Friday 7 January 2011

BP, Transocean, Halliburton blamed by presidential Gulf oil spill commission

By Steven Mufson
Washington Post Staff Writer
Wednesday, January 5, 2011; 6:01 PM

The presidential oil spill commission on Wednesday blamed the Gulf of Mexico oil spill last year on "missteps and oversights" by oil giant BP, rig owner Transocean and contractor Halliburton, saying those errors were "rooted in systemic failures" and could happen again.

The commission said that the April 20 blowout at BP's Macondo well was not inevitable, but rather a failure of management in which officials from all three firms ignored critical warning signs and failed to take precautions that might have delayed the completion of the well but also might have averted the environmental disaster.

In a chapter released from the final report due out next week, the commission said: "The blowout was not the product of a series of aberrational decisions made by rogue industry or government officials that could not have been anticipated or expected to occur again. Rather, the root causes are systemic and, absent significant reform in both industry practices and government policies, might well recur."

The document provided a detailed account of the missteps that led to the spill, but most of the details have been revealed in other reports or investigations so far. It recounts fateful decisions by all three major corporate actors, including the failure to use enough centralizers to keep the pipe in the middle of the well, choices about the type of steel pipe used, and failure to heed or share test results suggesting that the cement used to seal the well could fail.

In the case of the failure to use enough centralizers, the report said that "the evidence to date does not unequivocally establish whether" that was a "direct cause" of the blowout, but the commission said that it "illuminates the flaws in BP's management and design procedures, as well as poor communication between BP and Halliburton."

William K. Reilly, co-chairman of the commission appointed by President Obama, said that the commission had concluded that the blowout reflected "a more pervasive problem" within the oil industry.

"Given the documented failings of both Transocean and Halliburton, both of which serve the offshore industry in virtually every ocean, I reluctantly conclude we have a system-wide problem," Reilly said.