Crude Awakening

As of Thursday AM, May 13 CRUDE AWAKENING "If you kill the shrimp, you kill the fish that feed off the shrimp, and if you kill the fish then there is nothing left in the Gulf of Mexico. That would absolutely be a disas- ter for years and years." -Dan Dix, fishing boat captain An infographic to help you understand the oil spill catastrophe in the Gulf of Mexico and the incredible costs that will affect us all "This is bad. .. If nothing is done, this will take 10 years to disperse." -Dec Doran, Oil Spill Control Services "A 'double-dip' recession probably has been made more likely by this tragedy." -David Kotok, chief investment officer, Cumberland Investors Path of Hurricane Katriria (2005) MISS ALA FLORIDA Mobilee Gull Coast Least Tern Colony Pass Christian Tarklin Bayou Preserve Prk Perdido Key Pensacola St Rec Area Lower Pascagoula River Grand Elgin Air Force Walton Base a Beach Destir Point Washington St Forest Deer Lake Gulfport Fort LOUISIANA Mobile U Bay Bay NWR Prk Gult Biloxi Pascagoula Fort Laguna Beach Gult Gulf Islands National Seashore Gaines Miramar Lake Pantchartrain • Buccaneer St Prk Breeze Bayou Sauvage NWR Lake hárvest Tapsail Hil Preserve Grayton St Prk Beach St Rck атane Beach Clased to shrimping Gulf Islands Dauphin National Seashore Fort Bon Morgan Secour "St Prk NWR Fort Pickens St Prk Aquatic Preserve Beaumont Oyster Island St Prk Lacassine NWR New Iberia Borgne area Attakapas Island State OWMA Closed to shrimping New Orlesns- closedy chandeleur White Lake Wetlands Conservation Area Sound Port Sabine Arthur Lake Louisiana's marshy coastline extends Jean Lafitte Presenve Chalmette Bilexi State SWMA St Joseph Peninsula St Prk If oil makes it to Florida, it would threaten the state's coral reefs St Prk Rockefeller State WR and Game Preserve 15.000 miles Breton NWR Apalachicola Important bird habitats rornt Hourma NWR Breton Islands THE RESPONSE Park Wildlife areas in boldface type are among the "Top 10 Sites at Most Immediate Risk" identified by the American Bird Conservancy Toxic concentrations of oil could spread up the Atlantic seaboard as far as North Carolina Breton NWR A Barataria 13,000+ overall personnel responding 526 OBaptiste Collette Bird Islands Coastal Louisiana rande Isle St P Bastion Bay Area officially closed, to fishing Islands Delta NWR total response vessels Important beach tourism sites orrfearchan 1.4 million+ feet of boom deployed (regular plus sorbent boom) Path of Critical fish habitats Sites of potential beached oil Nor th Hurricane Katrina (2005) 475,000+ 60 80 A Sites where EPA is tracking air quality from the spill, including particulates (PM), ozone and Volatile Organic Compounds (VOCS) 40 NOAA's prediction of oil location for Saturday, May 15 gallons of dispersant used Miles 5 million+ gallons of oil water recovered Location of rig Relief wells ou Staging areas THE WORST-CASE SCENARIO BP intends to drill two wells designed to intersect the original wellbore above the oil reservoir. This will allow heavy fluid to be pumped into the well which will stop the flow of oil from the reservoir. Cement will then be pumped down to permanently seal the well. This week's X Reports of beached oil forecasted wind ---- Area closed to fishing THE FIXES 378 million total gallons spilled if "worst-case scenario" leak rate were to continue for 90 days (34 times the size of Valdez spill) BP has a number of techniques available but none have been tried in 5,000 feet of water. SE WINDS Top Hat BP is constructing a Seabed depth 5.249 Relief well No. 1 Relief well spudded May 2 No. 2 smaller containment box called a top hat, which will straddle the break in the pipes. It has ports for injecting methanol which they hope will prevent clogging by hydrate crystals. THE ENVIRONMENTAL RISKS: It could not come at a worse time 75% of the waterfowl that traverse the U.S. migrate through the Gulf Depth as of 8,788 May 7 Among the birds nesting in immediate path of spill: American Oystercatcher Least Tern Planned intersection depth: 18,000 It is now nesting season for many species, such as shorebirds and Brown Pelicans - and for sea turtles that lay their eggs in beach sand. It's also the peak of spring bird migration. 5 million The leaking oil is a heavier blend which contains asphalt- like substances. The oil emulsifies well, which means it does not evaporate as quickly as regular oil, doesnt rinse off as easily, can't be eaten by microbes as easily, and doesn't burn as well. Piping Plover Brown Pelican Chemical dispersants used to break slicks could be toxic and much is unknown birds have been counted in the about the full environ- mental impact of using such chemicals. OIL RESERVOIR acres of habitat in the Gult 34,000 Roseate Spoonbills Height: 5 feet 350 400+ species put in harm's way Egrets Blue Herons national refuges most at risk Nat to Scale sea turtle species at peak of migration or nesting on beaches Highly endangered Kemp's ridley sea turtles are migrating along the Louisians coast on their way to nesting beaches in Texas and Mexico, The Gulf down current from area contains probably the most pupping grounds in the Western hemisphere for many shark species. the spill 45,000 estimated number of bottlenose dolphins in the Gulf New riser pipe One option is cutting the riser pipe and using larger piping to bring the gushing oil to a drill ship on the surface, a tactic considered 5.249 FEET OF WATER Largest leak is Potentially serious impacts are taking place deep under the surface. The spill zone sits on top of a unique and biologically rich ancient deepwater coral reef, called Viosca Knoll. As the oil breaks up or attaches itself to small bits of ocean detritus, a toxic rain falls from the surface down to the reefs below. The impact on these reefs is an open question right now. from blowout preventer Remotely operated vehicle (ROV) Less visible, but equally concern- ing, are the countless millions of tiny. planktonic organisms being killed, including larvae of economi- cally important species like fish, shrimp and crabs. Horizon Deepwater rig collapsed Drilling riser that connected oil well difficult and less desirable because it will increase the flow of oil. to the rig on ocean floor GULF FLOOR ROV THE ECONOMIC COSTS: Blowout 300 preventer stack Cofferdam “Junk Shot" Area still weak from Smallest leak at end of drill pipe was capped May 5 now sits (BOP) on ocean A high-pressure device shoots the well full of shredded rubber such as old tires and golf balls-similar to a kid clogging a toilet with toys. The junk shot would be followed by a cement seal. This method is risky because it involves breaking into the blow-out preventer, temporarily AA loor Hurricane Katrina is hit again nearby Drill pipe $2.2 trillion the gross domestic product of the five states bordering the Gulf of Mexico No. 7 if the Gulf states where a coun- try, it would have the seventh largest economy in the world Oil leak Well hole Insertion Tube BN is considering lowering a device that is like a tube with a stopper at the end. The device would thread into the damaged riser pipe and drain the oil to a surface ship. 6 of top 10 U.S. shipping ports found in the Gulf Cofferdam containment increasing the flow of oil. CHRONOLOGY Gulf Coast Region is defined as the system On May 8 BP attempted to put a large concrete container over the wellhead leak. The when t OF A DISASTER 141 coastal counties in the five Gulf states FEB · Deepwater Horizon begins drilling in 5,000 feet of water 41 miles off the coast of Louisiana in the Prospect area The rig is operated by Transocean and leased by BP Unemployment rate March 2010 (not seasonally adjusted) effort failed w n the top of the container filled with ice crystals formed from gas and water, known as methane hydrates. Macondo Florida 12% THE COMPANIES Mississippi 11.1% INVOLVED bp Alabama 10.9% 250 APR · Rig is drilling but not in 19 production. Production casing has been run and cementing just finished. Cement plug needed to cap bore has not yet been set The owners Ownership of Mississippi Canyon Block 252 license where the well was drilled. Height: 40 feet Weight: 98 tons Texas Louisiana 6.2% The partners are liable for the costs in propor- tion to their holdings. 20 · Bubble of methane gas escapes from well and shoots up drill column, bursts through several seals and barriers before exploding in a blowout. • 126 individuals are on board. Sudden explo- sion and intense fire leaves 17 workers injured, 11 workers missing and presumed dead GULF FISHING INDUSTRY: Sudden death of a way of life? 65% $2.5 billion Anadarkp 25% SHRIMP Gulf landings of shrimp MILLIONS OF POUNDS (2008) Initial cost estimate 73% of all Us shrimp fishing is in the Gulf 20 40 60 80 22 · Rig burns until it sinks to floor of Gulf. to the fishing industry from the oil spill 10% Louisiana 89.3 million pounds 23 · BP begins sending down remotely operated underwater vehicles (ROVS) to cap wellhead. • Coast Guard calls off search for survivors after surveying nearly 1.940 miles. • Coast Guard petty officers say rig leaking 340,000 gallons of oil: rear admiral says no oil leaking. Техas 63.8 million $662 million value of commercial fishing in Gulf states each year Mississippi In 2008 188.8 million pounds MITSUI&CO., LTD. Alabama 17.2 million worth West Florida 9.9 million $367 million dockside 8.6 million The operators and contractors Mississippi Alabama 6% OYSTERS 24 · Leak discovered via underwater cameras. • Estimated leak of 1.000 barrels a day. • Rear admiral confirms "very serious spill." Commercial fish harvest 50 59% of all U.S oyster fishing is in the Gulf In 2008 20.6 million pounds worth $60.2 million ANNUAL REVENUE IN MILLIONS (2008) Piransocear 100 150 200 200 Blue crab 25 · Oil spill covers 580 square miles. High waves continue Oysters $38.8 Louisiana Shrimp $130.6 hamper cleanup. $32 Florida 22% BP leased the Deepwater Horizon rig from TransOcean, the world's largest offshore- drilling firm. Louisiana 26 · Cleanup crews set up booms. 41% Shrimp $17.1 Blue crab $0.4 27 · Officials consider setting fire to slick. Mississippi - Oysters $6.9 CAMERON COMMERCIAL FISHERY LANDINGS 27% 28 · BP announces that controlled test burn is successful • Leak upgraded to 5.000 barrels a day Shrimp $38.4 The blowout equipment which failed on the rig was provided by Cameron International Corp, a subsidiary of TransOcean. 14% of all US. commercial fishing is in the Gulf - Blue crab $1.5 Oysters $0.2 29 · La. governor declares state of emergency • Federal government sends skirmmers and booms 1.3 billion number of pounds fish brought in each year by commercial fishing in the Gulf Alabama HALLIBURTON Alaska 57% Shrimp $23.3 Halliburton Energy Services Inc. provided drilling services on the rig. Halliburton was in the process of cementing the wellhead when the blowout occurred. •Coast Guard initiates first controlled burn of oil. Blue crab $3.3 Texas data not available West Florida FOysters $5.5 30• Oil washes up on at Louisiana coast. Rough seas make it hard to burn, skim or contain oil. Top species landings by poundage Brown shrimpWhite shrimp Eastern Oyster 117.8 • President Obama halts new offshore drilling. • Justice Department dispatches lawyers to monitor spill. • Emergency shrimping season is opened to bring in catch early. IN MILLIONS OF POUNDS (3-YEAR AVERAGE 2004 TO 2006) 117.8 21.6 GOVERNMENT SPENDING On Wednesday. May 12, the White House asked Congress to raise the limits on BP's liability and also increase spending on a number of spill-related items Menhaden 913.4 million pounds Blue crab MAY • Skimming. burning and chemicals have little 58.9 Per-incident expenditures from Oil Spill Liability Trust Fund (paid by industry through excise tax) 138 million 150 1 effect on spread of oil. • Coast Guard says nearly impossible to know how much oil has spilled. gallons spilled into the Gulf by the Ixtoc 1 oil well after a blowout June 1979 Current limit $1 billion 2 · BP chairman defends company's safety record, saying "a failed piece of equipment" had caused the spill • Obama visits spill firsthand. • Oil reaches wildlife refuges. Proposed limit $1.5 billion TOURISM AND SPORTS FISHING: The cancellations have begun Excise tax that pays for Oil Spill Liability Trust Fund above (tax on each barrel of oil is paid by oil companies, but ultimately by consumers) 8 cents per barrel 3 · High winds and rough waves render oil-catching booms ineffective. • BP continues to send down ROVS to close valves on blowout preventer. • NOAA closes fishing from mouth of Missis- sippi River to Pensacola Bay. • BP says it will pay for all cleanup costs. $9 billion Current tax 28% 25 million wages paid each year to tourism and recre- Proposed tax 9 cents per barrel of all U.S. marine number of marine recreational fishing trips taken in the Gulf of Mexico during 2006 recreational fishing trips were taken in the Gulf in 2006 ation workers in the Gulf Coast Region Liability limit for costs not directly connected to cleaning o spills (like lost wages, tourism) Current limit set in 1990 $75 million 4 · BP chief says containment dome to be dispatched Thursday but water depth is issue. • BP spuds two relief wells, but says effort 620,000 number of jobs in the Gulf Coast Region provided by tourism and recreation 7,700 jobs generated in Louisiana by saltwater sport fishing $757 million annual economic impact of saltwater sports fishing in Louisiana New limit proposed by Democrats $10 billion could take 3 months. • Coast Guard estimates 170 vessels, nearly 7,500 personnel and 2.000 volunteers involved in cleanup. Other spending proposals $2 billion To Food and Drug Administration $1 billion Recreational fishing retail sales in Louisiana 94 million 33% of Alabama's $9 billion travel industry occurs in two coastal counties 5 · BP caps smallest of three known leaks. to monitor seafood safety in Gulf $29 million To Interior for studies related to ultimate size of spill. in gallons. at 1.1-million-gallon rate after 90 days 100 safety of offshore drilling $15 million To out-of-work fishermen if 6. Oil sheen reaches Chandeleur Island chain. 7 · Area closed to fishing is increased 50 percent. fisheries disaster is declared 8 · Initial attempts to install dome fail, due to accumulation of crystals. Also, unemployment benefits for self-employed workers in Gulf and food stamps for people affected by spilI. Previous problems on the Horizon Deepwater The proposals add up to $118 million in new discretionary spending. according to Jeff Liebman, acting deputy director of the Office of Management and Budget. That does not include the cost of the unemployment insurance or food stamps, which in all likelihood would dwarf the other spending 9 • Tar balls begin to wash up on Alabama's Dauphin Island. 10 · BP says it's pursuing "top hat" and "junk shot" solutions, and has resumed injecting dispersant at source of leak. ..... ..... ..... .... ...... 90 DAYS AT RATE OF 1.1 MILLION GALLONS / DAY As of May 12 GALLÓNS SPILLED SO FAR 9.8 million- The rig had had numerous spills and fires. It had been issued citations for "acknowledged pollution source" by the Coast Guard 18 times between 2000 and 2010. In 2008, 77 persons were evacuated after it listed over and began to sink after a section of pipe was accidentally removed from the rig's ballast system. THE FINANCIAL COSTS -Associated Press 11 ·BP, Transocean and Halliburton officials testify at Senate hearings. • Crews remain on lookout for oil 55.5 million resciana. $350 million What BP has spent as of May 10 in Alabama and gallons spilled by BP rig. amount depends on who's talking How did it happen? Latest Congressional testimony is revealing sequence of failures 12 · Obama proposes spending increases. higher liability limit on BP (details at right) • Obama also expresses concerns in BP's ability and announces he's sending 6,000 National Guard to provide security and to support the oil spill response. • Report released by House investigators details sequence of failures (details at right). Includes cost of ships and aircraft used to attempt to contain oil with booms, skim it from and spray it with dispersants. Under US. law, BP will have to reimburse Coast Guard government agencies. THE WORST-CASE SCENARIO n the surface Documents released in a House hearing on Wednesday. May - 12. established the firmest evidence to date of the sequence of catastrophic events that led to the explosion and worsening spill, a series of failures more reminiscent of the loss of the space shuttle Challenger than the wreck of the Exxon Valdez. Like the 1986 Challenger disaster, the investigation into the Gulf spill may well show that complex and seemingly failproof technical systems went wrong because of overlooked prob- lems that interacted with each other in unexpected ways. In the 1989 Exxon Valdez disaster, a captain simply ran his ship onto a reef in Alaska's Prince William Sound. Congressional investigators revealed the blowout preventer had a hydraulic leak and a failed battery that probably prevented it from working as designed. They said that BP documents and others also indicated conflicting pipe pressure tests should have warned those on the rig that poor pipe integrity may have been allowing explosive methane gas to leak into the well. "Significant pressure discrepancies were observed in at least two of these tests, which were conducted just hours before the explosion," said Rep. Henry Waxman, D-Calif., at a House hearing, citing documents his committee received ftrom BP 50 and other Experts fear a total collapse of the pipe that is inserted into the well, If that happens, the resulting flow could be even more devastating because regulating the flow would then be impossible. Blowouts and cementing Much of the investigation focuses on the cementing that Halliburton was doing when the rig exploded. The cementing of a wellhead is a process that is tricky and has been implicated in many blowouts 1971-1991 70 blowouts 1992-2006 39 blowouts 6.8 million gallons per day BP predicts could begin gushing 0.25 million- out of well in "worst case scenario" of a complete "blowout" 20 18 blowouts Related to cementing 18 blowouts Related to cementing 11 million gallons spilled by Exxon Valdez 45 Cause not related 17- 2.5 million gallons per day Cause not related to cementing Nearly all the blowouts examined occurred in the Gulf of Mexico. Cantified not 10 to cementing currently le leaking from BP rig --Associated Press 3 months After 90 days After 90 days at rate of at current rate that many predict it will take to cap the leak "worst case scenario" What about the future? What do Americans think? Results of CBS News poll, May 6-9 Obama sticking with his plan Spill causes Schwarzenegger 819 million gallons of oil are used by the United States EVERY day to expand offshore drilling Increased offshore oil drilling? (Total response) Increased offshore oil drilling? (By ID party) to pull support for drilling Gov. Arnold Schwarzenegger on May 3 withdrew his support for a controversial new offshore oil drilling project of 70 O Favor • Costs, risks too great Don't know/No answer "In what could represent the biggest expansion of offshore energy exploration in half a century. Obama announced last month that he will open the door to drilling off Virginia's coast, in other parts of the mid- and south Atlantic, in the eastern Gulf of Mexico, and in waters off Alaska. 64% Favor Gulf oil spill Heard or read about the Gulf 60 14% Not much nothing Barbara coast in the wake of a massive oil spill in the Gulf of Mexico. The Republican governor for two straight years has pushed the Tranquillon Ridge project as a way to raise money for California's strapped budget. .. if I have a choice between the $100 million and what I see in the Gulf of Mexico, I'd rather just figure out how to make up for that $100 million." DK/NA 50 Republicans 63% 29% 46% 52% of Us. total 40 51% Isolated Despite the disaster in the Gulf, Obama has reiterated his support for increased oil produc- tion, saying that he continues to believe it is an important part of the nation's overall energy security. "But l've always said it must be done responsibly. for the safety of our workers and our environment,' he said 41% crude oil comes from Gulf region 35% Part of 29% Some 56% A lot 28% 30 Democrats 34% 55% 11% incident broader Three year average 2005-2007 Risks too great problem 20 10 Independents 45% 39% 16% -Washington Post. -Sacramento Bee (If you feel this is a helpful graphic. please forward it your friends who need to know.) July 2008 August 2008 Now 20 40 60 PERCENT 80 100 The Deepwater Horizon rig 3,858 The number of other oil wells in the Gulf SOURCES: US. Coast Guard, NOAA The Gult of Mexico Alliance, BP. Washington Post, American Bird Conservancy, Louisiana Department of Natural Resources National Marine Fisheries Service, EPA, CNN, CBS, Reuters, Wall Street Journal. Huffington Post, regional newspapers INFO GRAPHIC WORLD www.InfographicWorld.com Design by Carol Zuber-Mallison/ZM Graphics SALLONS PER DAY $414 billion current estimated cost of the BP spill $20 billion Loss in market value to five companies connected disaster: BP, Transocean, Arnadarko Petroieum, Halliburton and Cameron internationa p ad Supuads uaeg seu $163 billion BP's total profits 20 $300+ billion 明 3500 Dre GALLONS TOTAL