Chevron Suspended From Brazil Offshore Drilling

By B. McPherson
                           


The Brazilian government has taken action against Chevron Corporation for their part in an oil spill in the Atlantic Ocean. Along with the Brazilian owned Petrobras Corporation, many petroleum companies are vying for the riches in the Campos Basin. November 7, Chevron had an oil spill when unexpectedly high pressure in the oil pool caused a spill and seepage through weak ocean bed rock. Estimates of the amount of oil entering the ocean vary depending on the source of the reporting, but a conservative estimate is at least 3000 barrels escaped.

Bloomberg is reporting that the Brazilian government is taking a tough stand on the spillage and demanding no drilling be done until Chevron comes up with some satisfactory answers.

“The company needs to pay more attention to safety after its “negligence” contributed to the accident, Brazil’s oil regulator, the Agencia Nacional do Petroleo, said yesterday. The ban will remain in place until the regulator identifies the causes and considers it safe to resume drilling, ANP said.” Bloomberg BusinessWeek

Big money is at stake here. Chevron has been fined about $28 million for this incident, but the big prizes are the oil extraction and sale. The Campos Basin is expected to yield huge riches if the oil can be extracted without major ocean pollution.

The sale of offshore oil leases is a big business around the world. As the technology improves to make possible deep water drilling, governments can dream of new sources of revenue. Some countries that currently sell offshore drilling leases: Angola, China, Cuba, Denmark, USA.
Location: Brazil

Comments

Post a Comment

Popular posts from this blog

Abandoned Oil Pipelines What Lurks Below?

Image
These photos were taken July 2012 in the historic Turner Valley, Alberta B. McPherson Controversy over new oil pipelines is reaching boiling point in many circles. Heated debate is taking place over the proposed Enbridge Northern Gateway and Keystone Pipeline proposals. Safety, disruption to landowners  and more are being weighed against the money to be made transporting and selling petroleum products. It got me thinking about the old pipelines. What happens to a pipeline when it is too old to use or not needed? It’s a bit of an Alice in Wonderland scene. The US laws and regulations are different from ours in Canada. The Pipeline and Gas Journal is a source of information about abandoned pipelines in Texas. Apparently a pipeline in Texas may be abandoned by a company, but it still retains ownership and may choose to reactivate the line at a later date. In the meantime, the right of way or easement is no longer maintained, but the through which the pipe extends is not free
Read more

Prince Rupert Says No to Enbridge Pipeline

Image
B. McPherson Prince Rupert city council joined a growing list of BC coastal communities that are saying “No” to the Enbridge proposal to build a twinned pipeline from Edmonton to the coast. The decision of the Prince Rupert city politicians was unanimous. Already the village of Kitimaat, Terrace and the Skeena Queen Charlottes Regional District have voiced their opposition to the project. There are ongoing hearings by a federal court appointed Joint Review Panel which are gathering input from interested parties about the proposed Enbridge Northern Gateway Pipeline which would bring crude petroleum from the oil sands of Alberta to the coast of British Columbia. The proposal would see a twinned pipeline run over the Rocky Mountains and through wilderness to the treacherous west coast. The proposed terminus at Kitimat would require tankers to wend their way through the maze of islands and reefs to load up at the head of Douglas Channel. While the hearings and the finding
Read more

Efficient Rail Transport May Make Pipelines Obsolete

Image
B. McPherson What happens to all the abandoned pipelines? Oil pipelines have huge direct costs to build, but they also have many hidden costs. In spite of dire warnings by environmentalist the world is demanding ever greater supplies of the black gold. For those countries that have it and market it successfully, money comes rolling in. But at what cost? An oil pipeline is a hugely complex thing. Enbridge Corp. has been battling citizens in British Columbia over its proposed Northern Gateway Pipeline and the Keystone Pipeline in the US has been stalled for months. When Big Oil needs to transport oil or bitumen to refineries, it usually gets a smooth ride to approval. Labelling energy security as a national priority, property rights are infringed upon. People in Canada cannot legally stop the installation of a pipeline across their property. The high pressure conduit is often buried only a few feet below the surface leaving crops, buildings and livestock vulnerable to a
Read more