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Gulf Oil Hoarding?

Thursday, July 22, 2010.

Like most people, I've followed the news about the BP Gulf Oil-spill since the Deepwater-Horizon oil well exploded and sank in the Gulf of Mexico.
The flow of oil into the Gulf has finally stopped, and having watched several million gallons of perfectly good oil escaping into the Gulf I'm left to wonder: Why was this well "abandoned"?

http://www.foxnews.com/us/2010/07/07/gulf-awash-abandoned-oil-gas-wells/

This disaster happened as the company, BP, was sealing the well for abandonment. After the explosion and subsequent sinking of the platform, depending on who's numbers you believe, anywhere from 92 million gallons to 327 million gallons of oil have spilled from the "abandoned" well.

Are we suffering the results of this "accident" because of the politics of oil resources? Was the Deepwater well a viable well that was being "abandoned" for later use? Are these wells being placed and "abandoned" as a way of controlling the resource? Are we faced with a general policy of "use it, or loose it"?

I suppose that's more than one question.

How can an "abandoned" well leak 100 to 350 million gallons of oil. Is this sort of thing the reason why developing nations, those desperate for cheap energy, are frustrated?

Jeff Donn and Mitch Weiss of the Associated Press have released a very detailed and somewhat damning report on the state of abandoned off-shore oil wells and the governance thereof. The report is terrible and somewhat depressing, but worth a look if you're interested in the current state of affairs.

Here's an excerpt from their article:

Source: http://www.google.com/hostednews/ap/article/...

Officials at the U.S. Interior Department, which oversees the agency that regulates federal leases in the Gulf and elsewhere, did not answer repeated questions regarding why there are no inspections of abandoned wells.

State officials estimate that tens of thousands are badly sealed, either because they predate strict regulation or because the operating companies violated rules. Texas alone has plugged more than 21,000 abandoned wells to control pollution, according to the state comptroller's office.

Rules and regulations governing the operation and subsequent abandonment of oil-wells seem to vary from state to state since, according to the AP article the operations in California are considerably more closely monitored and inspected.

The sheer number of depleted and otherwise abandoned wells is staggering. I've often wondered what happens to the old wells – knowing that all they really are is steel and cement sitting at the bottom of the ocean, and knowing what happens to steel and cement that's left sitting in salt water too long.

What a terrible moment in time for the United States to have to address this issue. The oil industry is tied to so many jobs – good paying jobs – and oh so many international retirement funds.

This article is dedicated to all gas-guzzling SUV and Tonka-Truck 4x4 driving a-holes, as well as everyone else who can't get conservation. – There's nothing wrong with using oil – it's the best source of easy livin' ever – but I don't see any of you gluttons throwing your own money away.