 15 points. And due to a break in the U.S. tax code, BP was also allowed to write off the rent it paid to Transocean on its own tax bill, saving it hundreds of thousands of dollars per day:

The owner, Transocean, moved its corporate headquarters from Houston to the Cayman Islands in 1999 and then to Switzerland in 2008, maneuvers that also helped it avoid taxes. At the same time, BP was reaping sizable tax benefits from leasing the rig. According to a letter sent in June to the Senate Finance Committee, the company used a tax break for the oil industry to write off 70 percent of the rent for Deepwater Horizon – a deduction of more than $225,000 a day since the lease began.

So, essentially, the U.S. taxpayer paid BP to lease a rig that was incorporated in a foreign country for the purpose of avoiding the U.S. corporate tax. And the U.S. tax code is actually riddled with breaks for the oil industry, despite that industry’s record profits in recent years. Center for American Progress Senior Policy Analyst Sima Gandhi has counted nine different subsidies that the U.S. government gives to the oil industry, including refunds for drilling costs and refunds to cover the cost of searching for oil. If this corporate welfare were cut, it would save $45 billion per year, and according to the Office of Economic Policy at the Department of Treasury, “affect domestic production by less than one-half of 1 percent.” “The flow of revenues to oil companies is like the gusher at the bottom of the Gulf of Mexico: heavy and constant,” said Sen. Robert Menendez (D-NJ). “There is no reason for these corporations to shortchange the American taxpayer.”

Special thanks to Richard Charter

Business Insider: CNN: Warning To Gulf Volunteers: Almost Every Cleanup Worker From The 1989 Exxon Valdez Disaster Is Now Dead

Business Insider
June 30, 2010

http://www.businessinsider.com/warning-to-gulf-cleanup-workers-almost-every-crew-member-from-the-1989-exxon-valdez-disaster-is-now-dead-2010-6

Michael Snyder

Are you sure that you want to help clean up the oil spill in the Gulf of Mexico? In a previous article we documented a number of the health dangers from this oil spill that many scientists are warning us of, and now it has been reported on CNN that the vast majority of those who worked to clean up the 1989 Exxon Valdez oil spill in Alaska are now dead. Yes, you read that correctly. Almost all of them are dead.

In fact, the expert that CNN had on said that the life expectancy for those who worked to clean up the Exxon Valdez oil spill is only about 51 years. Considering the fact that the oil spill in the Gulf of Mexico is now many times worse than the Exxon Valdez disaster, are you sure you want to volunteer to be on a cleanup crew down there? After all, the American Dream is not to make big bucks for a few months helping BP clean up their mess and then drop dead 20 or 30 years early.

This news clip from CNN is absolutely stunning. If this is even close to true, then why would anyone want to be involved in helping to clean up this oil?….

The truth is that what we have out in the Gulf of Mexico is a “toxic soup” of oil, methane, benzene, hydrogen sulfide, other toxic gases and very poisonous chemical dispersants such as Corexit 9500.

Breathing all of this stuff is not good for your health, but the reality is that the true health toll of this oil spill is not going to be known for decades.

However, the early reports are not encouraging….

*Already, a large number of workers cleaning up the BP oil disaster in the Gulf of Mexico report that they are suffering from flu-like symptoms.

*According to another new report, exposure to the oil disaster in the Gulf of Mexico has resulted in 162 cases of illnesses reported to the Louisiana state health department.

*In addition, according to one local Pensacola news source, “400 people have sought medical care for upper or lower respiratory problems, headaches, nausea, and eye irritation after trips to Escambia County beaches.”

This is going to be something that we all want to keep a very close eye on.

But it is not just oil spill cleanup workers and people who have gone to the beach who are reporting health issues. The following is a report from a reader named Dee….

My 2 friends and I have been sick with headaches and vomiting, also it feels like heartburn, just feeling lousy. We have not been to the Gulf but there is an inlet at the end of our street. We live on the West side of Pensacola FL. near the Bayou. At first I thought it was just me. My 2 friends are having the same symptoms, all at the same time. Right now I have a dull headache, and my stomach is queasy. I have been thinking maybe the chemicals from the oil cleanup or the oil itself is causing us to be ill. It has been raining all day off and on. I started feeling ill late last night. I was wondering if anyone else in Pensacola have the same symptoms.

So what can we conclude from all this?

Well, it is still very early, but when this crisis is all said and done the biggest tragedy of all might be the health devastation that this oil spill has caused.

If the Exxon Valdez oil spill is any indication, a lot of pe0ple are going to end up dying early deaths.

So once again, do you really want to go down there and clean up this oil?

Of course all of this oil is not just going to clean itself up.

But if we all refuse to participate, who will clean it up?

Perhaps BP CEO Tony Heyward and other high ranking BP executives could roll up their sleeves and go down there and start cleaning up all of that toxic sludge.

It’s their mess, so let them clean it.
Special thanks to Richard Charter