Forex Exchange

The failure of BP's "Top Kill" procedure to stem the Deepwater Horizon oil spill, does have one positive aspect, because of what the next option on the list entails (they are working through the options in the order of "time taken to get ready for them" so that the leak will eventually be stopped by the quickest means that work, no matter how often Mr Obama leads the nation in a ten-minute hate of BP in the meantime.) That next option is to cut the existing well head and blowout preventer clean off the well, lift it clear (it weighs about 140 tons) and clamp a replacement over the clean-cut pipe. This will, hopefully briefly, result in a much increased flow, so doing it after trying the top kill is probably sensible as at least some of the heavy mud may still be in the well to slow the flow. This is essentially what was eventually done (in shallower water) with the well under the Piper Alpha platform. So it shouldn't be scorned: this is a standard procedure...

The Piper Alpha oil and gas platform disaster in the North Sea, which killed 167 men, was largely the product of two things: 1/Badly-planned maintenance, so that two components of the safety chain were being worked on at the same time. (You don't necessarily make things safer by doing lots of maintenance: the Royal Navy Icebreaker, HMS Endurance, was nearly sunk by a sea valve being improperly refitted after unnecessary "maintenance". You make things safer by careful and intelligent planning of maintenance, so that necessary things get done in a safe sequence, by people with the right expertise and the correct tools.) 2/ Mid-life modification of a simple, albeit large, oil production platform, into a mixed oil and gas production platform also acting as collector for other fields. This is what turned a small fire into a sequence of explosions leading to the total destruction of the platform (and a fast rescue boat launched by a standby ship). This is where lessons were l...

Long before any of the facts about the Deepwater Horizon accident became known, President Obama led the American people in pinning all blame and liability upon British Petroleum Plc, who had leased the rig to drill on a site they had a licence for. (The process of getting a licence involves paying money to Federal and State governments). The rig was owned and operated by the Swiss company, Transocean, and the actual work directly involved in the accident was being done by the sub-contractor, Haliburton, a name that ought to be recognized by anyone who has an interest in political scandal and corruption in the United States, or Iraq. Under American law, BP carry all the liability, because they own the licence on the well. Placing the moral blame on them as well, is typical Chicago politics. But if anyone is actually looking for the intrinsic cause of this and other oil-industry accidents in the United States, it is precisely this: The liability for the environmental and economic dama...