Exploration

At just before 10 p.m. on Tuesday, April 20, 2010, the Transocean Ltd.-owned and BP Plc.-operated floating oil rig Deepwater Horizon was boring an exploratory well in the Macondo Prospect—about 40 miles southeast of the Louisiana coast and nearly a mile underwater—when it exploded without warning from a well blowout. ...BP has tried repeatedly to stop the flow, to no avail. (As of this writing on Tuesday evening, July 13, it remains to be seen whether the well cap installed last night, a Band-Aid pending completion of the long-awaited relief wells next month, will actually work.) The spill's magnitude has beggared description or belief.

Hopes rose this week that BP may be in a position to attempt to 'kill' the Macondo oil leak a couple of weeks ahead of its previously anticipated date. The first of two relief wells is now close to the target, and a top BP executive is reported to have told Wall Street Journal that, should weather conditions remain favourable, the well could be shut off by 27th July. With this optimistic, but by no means assured backdrop, Tony Hayward spent this week visiting Middle Eastern investors in an attempt to shore up BP against hostile takeover bids...

A new narrative reverberating in right-wing political circles blames the Deepwater Horizon disaster on a favorite scapegoat: the federal government.

Hurricane Alex, the first hurricane of the season, hampered the Macondo oil well disaster clean-up efforts in the Gulf of Mexico on Wednesday and resulted in the precautionary closure of 25% of crude oil production in the area. Reports indicate however that it didn't cause any delay to the drilling of relief wells on which so much hope rests...

At last report BP was making progress on the relief wells that are being drilled to plug the runaway well in the Gulf. The London Times reports that BP hopes to penetrate the casing of the leaking well and start pumping in well-sealing mud in about two weeks. Let's hope something works.

The IEA's latest medium term report on oil and gas presents a rosier outlook than before. The supply-demand balance will be easier than previously forecast, the Agency now says, as continuing economic weakness dampens demand growth, and stronger oil prices encourage more investment in production capacity. But the report hedges its optimism, warning that potential geopolitical eruptions, and ripple effects from the Deepwater Horizon disaster on offshore drilling remain as risks...

When Big Oil breaks ranks, and one partner in a world-class deal accuses the other of gross negligence, you know that fear has overcome the industry. But fear of what? One presumes it's the permanent loss of future -- or even currently permitted -- drilling rights in the Gulf of Mexico because of the disastrous oil spill, in addition to offshore deals around the world. After all, as I've written here before, the primacy of Big Oil rests on its claim to technological superiority.

-The Costs of Natural Gas, Including Flaming Water
-Marcellus Shale gas drilling put under microscope: Moratorium weighed as towns, people wary of potential mishaps
-Struggle for Central Asian energy riches
-Russia Cuts Gas Deliveries to Belarus

"For decades, we have known the days of cheap and easily accessible oil were numbered...". These were the words of President Obama during his national address on the Gulf oil disaster from the Oval Office on Tuesday. Is the President accepting that we have reached peak oil?...

It is now 8 weeks since the Deepwater Horizon Explosion, and while BP claims to be capturing around 15,000 barrels of oil a day, there are still widely varying estimates of the amount of oil still escaping into the ocean. As public and political anger against the company increase, the knock on effects of the disaster for the company and the industry are growing.

The Gulf of Mexico is currently experiencing the human equivalent of metastasizing cancer, and the governor of Louisiana proposes that the activities which resulted in that cancer be resumed immediately even as BP's underwater gusher continues to flow into the gulf.

As someone who has argued that the U.S. needs to invest in more offshore drilling lest we face oil shortages and increasing dependence on other countries for our energy, I can’t make that argument in light of this sort of disaster. We may need drilling, but we also need our coastlines.

As the leaking Macondo well in the Gulf of Mexico continues to defy BP's efforts, the crisis now looks existential for the company. This week the share price collapsed further, and commentary went far beyond the usual concerns over the fate of the chief executive and the dividend. One Clinton era official even suggested taking BP's US assets into temporary administration...

As BP's reputation in the U.S. plummeted, the company in a new spirit of openness began releasing live video feeds from their Remotely Operated (Underwater) Vehicles "ROV"s working on stopping the torrent of oil spewing into the Gulf of Mexico.

Following the failure of the latest efforts to plug the gushing leak from BP's Deepwater Horizon oil well in the Gulf of Mexico, and amid warnings that oil could continue to flow for another two months or more, perhaps it's a good time to step back a moment mentally and look at the bigger picture—the context of our human history of resource extraction—to see how current events reveal deeper trends that will have even greater and longer-lasting significance.