Marvellous Expose In "Rolling Stone" Regarding BP's Oil Spill

It's been amazing to watch just how inept - corrupted, actually - the Obama Administration's handling of the BP oil spill has been. It's even more amazing to watch BP's epic, even-more-than-criminal mismanagement of the thing, and suffer through their torrent of incessant lies. Clearly the truth means something utterly different in oil circles than it does to anyone else (from The Onion):

As the crisis in the Gulf of Mexico entered its eighth week Wednesday, fears continued to grow that the massive flow of bullshit still gushing from the headquarters of oil giant BP could prove catastrophic if nothing is done to contain it.

The Onion can only touch the surface: the Rolling Stone digs deeper:

Like the attacks by Al Qaeda, the disaster in the Gulf was preceded by ample warnings – yet the administration had ignored them. Instead of cracking down on MMS, as he had vowed to do even before taking office, Obama left in place many of the top officials who oversaw the agency's culture of corruption. He permitted it to rubber-stamp dangerous drilling operations by BP – a firm with the worst safety record of any oil company – with virtually no environmental safeguards, using industry-friendly regulations drafted during the Bush years. He calibrated his response to the Gulf spill based on flawed and misleading estimates from BP – and then deployed his top aides to lowball the flow rate at a laughable 5,000 barrels a day, long after the best science made clear this catastrophe would eclipse the Exxon Valdez.

...Even worse, the "moratorium" on drilling announced by the president does little to prevent future disasters. The ban halts exploratory drilling at only 33 deepwater operations, shutting down less than one percent of the total wells in the Gulf. Interior Secretary Ken Salazar, the Cabinet-level official appointed by Obama to rein in the oil industry, boasts that "the moratorium is not a moratorium that will affect production" – which continues at 5,106 wells in the Gulf, including 591 in deep water.

Most troubling of all, the government has allowed BP to continue deep-sea production at its Atlantis rig – one of the world's largest oil platforms. Capable of drawing 200,000 barrels a day from the seafloor, Atlantis is located only 150 miles off the coast of Louisiana, in waters nearly 2,000 feet deeper than BP drilled at Deepwater Horizon. According to congressional documents, the platform lacks required engineering certification for as much as 90 percent of its subsea components – a flaw that internal BP documents reveal could lead to "catastrophic" errors.

...Enter the Bush administration. Rather than heeding such warnings, MMS simply assumed that a big spill couldn't happen. "There was a complete failure to even contemplate the possibility of a disaster like the one in the Gulf," says Holly Doremus, an environmental-law expert at the University of California. "In their thinking, a big spill would be something like 5,000 barrels, and the oil wouldn't even reach the shoreline." In fact, Bush's five-year plan for offshore drilling described a "large oil spill" as no more than 1,500 barrels. In April 2007, an environmental assessment covering the area where BP would drill concluded that blowouts were "low probability and low risk," even though a test funded by MMS had found that blowout preventers failed 28 percent of the time.

...In reality, MMS had little way to assess the risk to wildlife, since a new policy instituted under Bush scrapped environmental analysis and fast-tracked permits. Declaring that oil companies themselves were "in the best position to determine the environmental effects" of drilling, the new rules pre-qualified deep-sea drillers to receive a "categorical exclusion" – an exemption from environmental review that was originally intended to prevent minor projects, like outhouses on hiking trails, from being tied up in red tape.

...Nowhere was the absurdity of the policy more evident than in the application that BP submitted for its Deepwater Horizon well only two months after Obama took office. ... Instead, it cites an Oil Spill Response Plan that it had prepared for the entire Gulf region. Among the sensitive species BP anticipates protecting in the semitropical Gulf? "Walruses" and other cold-water mammals, including sea otters and sea lions. The mistake appears to be the result of a sloppy cut-and-paste job from BP's drilling plans for the Arctic. Even worse: Among the "primary equipment providers" for "rapid deployment of spill response resources," BP inexplicably provides the Web address of a Japanese home-shopping network. Such glaring errors expose the 582-page response "plan" as nothing more than a paperwork exercise. "It was clear that nobody read it," says Ruch, who represents government scientists.

..."People are being really circumspect, not pointing the finger at Salazar and Obama," says Rep. Raul Grijalva, who oversees the Interior Department as chair of the House subcommittee on public lands. "But the troublesome point is, the administration knew that it had this rot in the middle of the process on offshore drilling – yet it empowered an already discredited, disgraced agency to essentially be in charge."

...BP is the last oil company on Earth that Salazar and MMS should have allowed to regulate itself. The firm is implicated in each of the worst oil disasters in American history, dating back to the Exxon Valdez in 1989. At the time, BP directed the industry consortium that bungled the cleanup response to Valdez during the fateful early hours of the spill, when the worst of the damage occurred. Vital equipment was buried under snow, no cleanup ship was standing by and no containment barge was available to collect skimmed oil. Exxon, quickly recognizing what still seems to elude the Obama administration, quickly shunted BP aside and took control of the spill.

In March 2006, BP was responsible for an Alaska pipeline rupture that spilled more than 250,000 gallons of crude into Prudhoe Bay – at the time, a spill second in size only to the Valdez disaster. Investigators found that BP had repeatedly ignored internal warnings about corrosion brought about by "draconian" cost cutting. The company got off cheap in the spill: While the EPA recommended slapping the firm with as much as $672 million in fines, the Bush administration allowed it to settle for just $20 million.

...The company applied the same deadly cost-cutting mentality to its oil rig in the Gulf. BP, it is important to note, is less an oil company than a bank that finances oil exploration; unlike ExxonMobil, which owns most of the equipment it uses to drill, BP contracts out almost everything. That includes the Deepwater Horizon rig that it leased from a firm called Transocean. BP shaved $500,000 off its overhead by deploying a blowout preventer without a remote-control trigger – a fail-safe measure required in many countries but not mandated by MMS, thanks to intense industry lobbying. It opted to use cheap, single-walled piping for the well, and installed only six of the 21 cement spacers recommended by its contractor, Halliburton – decisions that significantly increased the risk of a severe explosion. It also skimped on critical testing that could have shown whether explosive gas was getting into the system as it was being cemented, and began removing mud that protected the well before it was sealed with cement plugs.

...The effect of leaving BP in charge of capping the well, says a scientist involved in the government side of the effort, has been "like a drunk driver getting into a car wreck and then helping the police with the accident investigation." Indeed, the administration has seemed oddly untroubled about leaving the Gulf's fate in the hands of a repeat criminal offender, and uncurious about the crimes that may have been committed leading up to the initial sinking of the rig. The Obama Justice Department took more than 40 days after the initial blast killed 11 workers to announce it was opening a criminal probe.

From the start, the administration has seemed intent on allowing BP to operate in near-total secrecy. Much of what the public knows about the crisis it owes to Rep. Ed Markey, who chairs the House Subcommittee on Energy and the Environment. Under pressure from Markey, BP was forced to release footage of the gusher, admit that its early estimates put the leak as high as 14,000 barrels a day and post a live feed of its undersea operations on the Internet – video that administration officials had possessed from the earliest days of the disaster. "We cannot trust BP," Markey said. "It's clear they have been hiding the actual consequences of this spill."

But rather than applying such skepticism to BP's math, the Obama administration has instead attacked scientists who released independent estimates of the spill. When one scientist funded by NOAA released a figure much higher than the government's estimate, he found himself being pressured to retract it by officials at the agency. "Are you sure you want to keep saying this?" they badgered him. Lubchenco, the head of NOAA, even denounced as "misleading" and "premature" reports that scientists aboard the research vessel Pelican had discovered a massive subsea oil plume. Speaking to PBS, she offered a bizarre denial of the obvious. "It's clear that there is something at depth," she said, "but we don't even know that it's oil yet."

Scientists were stunned that NOAA, an agency widely respected for its scientific integrity, appeared to have been co-opted by the White House spin machine. "NOAA has actively pushed back on every fact that has ever come out," says one ocean scientist who works with the agency. "They're denying until the facts are so overwhelming, they finally come out and issue an admittance." Others are furious at the agency for criticizing the work of scientists studying the oil plumes rather than leading them. "Why they didn't have vessels there right then and start to gather the scientific data on oil and what the impacts are to different organisms is inexcusable," says a former government marine biologist. "They should have been right on top of that." Only six weeks into the disaster did the agency finally deploy its own research vessel to investigate the plumes.

...Both the government and BP have reasons to downplay the extent of the spill. For BP, the motive is financial: Under the Clean Water Act, the company could owe fines of as much as $4,300 for every barrel spilled, in addition to royalties for the oil it is squandering. For the Obama administration, the disaster threatens to derail the president's plan to expand offshore drilling. "It's crystal clear what the federal response to the tragedy ought to be," said Sen. Frank Lautenberg, who chairs the Senate subcommittee on environmental health. "Bring a dangerous offshore drilling pursuit to an end."

The administration, however, has made clear that it has no intention of reversing its plan to expand offshore drilling. Four weeks into the BP disaster, when Salazar was questioned in a Senate hearing about the future of the president's plan, he was happy to stand up for the industry's desire to drill at any cost. "Isn't it true," asked Sen. Lamar Alexander, a Republican from Tennessee, "that as terrible as the tragedy is, that unless we want $14, $16, $18, $20-a-gallon gasoline, that it's not realistic to think that we would actually stop drilling for oil in the Gulf?" Unbowed by the catastrophe that was still unfolding on his watch, Salazar heartily agreed, testifying that the president had directed him to "move forward" on offshore drilling.

That may help explain why the administration has gone to unusual lengths to contain the spill's political fallout. On May 14th, two days after the first video of the gusher was released, the government allowed BP to apply a toxic dispersant that is banned in England at the source of the leak – an unprecedented practice in the deep ocean. "The effort should be in recovering the oil, not making it more difficult to recover by dispersing it," says Sylvia Earle, a famed oceanographer and former NOAA chief scientist who helped the agency confront the world's worst-ever oil spill in the Persian Gulf after the first Iraq War. The chemical assault appeared geared, she says, "to improving the appearance of the problem rather than solving the problem."