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BP's Costs for Oil Spill Response Pass $3B
BP's costs for the disastrous Gulf of Mexico oil spill climbed nearly half a billion dollars in the past week, raising the oil giant's tab to just over $3 billion for work on cleaning and capping the gusher and payouts to individuals, businesses and governments.
London-based BP PLC, the largest oil and gas producer in the Gulf, released its latest tally of response costs Monday. The total of $3.12 billion was up from $2.65 billion a week earlier.
The figure does not include a $20 billion fund for Gulf damages BP created last month.
Special Section: Disaster in the Gulf
As BP continued drilling relief wells that are the best hope for plugging the blown-out well, a giant new oil skimming vessel was tested in the Gulf. But lousy weather means it may be longer than first hoped before officials know if it can work full-time sucking crude from the sea.
The Taiwanese skimmer dubbed "A Whale" has been able to show off its maneuverability during a weekend test in a 25-mile-square patch of water just north of the site where an April 20 explosion on the Deepwater Horizon killed 11 workers and started the worst oil spill in Gulf history.
TMT, the shipping firm that owns the vessel, had hoped to test a containment boom system designed to direct greater volumes of oily water into the 12 vents or "jaws" that the ship uses to suck it in, according to spokesman Bob Grantham.
But lingering bad weather in the form of stiff winds and choppy seas has made that impossible, and prevented a flotilla of smaller skimmers from working offshore along the coasts of Alabama, Mississippi and Florida.
"As was the case yesterday, the sea state, with waves at times in excess of 10 feet, is not permitting optimal testing conditions," Grantham said in an e-mail Sunday.
The skimmers, which have been idle off the coasts since a spell of bad weather last week kicked up by Hurricane Alex, were on the water along the Louisiana coast over the weekend. Officials with the U.S. Coast Guard are waiting for the weather to improve before sending them out elsewhere.
"We've got our guys out there and they're docked and ready, but safety is a huge concern for us, especially with the smaller vessels," said Courtnee Ferguson, a spokeswoman for the Joint Information Command in Mobile, Alabama.
On Sunday, huge barges used to collect oil from skimming vessels were parked at the mouth of Mobile Bay, waiting for conditions to subside as waves rose to about 5 feet high offshore.
The current spate of bad weather is likely to last well into next week, according to the National Weather Service.
"This should remain fairly persistent through the next few days, and maybe get a little worse," meteorologist Mike Efferson said.
So far, weather has not slowed drilling on two relief wells meant to finally plug the spill. BP officials have said they're running slightly ahead of schedule on the drilling, but expect weather or other delays.
Early to mid-August is still the timeframe for the completion of the drilling.
Along with the drilling, the capture and burning of oil and gas at the site of the leaking well has gone on without interruption from the weather. But the choppy seas have delayed the operation of another vessel that officials say will roughly double the amount of oil being collected or burned.
The Helix Producer is supposed to connect with the leaking well by a flexible hose that will help it disconnect and reconnect quickly if a hurricane or other major storm forces an evacuation of the site.
Coast Guard officials say they're hoping to have the Helix Producer connected to the well and collecting oil by Wednesday.
No Holiday Break for Clean-up Crews
On this long Fourth of July holiday weekend there's no break for clean-up crews on Grand Isle's beach. This island's trying to celebrate the holiday, but for the Mayberry family, the oil crisis changes the mood.
"It is hard - it's weird to see Grand Isle so dead, without anyone, because the past years it's always been full of people," Maggie Mayberry told CBS News correspondent Mark Strassmann.
Kathy Mayberry said, "It's upsetting as a mother, wondering if our lifestyle will be forever changed."
And on Grand Isle's beach, a new BP machine actually scrubs oil from sand. Work begins tomorrow.
BP Project Engineer Chris Lunsford said it should clean about 50 tons a day.
"Anything on that scale ever been tried before?" asked Strassmann.
"We've never had this much oil before on the beach, so, no," he said.
Grand Isle families know that as well as anyone - and worry what their community will look like by next year's Fourth of July.
"What I hope happens is that there's a solution found to the oil and that we can continue to come here as a family and make more memories," said Kathy Mayberry.
More Oil Spill Coverage:
Rough Weather Slows Some Gulf Clean-up Work
Gulf Coast Deserted for July Fourth Weekend
Gulf Coast Expecting Glum Fourth of July
Are Deepwater Relief Wells a Guaranteed Fix?
After Rough Weather, Skimmers Back to Work
Model: High Odds of Oil Hitting South Florida
Oil Spill Volunteers Ready, but Many Go Unused
Alex Downgraded, but Hampering Gulf Cleanup
© 2010 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report. London-based BP PLC, the largest oil and gas producer in the Gulf, released its latest tally of response costs Monday. The total of $3.12 billion was up from $2.65 billion a week earlier.
The figure does not include a $20 billion fund for Gulf damages BP created last month.
Special Section: Disaster in the Gulf
As BP continued drilling relief wells that are the best hope for plugging the blown-out well, a giant new oil skimming vessel was tested in the Gulf. But lousy weather means it may be longer than first hoped before officials know if it can work full-time sucking crude from the sea.
The Taiwanese skimmer dubbed "A Whale" has been able to show off its maneuverability during a weekend test in a 25-mile-square patch of water just north of the site where an April 20 explosion on the Deepwater Horizon killed 11 workers and started the worst oil spill in Gulf history.
TMT, the shipping firm that owns the vessel, had hoped to test a containment boom system designed to direct greater volumes of oily water into the 12 vents or "jaws" that the ship uses to suck it in, according to spokesman Bob Grantham.
But lingering bad weather in the form of stiff winds and choppy seas has made that impossible, and prevented a flotilla of smaller skimmers from working offshore along the coasts of Alabama, Mississippi and Florida.
"As was the case yesterday, the sea state, with waves at times in excess of 10 feet, is not permitting optimal testing conditions," Grantham said in an e-mail Sunday.
The skimmers, which have been idle off the coasts since a spell of bad weather last week kicked up by Hurricane Alex, were on the water along the Louisiana coast over the weekend. Officials with the U.S. Coast Guard are waiting for the weather to improve before sending them out elsewhere.
"We've got our guys out there and they're docked and ready, but safety is a huge concern for us, especially with the smaller vessels," said Courtnee Ferguson, a spokeswoman for the Joint Information Command in Mobile, Alabama.
On Sunday, huge barges used to collect oil from skimming vessels were parked at the mouth of Mobile Bay, waiting for conditions to subside as waves rose to about 5 feet high offshore.
The current spate of bad weather is likely to last well into next week, according to the National Weather Service.
"This should remain fairly persistent through the next few days, and maybe get a little worse," meteorologist Mike Efferson said.
So far, weather has not slowed drilling on two relief wells meant to finally plug the spill. BP officials have said they're running slightly ahead of schedule on the drilling, but expect weather or other delays.
Early to mid-August is still the timeframe for the completion of the drilling.
Along with the drilling, the capture and burning of oil and gas at the site of the leaking well has gone on without interruption from the weather. But the choppy seas have delayed the operation of another vessel that officials say will roughly double the amount of oil being collected or burned.
The Helix Producer is supposed to connect with the leaking well by a flexible hose that will help it disconnect and reconnect quickly if a hurricane or other major storm forces an evacuation of the site.
Coast Guard officials say they're hoping to have the Helix Producer connected to the well and collecting oil by Wednesday.
No Holiday Break for Clean-up Crews
On this long Fourth of July holiday weekend there's no break for clean-up crews on Grand Isle's beach. This island's trying to celebrate the holiday, but for the Mayberry family, the oil crisis changes the mood.
"It is hard - it's weird to see Grand Isle so dead, without anyone, because the past years it's always been full of people," Maggie Mayberry told CBS News correspondent Mark Strassmann.
Kathy Mayberry said, "It's upsetting as a mother, wondering if our lifestyle will be forever changed."
And on Grand Isle's beach, a new BP machine actually scrubs oil from sand. Work begins tomorrow.
BP Project Engineer Chris Lunsford said it should clean about 50 tons a day.
"Anything on that scale ever been tried before?" asked Strassmann.
"We've never had this much oil before on the beach, so, no," he said.
Grand Isle families know that as well as anyone - and worry what their community will look like by next year's Fourth of July.
"What I hope happens is that there's a solution found to the oil and that we can continue to come here as a family and make more memories," said Kathy Mayberry.
More Oil Spill Coverage:
Rough Weather Slows Some Gulf Clean-up Work
Gulf Coast Deserted for July Fourth Weekend
Gulf Coast Expecting Glum Fourth of July
Are Deepwater Relief Wells a Guaranteed Fix?
After Rough Weather, Skimmers Back to Work
Model: High Odds of Oil Hitting South Florida
Oil Spill Volunteers Ready, but Many Go Unused
Alex Downgraded, but Hampering Gulf Cleanup
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MONEY IS NOT GOING TO HELP WITH THESE CHEMICALS SPEWING FOR THIS MAN MADE DISASTER WHAT WE NEED NOW IS FOR THE PRESIDENT (HIS WORDS KICK ASS)
WELL IT TIME FOR HIM TO KICK ASS--( HIMSELF ) AND LET THE NAVY TAKE OVER. HE IS MAKING THE UNITED STATES LOOK SUTPID. YES HE GIVES WONDERFULS SPEACHES
WHICH NOW I'VE TURNED DEAF-- HE NEEDS TO TAKE CHARGE. THERE ARE CHEMICALS AND METHAINE THESE MEN AND WORMEN ARE RISKING THIR LIVES OUT IN THE GULF.
FORMER PRESIDENT CLINTON WHEN ASKED ABOUT THE SITUTATION ANSWERED:
SEND THE NAVY SINK A FEW BARGES AND SEAL IT OFF!
SIMPLE DON'T YOU THINK?
IS HE (BOB) WAITING FOR LOUISIANA, MISSISSIPPI,ALABAMA, FLORIDA TO WIND UP BEING A DEAD ZONE RUINING HERITAGES THAT HAVE GONE ON FOR YEARS SURVIVING FROM DEADLY HURICANES.
WORRY ABOUT BP GETTING THE MONIES TO FAMILES WHO HAVE BEEN DESTROYED AND HUSBANDS THEY HAVE LOST WHEN EVER THIS PRESIDENT "KICK ASS"?
WHICH I DOUBT SINCERELY.
I AM TIRED OF THE TALKING AND ALL THE RED TAPE. NOW NOW NOW IS THE TIME
TO END THIS.
I am a retired federal government lawyer who advised engineers on complex aviation-related construction projects where...if they were done wrong...people could get killed or injured or there would be major property damage. In other words, it had to be done right the first time. I always told the engineers "Either do it right or be prepared to do it over before I review it" and my approval was needed prior to commencing construction.
It's quite clear that on this BP oil platform construction job, what the engineers built was being driven by economic considerations alone and resulted in cutting corners. In short, nobody was riding shotgun on this job who was keeping the bigger picture in mind...safety and the catastrophic consequences (including BP's potential civil liability) of an uncontrolled oil spill. Instead, it was all about building the platform and drilling rig and getting the job done.
When you are building something like a deep water oil drilling platform, it is going to be operating in a totally unforgiving environment (deep water) and the consequences of catastrophic structural failure are going to be...well...catastrophic.
It is also clear that that joke of a governmental review process was merely a rubber stamp for the oil industry.
I wonder if the people who were driving this ready-to-happen train wreck think that their cost cutting has saved any money now? I hope that, at the very least, they now join the ranks of the unemployed. There also needs to be a major overhaul of the government agency that approved this. Their job is not to promote industry. Their job is to review and approve projects that develop our natural resources AND protect the public interest, worker safety and the environment.
I have seen this time and time again in government agencies. It's called political interference by political appointees who see industry as their "clients" instead of the American people. They get away with time and time...until something like this happens.
Then they resign and take a cushy job in the industry on whose behalf they were acting.
We have taken all the easy stuff and we know about how much else is out there. They also don't think there will be any finds that will slow our descent.
We need to start moving in an orderly fashion toward diversifying our energy portfolio.
Many experts say it is already too late.
Not to worry, all that loss will be passed on to us eventually.
Do you really think they're worried? The only worry they have right now is how to keep the people from being angry with them and stop the bleeding.
All your doing is hurting the the people at the BP stations, who most make a little above minimum wage. A local BP franchise owner had to let 4 people go due to loss of business. Your not going to hurt the executives who were the major cause of the spill at all with their golden parachutes.
We can't have big oil losing money.
*****************
Beyond Pollution.......British Pr*cks......Ba***** Polluters.......are all acceptable....Personally, I think they should change their initials to (LA) for Limey A$$holes!
Well, at least we know what else "BP" can stand for...B ig P roblem...
Of couse BP has not calculated the long-term cost to the environment, in addition to the health costs of the various toxic chemicals that are by products of oil production.
In addition, surface oil is only part of the problem. Giant oil plumes are spreading thousands of feet below the surface of the sea and in addition to oil, the leak is spewing toxic chemicals and methane. All of these conditions will have disastrous effects on the food chain, not to mention Governor Bobby Jindal's proposals for ***** and sand berms.
I might also add that recent studies of sperm whales confirm the presence of many toxic chemicals - especially mercury through out the ocean. These toxic chemicals get ingested by all marine life, and whenever we eat sea food, we also get a dosage of mercury. A major source of mercury contamination is coal fired power plants.
The only real solution is to re-dedicate the 4th of July to a declaration of Independence from Filthy Fossil Fuels. We need to start phasing out fossil fuels now, replacing them with geo-thermal, solar, and wind energy - linked by supergrids. I might suggest people also check out the following websites Sapphire Energy/OriginOil and AlgaeVenture Systems. Both of these companies are developing fuel from algae. AlgaeVenture has discovered a process that cuts the cost of extraction by over 90%. Green tech is the wave of the future. It is a multi-trillion dollar industry that will provide both energy and jobs for the 21st century. We should be leading the race to develop green fuels. We should not turn over the lead to China. (which is what's happening right now.)