Action stations to stop oil spill repeat

Jun 15 2010 by Kelley Price, found at Evening Gazette

COULD the so-called dash for depth in the offshore oil and gas industry, which has driven much of Teesside’s investment, be brought to a sudden stop as it reflects on the consequences of the Gulf of Mexico disaster?

IT began with a blow-out on BP’s Deepwater Horizon deepwater drilling rig, which killed 11 people. A human tragedy rapidly turned into an environmental disaster that jeopardises not just the delicate balance of an entire eco-system, but has damaged the deep sea industry’s reputation, threatened short-term drilling prospects and could hit the pockets of thousands of middle-income investors in the UK who rely on BP for their pension payout.

Scientists fear that, 56 days after the explosion, more than 100 million gallons of crude oil have been released into the bay - twice as much as BP previously owned up to - and it’s now lapping ominously at hundreds of miles of coastline, putting entire communities out of work. Panicked efforts to contain the spew have seen mud and shredded golf balls packed into the ruptured pipe and even makeshift booms made from ladies’ tights, stuffed with hair collected from salons and dog groomers across the US, strung across the bay.

BP is turning to world-class equipment developed much closer to home, including underwater robots by Tyneside’s SMD and North Yorkshire’s Perry Slingsby to contain the spill, but the incident has sent shivers down the spine of Teesside’s oil and gas sector and, with the bill for BP at £1.1 billion and rising, it’s asking what it can do to protect itself from a similar catastrophe on the Northern Continental Shelf where much of the industry’s activity is focused in the North Sea.

Energy Secretary Chris Huhne’s urgent review of the UK offshore oil and gas industry’s regulatory regime found it “fit for purpose”. Nevertheless, he will ramp up inspection of North Sea drilling rigs.

Meanwhile, Oil & Gas UK, the trade body representing the offshore drilling industry, has set up an advisory group with Government to shine a light on procedures and head off a similar event here.

The organisation’s Sally Fraser says: “The UK hasn’t had a major blow-out for more than 20 years, but it would be complacent not to take a fresh look at the practices in light of what’s happened.

“The vast majority of our wells are in 100 to 300 feet of water, but as time goes on and the UK continental shelf matures, we will be looking at deeper waters.”

For all the UK’s progress on renewables, it’s predicted it will still be reliant on oil and gas for 70% of its energy needs by 2020. Companies are gearing up to maximise recovery of remaining deposits off the North coast, encouraged by deepwater project tax incentives announced by the Treasury earlier this year. Already, some fields are in production west of Shetland.

“This type of deepwater drilling has big clean-up costs, as we’ve seen in the Gulf of Mexico,” says Ms Fraser. “The technology is quite different. We’re keen to get on with the work, ahead of any final recommendations about the Gulf of Mexico spill.”

Mark Walker, managing director of AMW Contractors, believes the Tees Valley is well placed to help shape any new policy and procedure for oil spills. His Cumbrian-based company has specialised in environmental solutions in the energy sector for the last 20 years and past Teesside projects have included work with Able UK on scrapping the ghost ships.

“A sudden, major incident is one thing that can never be precluded,” says Mr Walker. “Regulations in the UK are up to scratch, the MCA is very good. But we have to ask how we can prevent the issues in the Gulf of Mexico happening again.

“It’s critical for Teesside. The petrochemical companies are all trading successfully, yet they’re operating in some of the most environmentally sensitive locations in Europe. We need a think tank that can produce a fail-safe review. The UK has always been a leading source for intellectual property. It would be good for the Tees Valley if it could pick up some of that work.”