  Yellowstone River Spill Raises Pipeline Safety ConcernsBefore it was shut off, the burst pipe spilled as much as 1,000 barrels of crude oil - more than 160,000 liters- into the river, just downstream from famed Yellowstone National Park. High-water conditions on the Yellowstone River make damage assessments risky, according to Claire Hassett, spokesperson for Exxon Mobil. “What we have learned so far has been hindered by the rapid flow of the river right now. It’s at historic water levels. It’s very turbulent.” The river is at flood stage, overflowing riverbanks and moving fast, carrying oil as much as 24 kilometers downstream into marshes, fields and yards.“And we did that," she says. "We conducted the same assessment that we conduct on all pipelines within our operation and we determined that it was safe to operate and again we don’t know what caused this leak so it would be premature to say the two are related.” The accident comes at a time of rising concern over oil and gas-pipeline safety across the United States. |
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
2011-07-06
Yellowstone River Oil Spill Raises Concerns For Pipeline Safety
2011-06-23
Oil from Emergency Reserves - USA to Release
US to Release Oil from Emergency Reserves - June 23, 2011
The Obama administration announced Thursday that it is releasing 30 million barrels of oil from the United States’ emergency reserve to offset production lost because of the fighting in Libya. The U.S. oil will be about half of a 60 million barrel international release.
The United States and the other member nations of the International Energy Agency, or IEA, are trying to head off a resurgence in petroleum prices.
White House officials say more than 140 million barrels of oil production have been lost since the fighting in Libya started earlier this year.
Although oil prices have been falling in recent weeks, White House Press Secretary Jay Carney told reporters that the release of the reserve oil has been discussed for some time. He said the disruption in oil supplies is as real today as it was several weeks ago.
“This is a move by the IEA, which is a 28-member organization, in a coordinated way to address a sustained, significant disruption in our oil supply, caused by the events in Libya," said Carney.
The president’s spokesman said the administration does not predict prices. But President Barack Obama has been under political pressure because of higher gasoline prices and their effect on economic growth.
Republican John Boehner, the Speaker of the House of Representatives, accused the president of using a national security instrument to address his domestic political problems.
In a written statement Thursday, Boehner instead called for a national energy policy which involves increased oil production.
Carney said the release of U.S. strategic oil reserves during the next 30 days is intended to increase market supplies as demand increases when Americans take their summer vacations.
“What we are addressing is an impact caused by a supply disruption," he said. "At this time, it is necessary to do it because we are about to enter into the season when demand is at its highest.”
Although the United States and the other 27 IEA countries reached the decision together, Democratic Representative Edward Markey said the release will protect the U.S. economy and put other oil producers on notice.
“We are an oil-consuming nation," said Markey. "But with today’s announcement, we are sending a message to OPEC [Organization of Petroleum Exporting Countries] and the oil-producing countries that we are not going to have our economy held hostage any longer.”
The U.S. Strategic Petroleum Reserve was established in the 1970s in response to the OPEC oil embargo. The reserve holds a record 727 million barrels of oil stored underground near the Gulf of Mexico coast.
Officials say President Obama is open to releasing more oil from U.S. reserves, but that he has not decided to do so.
The United States and the other member nations of the International Energy Agency, or IEA, are trying to head off a resurgence in petroleum prices.
White House officials say more than 140 million barrels of oil production have been lost since the fighting in Libya started earlier this year.
Although oil prices have been falling in recent weeks, White House Press Secretary Jay Carney told reporters that the release of the reserve oil has been discussed for some time. He said the disruption in oil supplies is as real today as it was several weeks ago.
“This is a move by the IEA, which is a 28-member organization, in a coordinated way to address a sustained, significant disruption in our oil supply, caused by the events in Libya," said Carney.
The president’s spokesman said the administration does not predict prices. But President Barack Obama has been under political pressure because of higher gasoline prices and their effect on economic growth.
Republican John Boehner, the Speaker of the House of Representatives, accused the president of using a national security instrument to address his domestic political problems.
In a written statement Thursday, Boehner instead called for a national energy policy which involves increased oil production.
Carney said the release of U.S. strategic oil reserves during the next 30 days is intended to increase market supplies as demand increases when Americans take their summer vacations.
“What we are addressing is an impact caused by a supply disruption," he said. "At this time, it is necessary to do it because we are about to enter into the season when demand is at its highest.”
Although the United States and the other 27 IEA countries reached the decision together, Democratic Representative Edward Markey said the release will protect the U.S. economy and put other oil producers on notice.
“We are an oil-consuming nation," said Markey. "But with today’s announcement, we are sending a message to OPEC [Organization of Petroleum Exporting Countries] and the oil-producing countries that we are not going to have our economy held hostage any longer.”
The U.S. Strategic Petroleum Reserve was established in the 1970s in response to the OPEC oil embargo. The reserve holds a record 727 million barrels of oil stored underground near the Gulf of Mexico coast.
Officials say President Obama is open to releasing more oil from U.S. reserves, but that he has not decided to do so.
Article from VOA
2011-03-20
High Oil Prices - Did you know Russia is the world’s biggest energy exporter?
Russia Gets Giant Boost from Rising Oil Prices
VOA - James Brooke | Moscow March 18, 2011
As much of the world reels from civil unrest and natural disasters, Russia is cashing in on high oil prices that may allow it eliminate its budget deficit in 2011.
Libya suspends oil exports. Political revolts put the Persian Gulf on edge. And Germany and Japan close one quarter of their nuclear reactors.
In today’s energy world, Russia seems to be the winner. Producing 11 percent of the world’s energy output, Russia is the world’s biggest energy exporter.
“This is a huge amount of energy - about five times more than Russia’s share of global GDP or population. This is the basic number,” said Leonid Grigoriev, who studies Russia’s energy economics at Moscow’s Higher School of Economics.
With prices expected to average over $100 a barrel this year, the oil bonanza is expected to erase Russia’s budget deficit this year.
This is timely for the Kremlin, which is handing out pay and pension raises as the nation starts an election cycle. The latest came Friday when President Dmitry Medvedev announced that salaries for soldiers will triple next January - just 10 weeks before election day.
Oil and gas pays for about 40 percent of Russia’s budget. Once prices rise over $27 a barrel, Russia’s Finance Ministry takes in 90 cents for each dollar.
”This is why the Russia depends so much on oil and on oil prices,” said Leonid Grigoriev. “And that’s why any turmoil in the world immediately brings money to the Ministry of Finance.”
Today, foreign currency reserves are growing at $100 million a week. By the end of March, Russia’s total reserves are to hit $500 billion - the world’s third largest, after China and Japan.
Now, economists are now raising Russia’s economic growth estimate for 2011 to five percent - the highest level since 2008, the year the economic crisis hit.
Higher oil earnings filter down to Russian consumers.
Last year, car sales and overseas travel jumped by one third. The equivalent of 10 percent of Russian took foreign vacations. Next year, Russia is to displace Germany as Europe’s largest car market. In February, Ford, GM and Volkwagen announced new joint ventures to produce more cars in Russia.
Russians spend now, because they are never certain about the future.
In one decade, the oil price gyrated wildly - from a low of $8 a barrel in 1998 to a peak of $147 in 2008.
Looking at the long term, analysts say Japan's nuclear crisis may benefit Russia by pushing the world energy pendulum away from nuclear toward natural gas. Germany imports almost half of its gas from Russia. Even before the crisis, Russia was investing to increase gas production by 50 percent over the next 20 years.
The downside is that high prices ease pressures to cut corruption, to diversify the economy and to lighten the hand of government on business.
Chris Weafer, chief strategist with Uralsib Capital, fears that the new flood of oil earnings is leading the Kremlin to slow its privatization program.
“We have seen it in the Gulf Arab countries. and we saw it in Russia in the last 10 years that as the oil price is rising governments talk about the need for reform and using the money wisely, but as the price goes up too high, the whole process slows down, people become complacent, they become lazy, they live the good life as it were, until the collapse comes,” he said. “And then then whole process starts again.”
In public opinion polls, corruption rivals food prices as the number one public complaint for Russians. According to Transparency International, Russia is the most corrupt of the Group of 20 major economies.
Last week in a speech in Moscow, U.S. Vice President Joe Biden clearly warned Russia that corruption scares away investors.
“No amount of government cheerleading or public relations or U.S. support or rebranding will bring wronged or nervous investors back to a market they perceive to have these shortcomings,” he said. “Only bold and genuine change.“
As Biden spoke, new economic data came in. Despite the oil price rises, despite the run up in the Russian stock markets, the country suffered a net loss in investment capital in February.
“Despite the stock market and despite the oil prices, people are still very skeptical that there is going to be material change in Russia,” said strategist Chris Weafer. “Right now, they are voting with their wire transfers."
Another cloud on Russia’s horizon is demographic. Over this decade, the Russian workforce is expected to shrink by 10 million people, or 15 percent.
Solutions are not popular: raising the retirement age, increasing immigration, and raising productivity through more foreign investment. And those measures will not be taken until after Russia’s presidential election - one year from now.
Russia Gets Giant Boost from Rising Oil Prices
Article from VOA
VOA - James Brooke | Moscow March 18, 2011
As much of the world reels from civil unrest and natural disasters, Russia is cashing in on high oil prices that may allow it eliminate its budget deficit in 2011.
Libya suspends oil exports. Political revolts put the Persian Gulf on edge. And Germany and Japan close one quarter of their nuclear reactors.
In today’s energy world, Russia seems to be the winner. Producing 11 percent of the world’s energy output, Russia is the world’s biggest energy exporter.
“This is a huge amount of energy - about five times more than Russia’s share of global GDP or population. This is the basic number,” said Leonid Grigoriev, who studies Russia’s energy economics at Moscow’s Higher School of Economics.
With prices expected to average over $100 a barrel this year, the oil bonanza is expected to erase Russia’s budget deficit this year.
This is timely for the Kremlin, which is handing out pay and pension raises as the nation starts an election cycle. The latest came Friday when President Dmitry Medvedev announced that salaries for soldiers will triple next January - just 10 weeks before election day.
Oil and gas pays for about 40 percent of Russia’s budget. Once prices rise over $27 a barrel, Russia’s Finance Ministry takes in 90 cents for each dollar.
”This is why the Russia depends so much on oil and on oil prices,” said Leonid Grigoriev. “And that’s why any turmoil in the world immediately brings money to the Ministry of Finance.”
Today, foreign currency reserves are growing at $100 million a week. By the end of March, Russia’s total reserves are to hit $500 billion - the world’s third largest, after China and Japan.
Now, economists are now raising Russia’s economic growth estimate for 2011 to five percent - the highest level since 2008, the year the economic crisis hit.
Higher oil earnings filter down to Russian consumers.
Last year, car sales and overseas travel jumped by one third. The equivalent of 10 percent of Russian took foreign vacations. Next year, Russia is to displace Germany as Europe’s largest car market. In February, Ford, GM and Volkwagen announced new joint ventures to produce more cars in Russia.
Russians spend now, because they are never certain about the future.
In one decade, the oil price gyrated wildly - from a low of $8 a barrel in 1998 to a peak of $147 in 2008.
Looking at the long term, analysts say Japan's nuclear crisis may benefit Russia by pushing the world energy pendulum away from nuclear toward natural gas. Germany imports almost half of its gas from Russia. Even before the crisis, Russia was investing to increase gas production by 50 percent over the next 20 years.
The downside is that high prices ease pressures to cut corruption, to diversify the economy and to lighten the hand of government on business.
Chris Weafer, chief strategist with Uralsib Capital, fears that the new flood of oil earnings is leading the Kremlin to slow its privatization program.
“We have seen it in the Gulf Arab countries. and we saw it in Russia in the last 10 years that as the oil price is rising governments talk about the need for reform and using the money wisely, but as the price goes up too high, the whole process slows down, people become complacent, they become lazy, they live the good life as it were, until the collapse comes,” he said. “And then then whole process starts again.”
In public opinion polls, corruption rivals food prices as the number one public complaint for Russians. According to Transparency International, Russia is the most corrupt of the Group of 20 major economies.
Last week in a speech in Moscow, U.S. Vice President Joe Biden clearly warned Russia that corruption scares away investors.
“No amount of government cheerleading or public relations or U.S. support or rebranding will bring wronged or nervous investors back to a market they perceive to have these shortcomings,” he said. “Only bold and genuine change.“
As Biden spoke, new economic data came in. Despite the oil price rises, despite the run up in the Russian stock markets, the country suffered a net loss in investment capital in February.
“Despite the stock market and despite the oil prices, people are still very skeptical that there is going to be material change in Russia,” said strategist Chris Weafer. “Right now, they are voting with their wire transfers."
Another cloud on Russia’s horizon is demographic. Over this decade, the Russian workforce is expected to shrink by 10 million people, or 15 percent.
Solutions are not popular: raising the retirement age, increasing immigration, and raising productivity through more foreign investment. And those measures will not be taken until after Russia’s presidential election - one year from now.
Russia Gets Giant Boost from Rising Oil Prices
Article from VOA
2011-03-10
Oil - What will the future bring?
Will Political Turmoil Collapse the Old Oil Order?
VOA - Joe DeCapua March 09, 2011
The political turmoil in the Arab world may not only lead to much higher oil prices, but greater competition for resources and a shift in priorities for oil-producing nations. So says the author of Rising Powers, Shrinking Planet.
What’s happening in North Africa and the Middle East, says Michael Klare, is the collapse of what he calls the “Old Oil Order.”
“The old oil order, as I see it, is a network, a constellation of governments in the region, largely authoritarian, that were devoted to producing oil and making it available for sale to international markets. And these governments were supported to a great deal by the United States and the West, not all of them, but most of them, because these governments favored the international market – the trade in oil,” he says.
Klare is a professor of peace and world security studies at Hampshire College in Amherst, Massachusetts. He says some cracks were seen in the old oil order over the years in such countries as Iran and Iraq.
Now what?
The new oil order that’s emerging, he says, will cater less to Western desires.
“I think it’ll look a lot like Venezuela, in some cases, where (President) Hugo Chavez rules the state oil company, PDVSA, and uses the money for social purposes and political purposes in his country and to promote what he sees as the welfare of his people. And he’s not very interested in improving the capacity, the efficiency of the company. So, Venezuela’s oil production has fallen since he’s been in power,” he says.
He says any new governments that emerge in the Arab world, whatever their political orientation, will face “tremendous social and economic challenges.” Those challenges will arise from growing populations and high unemployment.
“Their priority is going to be to use their money from oil production to improve employment, not to feed the thirst for oil in the rest of the world,” he says.
Pumped up price at the pump
Klare says, “With the demise of the old oil order, we will see the end of cheap petroleum forever.” That means much higher fuel prices. How high? That depends on Saudi Arabia.
“Saudi Arabia,” he says, “is the linchpin of the global oil order because it has the world’s largest reserves. It is the largest supplier of oil to international markets and it has the largest spare capacity – the ability to ramp up production in times of crisis like you have today. So, as long as Saudi Arabia remains stable and keeps producing, I think oil won’t go beyond the record it set in 2008 of about $140-$150 a barrel.”
But, he says, if Saudi Arabia goes the way of Egypt, Tunisia and Libya, then there are no limits to how high the price of oil could go.
“$200 a barrel wouldn’t surprise me,” says Klare.
That could mean gasoline costing at least $5 a gallon here in the United States. He says tapping the U.S. Strategic Oil Reserve to hold down gasoline prices would only have a temporary effect. One thing, he says, that could cause oil prices to drop suddenly is another global economic crisis like the one in 2008.
What's food got to do with it?
The professor of peace and world security studies says it’s important to remember that oil and food prices are intertwined. And that prior to the economic crisis, a food crisis gripped the world.
“While the price of oil is rising, we have also seen a huge surge in the price of food, partly because oil is so expensive. When oil rises, the price of food rises. And it’s been the high price of food that triggered many of the uprisings, first in Algeria, then in Tunisia and Jordan and in some of the other cases. And the price of food continues to rise, too. And I expect that we’ll see more uprisings about food. And I fear that there’ll be more of this in the future because of global climate change,” he says.
Climate change has been blamed for many droughts and floods, both of which destroy agricultural land.
Klare says the 21st Century brings greater competition for food, fuel and water among the western powers, as well as India, Russia and China. Sub-Saharan African oil producing nations, such as Angola and Nigeria, he says, will be pressured to solve domestic problems, while trying to meeting growing demand for oil.
Klare says the world must develop some type of new energy system soon, not only to meet greater demand, but to deal with climate change, as well.
Will Political Turmoil Collapse the Old Oil Order?
Article from VOA
VOA - Joe DeCapua March 09, 2011
The political turmoil in the Arab world may not only lead to much higher oil prices, but greater competition for resources and a shift in priorities for oil-producing nations. So says the author of Rising Powers, Shrinking Planet.
What’s happening in North Africa and the Middle East, says Michael Klare, is the collapse of what he calls the “Old Oil Order.”
“The old oil order, as I see it, is a network, a constellation of governments in the region, largely authoritarian, that were devoted to producing oil and making it available for sale to international markets. And these governments were supported to a great deal by the United States and the West, not all of them, but most of them, because these governments favored the international market – the trade in oil,” he says.
Klare is a professor of peace and world security studies at Hampshire College in Amherst, Massachusetts. He says some cracks were seen in the old oil order over the years in such countries as Iran and Iraq.
Now what?
The new oil order that’s emerging, he says, will cater less to Western desires.
“I think it’ll look a lot like Venezuela, in some cases, where (President) Hugo Chavez rules the state oil company, PDVSA, and uses the money for social purposes and political purposes in his country and to promote what he sees as the welfare of his people. And he’s not very interested in improving the capacity, the efficiency of the company. So, Venezuela’s oil production has fallen since he’s been in power,” he says.
He says any new governments that emerge in the Arab world, whatever their political orientation, will face “tremendous social and economic challenges.” Those challenges will arise from growing populations and high unemployment.
“Their priority is going to be to use their money from oil production to improve employment, not to feed the thirst for oil in the rest of the world,” he says.
Pumped up price at the pump
Klare says, “With the demise of the old oil order, we will see the end of cheap petroleum forever.” That means much higher fuel prices. How high? That depends on Saudi Arabia.
“Saudi Arabia,” he says, “is the linchpin of the global oil order because it has the world’s largest reserves. It is the largest supplier of oil to international markets and it has the largest spare capacity – the ability to ramp up production in times of crisis like you have today. So, as long as Saudi Arabia remains stable and keeps producing, I think oil won’t go beyond the record it set in 2008 of about $140-$150 a barrel.”
But, he says, if Saudi Arabia goes the way of Egypt, Tunisia and Libya, then there are no limits to how high the price of oil could go.
“$200 a barrel wouldn’t surprise me,” says Klare.
That could mean gasoline costing at least $5 a gallon here in the United States. He says tapping the U.S. Strategic Oil Reserve to hold down gasoline prices would only have a temporary effect. One thing, he says, that could cause oil prices to drop suddenly is another global economic crisis like the one in 2008.
What's food got to do with it?
The professor of peace and world security studies says it’s important to remember that oil and food prices are intertwined. And that prior to the economic crisis, a food crisis gripped the world.
“While the price of oil is rising, we have also seen a huge surge in the price of food, partly because oil is so expensive. When oil rises, the price of food rises. And it’s been the high price of food that triggered many of the uprisings, first in Algeria, then in Tunisia and Jordan and in some of the other cases. And the price of food continues to rise, too. And I expect that we’ll see more uprisings about food. And I fear that there’ll be more of this in the future because of global climate change,” he says.
Climate change has been blamed for many droughts and floods, both of which destroy agricultural land.
Klare says the 21st Century brings greater competition for food, fuel and water among the western powers, as well as India, Russia and China. Sub-Saharan African oil producing nations, such as Angola and Nigeria, he says, will be pressured to solve domestic problems, while trying to meeting growing demand for oil.
Klare says the world must develop some type of new energy system soon, not only to meet greater demand, but to deal with climate change, as well.
Will Political Turmoil Collapse the Old Oil Order?
Article from VOA
2011-03-09
Airline Fares - Airlines around the world are quickly boosting their fares to keep pace with higher jet fuel costs.
As Oil Prices Surge, So Do Airfares
VOA March 05, 2011
As the price of oil has surged because of the unrest in the Middle East, so have airline fares.
Airlines around the world are quickly boosting their fares to keep pace with higher jet fuel costs, which account for 30 percent of the carriers' operation expenses. The price of oil has risen sharply as the turmoil in oil-producing states like Libya has traders worried that the world's daily flow of oil will be diminished.
Some U.S. air carriers have already raised fares six times this year, topping the four price hikes for all of last year. Now, U.S. business travelers are paying about $100 more per round trip than a year ago, while fares for leisure travelers are up by $40 to $60. U.S. airlines have also boosted fuel surcharges on overseas flights to Paris, Frankfurt and other European destinations from $360 to $400.
Chinese airlines have also increased their fuel surcharges for passengers, as have airlines in the Ukraine, Britain and Canada.
Even as air carriers increase their fares, the airline industry says its profits will erode this year. The industry's main trade group (the International Air Transport Association) says airlines overall had net profits of $16 billion in 2010. But now the industry is predicting that with the higher fuel costs the figure will fall 46 percent this year to $8.6 billion.
Some airlines have been able to limit airfare increases because they bought jet fuel at cheaper prices, before the recent jump in oil prices that now have reached $115 a barrel for crude oil on the London market and more than $104 in New York.
But the industry says that for each dollar more for a barrel of oil it has to pay, the airlines' costs increase by $1.6 billion.
As Oil Prices Surge, So Do Airfares
Article from VOA
VOA March 05, 2011
As the price of oil has surged because of the unrest in the Middle East, so have airline fares.
Airlines around the world are quickly boosting their fares to keep pace with higher jet fuel costs, which account for 30 percent of the carriers' operation expenses. The price of oil has risen sharply as the turmoil in oil-producing states like Libya has traders worried that the world's daily flow of oil will be diminished.
Some U.S. air carriers have already raised fares six times this year, topping the four price hikes for all of last year. Now, U.S. business travelers are paying about $100 more per round trip than a year ago, while fares for leisure travelers are up by $40 to $60. U.S. airlines have also boosted fuel surcharges on overseas flights to Paris, Frankfurt and other European destinations from $360 to $400.
Chinese airlines have also increased their fuel surcharges for passengers, as have airlines in the Ukraine, Britain and Canada.
Even as air carriers increase their fares, the airline industry says its profits will erode this year. The industry's main trade group (the International Air Transport Association) says airlines overall had net profits of $16 billion in 2010. But now the industry is predicting that with the higher fuel costs the figure will fall 46 percent this year to $8.6 billion.
Some airlines have been able to limit airfare increases because they bought jet fuel at cheaper prices, before the recent jump in oil prices that now have reached $115 a barrel for crude oil on the London market and more than $104 in New York.
But the industry says that for each dollar more for a barrel of oil it has to pay, the airlines' costs increase by $1.6 billion.
As Oil Prices Surge, So Do Airfares
Article from VOA
2011-02-24
Oil Prices Up - Revolt in Libya
Oil Prices Surge on Libya Upheaval
Grainy YouTube video shows no letup in the popular but deadly uprising against Libyan leader Moammar Gadhafi. Critics vow to continue their protests despite Gadhafi's threat to crush the revolt.
With neither side willing to back down, international traders are increasingly on edge - driving up oil prices to their highest level in more than two years. Energy analyst Fadel Gheit says fear of the unknown is fueling the dramatic price hikes.
"What the market is anticipating is the next step. If the situation does not come to a halt in Libya I think the market will be very jittery and oil prices will continue to remain inflated," Gheit said.
Although there is currently no shortage to justify higher prices, the immediate threat is from instability in markets that depend on Libyan oil.
Ian Lesser was an adviser on North Africa in the Clinton administration. "We don't import that much oil from Libya, but we have a stake in the effect of a loss of Libyan supply on the stability of global energy markets," he said. "And some of our European allies import a lot of energy from Libya."
Energy trader Will Hedden says that instability, coupled with rising oil prices, is a dangerous mix in a fragile global economy. "And certainly if the price continues to rise and we see further problems, this isn't going to have a good effect at all and it will have the potential to derail the global recovery," Hedden stated.
As the violence escalates, at least four international oil companies operating in Libya have already announced production cutbacks.
But Hedden says there is no reason to panic just yet.
The International Energy Agency says the 12 nation cartel of petroleum exporting countries, which includes Libya, is prepared to increase production if needed.
"We know that Saudi Arabia has a large supply and the IAEA will mandate the members responsible to help increase supply," Hedden said.
Libya provides less than two percent of the world's oil supply or about 1.6 million barrels per day. But fears that the turmoil could spread to major oil producing countries has sent oil prices skyrocketing. Some investment groups warn oil prices could reach historic highs near $147 a barrel if the unrest continues.
Oil Prices Surge on Libya Upheaval
Article and video from VOAU.S. stocks dropped as Libya's violence sent oil prices up to $100. February 23, 2011.
2011-02-14
Amazon Region - Chevron Fined $8 Billion - Environmental News
Ecuadorian Court Fines Chevron $8 Billion in Environmental Case
Monday, February 14th, 2011 - VOA
A court in Ecuador has ruled against U.S.-based Chevron oil company in an environmental case that has been ongoing for about two decades.
The court Monday said Chevron was responsible for oil contamination in Ecuador's Amazon region and ordered the company to pay $8 billion in fines. Chevron rejected the ruling as “illegitimate” and said it would appeal the decision.
The lawsuit stems from damages sought on behalf of 30,000 Ecuadorians who live in the region. In the suit against Chevron, the plaintiffs said the company failed to clean up millions of gallons of polluted wastewater produced by its Texaco unit, which Chevron acquired in 2001. The plaintiffs accused Chevron of damaging the environment and their health while operating petroleum facilities.
Chevron denies the pollution charges and says Texaco carried out a $40-million cleanup when it ended operations in Ecuador.
Ecuadorian Court Fines Chevron $8 Billion in Environmental Case
Article from VOA
2011-01-09
Bacteria Devoured Methane From Gulf Oil Spill
Scientists Find Bacteria Devoured Methane From Gulf Oil Spill
Scientists monitoring levels of methane gas in the Gulf of Mexico following last year's Deepwater Horizon oil rig disaster say levels of the toxic biochemical compound have returned to normal. The methane was gobbled up by bacteria living in the Gulf waters in record time.
When BP's Deepwater Horizon offshore oil platform blew up last April in the Gulf of Mexico, it triggered a massive leakage of almost five million barrels of oil and the release of huge quantities of methane, a highly toxic hydrocarbon that's a constitutent of natural gas and is typically found packed together with oil and other hydrocarbons at drill sites.
But scientists say bacteria living in the warm Gulf waters consumed the methane, reducing it to normal, background levels in about four months, a record time that surprised researchers including John Kessler, a professor of chemical oceanography at Texas A&M University in College Station.
Kessler led a team of scientists conducting a study of methane levels in the Gulf of Mexico.
"Of what was emitted, natural gas was approximately 30 percent by weight of the material that was emitted," said Kessler. "And what we can say pretty conclusively at this point was that all of that natural gas, which includes methane, has been consumed at this point by microorganisms that live in the waters."
Kessler says that's not what scientists predicted last June, two months after the disaster, when their measurements showed large concentrations of methane molecules suspended in deep Gulf waters near the massive, flowing oil plume. Scientists figured it would probably take years for the methane to disappear.
Kessler says researchers found something unexpected on a second expedition in September to measure levels of the suspended hydrocarbon,
"Lo and behold we didn't get a time point we got an endpoint; that the methane had decomposed to near background levels," he said.
Four months after the spill, Kessler says the methane had dispersed over an area of just over one-million square kilometers.
Researchers sampling water from more than 200 locations found near normal levels of methane, a leading greenhouse gas. But tests conducted by scientists indicated little of it had been released into the atmosphere.
Instead, low oxygen levels in the water samples told the tale. Kessler explains that when some organisms eat, their oxygen levels go down.
"If methane just transitted to a different location, there would be a lack of methane but there would be normal levels of oxygen," said Kessler. "In fact, there was both a concurrent lack of methane and a reduction in oxygen. And when we summed up all of the oxygen lost from all of these 207 different stations, it came out to a number that was so large it could only be explained by the complete respiration of the emitted [spilled] methane."
Kessler says marine bacteria, which had been in fairly low concentrations within the first two months after the Deepwater Horizon disaster, suddenly bloomed, feeding on the methane.
Scientists say methane molecules are released in large volumes all of the time in nature, particularly along the sea floor through hydrocarbon seeps, hydrothermal vents and the decomposition of solid methane crystal deposits. But Kessler says the methane mop-up by microorganisms in the Gulf of Mexico is the fastest scientists have ever seen.
An article highlighting the role of bacteria in cleaning up the Gulf following the BP oil disaster is published this week in the journal Science.
When BP's Deepwater Horizon offshore oil platform blew up last April in the Gulf of Mexico, it triggered a massive leakage of almost five million barrels of oil and the release of huge quantities of methane, a highly toxic hydrocarbon that's a constitutent of natural gas and is typically found packed together with oil and other hydrocarbons at drill sites.
But scientists say bacteria living in the warm Gulf waters consumed the methane, reducing it to normal, background levels in about four months, a record time that surprised researchers including John Kessler, a professor of chemical oceanography at Texas A&M University in College Station.
Kessler led a team of scientists conducting a study of methane levels in the Gulf of Mexico.
"Of what was emitted, natural gas was approximately 30 percent by weight of the material that was emitted," said Kessler. "And what we can say pretty conclusively at this point was that all of that natural gas, which includes methane, has been consumed at this point by microorganisms that live in the waters."
Kessler says that's not what scientists predicted last June, two months after the disaster, when their measurements showed large concentrations of methane molecules suspended in deep Gulf waters near the massive, flowing oil plume. Scientists figured it would probably take years for the methane to disappear.
Kessler says researchers found something unexpected on a second expedition in September to measure levels of the suspended hydrocarbon,
"Lo and behold we didn't get a time point we got an endpoint; that the methane had decomposed to near background levels," he said.
Four months after the spill, Kessler says the methane had dispersed over an area of just over one-million square kilometers.
Researchers sampling water from more than 200 locations found near normal levels of methane, a leading greenhouse gas. But tests conducted by scientists indicated little of it had been released into the atmosphere.
Instead, low oxygen levels in the water samples told the tale. Kessler explains that when some organisms eat, their oxygen levels go down.
"If methane just transitted to a different location, there would be a lack of methane but there would be normal levels of oxygen," said Kessler. "In fact, there was both a concurrent lack of methane and a reduction in oxygen. And when we summed up all of the oxygen lost from all of these 207 different stations, it came out to a number that was so large it could only be explained by the complete respiration of the emitted [spilled] methane."
Kessler says marine bacteria, which had been in fairly low concentrations within the first two months after the Deepwater Horizon disaster, suddenly bloomed, feeding on the methane.
Scientists say methane molecules are released in large volumes all of the time in nature, particularly along the sea floor through hydrocarbon seeps, hydrothermal vents and the decomposition of solid methane crystal deposits. But Kessler says the methane mop-up by microorganisms in the Gulf of Mexico is the fastest scientists have ever seen.
An article highlighting the role of bacteria in cleaning up the Gulf following the BP oil disaster is published this week in the journal Science.
Scientists Find Bacteria Devoured Methane From Gulf Oil Spill article came from VOA.
Human Error in 2010 Gulf Oil Spill
Report Cites Human Error in 2010 Gulf Oil Spill
Gulf cleanup workers in close contact with crude oil, smoke fumes and dispersants have reported feeling ill, according to the author of a new report by the Center for American Progress.
The commission established by the White House last year to investigate the causes of the BP oil spill in the Gulf of Mexico says a series of mistakes by BP officials and others at the site led to the disaster. The report is likely to bolster efforts by the Obama administration to more tightly control offshore oil exploration and production.
In a report to be issued in full next week, the oil spill commission blamed cost-cutting decisions by BP as well as contractors Halliburton and Transocean for the April 20 explosion on the Deepwater Horizon drilling rig that killed 11 workers. The commission also criticizes government regulators for failing to properly monitor the operation at the Macondo site in the Gulf of Mexico and take action that might have prevented what became the worst oil spill in history.
The excerpt from the report released Wednesday contradicts a statement from the commission in November that found no evidence that project workers had made errors as a result of cost-cutting efforts. A chart produced by the commission outlines a number of decisions that were aimed at saving time and money, but also increased risks.
BP issued a statement saying it supports the commission in its work to determine the causes of the disaster. The statement reads, in part: "BP is working with regulators and the industry to ensure that the lessons learned from Macondo lead to improvements in operations."
But Halliburton, the company that carried out a cement job at the site prior to the accident released a statement criticizing the commission for selectively omitting information. The commission report blames Halliburton for pumping cement into the well before looking at test data to make sure it was stable.
Transocean, which owned the Deepwater Horizon rig, also issued a statement objecting to commission criticism of its worker training and said final decisions on site were made by BP, which was the lead company involved in the operation.
The conclusions of the White House commission released so far are consistent with previous comments by panel members and the conclusions drawn by an independent scientific panel that looked into the disaster last year.
Ken Arnold, a Houston-based consultant to the oil and gas industry and a member of the National Academy of Engineering, says what he has seen so far of the commission report indicates that a series of human errors led to the accident.
"There were many decisions made which were not correct decisions," said Arnold. "If any one of them had not been made then the disaster would not have occurred. It was a line up of a series of bad decisions."
Arnold says measures taken by the government to tighten regulation will help reduce the chance of such an accident happening again offshore, but he says the possibility of human error is something no one can completely eliminate.
"Most of them will have a positive effect on safety, but I don't think you can say that you can prevent a disaster of this type from ever happening again, any more than you can say that we will never have an airplane fall out of the sky again," he said.
Ken Arnold, who has worked in the oil and gas industry for 45 years, says the overall record of deepwater oil operations in the Gulf of Mexico and elsewhere has been outstanding, with few major spills. He says, efforts to reduce risk and increase regulation are already causing a slowdown in production that will force the United States to import more oil to meet its growing demand for energy.
"There will be a decrease in the amount of oil produced by the United States over what would have been produced if this had not occurred and the longer we go on with the current system of not approving permits, the bigger the decrease will be," said Arnold.
Arnold says the commission's call for improved government oversight of offshore operations is understandable, but he says most of the people involved should have experience in the industry. He says only people with experience in the field are prepared to deal with the complexities involved in this industry.
Since the spill, the Obama administration has implemented new regulations and taken steps to strengthen federal oversight of offshore energy operations.
In a report to be issued in full next week, the oil spill commission blamed cost-cutting decisions by BP as well as contractors Halliburton and Transocean for the April 20 explosion on the Deepwater Horizon drilling rig that killed 11 workers. The commission also criticizes government regulators for failing to properly monitor the operation at the Macondo site in the Gulf of Mexico and take action that might have prevented what became the worst oil spill in history.
The excerpt from the report released Wednesday contradicts a statement from the commission in November that found no evidence that project workers had made errors as a result of cost-cutting efforts. A chart produced by the commission outlines a number of decisions that were aimed at saving time and money, but also increased risks.
BP issued a statement saying it supports the commission in its work to determine the causes of the disaster. The statement reads, in part: "BP is working with regulators and the industry to ensure that the lessons learned from Macondo lead to improvements in operations."
But Halliburton, the company that carried out a cement job at the site prior to the accident released a statement criticizing the commission for selectively omitting information. The commission report blames Halliburton for pumping cement into the well before looking at test data to make sure it was stable.
Transocean, which owned the Deepwater Horizon rig, also issued a statement objecting to commission criticism of its worker training and said final decisions on site were made by BP, which was the lead company involved in the operation.
The conclusions of the White House commission released so far are consistent with previous comments by panel members and the conclusions drawn by an independent scientific panel that looked into the disaster last year.
Ken Arnold, a Houston-based consultant to the oil and gas industry and a member of the National Academy of Engineering, says what he has seen so far of the commission report indicates that a series of human errors led to the accident.
"There were many decisions made which were not correct decisions," said Arnold. "If any one of them had not been made then the disaster would not have occurred. It was a line up of a series of bad decisions."
Arnold says measures taken by the government to tighten regulation will help reduce the chance of such an accident happening again offshore, but he says the possibility of human error is something no one can completely eliminate.
"Most of them will have a positive effect on safety, but I don't think you can say that you can prevent a disaster of this type from ever happening again, any more than you can say that we will never have an airplane fall out of the sky again," he said.
Ken Arnold, who has worked in the oil and gas industry for 45 years, says the overall record of deepwater oil operations in the Gulf of Mexico and elsewhere has been outstanding, with few major spills. He says, efforts to reduce risk and increase regulation are already causing a slowdown in production that will force the United States to import more oil to meet its growing demand for energy.
"There will be a decrease in the amount of oil produced by the United States over what would have been produced if this had not occurred and the longer we go on with the current system of not approving permits, the bigger the decrease will be," said Arnold.
Arnold says the commission's call for improved government oversight of offshore operations is understandable, but he says most of the people involved should have experience in the industry. He says only people with experience in the field are prepared to deal with the complexities involved in this industry.
Since the spill, the Obama administration has implemented new regulations and taken steps to strengthen federal oversight of offshore energy operations.
Report Cites Human Error in 2010 Gulf Oil Spill article came from VOA.
2011-01-06
U.S. Oil Industry Pressures For More Offshore Drilling
US Oil Industry Pushes For Expansion of Offshore Drilling
The U.S. oil industry is seeking to pressure the Obama administration into reconsidering its decision to limit offshore drilling along U.S. coasts - a decision made following the BP oil spill disaster last year. A new study commissioned by the American Petroleum Institute says oil demand in the U.S. will grow by 50 percent by 2035. Without greater access to new offshore wells, the trade group says, U.S. dependence on foreign sources will grow. But, some argue the solution to America's energy independence is less oil, not more.
Despite efforts to reduce energy consumption and improve fuel efficiency, the American Petroleum Institute says America's appetite for oil is growing.
Jack Gerard, the president of the U.S. oil industry's largest trade group, says the solution is to expand offshore drilling - which in turn will create thousands of new jobs.
"Over the next three, four, five years, we have an opportunity to be a significant economic engine to help stimulate the recovery," said Gerard. "These are well-paying, highly sought-after jobs and again, what we need is the political will to provide the opportunities."
Gerard says opening up areas now off limits to development could create as many as 500,000 jobs by 2025 and generate $150 billion in government revenue.
He's urging lawmakers to set aside political differences and allow expanded drilling in the Gulf of Mexico, off the East Coast and in parts of Alaska.
But some insist that would be a step backwards.
Dan Weiss is director of climate strategy at the Center for American Progress.
"Where we ought to putting our emphasis is reducing our demand for oil," said Weiss. "That will be faster, cleaner and cheaper than dramatically expanding offshore oil drilling."
While the industry says it supports the development of alternative sources of energy, experts say it will be difficult - if not impossible - to completely eliminate America's addiction to oil. With demand skyrocketing in emerging economies, such as China, Gerard says delaying development of America's oil reserves now, will only send jobs elsewhere.
"The alternative to putting our own people back to work is to increase our reliance on other forms and sources of energy and we believe the best solution is to develop American energy for all Americans," he said.
Weiss is skeptical of the industry's job and revenue projections. He says dollar for dollar, there are more efficient ways to create jobs.
"When it comes to jobs, Investing a million dollars into clean energy like efficiency, solar or wind power would create four times as many jobs as investing that same million dollars into oil production," he said.
But with a new Republican majority in the U.S. House of Representatives, and crude oil prices hovering at a two-year high, analysts say there will be increased pressure on the Obama administration to expand domestic oil production.
Dan Weiss is director of climate strategy at the Center for American Progress.
"Where we ought to putting our emphasis is reducing our demand for oil," said Weiss. "That will be faster, cleaner and cheaper than dramatically expanding offshore oil drilling."
While the industry says it supports the development of alternative sources of energy, experts say it will be difficult - if not impossible - to completely eliminate America's addiction to oil. With demand skyrocketing in emerging economies, such as China, Gerard says delaying development of America's oil reserves now, will only send jobs elsewhere.
"The alternative to putting our own people back to work is to increase our reliance on other forms and sources of energy and we believe the best solution is to develop American energy for all Americans," he said.
Weiss is skeptical of the industry's job and revenue projections. He says dollar for dollar, there are more efficient ways to create jobs.
"When it comes to jobs, Investing a million dollars into clean energy like efficiency, solar or wind power would create four times as many jobs as investing that same million dollars into oil production," he said.
But with a new Republican majority in the U.S. House of Representatives, and crude oil prices hovering at a two-year high, analysts say there will be increased pressure on the Obama administration to expand domestic oil production.
US Oil Industry Pushes For Expansion of Offshore Drilling - article and video came from VOA.
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