Deepwater Horizon disaster ruined Florida's shores.

On the heels of the second anniversary of the Deepwater Horizon disaster, federal prosecutors have issued the first arrest related to the worst oil disaster in U.S. history. The Justice Department has charged former BP engineer Kurt Mix with destroying evidence on BP’s internal response to the disaster.

Mix, who worked on estimating the amount of oil spilling into the Gulf, allegedly deleted hundreds of text messages with a BP supervisor. This includes one that read “Too much flowrate —- over 15,000,” barrels of oil per day, which was three-times higher than BP’s public estimate of barrels of oil per day at the time.

Attorney General Eric Holder issued the statement [emphasis added]:

“The department has filed initial charges in its investigation into the Deepwater Horizon disaster against an individual for allegedly deleting records relating to the amount of oil flowing from the Macondo well after the explosion that led to the devastating tragedy in the Gulf of Mexico,” said Attorney General Holder. “The Deepwater Horizon Task Force is continuing its investigation into the explosion and will hold accountable those who violated the law in connection with the largest environmental disaster in U.S. history.”

As the criminal investigations continue, Congress has still not yet passed legislation responding to a disaster that continues to have devastating effects on fish, beaches, and wetlands.

by Kiley Kroh

In another stark warning about the dangers of Arctic Ocean drilling, the German bank WestLB announced on Friday that it would not provide financing to any offshore oil or gas drilling in the region. The company’s sustainability manager said the “risks and costs are simply too high.”

The decision was made just a week after insurance giant Lloyd’s of London issued a report concluding that offshore drilling in the Arctic would “constitute a unique and hard-to-manage risk” and urged companies to “think carefully about the consequences of action” before exploring for oil in the region.

Dustin Neuneyer, sustainability manager at the corporate and investment bank WestLB, explained the decision to Environmental Finance:

“The further you get into the icy regions, the more expensive everything gets and there are risks that are hard to manage.… There are projects that are evidently unsustainable in an encompassing sense. For WestLB, the risks and costs are simply too high.”

The bank’s new eight-point policy on offshore drilling lays out specific criteria for the projects and companies that are eligible for financing — excluding any exploration or production activities in areas where the average temperature for the warmest month is below 10°C (50° F).  Additionally, the policy’s criteria — which are binding for any company seeking a loan — require companies to use the best available technology, abide by the highest technical safety standards, and show that activities are validated by an independent third party.

The concerns raised by Lloyd’s of London and WestLB come as Royal Dutch Shell prepares to drill in Arctic waters off the coast of Alaska this summer. The recommendations of these institutions echo those in the recent Center for American Progress report, Putting a Freeze on Arctic Ocean Drilling: America’s Inability to Respond to an Oil Spill in the Arctic.

The dearth of supporting infrastructure throughout Alaska’s North Slope — including ports, roads, railroads, and permanent Coast Guard facilities — coupled with the lack of sound science and extremely volatile conditions make any potential offshore operations precarious at best.  The remote location, harsh and unpredictable conditions, and absence of proven clean-up technologies designed for Arctic conditions would make large-scale response efforts nearly impossible.

Those factors represent a cost and risk WestLB isn’t willing to shoulder.

The stakes are high for Royal Dutch Shell, which after spending nearly five years and $4 billion, will likely soon receive the necessary permits for exploratory drilling in the remote Beaufort and Chukchi Seas. And other oil giants aren’t far behind — Exxon and ConocoPhillips are aiming to start offshore operations in the pristine Arctic Ocean by 2013.

WestLB might be the first bank to explicitly refuse financing for offshore drilling in the Arctic, but they may not be alone for long. “Other banks contacted us and are very interested in this approach and policy,” Neuneyer told Environmental Finance.

How many influential corporate voices will have to raise concerns before someone hits the pause button on Arctic Ocean drilling?

Kiley Kroh is the Associate Director of Ocean Communications at the Center for American Progress.

The Lasting Impact Of Deepwater Horizon

by Kiley Kroh and Michael Conathan

Two years ago an explosion aboard the Deepwater Horizon rig in the Gulf of Mexico took the lives of 11 men and spewed nearly 5 million barrels of oil into the Gulf. It took 9,700 vessels, 127 aircraft, 47,829 people, nearly 2 million gallons of toxic dispersants, and 89 days to stop the gush of oil. But the work to restore the ecosystem and Gulf economy has only just begun.

The regional oil and gas industry hasn’t skipped a beat despite claims from Big Oil and drilling advocates in Congress that the moratorium on deepwater drilling imposed in the wake of the spill devastated the Gulf economy. The New Orleans Times-Picayune found that oil-fueled economies in the Houma area are humming along just fine. And according to a recent Reuters analysis, Gulf drillers will be busier this year than at any point since the spill, adding eight new deepwater rigs and bringing the total count to 29, just shy of pre-spill levels.

But even though BP’s slick new ads show sparkling beaches and flourishing marshes, the perception that everything is fine in the Gulf is far from the truth. Last week Garret Graves, top coastal advisor to Louisiana Gov. Bobby Jindal, said the state “still has 200 miles of oiled coast,” including “very clear, retrievable oil in coastal areas,” and called the current conditions “unacceptable.”

While the Obama administration took steps to strengthen offshore drilling safety and oversight, much remains to be done. Tourism in the region has rebounded this year but the Gulf Coast is still struggling with the lingering effects of the spill and will likely continue to do so for decades to come. Here are five reasons the Gulf deserves renewed attention:

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by Kiley Kroh and Michael Conathan

Yesterday, former members of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling released a report card evaluating the progress made by the federal government, Congress, and industry toward implementing the critical reforms recommended by the Commission in their 2011 report.

None of them make the honor roll. While the harshest rebukes were aimed at Congress, the report card finds that overall, “in every category, much more needs to be done.”

Big Oil, on the other hand, touted the reforms made by the oil and gas industry. Oil & Gas Journal reported “the industry has always demonstrated a strong commitment to operate safely and responsibly offshore, and has deepened that [sic] the commitment in the nearly 2 years since the Macondo well accident.”

Erik Milito, API’s upstream and industry operations group director, said “the bar continues to rise, the commitment is stronger, and the mechanisms are in place to support the strongest safety standards possible.”

Such assurances from API are dubious at best, considering the Commission’s 2011 report found a direct causal relationship between API’s role as the industry’s principal lobbyist and public policy advocate and “compromised” safety standards that were a direct contributor to the BP disaster:

API’s proffered safety and technical standards were a major casualty of this conflicted role … Because the Interior Department has in turn relied on API in developing its own regulatory safety standards, API’s shortfalls have undermined the entire federal regulatory system.

John Watson, CEO of oil giant Chevron, told USA Today that he’s confident production can occur safely, saying, “we’ve learned from the Macondo incident and others and have steadily improved our practices as an industry. We’re in a much better position as an industry today than we were a few years ago.”

That’s a questionable self-evaluation from a company recently slapped with an $11 billion lawsuit and criminal charges for a November 2011 spill off the coast Brazil and responsible for setting the ocean ablaze with a natural gas fire in Nigeria this year that burned for 46 days and took the lives of two workers.

While both the federal government and industry have taken steps to improve the serious shortfalls in safety and oversight that led to the Deepwater Horizon disaster, a great deal remains to be done – especially as the industry looks to move into frontier areas like the Arctic that are fraught with uncertainty and risk.

The Commission gave the administration an overall grade of B, industry a C+ and Congress a D. (The ocean conservation group Oceana released a similar report card yesterday comprised of nothing but D’s and F’s.)

Let’s take a look at the commission’s findings.

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The Deepwater Horizon oil rig exploded nearly two years ago to the day, beginning an oil spill that lasted three months and released some two hundred million gallons of oil into the Gulf of Mexico. BP may have declared their mission accomplished, but the results of the spill are still trickling out.

The latest? Shrimp with no eyes, fish with lesions, and clawless crabs.

Scientists believe that shrimp, fish, and crabs in the gulf have been deformed by the chemical released to disperse oil during the spill. Fishers in the area say that they’ve been noticing deformities on their catches since. Al Jazeera reports:

“At the height of the last white shrimp season, in September, one of our friends caught 400 pounds of these,” [Louisiana commercial fisher Tracy] Kuhns told Al Jazeera while showing a sample of the eyeless shrimp.

According to Kuhns, at least 50 per cent of the shrimp caught in that period in Barataria Bay, a popular shrimping area that was heavily impacted by BP’s oil and dispersants, were eyeless. Kuhns added: “Disturbingly, not only do the shrimp lack eyes, they even lack eye sockets.”

“Some shrimpers are catching these out in the open Gulf [of Mexico],” she added, “They are also catching them in Alabama and Mississippi. We are also finding eyeless crabs, crabs with their shells soft instead of hard, full grown crabs that are one-fifth their normal size, clawless crabs, and crabs with shells that don’t have their usual spikes … they look like they’ve been burned off by chemicals.” [...]

The dispersants are known to be mutagenic, a disturbing fact that could be evidenced in the seafood deformities. Shrimp, for example, have a life-cycle short enough that two to three generations have existed since BP’s disaster began, giving the chemicals time to enter the genome.

BP claims to be investigating any toxicity and testing fish in the gulf, but they also claimed these marshes were clean. The company is clearly trying to distance itself from the spill, which was a public relations disaster. Indeed, just today, BP came to a settlement agreement with plaintiffs suing over health and economic issues related to the spill.

Tumors on a shrimp found in the gulf

At the same time, deep water drilling has started again. And though details are still only emerging on the full impact of the spill, some want the U.S. to move back into offshore drilling as aggressively as possible. Today, Sen. David Vitter (R-LA) went on the Senate floor to advocate for more drilling permits in the Gulf, arguing that “mother nature has proved amazingly resilient” in the wake of the spill.

Tell that to the fish without livers and the shrimp without eyes.

As BP reaps billions in profits from rising gasoline prices, the Gulf of Mexico is dying from its uncleaned pollution. “After months of laboratory work, scientists say they can definitively finger oil from BP’s blown-out well as the culprit for the slow death of a once brightly colored deep-sea coral community in the Gulf of Mexico that is now brown and dull,” the AP reports. Tarballs that washed up on the beaches were “teeming with bacteria.” Oil from the killer Deepwater Horizon blowout “has contaminated zooplankton, one of the first links in the oceanic food chain,” scientists found. And Louisiana state officials have found their coastline soaked in toxic oil, where the Coast Guard and BP have declared victory and abandoned monitoring:

Wetland areas in north Barataria Bay and the Pass a Loutre Wildlife Management Area at the mouth of the Mississippi River continue to show signs of oil that state officials say is from the BP oil spill, according to photos posted on Flickr by the state Coastal Protection and Restoration Authority.

In February, the oil giant BP reported reported $7.7 billion in profit for the fourth quarter of 2011, a 38 percent increase from a year earlier.

Twigs clump in oily, murky water.

As the Obama Administration moves to open up Arctic waters for exploratory offshore oil and gas drilling, a raising tide of opposition is emerging to counter the decision.

In the last two weeks, dozens of members of Congress, hundreds of scientists, and tens of thousands of concerned citizens have expressed their concerns about the environmental impact of drilling in Arctic waters.

In an open letter signed yesterday by 60 members of Congress, federal lawmakers called on Interior Secretary Ken Salazar to halt all leases for the Arctic in the agency’s five-year plan until a more sound review of disaster-response capabilities can be conducted:

“Successful oil spill response methods … cannot simply be transferred to the Arctic. The Arctic is a unique environment with significant hurdles that the DOI and related agencies must genuinely address before considering any new leasing in the region prior to including Arctic areas in a five-year plan.”

This follows a months-long investigation into disaster preparation in the Arctic by the Center for American Progress oceans team, which found a complete lack of infrastructure to deal with an oil spill:

There are no U.S. Coast Guard stations north of the Arctic Circle, and we currently operate just one functional icebreaking vessel. Alaska’s tiny ports and airports are incapable of supporting an extensive and sustained airlift effort. The region even lacks such basics as paved roads and railroads. This dearth of infrastructure would severely hamper the ability to transport the supplies and personnel required for any large-scale emergency response effort. Furthermore, the extreme and unpredictable weather conditions complicate transportation, preparedness, and cleanup of spilled oil to an even greater degree.

Just two weeks before, 573 scientists sent a letter to the White House urging the Obama Administration to take a science-based approach to issuing leases in the Arctic and to avoid opening up the region because of political pressure to expand drilling:

“Doing so prior to authorizing new oil and gas activity in the Arctic Ocean will respect the national significance of the environment and cultures of U.S. Arctic waters and demonstrate the value that your Administration places on having a sound scientific basis for managing industrial development of the Outer Continental Shelf.”

If one were to follow these concerns about taking a science-based approach to their logical conclusion, it’s highly unlikely that anyone would consider drilling for more fossil fuels in the Arctic. In its environmental impact statement, the Department of Interior even admits that “the Arctic is experiencing variations that are accelerating faster than previously realized” due to climate change — ironically making the region more attractive for oil and gas extraction as sea ice continues its downward spiral.

Apparently, the plan isn’t sitting well with many interested citizens either. Today was the final deadline for public comments, and almost 400,000 people have asked President Obama to stop the sales of leases in the Department of Interior’s five-year plan, according to the Alaska Wilderness League.

The Obama Administration is set to approve exploratory Arctic drilling permits to Royal Dutch Shell for operations next summer — a company that recently spilled 218 tons of oil in the North Sea and has the worst spill record in the UK since 2000.

Have we learned nothing from the disastrous 2010 oil spill in the Gulf of Mexico?

Below is the summary of a comprehensive report on the inadequate disaster response capabilities in the Arctic.

by Kiley Kroh, Michael Conathan and Emma Huvos

When the Deepwater Horizon oil rig exploded in the Gulf of Mexico in the early morning hours of April 20, 2010 it spawned one of the worst environmental disasters in U.S. history. BP Plc’s Macondo well blowout lasted 89 days, spewing nearly 5 million barrels of oil into the Gulf of Mexico, and taking the lives of 11 men. The catastrophe showed the clear need for a massive, well-coordinated response when disaster strikes.

Though the refrain “never again” was echoed time and again in the wake of the BP oil catastrophe, we are now facing a new oil spill threat. After spending over five years and $4 billion on the process, the Royal Dutch Shell Group is on the cusp of receiving the green light to begin exploratory drilling in Alaska’s Beaufort and Chukchi Seas next summer. Though Shell emphasizes it would drill exploratory wells in shallow water rather than establishing deep-water production wells like Macondo, the fundamental characteristics of the vastly unexplored and uninhabited Arctic coastline may increase the likelihood of a spill and will certainly hamper emergency response capability.

The decision to move forward with drilling in some of the most extreme conditions on Earth has deeply divided Alaska Native communities, drawn stark criticism from environmental groups, and caused other federal agencies such as the U.S. Coast Guard and the National Oceanic and Atmospheric Administration, or NOAA, to raise concerns about the glaring absence of sound science in the region. This is highlighted in a recent letter to the Obama administration, signed by nearly 600 scientists from around the world, calling on the president and Secretary of the Interior Ken Salazar to follow through on their commitment to science and enact recommendations made by the U.S. Geological Survey before approving any drilling activity in the Arctic. In addition to the lack of a scientific foundation, the Arctic has inadequate infrastructure to deal with an oil spill, and response technologies in such extreme environmental conditions remain untested.

As we detail in this report, the resources and existing infrastructure that facilitated a grand-scale response to the BP disaster differ immensely from what could be brought to bear in a similar situation off Alaska’s North Slope. Even the well-developed infrastructure and abundance of trained personnel in the Gulf of Mexico didn’t prevent the Deepwater Horizon tragedy. Our Arctic response capabilities pale by comparison.

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