Halliburton and BP knew weeks before the fatal explosion of the Macondo well in the Gulf of Mexico that the cement mixture they planned to use to seal the bottom of the well was unstable but still went ahead with the job, the presidential commission investigating the accident said on Thursday.
We’ve long known that the three underlying causes of BP’s Titanic oil disaster were Recklessness, Arrogance, and Hubris. Back on May 9, I noted that an expert reviewer found the well’s cement seal “was probably faulty” and inadequately tested (to save money). Now we have a better handle on the proximate cause, thanks to a new report from the presidential commission investigating the disaster.
And it should surprise no one Halliburton that the energy giant formerly run by Dick Cheney is culpable (see “BP oil disaster is Cheney’s Katrina“). As the NYT editorializes today:
The report has plenty of blame to go around. And it leaves the clear impression that two of the most important players in the risky world of deep-water drilling were doing their job on the cheap.According to the report, Halliburton conducted three tests on the cement mixture it planned to use. All showed the mixture to be unstable and thus vulnerable to the high-pressure pool of oil and gas at the bottom of the well. It said Halliburton provided the results of one of these tests to BP on March 8 and that BP failed to act on it: “There is no indication that Halliburton highlighted to BP the significance of the foam instability data or that BP personnel raised any questions about it.”
Halliburton carried out a fourth, and differently designed, test that suggested the cement slurry was stable. But there is no doubt that the mixture actually used was fatally flawed. The report emphasizes that faulty cement was only one of a cascade of events, including the failure of the blowout preventer. This investigation is far from over. What we know so far is deeply unsettling and good reason for the commission to keep probing.
This is also one more reminder of why the Senate must rouse itself and pass an oil spill bill tightly regulating the drilling industry. The House has passed such a bill, and the Obama administration has imposed tough new rules governing drilling practices, including well design, casing and cementing.
We have already seen how the oil industry can game the rules, and the cost. That is why Congress needs to write them clearly and firmly into law.
Precisely.
Here’s more on Halliburton:
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Inquiry Puts Halliburton in a Familiar Hot Seat: Halliburton is back in the spotlight, and once again, in an uncomfortable way. In recent years, the giant energy services company has found itself under scrutiny over allegations that it performed shoddy, overpriced work for the United States military in Iraq, bribed Nigerian officials to win energy contracts and did brisk business with Iran at time when it faced sanctions.
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Halliburton Spill Liability May Rise on BP Well Report: Halliburton Co. may face increased liability in the Gulf of Mexico oil spill after the staff of a U.S. presidential panel said the contractor knew cement it mixed for BP Plc’s well was unstable.
Cheney has the “Sadim” touch — he destroys pretty much everything he gets his hands (see “Has anyone in U.S. history made more Americans less safe than Dick Cheney?“)
Related Post:
- Rand Paul calls White House pressure on British Petroleum “un-American,” defends BP’s recklessness: “sometimes accidents happen”
- BP calls blowout disaster ‘inconceivable,’ ‘unprecedented,’ and unforeseeable“
- Goldman Sachs of Big Oil? CEO Hayward says to fellow executives: “What the hell did we do to deserve this?”
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Deep Doo-Doo (couched in other legalistic terminology)
Although it might be a bit too early to say — and for legalistic reasons, it might be important to say that it might be a bit too early to say — it seems like it might be the case that Halliburton is in deep doo-doo!
And I mean DEEP.
After reading the news last night — “I read the news today, oh boy!” — I went to the Halliburton web site, where I struggled to read through their long press release (or was it a note to shareholders?) about the ruling, their own thinking, hints at differences of opinion and excuses, and so forth, all couched in the normal legalese and so forth. For anyone interested in “the Halliburton saga”, it makes for interesting reading.
I don’t have any Halliburton shares, so I have none to sell. I’ll use the extra time to do some reading today.
Cheers,
Jeff
“What we know so far is deeply unsettling”
yes it is. but, not surprising.
Given the general level of callousness, greed, and corruption, (that we know about, not to mention the secret deals) I will be surprised if this changes anything very much. A ripple at best.
Halliburton’s record, and that of the oil companies, is readily available;
Just like the facts on climate change.
Call me skeptical (not in that way), but my guess is Halliburton will approach this exactly as Exxon did. They will litigate until they get to the corrupt joke called the US Supreme Court and then get a slap on the wrist.
What i don’t understand is, why they not just use clean technologies. No more bad publicity, no more gulf contamination, one build and endless energy to sell to the grid. No more compensation cost, no more money to pay for denial campaigns, own kids/family life healthier etc etc etc. If you have the cash you could even sell for the next 1000 years the energy, wind turbines, solar shingles, batteries, cars, gadgets – endless possibilities to drive shareholder value. I bet you can make more money with clean tech than without. And at the same time clean tech is the single most potent way to create a new economy. Even the Wall Street Movie understands that it’s time for something new. And then you have the most important fact that we need to change because of the growing threat of devastating climate change. And btw, fossil energy generation will be much more affected from the negative climate impacts.
Not updating for clean tech means to loose everything.
“Dead Sea” Dick Cheney vs Her Majesty. I can just see it now on the cave walls — B-movie dinosaurs fighting to their death as the world ends around them.