Deepwater Drilling Moratorium Version 2.0 July 14, 2010Posted by Jamie Friedland in Offshore Drilling, Politics.
Tags: Bob Graham, BP, Deepwater Horizon, Drilling Moratorium, Exxon, Gulf of Mexico, Ken Salazar, Martin Feldman, Offshore Drilling, Oil Spill, Rex Tillerson
Last month, as most of you know, the Obama administration’s first deepwater drilling moratorium in response to the ongoing BP oil spill was overturned in a logically unsound and ostensibly political decision by U.S. District Judge Martin Feldman.
This week, Secretary of the Interior Ken Salazar announced a second moratorium on new deepwater drilling in the Gulf of Mexico through November 30th. It is designed to address the “concerns” raised by Judge Feldman (download here).
I have said this before, but it must be repeated in any discussion of a deepwater drilling moratorium:
-Fact: We do not yet know what caused the blowout that sank the Deepwater Horizon rig.
-Fact: We do not have adequate prevention or containment methods for a deepwater blowout, so a massive oil spill is guaranteed if a blowout occurs.
-Fact: A massive oil spill is unacceptably destructive.
-Conclusion: Deepwater drilling must be halted AT LEAST until we know how to prevent and/or recover from deepwater blowouts.
This, in and of itself, ought to sufficiently justify a moratorium. However, without addressing this issue, Judge Feldman somehow found the following items troubling enough to take the extreme measure of overturning the moratorium:
The original moratorium alluded to but did not explicitly describe the devastation caused by deepwater blowouts. Judge Feldman did not think the moratorium followed logically from the 30-day safety report on which it was based.
The original moratorium covered oil rigs drilling in more than 500 feet of water. Judge Feldman felt this depth-based cutoff was arbitrary (it’s not – in Feldman’s own words, it is “undisputed” that to drill beneath that depth, floating rigs are required to conduct the more dangerous, deepwater drilling).
The oil industry has also cited a bogus job-loss argument that I refuted in my original defense of such a drilling moratorium. Yes, temporarily halting drilling does temporary reduce the number of drilling jobs available. But when one considers the job loss beyond the oil industry as a result of oil spills (in nature-driven sectors such as fishing and tourism), it is clear that oil spills destroy far more jobs than a temporary halt in drilling.
This new moratorium addresses Judge Feldman’s stated concerns.
First, it essentially makes the case I have made above: it cites the oil industry’s inability to identify the cause of and thus prevent another blowout of this type. It catalogues the utter inadequacy of every oil company’s cleanup and containment procedures in the event of a deepwater blowout. It spells out what the rest of us already know.
Second, it removes the depth-based determination of which wells must halt their drilling. Instead, this moratorium applies only to oil rigs “using subsea blowout preventers (BOPs) or surface BOPs on a floating facility” regardless of depth.
In regard to the scope of the moratorium, this different language appears mainly to address Feldman’s flimsy yet prohibitive criticisms of the original moratorium; it seems that the moratorium will still apply to the same 30 or so deepwater rigs currently in the Gulf.
It is true that BP was operating its rigs more recklessly than others in the oil industry. Interestingly enough, one oil industry group (that usually spends its resources on important things like funding climate denial) has turned its guns inward on BP as the rest of the industry tries to distance itself from BP. They released the graphic below detailing BP’s shortcomings:
But even the oil industry conceded during Congressional testimony that the risks of deepwater drilling cannot be avoided:
“When these things happen, we are not very well equipped to deal with them, and that’s why the emphasis is always on preventing these things from occurring.” -Exxon CEO Rex Tillerson
For the first time in my life, I agree with Rex; that, in one sentence, explains why the drilling moratorium is in place.
Some members of the presidential commission investigating the oil spill have concerns about the economic impacts of the moratorium and have changed their minds to oppose it. However, until I hear a response to the three facts and conclusion laid out at the beginning of this post, I will support a moratorium.
Commission co-chairman Bob Graham compared the situation to Boeing’s treatment of its fleet when a defect was discovered in the cockpit glass of 1,200 planes. “They didn’t wait until all 1,200 had been examined to release the first one,” he said. He feels that because there are only 36 or so rigs in question, we should simply be able to inspect each one, and allow them to continue drilling if and as soon as they pass inspection.
This is not an analogous situation. The Boeing technicians knew what they were looking for; we don’t. Until you have diagnosed a problem, you cannot fix it. An inconclusive doctor’s visit does not ipso facto cure an undiagnosed disease.
Until we know what happened, a drilling moratorium is the right move. That’s why the European Union’s top energy minister has called for a similar moratorium on deepwater drilling as well – pending the results of an investigation of the Deepwater Horizon accident.
We cannot skimp on safety precautions just because the oil industry has a stranglehold on the Gulf economy. Whatever economic losses may accompany a halt in drilling are still BP’s fault. If BP is compensating fishermen who not work as a result of their recklessness, they should be compensating their own employees who cannot work because of their recklessness.
The oil industry is using its drilling jobs as leverage to threaten us into prematurely lifting our moratorium. It is perverse to cave to their demands before we have even stopped this ongoing catastrophe.
Check out this post at Grist that gives some scale to the cleanup effort.