Friday, May 14, 2010

Economist's View: Drill, Baby, Drill. Spill, BP, Spill

It looks like the oil spill in the gulf is much larger than we've been led to believe. BP deserves it's share -- a large share -- of the criticism for what has happened, but has the administration done everything it could do to help with the oil spill problem. Has it mobilized all possible resources, taken control of the response, etc.? Or has it left too much of the task to BP, and, as convenient, accepted lowball estimates of the magnitude of the problem hoping somehow it would go away?  Are you satisfied with the administration's response? I'm not
 
I'm not either.
 

A small organization called SkyTruth, which uses satellite images to monitor environmental problems, published an estimate on April 27 suggesting that the flow rate had to be at least 5,000 barrels a day, and probably several times that.

The following day, the government — over public objections from BP — raised its estimate to 5,000 barrels a day. A barrel is 42 gallons, so the estimate works out to 210,000 gallons per day.

BP later acknowledged to Congress that the worst case, if the leak accelerated, would be 60,000 barrels a day, a flow rate that would dump a plume the size of the Exxon Valdez spill into the gulf every four days. BP’s chief executive, Tony Hayward, has estimated that the reservoir tapped by the out-of-control well holds at least 50 million barrels of oil.

The 5,000-barrel-a-day estimate was produced in Seattle by a NOAA unit that responds to oil spills. It was calculated with a protocol known as the Bonn convention that calls for measuring the extent of an oil spill, using its color to judge the thickness of oil atop the water, and then multiplying.

However, Alun Lewis, a British oil-spill consultant who is an authority on the Bonn convention, said the method was specifically not recommended for analyzing large spills like the one in the Gulf of Mexico, since the thickness was too difficult to judge in such a case.

Even when used for smaller spills, he said, correct application of the technique would never produce a single point estimate, like the government’s figure of 5,000 barrels a day, but rather a range that would likely be quite wide.

NOAA declined to supply detailed information on the mathematics behind the estimate, nor would it address the points raised by Mr. Lewis.

Mr. Lewis cited a video of the gushing oil pipe that was released on Wednesday. He noted that the government’s estimate would equate to a flow rate of about 146 gallons a minute. (A garden hose flows at about 10 gallons per minute.)

“Just anybody looking at that video would probably come to the conclusion that there’s more,” Mr. Lewis said.

The government has made no attempt to update its estimate since releasing it on April 28.

“I think the estimate at the time was, and remains, a reasonable estimate,” said Dr. Lubchenco, the NOAA administrator. “Having greater precision about the flow rate would not really help in any way. We would be doing the same things.”

Environmental groups contend, however, that the flow rate is a vital question. Since this accident has shattered the illusion that deep-sea oil drilling is immune to spills, they said, this one is likely to become the touchstone in planning a future response.

“If we are systematically underestimating the rate that’s being spilled, and we design a response capability based on that underestimate, then the next time we have an event of this magnitude, we are doomed to fail again,” said John Amos, the president of SkyTruth. “So it’s really important to get this number right.”

Posted via email from Jim Nichols

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