The Omega Letter Intelligence Digest
Vol: 105 Issue: 24 - Thursday, June 24, 2010
Ensuring The Worst Case Scenario?
One
of the most enduring features surrounding the Gulf Oil Spill now
entering its third month of belching oil from the seafloor is the fact
that no matter how bad the most recent worst-case scenario speculation,
the next one will be even more terrifying.
The
base-line measures of the crisis have steadily worsened. The estimated
flow rate keeps rising. The spill is already worse than anybody could
have anticipated and there remains no end in sight.
According
to point man Admiral Thad Allen of the US Coast Guard, the reason that
BP stopped pumping mud into the well in last month's "top kill" effort
was fear the effort would damage the casing and open new channels for
oil to leak into the rock formations.
"I
think that one thing that nobody knows is the condition of the well
bore from below the blowout preventer down to the actual oil field
itself," Allen said last week. "We don't know if the well bore has been
compromised or not."
Making
things worse, the admiral said, was the fact that the blowout preventer
is ‘leaning'.
"The
entire arrangement has kind of listed a little bit," he said.
Bruce
Bullock, director of the Maguire Energy Institute at Southern Methodist
University, says one of the characteristics of the Deepwater Horizon
blowout is its unpredictability.
He
said the deep-sea ‘plumes' of oil detected by research vessels are
probably not from the blowout but possibly from additional leaks caused
by either the drilling or the blowout.
Nobody
knows how much oil is actually seeping into the Gulf.
"I
actually have a document that shows that BP actually believes it could
go upwards of 100,000 barrels per day," Rep Ed Markey [D-Mass] said on
NBC's "Meet the Press."
"So,
again, right from the beginning, BP was either lying or grossly
incompetent. First they said it was only 1,000. Then they said it was
5,000 barrels. Now we're up to 100,000 barrels."
Senator
Charles Grassley [R-Ia) released a BP document entitled "Maximum
Discharge Calculation." The document was published internally was based
on theoretical calculations made before drilling began.
That
document says given the most "optimistic assumptions" about the size of
the reservoir and the intensity of the pressure at depth and assuming a
total loss of well control and no inhibitions on the flow, "a maximum
case discharge of 162,000 barrels per day was estimated."
BP
recalculated after the Deepwater Horizon blew up and came up with what
it called a "more reasonable" worst-case scenario of between 40,000 and
60,000 barrels per day. A ‘barrel' of oil is roughly 42 gallons.
About
the only thing that we ARE sure of (we being the public) is that everybody
is lying about it. BP is looking to mitigate the damage to its
corporate image and its bottom line.
Members
of the Congress are looking for ways to use the oil spill to mitigate
the damage to their own re-election prospects.
Admiral
Thad Allen is looking for ways to make it appear that the government's
intervention is helping, rather than hindering efforts at both plugging
the hole and cleaning up the damage.
The
truth is that every one of them is lying. Nobody knows how bad
the spill really is or how many other leaks it may have caused. At the
same time, nobody wants to admit that they don't know.
Except
Matt Simmons, founder of Simmons and Co. Simmons and Co. is an oil
investment firm. He claims that he does know and that the news
is much worse than anybody else believes.
Simmons
says the leak that BP is focusing on at the "riser" is not the problem.
The real problem is a gaping hole at the "well head," 8 miles away.
"The
riser leak is a deception," says Simmons. "The hole is in the well head
- it's the well bore."
"When
they [the research vessel Thomas Jefferson] finally got the permission
to circle the three-mile radius," of the well, "once they got up wind
[of the blast], within 20 minutes all the crew [of the boat] were
nauseous, and several people are still in the hospital. There is benzene
coming out of that stuff. If a hurricane finally blows up the Gulf,
we could have millions of people die."
According
to Simmons, the ultimate worst-case scenario has not yet even been
contemplated.
"We're
going to have to evacuate the Gulf States. Can you imagine evacuating
20 million people? . . . This story is 80 times worse than I thought."
Only
eighty times worse?
Louisiana
Governor Bobby Jindal sent a letter to Secretary of Defense Robert
Gates asking the Defense Department for six thousand active duty
military personnel to be dispatched to the Gulf to aid the Louisiana
National Guard.
Jindal
says that the reason he needs federal troops is because the National
Guard is busy preparing for just such a possible evacuation.
"Currently,
our Soldiers and Airmen are staging for and are engaged in the planning
of the effort to evacuate and provide security and clean up for the
coastal communities expected to be impacted by the oil spill."
If
the well isn't capped soon, the toxic gases from the well, together
with the highly toxic Corexit 9500 chemical dispersant being used will
eventually force the evacuation of the Gulf States.
It
may already be too late.
Assessment:
Those
living in Florida are presently at the highest risk, but the danger
also appears likely to spread to all Gulf Coast states east of Louisiana
-- and possibly even to the entire Eastern half of the United States
once hurricane season begins.
The
Federal Aviation Administration (FAA) has already declared the airspace
over the oil spill site to be a no-fly zone until further notice. As
we're already seen, various sources have indicated that local police,
highway patrol, National Guard, US military and foreign troops may be
involved in an operation to evacuate the Gulf Coast.
Since
the Deepwater Horizon first exploded, the role of the federal
government has largely been confined to blaming BP for the spill,
demanding reparations for the spill, but nothing to stop the spill.
Had
the White House mobilized every oil skimming rig in the country and
accepted foreign assistance offers, much of the oil now threatening the
American coastline could have been skimmed off.
Seemingly
inexplicably, the White House has largely taken a "hands off" approach
-- apart from talking about it, that is. In short, it seems as if the
White House is simply allowing the spill to proceed.
The
federal government shut down the dredging that was being done to create
protective sand berms in the Gulf of Mexico.
The
berms are meant to protect the Louisiana coastline from oil. But the
U.S. Fish and Wildlife Department has concerns about where the dredging
is being done.
The
department says one area where sand is being dredged is an ecologically
sensitive section of the Chandeleur Islands!
So
efforts to protect the entire coast from ecological destruction
was ordered halted to protect one endangered section of beach.
Plaquemines Parish President Billy Nungesser, who was one of the most
vocal advocates of the dredging plan, sent a letter to President Barack
Obama, pleading for the work to continue.
"Once
again, our government resource agencies, which are intended to protect
us, are now leaving us vulnerable to the destruction of our coastline
and marshes by the impending oil," he wrote. "Furthermore, with the
threat of hurricanes or tropical storms, we are being put at an
increased risk for devastation to our area from the intrusion of oil."
Despite
his plea, work on the sand berms halted at midnight Wednesday. Why?
Since
September 11, 2001 the United States has been in a state of national
emergency, which means that martial law can be declared by the President
at any time and for any reason.
A
declaration of martial law authorizes temporary rule by military
authorities. Under martial law, civil rights are suspended and civilian
courts are restricted or supplanted by military tribunals.
Although
a declaration of martial law is theoretically temporary, there are no
time limits. A state of martial law, once declared, can be extended
indefinitely.
The
forced evacuation of as many as 80 million Americans from the Gulf
Coast region would indeed necessitate such a declaration. In an
evacuation, the federal government would determine when and where
evacuees would be moved to and for how long.
Martial
law would not be confined to the Gulf States -- since the evacuees
would have to be relocated inland across the United States, so too would
military rule.
Under
the provisions of martial law, the president could also order the
suspension of national elections until the national emergency is over.
Her's
the real kicker. The only one that can declare the national
emergency "over" and rescind a declaration of martial law is President
Barack Hussein Obama.
And
suddenly, it all starts to make sense.
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