Oil and Gas Extraction Accident - Essay Example

With the development of modern technologies, the deep sea has become another platform for human activities. Recently, there has been renewed interest in the extraction and utilizing of deep- sea resources. However, growing demand for the long- lasting exploration caused the detrimental effects on deep- water communities on continental shelves and seamounts. While there are granted exploration permits for polymetallic nodules and sulfide deposits on mid- ocean water- parting in the Indian and Atlantic oceans, companies started their interference in the natural environment with more power. Moreover, numerous permits have been granted for assessment of mineral resources in the territorial waters allowing energy companies and international fisheries to move their activities into increasingly deeper waters. However, such activities increase the possibilities of accidents and disasters that can cause far- reaching impacts on sea ecosystems (Hsing, Fu, Larcom, Berlet, Shank, 2013). Thus, on April 2010 in the northern Gulf of Mexico there emerged an accident that released four million barrels of oil from Deepwater Horizon drilling rig to the Gulf of Mexico through the next month of the same year. While oil on the surface was removed by different cleanup operations, over thirty percent of the hydrocarbons were drowned in deep- sea plumes. As a result, the Deepwater Horizon blowout actually caused two incidents. First, the oil spill on surface influenced the deep- water plume with chronic subsurface effects and second, mid- water plankton and a variety of mid-water species as well as the shores to which the oil spill came were seriously damaged (Montagna PA, Baguley JG, Cooksey C, Hartwell I, Hyde LJ, et al. (2013). On April 20, 2010, the crew of the Deepwater Horizon was preparing to temporary abandon BP’s “Macondo” discovery. The well had reached a depth. The final string of production had been put in the hole and cemented in place. Mud had been lost to the reservoir while drilling the bottom portion of the well. It is difficult to create a good cement seal between the casing and the formation and it is impossible to provide the efficiency of the cement seal without running a cement- bond log. The cement contained a nitrogen additive to make it lighter.  Gas from the reservoir may have further diluted the viscosity of the cement. The workers waited for the cement to dry he crew began displacing the drilling mud in the wellbore and riser with sea water. The drilling supervisors knew that there was gas in the drilling fluid. The team was circulating the drilling fluid and the mud pit volume began to enhance probably as a result of gas influx. Later, the rate of standpipe pressure and mud pit volume went off scale and water flow was measured at the surface. The rig unexpectedly began to shake and a loud surging noise was accompanied by natural gas, drilling mud and seawater that shot high above the floor of the drill ship. The gas exploded and the rig was engulfed in flames. A second explosion followed and the electricity went out (What caused the Deepwater Horizon disaster? 2010). After the series of two or more explosions and a huge fire that followed the uncontrolled flow have occurred. While the fire continued to unabated for two days fueled by hydrocarbons coming from the well, the Deepwater Horizon was abandoned after the fire started. The vessel sank and the fire was extinguished. During the next days, there were conducted the attempts to stop the oil from enter the Gulf of Mexico. There were closing of blind and shear rams and variable pipe rams, closing off the end of the drill pipe, capturing oil flow from the broken riser and the BOP top, removing the remnant riser, pumping heavy kill mud into the well and many other operations (Final Report on the Investigation of the Macondo Well Blowout). British Petroleum took responsibility for the clean- up, working under the direction of the federal government in order to respond and compensate people that came under the influence of the accident. They were offered to look after their health, safety and welfare, obtained support of the economic recovery. The company has also conducted studies with federal and state natural resource trustees to define the possible injuries to natural resources in the Gulf of Mexico. (Deepwater Horizon accident and response). It is also known that considering the likely public reaction, it is clear the British Petroleum’s public dealings on its brand image was a lower priority than in 2010, when it officially apologized for the accident. Community state that the British Petroleum is more focused on ensuring its stakeholders awareness of rigorous testing processes that are well above Australian standards and for the company it is like case of back to business (Olenski, 2014). Since the Macondo Prospect was a research project, the loss of oil had no significant effect on the current result of the company. Wood Mackenzie calculated oil production would decrease by less than 0.1 percent of the world’s oil production and that means that the spill only threatens oil providers if more restrictions on offshore drilling would be implemented. In addition, there was considerably small enlargement of oil price after the explosion. However, the Obama administration established oil-drilling restrictions some of them concerned a ban on all new permits to drill in deep water and work on mobile rigs in research purposes (Goossens 2012). The incident was a hot topic for the most television, radio, print and online institutions. They have covered all the events right after the tragedy and are continuing to make conclusions even today. In addition, such ecological disaster could not stay unnoticed by the public. The way British Petroleum was responding the issue called many concerns. It was stated that public’s tolerance for the BP to answer was proportional to the size of the oil spill. Besides, people were skeptically set toward the early estimates of the amount of oil that poured into the Gulf of Mexico. However, the BP and federal agencies initially estimated less amount of oil, which lately occurred to be that big, that society was badly impressed (Courson, 2010).  Organization for International Investment warned that the political rhetoric surrounding the disaster is potentially damaging the reputation of all British companies with operations in the U.S and sparked a wave of U.S. protectionism that has restricted British firms from; winning government contracts, making political donations, and lobbying. The accident put a great impact on the ecology of that region and of the areas that soon suffered from the oil spill that moved in the sea. Tourism industry also suffered great loss, as people simply cancelled their vacations because of the spill. British Petroleum provided Florida with twenty- five million dollars to promote the beaches with no oil on them and additionally, the company planned another fifteen million dollars to each for the states that suffered from the disaster the most. The company announced plans to spend seventy million dollars to assist Louisiana tourism and test and advertise seafood. OIL AND GAS References Deepwater Horizon accident and response, The British Petroleum official web site, Available from http://www.bp.com/en/global/corporate/gulf-of-mexico-restoration/deepwater-horizon-accident-and-response.html Final Report on the Investigation of the Macondo Well Blowout, Deepwater Horizon Study Group http://ccrm.berkeley.edu/pdfs_papers/bea_pdfs/dhsgfinalreport-march2011-tag.pdf Goossens, G., 2012. The Big Oil Spill: The Market Value Consequences of the Deepwater Horizon Disaster, Tilburg School of Economics and Management, Available from http://arno.uvt.nl/show.cgi?fid=127922 Hsing P-Y, Fu B, Larcom EA, Berlet SP, Shank TM, et al. 2013. Evidence of lasting impact of the Deepwater Horizon oil spill on a deep Gulf of Mexico coral community. Elem. Sci. Anth.  Montagna PA, Baguley JG, Cooksey C, Hartwell I, Hyde LJ, et al. (2013) Deep-Sea Benthic Footprint of the Deepwater Horizon Blowout Olenski, S., 2014. Nearly Four Years After Deepwater Horizon, Has BP's Brand Image Recovered? The Forbes, Available from http://www.forbes.com/sites/steveolenski/2014/01/24/nearly-four-years-after-deepwater-horizon-has-bps-brand-image-recovered/ What caused the Deepwater Horizon disaster? 2010. The oil drum, Available from http://www.theoildrum.com/node/6493 Read More