The Post-Macondo World: Two Years After the Spill

Abstract

Post-Macondo world During the 87 days that followed the 20 April 2010 explosion on board the Deepwater Horizon drilling platform in the US Gulf of Mexico (GOM), an estimated 4.9 million bbl of oil flowed from the Macondo well. This is the fourth-largest offshore oil spill, based on official estimates, to have occurred worldwide (see sidebar on World’s Largest Oil Spills). Response to the shock of this event continues in the human impetus not only to regain levels of economic health that prevailed before the blowout but also to put in place people, technology, and systems whose job is to ensure such a disaster is unlikely to occur again. There is also an ongoing effort by environmental scientists to gain understanding of how the spill has impacted other life forms—both plant and animal—as well as the land and ocean. Seeking Regulatory Oversight Balance A 6-month moratorium was placed 27 May 2010 on new deepwater drilling (500 ft or greater) in the GOM. Secretary of the Interior Ken Salazar lifted the moratorium less than 5 months later, on 12 October, “provided that operators certify compliance with all existing rules and requirements, including those that recently went into effect, and demonstrate the availability of adequate blowout containment resources.” Despite oil and gas industry fears that the long-term impact of stepped-up permitting requirements would be catastrophically negative, 355 deepwater permits requiring subsea containment capabilities have been approved since mid-February 2011. These are for 102 unique wells, with 24 permits pending and 21 permits returned to the operator with requests for additional information, particularly information regarding containment. For deepwater activities not requiring subsea containment, 64 permits have been approved, with one permit pending and one permit returned to the operator with requests for additional information; such activities include water injection wells and procedures using surface blowout preventers (BOPs). In addition, 121 new shallow-water well permits have been issued since the implementation of new safety and environmental standards on 8 June 2010. Seven of these permits are pending, with seven having been returned to the operator for more information. During a conference call 16 February to discuss fourth-quarter earnings, Schlumberger Chief Executive Officer (CEO) Paal Kibsgaard told analysts that the rig count in the GOM could return to pre-Macondo levels by the end of 2012. “We are quite optimistic in terms of the outlook for the Gulf of Mexico,” he said. “We see steady growth in deepwater drilling rig counts during 2012, roughly about a rig a month. So we would be at pre-Macondo levels for drilling rigs in the deepwater by the latter part of 2012.”