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Why BP is fighting the blowout alone

By | May 10, 2010, 11:21 AM PDT

With BP’s latest bright idea to stop its gusher at the bottom of the Gulf of Mexico now shown to be yet another cunning plan, and the company starting to throw golf balls and old tires at the problem, some smart people are beginning to ask where the experts are? (Picture from Wikipedia.)

Who ya’ gonna call, BP?

Due to a series of unfortunate events, the experts no longer exist. Not in a form where either BP, or the Obama Administration, could call on them.

Back when I covered the oil industry, in Houston, in the 1970s, this would look like a job for Red Adair. He was at the height of his fame when I joined the Houston Business Chronicle in 1978.

Over the years Adair and his crew put out over 2,000 fires, including the Sahara’s infamous “Devil’s Cigarette Lighter,”  the second-worst blow-out in the North Sea’s history, and the fires that hit Kuwait in the wake of the 1991 Gulf War.

But Red Adair only seemed immortal. He retired in 1993 and died in 2004.

Even before he quit his top men, Asger “Boots” Hansen and Ed “Coots” Matthews, left to form their own firefighting company, Boots & Coots International. After he left his remaining lieutenants formed International Well Control (IWC). The main company is now owned by Global Industries.

Yeah, well what about them, then?

Global no longer emphasizes its firefighting expertise. It’s a major oil field services firm. IWC bought out Boots & Coots in 1997. By 2007 most of their money was coming from “well intervention” services, not firefighting.

The company seemed to be getting back on its feet earlier this year when it was bought by a firm that had brought it into fighting fires during the Iraq War.

That would be Halliburton.  You may know Halliburton from its former CEO, who left to go into politics a decade ago. Richard Bruce “Dick” Cheney.

Fact is accidents like this are rare. Expertise to effectively fight them is rarer. The leading expert is fighting fires in heaven, and his legacy belongs to a company formerly run by the man who still considers President Obama his sworn political enemy.

The simple answer to the question is, Red’s dead and there’s no one like him around any more.

BP has created a problem no one really knows how to solve, not the government and not private industry. When all this is over, creating that kind of infrastructure again, whether in public or private hands, should be the oil industry’s job one.

(Picture from Agora Net.)

But if I were President Obama, I might drag Dick Cheney’s angry caboose back to the White House today, discuss the question with him directly, and let him handle the news pack outside the gates.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
+ -
RE: Why BP is fighting the blowout alone
Why not use this Dick's over inflated head to plug the hole, all problems solved and bonus, instant karma for 911!
Posted by mario@...
10th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
Man, you went a hell of a long way to turn this whole debacle into Dick Cheney's fault. Why not go all in and blame Bush too? Exactly what expertise would Cheney be holding back, that otherwise would not be available? I'm willing to be he is not in possession of one iota of knowledge directly concerning the capping of wells. What expertise there was would have resided in those that worked for companies that were owned by Halliburton and would still be out there, Cheney not withstanding.
Posted by Diveguy7317
11th May 2010
-1 Votes
+ -
RE: Why BP is fighting the blowout alone
Cheney left Haliburton a decade ago. What, exactly, would he have to do with something Haliburton did last year?

Politicize much?
Posted by sullivanjc
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
WHAT IS BP? (from Wikepedia)

BP means "BRITISH PETROLEUM"

BP plc (formerly known as British Petroleum) is a British global energy company that is also the third largest global energy company and the 4th largest company in the world. As a multinational oil company ("oil major") BP is the UK's largest corporation, with its headquarters in St James's, City of Westminster, London.[2][3][4] BP America's headquarters is in the Two Westlake Park in the Energy Corridor area of Houston. The company is among the largest private sector energy corporations in the world, and one of the six "supermajors" (vertically integrated private sector oil exploration, natural gas, and petroleum product marketing companies).[5] The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company has been convicted of two felonies for environmental crimes, including one felony for which BP pleaded guilty in connection with the Texas City refinery explosion in 2005 that caused 15 deaths, injured 180 people, and forced thousands of nearby residents to remain sheltered in their homes.[6]
Posted by lion of paradise
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
Perhaps Obama's government will now stop allowing the oil
companies to write their own rules. Time for the government to step
up to the plate and re-write the rules to prevent risky endeavors.
Posted by cochraness
11th May 2010
+1 Vote
+ -
It's like flying in an airplane ...
The odds of getting killed in an accident are extremely low but when one occurs 400 people die together.

In a car, the odds of an accident are much, much greater but four people die, not 400.

Yes, these events are exceedingly rare and the cost/benefit is extremely attractive, but the impact of the failure of a "failsafe" mechanism can be exceedingly large. (Ever see that movie? Failsafe. It almost happened in 1973!)

Risk management is extremely important and yet, when the economy turns sour, risk management get forgotten about.
Posted by mwagner@...
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
Agreed. Cheney has next to nothing, if anything, to do with this.

Like the old line, "You never get a second chance to make a first impression," you also "don't know what you don't know." The technology to deal with this kind of problem, to this extent, has never before been tested... or needed. Want to assign blame? Span the industry--look to the bean counters who weighed the 'potential losses' v. 'guaranteed savings' and convinced management to accept the risks.

I have no doubt there's a small legion of engineers and scientists who knew full well what could transpire, and whose voices were ignored, all for the money.
Posted by kmp612
11th May 2010
+1 Vote
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Sticks and stones...
... and maybe BP is going it alone because they had unwanted help coming undone.
Posted by Gaius_Maximus
11th May 2010
+1 Vote
+ -
Robinhood's Barn
Yes, you folks just cannot stand to move on and take responsibility for your own voted in administration. The line that tweaked my fanny was "and the fires that hit Kuwait in the wake of the 1991 Gulf War." The fires did not "hit" Kuwait they were set by a terrorist supporting government, Iraq. Hello, add a little reality, honesty, and personal responsibility to your reporting particularly when this happened on your man's watch.
Posted by MikeBytes@...
11th May 2010
-1 Votes
+ -
BP not alone
BP is taking the greater hit for this fiasco but there are others who are involved with cleanup ranging from the local fishermen to inmates to military/coast guard. BP is blaming the manufacturer for the failure of the blowout preventer, the manufacturer is stating that they only followed BPs orders.

This problem is going beyond politics. The challenge for the oil industry is to bring the oil leak under control and then prove that further drilling can be done safely and with due respect to the environment. It also sounds like there is a couple of federal departments that will need to change their proceedures to be more cautious.

I am impressed that oil platforms can drill a deep well under one mile of sea water, that they were able to lower the dome onto one of the oil leaks with great precision. I am disappointed that BP and everyone involved for pointing fingers at everyone else.

There will need to be a better plan for the next worst case scenario to prevent another rare occurrance of a problem. We need an intact enviroment more than we need the amount of oil we would burn up in less than a week at current usage.
Posted by sboverie
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
Where are the experts?

in undersea oil blowouts, there are no experts. Red Adair and others worked on oil wells and blowouts on land, not deep underwater.

Why does Obama's name even come up in people assigning blame? Obama assumed office in January 2009, BP filed the 52 page plan for the spill in February 2009, do you think Obama had already made a drastic policy change to allow drilling in new areas by then?
The policies allowing drilling there came from the Bush Administration.
Posted by kevinrs1
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
to stop the oil from gushing out of the gulf floor bottom .is not with a dome cap there is to much presure in it .a dome with out a lid on it to slide over the pipe or a collar over it . bult on or weld it on first an than these hydraulics fingers can come down over the top of the collar or dome
Posted by john k voyles
11th May 2010
+1 Vote
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RE: Why BP is fighting the blowout alone
Just prior to the weel explosion, BP received permission - against subcontractor Halliburton's oin-site manager's advice - from the Feds to perform an unusual out of sequence process to open the well. Study that, Batman.

Cheney's fault? What a bunch of ignorant geeks you are. Don't let the facts get in the way.
Posted by williamharper@...
12th May 2010
+1 Vote
+ -
RE: Why BP is fighting the blowout alone
Just prior to the well explosion, BP received permission - against subcontractor Halliburton's oin-site manager's advice - from the Feds to perform an unusual out-of-sequence process to open the well. Study that, Batman.

Cheney's fault? What a bunch of ignorant geeks you are. Don't let the facts get in the way.
Posted by williamharper@...
12th May 2010
+1 Vote
+ -
kevinrs1
If you look at Red Adair's biography one of the big events in his life
was putting out a blowout in the North Sea. Last time I checked the
North Sea was water. (But if the blow-out was at the top of the pipe,
over the water line, then I stand corrected.)
Posted by DanaBlankenhorn
12th May 2010
+1 Vote
+ -
Cheney's Fault
I think the more important point is he may have expertise or
contacts within the industry that can be brought to bear, and
bringing him in at this time would be a sign of bipartisanship that
might reassure the nation.

It's also well known that while Vice President Cheney helped move
a lot of contracts Halliburton's way. The idea he has no influence
there, still, is silly.

And as I noted Halliburton now owns the Red Adair guys. I think
we need to hear from them, and Cheney can probably make that
happen.

Let's not make the point more political than it is.
Posted by DanaBlankenhorn
12th May 2010
+1 Vote
+ -
RE: Why BP is fighting the blowout alone
Okay, everybody's got an axe to grind. But the bad decisions are part of a long chain that streches back decades, and through dem's and republicans. We need to pull together and come up with some ideas. Oh, by the way did you know that BP just shut down BP Solarex in Frederick, Md. The only solarpanel manufacturing company in the world that used to make solar panels at profit, without subsides. (thats my axe.)
Posted by garyfizer@...
13th May 2010
+1 Vote
+ -
Red Adair in Kuwait?
If memory serves me right, Some Canadians from Alberta had half the Kuwait oil fires out & shut off before Red Adair even got off his butt.
Posted by inkwell
17th May 2010
+1 Vote
+ -
About BP's Environmental Record & Cheney's Political History
BP had reportedly neglected testing and maintenance on distribution equipment in Alaska where a massive oil spill occurred in Prudhoe Bay. The fine for that spill was chump change and I'm unsure of the restoration progress but the Deepwater Horizon disaster will likely be another matter.
Cheney has bounced between politics and other work for decades but mostly politics. The Halliburton corporate post was likely due to connections made during his tenure as Secretary of Defense. It's amazing how the man has managed to avoid prison and astounding that he was voted to the Vice-Presidency.
http://www.salon.com/news/feature/2004/07/21/halliburton
http://www.commondreams.org/views03/0403-10.htm
http://www.costanzo.org/Rex/Commentary/cheney_halliburton_circle.htm
Posted by donnydo77@...
20th May 2010
+1 Vote
+ -
RE: Why BP is fighting the blowout alone
Nonsense! There are still firefighting companies such as Wild Well Control Inc.

http://www.wildwell.com/index.php?page=about-us

Next time do some research before spewing your rhetoric on the net!

CServeGuy
Posted by cserveguy
22nd May 2010
+1 Vote
+ -
RE: Why BP is fighting the blowout alone
We are now more than one month into one of the worst oil-related disasters the US has ever suffered. That this blowout is still uncontrolled reflects BP's (and probably the entire industry's) lack of preparation for a deep-sea blowout. But on the ocean floor, so far undiscussed, is the Blow-Out Preventor that failed to operate automatically due to a dead battery and a hydralic leak. Is this device without manual activation capability? Can the battery be circumvented, the hydralic leak repaired and the BOP activated from specially modified deep sea bathyspheres? Or does BP want to avoid cutting off the well with the BOP, choosing instead to allow the well to gush uncontrollably into the Gulf waters and anticipating both regaining control of the current wellhead and paying for the cleanup from the proceeds from the existing well? I have not heard these questions being asked. At the very least, I have not heard convincing answers why the BOP could not be reactivated.

Puzzled physicist
Posted by rybskip@...
23rd May 2010
+1 Vote
+ -
True, What Is Convincing When This Is All New & Wasn't Supposed to Happen?
From what I've heard from reliable radio sources, the next actions include relief wells to reduce overall pressure in each area while another manifold riser will be put ontop of the gusher. That is why BP said the flow will increase until each well is tapped and the riser manifold is connected with piping in order to eliminate the spills while enabling extraction.
It is easy to access some press releases direct from BP or other info sources for more detail. From what I've heard there is no action on the BOP unless they want to recover it for reuse elsewhere but it doesn't appear to be an integral part of the current plan.
I hope that something soon works to stem the flow but the battle to prevent littoral contamination and environmental recovery is just as critical as determining the eventual effects from the
plume(s) and dispersant. I'm considering heading out that way to contribute to the recovery and monitor ecosystem health during restoration. It will likely be a life-changing decision but this is a very serious matter so I have began to pull up roots from San Diego. I don't know what organization or where I will be working yet but they will be getting all that I have to give. Peace.
Posted by donnydo77@...
31st May 2010
+1 Vote
+ -
Red Adair and Ekofisk
Just a clarification about the blow-out that Red Adair got under control in the North Sea.
>(But if the blow-out was at the top of the pipe, over
>the water line, then I stand corrected.)

It was in the Ekofisk field. The well riser was still in
place - the oil was gushing from a pipe above sea level.
Posted by frogspawn
8th Jun 2010
+1 Vote
+ -
RE: Why BP is fighting the blowout alone
Too much focus has been put on failure of the BOP.

Blaming the BOP for this blow-out is like blaming
drunken car smash injuries on faulty seat belts.

It's an axiom of well engineering that there must be
two barriers in place when practicable. At the time of
the blow-out these seem to have been a deep set
cemented plug, and a suitably weighted column of mud.

What happened to them? Or rather, as soon as they
started to displace the mud, the pressure went up,
which could only mean that the deep set plug was
failing. Why then did they remove the second barrier?

There should have been a choke manifold on the well
side of the rig, and an isolating valve between the choke
and the rig. When the pressure went up on the rig side
of the choke, why didn't the isolating valve shut?

Re sea-bed acoustic couplers. Given the non-functional
state of the BOP, these would have achieved nothing.
But given that the BOP was functional, it would have shut
in when the riser failed ... BOPs are kept open on hydraulic
pressure, and shut when hydraulic pressure is lost. This
can be either deliberate - someone dumps the pressure,
or automatic - say, when a riser fails and the hydraulic line shears.

The duty for provision of a suitable well control rests with the
well operator. They usually discharge this by employing a
suitable person to provide it, and satisfy themselves that all
is at it should be by witnessing functional tests prior to
depoloyment. What tests did BP witness?
Posted by frogspawn
8th Jun 2010
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