A Rational Look at the Plans for Moving Forward in the Gulf by Patrick Reames
Though non-binding, a report released late last week by the Bipartisan Policy Center should provide momentum toward the lifting the deepwater drilling moratorium currently in place in the wake the of the Deepwater Horizon disaster.
The BPC, a Washington based non-profit think tank, was founded by four former Senators, two each representing Democrats and Republicans, and has been dedicated to, “develop and promote solutions that can attract public support and political momentum in order to achieve real progress.” The BPC was asked by the federal government’s National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling to review the effect of the moratorium and the response by both industry and the government.
Among the conclusions in the BCP report:
- “We (the BCP) believe that the need to impose a moratorium on deepwater drilling reflects how unprepared both government and industry were for an incident of this magnitude.”
- “The DOI’s (Department of Interior) drilling moratorium has served the productive purpose of allowing time for both industry and government to prepare for a safer, more vigilant, and dependable future for U.S. offshore drilling.”
- “We believe DOI and the industry have used this time effectively to develop a new regime for drilling in the Gulf of Mexico.”
- “We believe this new regime will provide an adequate margin of safety to responsibly allow the resumption of deep water drilling in the Gulf of Mexico.”
Among the new regulations being proposed and/or implemented by the DOI include the development of new comprehensive safety and environmental protection plans that cover each operator’s specific operations and assets, including new standards and inspection/certification requirements for blow-out preventers and casing/cementing programs (critical failure points in the Deepwater Horizon disaster). The proposed new regulations also require that drillers develop worst case scenario case studies for each deepwater well drilled.
The BPC notes that these and other proposed changes are not without substantial cost, concluding that, “It is possible that the costs and technical sophistication needed to comply with these new requirements may discourage some rigs and companies from future operation in the Gulf of Mexico. Although this outcome would be unfortunate, we believe it is imperative that all companies be held to a consistent set of safety requirements.”
Given the vitriol, misinformation and finger pointing that has been associated with the blowout and its aftermath, it has been difficult to find reasoned discussion about the path forward for the industry. The involvement of a non-partisan third party to review the impact of the moratorium, and the joint response by industry and government, has shed a sterilizing light on the aftermath of an event that has been infected by emotional hyperbole and political gamesmanship. A rational, balanced review of the response to a terrible tragedy, such as that provided by the BPC, will help in advancing the development of improved practices and standards for safety and environmental protection. Once in place, these new practices and standards will allow the industry to move forward in developing much needed natural resources in a manner that minimizes the risks to both the environment and the workers in the Gulf.
