Heckuva job, Barry?

      7 Comments on Heckuva job, Barry?

Although I don’t find much value in his overarching thesis that Barack Obama is just like Vladimir Putin, except less effective at being a thug, Michael Barone makes some concerning points about the oil spill response. I’d love to hear convincing rebuttals, if they exist. Barone:

Obama’s decision to impose a six-month moratorium on deepwater oil drilling in the Gulf…penalizes companies with better safety records than BP’s and will result in many advanced drilling rigs being sent to offshore oil fields abroad.

The justification offered was an Interior Department report supposedly “peer reviewed” by “experts identified by the National Academy of Engineering.” But it turned out the drafts the experts saw didn’t include any recommendation for a moratorium. Eight of the cited experts have said they oppose the moratorium as more economically devastating than the oil spill and “counterproductive” to safety.

This was blatant dishonesty by the administration, on an Orwellian scale. In defense of a policy that has all the earmarks of mindless panic, that penalizes firms and individuals guilty of no wrongdoing and that will worsen rather than improve our energy situation. …

And what about the decision not to waive the Jones Act, which bars foreign-flag vessels from coming to the aid of the Gulf cleanup? The Bush administration promptly waived it after Katrina in 2005. The Obama administration hasn’t and claims unconvincingly that, gee, there aren’t really any foreign vessels that could help.

The more plausible explanation is that this is a sop to the maritime unions, part of the union movement that gave Obama and other Democrats $400 million in the 2008 campaign cycle. It’s the Chicago way: Dance with the girl that brung ya.

Or the decision to deny Louisiana Gov. Bobby Jindal’s proposal to deploy barges to skim oil from the Gulf’s surface. Can’t do that until we see if they’ve got enough life preservers and fire equipment. That inspired blogger Rand Simberg to write a blog post he dated June 1, 1940: “The evacuation of British and French troops from the besieged French city of Dunkirk was halted today, over concerns that many of the private vessels that had been deployed for the task were unsafe for troop transport.”

Rolling Stone has more seemingly damning stuff. (Caveat: I haven’t read the whole article yet.)

P.S. Is the blanket ban on explaratory deepwater drilling — which Barone mischaracterizes as “moratorium on deepwater oil drilling” (some might call this “blatant dishonesty on an Orwellian scale”) — both overinclusive and underinclusive? In other words, does it shut down operations with good safety records for no reason, while doing nothing about other (non-exploratory) operations that should be shut down? For instance:

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. In a May 19th letter to Salazar, 26 congressmen called for the rig to be shut down immediately. “We are very concerned,” they wrote, “that the tragedy at Deepwater Horizon could foreshadow an accident at BP Atlantis.”

The administration’s response to the looming threat? According to an e-mail to a congressional aide from a staff member at MMS, the agency has had “zero contact” with Atlantis about its safety risks since the Deepwater rig went down.

Then there’s this, which of course pre-dates Obama, but also implicates his administration for failing to right the ship sooner:

MMS has fully understood the worst-case scenarios for deep-sea oil blowouts for more than a decade. In May 2000, an environmental assessment for deepwater drilling in the Gulf presciently warned that “spill responses may be complicated by the potential for very large magnitude spills (because of the high production rates associated with deepwater wells).” The report noted that the oil industry “has estimated worst-case spill volumes ranging from 5,000 to 116,000 barrels a day for 120 days,” and it even anticipated the underwater plumes of oil that are currently haunting the Gulf: “Oil released subsea (e.g., subsea blowout or pipeline leak) in these deepwater environments could remain submerged for some period of time and travel away from the spill site.” The report ominously concluded, “There are few practical spill-response options for dealing with submerged oil.”

That same month, an MMS research document developed with deepwater drillers – including the company then known as BP Amoco – warned that such a spill could spell the end for offshore operations. The industry could “ill afford a deepwater blowout,” the document cautions, adding that “no single company has the solution” to such a catastrophe. “The real test will come if a deepwater blowout occurs.” …

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. And an environmental assessment for BP’s lease block concluded that offshore spills “are not expected to damage significantly any wetlands along the Gulf Coast.”

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. “There’s no analytical component to a cat-ex,” says a former MMS scientist. “You have technicians, not scientists, that are simply checking boxes to make sure all the T’s are crossed. They just cut and paste from previous approvals.”

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. BP claims that a spill is “unlikely” and states that it anticipates “no adverse impacts” to endangered wildlife or fisheries. Should a spill occur, it says, “no significant adverse impacts are expected” for the region’s beaches, wetlands and coastal nesting birds. The company, noting that such elements are “not required” as part of the application, contains no scenario for a potential blowout, and no site-specific plan to respond to a spill. 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.

“This response plan is not worth the paper it is written on,” said Rick Steiner, a retired professor of marine science at the University of Alaska who helped lead the scientific response to the Valdez disaster. “Incredibly, this voluminous document never once discusses how to stop a deepwater blowout.”

And:

Scientists like Steiner had urgently tried to alert Obama to the depth of the rot at MMS. “I talked to the transition team,” Steiner says. “I told them that MMS was a disaster and needed to be seriously reformed.” A top-to-bottom restructuring of MMS didn’t require anything more than Ken Salazar’s will: The agency only exists by order of the Interior secretary. “He had full authority to change anything he wanted,” says Rep. Issa, a longtime critic of MMS. “He didn’t use it.” Even though Salazar knew that the environmental risks of offshore drilling had been covered up under Bush, he failed to order new assessments. “They could have said, ‘We cannot conclude there won’t be significant impacts from drilling until we redo those reviews,'” says Brendan Cummings, senior counsel for the Center for Biological Diversity. “But the oil industry would have cried foul. And what we’ve seen with Salazar is that when the oil industry squeaks, he retreats.”

Under Salazar, MMS continued to issue categorical exclusions to companies like BP, even when they lacked the necessary permits to protect endangered species. A preliminary review of the BP disaster conducted by scientists with the independent Deepwater Horizon Study Group concludes that MMS failed to enforce a host of environmental laws, including the Clean Water Act. “MMS and Interior are equally responsible for the failures here,” says the former agency scientist. “They weren’t willing to take the regulatory steps that could have prevented this incident.”

Had MMS been following the law, it would never have granted BP a categorical exclusion – which are applicable only to activities that have “no significant effect on the human environment.” At a recent hearing, Sen. Sheldon Whitehouse grilled Salazar about Interior’s own handbook on categorical exclusions, which bars their issuance for offshore projects in “relatively untested deep water” or “utilizing new or unusual technology” – standards that Whitehouse called “plainly pertinent” for BP’s rig. “It’s hard for me to see that that’s a determination that could have been made in good faith,” Whitehouse said, noting that the monstrously complex task of drilling for oil a mile beneath the surface of the ocean appeared to have been given less oversight than is required of average Americans rewiring their homes. “Who was watching?”

Not the Interior secretary. Salazar did not even ensure that MMS had a written manual – required under Interior’s own rules – for complying with environmental laws. According to an investigation in March by the Government Accountability Office, MMS managers relied instead on informal “institutional knowledge” – passed down from the Bush administration. The sole written guidance appeared on a website that only provided, according to the report, “one paragraph about assessing environmental impacts of oil and gas activities, not detailed instructions that could lead an analyst through the process of drafting an environmental assessment or environmental impact statement.”

“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.”

On April 6th of last year, less than a month after BP submitted its application, MMS gave the oil giant the go-ahead to drill in the Gulf without a comprehensive environmental review. The one-page approval put no restrictions on BP, issuing only a mild suggestion that would prove prescient: “Exercise caution while drilling due to indications of shallow gas.”

UPDATE: And then there’s this:

the administration failed to ensure that BP was prepared to respond to the mess on the surface, where a lack of ships and equipment has left more than 100 miles of the coast – including vast stretches of fragile marshlands – covered in crude. According to MMS regulations, the agency is supposed to “inspect the stockpiles of industry’s equipment for the containment and cleanup of oil spills.” In BP’s case, the agency should have made sure the company was prepared to clean up a spill of 250,000 barrels a day. But when Rolling Stone asked MMS whether BP had the required containment equipment on hand, the agency’s head of public affairs in the Gulf replied, “I am not clear if MMS has the info that you are requesting.”

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.

7 thoughts on “Heckuva job, Barry?

  1. Jim Kelly

    You already point out some flaws, but another I’d like to point out is the idea that other companies have “better safety records” is laughable. I don’t think we have enough evidence right now to properly evaluate the safety of other companies. I do think it’s a reasonable step to halt new drilling, but shutting down existing drilling would have an immediate effect on the economy and may be overreacting.

    I’ve actually given some thought to the whole MMS thing, whether a complete top down restructuring is feasible. I don’t really know. It sounds like a good idea, but consider that if that was done undoubtedly this disaster would still happen, as there’s no way they’d be up and running by now in any effective manner. Tons of institutional knowledge would be lost. That doesn’t necessarily mean it shouldn’t be done, but again, I just don’t know if the benefits outweigh the risks.

    From what I’ve been hearing MMS is just totally fucked, and has been for a long time. The popular assertion that Bush administration inserted cronies friendly to the industry sounds a little simplistic to me. The place sounds like its been rotting from the inside for a long time.

    The IG investigation into MMS wasn’t finished until May. I think it’s legitimate that the administration waited until the IG report before attempting a reorganization, and honestly think anyone attempting to argue otherwise is arguing from a position that is part hindsight and part partisanship.

  2. Brendan Loy Post author

    My fear re: MMS is that any “top down restructuring” would likely resemble the first Bush Administration’s celebrated, much-ballyhooed “elimination” or “abolishment” of the agency that was deemed responsbile for the Savings & Loan crisis, the Federal Home Loan Bank Board. The way NPR’s Planet Money tells the story, on the day Bush made the big announcement and declared that “never again will America allow any insured institution operate without enough money,” the name plates at the FHLBB’s were literally changed to read “Office of Thrift Supervision,” and the same workers went back to work after the bill signing ceremony at the same desks under a “new” agency. The new OTS was basically the same thing as FHLBB, and not surprisingly, it proceeded to make basically the same mistakes all over again. OTS was widely understood to be the laxest bank regulator out there, and thus was sought out by such distinguished institutions as AIG, Countrywide, IndyMac and Washington Mutual to be their primary regulator. And the rest is history. Again.

  3. Jim Kelly

    Yeah. I mean, I suppose the best summary of my response to all this is, “shit’s complicated.”

    I haven’t really seen anything convincing as concerns gross mismanagement of the situation. I mean, yeah, they trusted BP for too long. That was a mistake. Is it an understandable one? Of course. Have they learned from it? Of course.

    I feel like the opposition feels almost entitled to make a big deal out of whatever they think they can, missing the point that there’s a difference between mistakes/undesirable outcomes (which in my opinion is expected and acceptable) and the far worse systematic problems that plagued, for instance, the Bush response to Katrina. Those included an initial complete failure to respond followed by the failure of an agency to adequately respond that was wholly designed to respond to just such an event, partly because it was led by someone not qualified to lead such an organization. To me they are wholly different situations.

    I will admit, however, that I’m attempting to be self aware here about possible partisanship. I’m aware that my position is the one a partisan would take, but when I evaluate my position I think it’s defensible.

  4. AMLTrojan

    Here’s what those Bush-and-Barton loving, tea-party hobnobbing, right-wing wackos at The Economist have to say about Vladimir Obama:

    After the macho rhetoric came the demands for cash. Mr Obama decided to “inform” BP that it must put adequate funds to meet all compensation claims into an escrow account beyond its control, although he has no authority to do so. Nancy Pelosi, the speaker of the House of Representatives, instructed it not to pay a dividend until all claims tied to the spill are settled. Her fellow Democrats in Congress are trying to raise BP’s liability retroactively—the sort of move America’s courts rightly frown on. Mr Salazar, on even thinner legal ice, suggested that the government would hold BP accountable not just for the harm directly done by the spill, but also for the jobs lost in the oil business thanks to the freeze on oil drilling in deep water that he himself has imposed.

    Investors seem to be worried that the wrath of American officialdom will ruin BP. They have driven down its value by $89 billion since the well erupted, far in excess of all but the most dire forecasts of the ultimate costs of the spill. Corporate America, normally quick to resist government intrusion, has kept strangely silent, as though businessmen are afraid of the consequences of sticking their heads above the parapet.

    The attack on BP seems to have paid off for the administration, in that the firm has caved in to most of its demands. Mr Obama’s swipes at the company have lent him an unfamiliar air of forcefulness. And, as everybody in Washington knows, so long as BP meets its commitments, government attempts to meddle in the firm’s management, much less seize its assets, will be rejected by the courts. So why not keep going?

    …Mr Obama is not the socialist the right claims he is (see article). He went out of his way, meeting BP executives on June 16th, to insist that he has no interest in undermining the company’s financial stability. But his reaction is cementing business leaders’ impression that he is indifferent to their concerns. If he sees any impropriety in politicians ordering executives about, upstaging the courts and threatening confiscation, he has not said so. The collapse in BP’s share price suggests that he has convinced the markets that he is an American version of Vladimir Putin, willing to harry firms into doing his bidding.

    Nobody should underestimate the scale of BP’s mistake, nor the damage that it has caused. But if the president does not stand up for due process, he will frighten investors across the board. The damage to America’s environment is bad enough. The president risks damaging its economy too.

    Yeah, that’s exactly like forcing coal miners and air-traffic controllers to go back to work by enforcing the law. [/sarcasm]

  5. Jim Kelly

    Investors seem to be worried that the wrath of American officialdom will ruin BP.

    Yes, that’s why their stock price has gone down. By many accounts I’m hearing, the $20 Billion fund may end up being a deal for BP.

  6. Pingback: Introducing the new baby's name and the story behind it (with … | Baby name

Comments are closed.