bp issues

I now fear something far worse.

BP appears to have delayed measures to plug the well and stop the damage.

Instead it appears they have taken measures to salvage revenues.

They inserted a siphon tube that initially allowed them to load a portion of the escaping crude onto surface ships, presumably to be sold.

Instead of inserting a siphon tube, could BP have deposited aggregate (rocks) or other materials (steel rods, etc.) to start filling the hole with something ‘heavy’ that could obstruct the outward flow?

In fact, would not something as simple as an armada of barges filled with aggregate dumping their fill over the open pipe have built a mound over it that, when it got high enough, would completely stop the leaking crude?

Right from the beginning, could there not have been an emergency call to action for the US Navy and Coast Guard, as well as privately owned ships, to begin the parade of barges needed to continually dump aggregate over the site?

There has been no discussion that I have seen along these lines. Instead, public trust, as low as it may poll, remains high enough for it to be unthinkable that BP could have made the decision to attempt to siphon some crude rather than immediately take measures to plug the well based on narrow corporate cost/benefit analysis that showed the clean up costs of leakage that could have been stopped to be less than the present value of the well if it could be salvaged.

Warren Mosler

One Response

  1. What’s aggravating is that is a case of a tenant on federal property wasting public assets while the federal property managers were asleep at the switch. Instead of trying to reform the existing failed bureaucracy, the Government should simply benchmark who does the best job worldwide of managing offshore oil property and outsource the job to them.

    Just as the Corps of Engineers hired Dutch engineers for the design and construction of a sea wall for New Orleans, likewise, the Department of Interior should hire the Norwegians to manage offshore drilling for us.

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