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BP Spill Commission Recommends Self-Regulator for Oil Industry Based on Nuclear Model

The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling has released its final report . For those of you with enough time and the inclination to delve into reports, there’s an interesting nuclear angle to this story .  Borrowing an idea from the nuclear power industry, the oil-spill commission backs the creation of an industry-run organization modeled on the Institute of Nuclear Power Operations that was created after the Three-Mile Island disaster. That organization helps establish best practices and technology for reactors. Well, I have to admit, my first reaction when I hear the words “self-regulating industry body” are not always warm and fuzzy. But with INPO , the nuclear industry has shown how it can work as a supplement to existing government regulation. As the report notes: Nor is there anything casual about an INPO inspection. It is thorough and careful, extending for five to six weeks: two weeks of preparation and analysis of pre-...

Safety Culture on the Frontline

Last week the PBS series Frontline took on the safety culture of BP. Although titled, " The Spill ", and ostensibly focused on the Deepwater Horizon spill in the Gulf of Mexico, the 54 minute expose dwelt almost entirely on the history of significant events at BP's mainland American facilities. Using bits of the backstory on the 2006 explosion at BP's Texas City refinery which killed 15 people, a 2006 leak from an Alaskan pipeline that spilled more than 206,000 gallons of oil, and the 2007 swamping of the Thunderhorse oil rig in the Gulf of Mexico, Frontline portrays BP as taking risks other companies thought unreasonable and putting cost-cutting ahead of safety. Frontline makes it appear that Deepwater Horizon was the inevitable result of putting production before safety. Some online comments about the Frontline documentary question the balance and accuracy of the presentation. We'll leave that to others to decide, but take the appearance of the Frontline docum...

Blogging and Twittering and Writing Columns

Apparently pleased with the result of his Facebook page , Energy Secretary has now moved on to blogging and twittering . At the new blog, called Energy Blog, Chu greets his new readers and promises, well, let him tell you: Our goal is to use the Energy Blog and our other social media outlets to show you who we are, what we do, and why it matters to you, while allowing you to connect with us in new and creative ways. And the department is hitting the ground running: Later this morning, Assistant Secretary for Policy and International Affairs David Sandalow will field your questions from Facebook and Twitter about the Clean Energy Ministerial . This meeting is the first time in history that ministers of the world’s largest economies have gathered to focus exclusively on clean energy. We will be making important announcements today about the real results this meeting has produced, and I hope you will check back later today to learn more. I know I will. --- Long tim...

Undue Panic, APEC On Board, Nuclear Subsidies (?)

Here’s an interesting article from Fortune Magazine: Allan Sloan on why overreacting to the Deepwater Horizon spill is counterproductive, using the reaction to Three Mile Island as a template. We found it a little confused, largely because, as we’ve mentioned before, TMI and Deepwater Horizon are tough to fit together. For example, we were amused to find this in one paragraph: We panic over horrifying but fluky events like Three Mile Island and Deepwater Horizon, costing ourselves dearly. And this in the next paragraph: In an ideal world, BP would make everyone whole for the damage it has caused, its top managers would be fired and impoverished for having failed as stewards, and the company's shareholders would be wiped out in an orderly, controlled bankruptcy that doesn't create worldwide chaos. All that would be left would be to raze BP’s buildings and salt the earth where they stood. Still, he understands that, despite calling the Three Mile Island accident...

Nuclear Graduates and Safety Rockers

Salem Community College in Carneys Point Township in New Jersey has graduated its first class of nuclear energy technology (or NET) students. This program was created in collaboration with PSEG and students did internships and other projects at the company’s plants. Corporate involvement might raise some hackles, leading an observer to question whether PSEG has helped create a program that solely fulfills its own personnel needs. Nope. The prestigious certificate is recognized by all U.S. nuclear utilities as meeting nuclear training requirements. Chattanooga State Technical Community College is the only other school awarding certificates this spring. Now, NEI is involved with this program, so we certainly like the word “prestigious.” Regardless, the programs represent a real win, both for nuclear plants with aging work forces and student who want a route into the nuclear energy industry with some relevant experience under their belts – as is done with many other fields tha...

Nobelist Suggests an NRC for Big Oil

The other day, we suggested that the Price-Anderson Act might provide a model for similar legislation for the oil industry in light of the BP spill. It turns out we’re not the only one with suggestions based on the nuclear energy industry’s experience, but unlike Burton Richter, a member of the Department of Energy's Nuclear Energy Advisory Committee, we don’t have a Nobel Prize (yet) and he does, in physics. And his suggestion is much more ambitious: create a Nuclear Regulatory Commission for the oil industry. In his view , after the NRC was created: U.S. nuclear reactors went from a typical 60 percent capacity factor to more than 90 percent today, the world's best. U.S. licensing and training requirements are today regarded worldwide as the gold standard. The industry also became more profitable in the years after regulation. Now, Richter is using a comparison of the oil spill to the Three Mile Island accident, calling them “eerily similar.” That’s about as true as...

Liabilities Both Oily and Atomic

One of the issues of the oil spill in the gulf has been the issue of liability – that is, how much on the hook should BP, in this case, be for the spill. Currently the figure is $75 million. Here’s what’s been proposed: Bill S.3305 , the "Big Oil Bailout Prevention Liability Act" would cap BP's liability at $10 billion, even if damages from the gulf oil spill surpass that figure. Sen. Robert Menendez (D-NJ) introduced this in the Senate with 14 co-sponsors. The description above is a bit inaccurate: the legislation is not specific to BP but simply amends the Oil Pollution Act of 1990 to raise the amount as stated. In any event, it has now been blocked by Sen. Lisa Murkowski (R-Alaska). Why? It would be impossible or perhaps close to impossible for any energy company that is smaller than the super majors, smaller than the national oil companies, to operate in the O.C.S. [outer continental shelf] $10 billion in strict liability would preclude their abilit...

'Big Oil' Must Go Nuclear

From ThisIsMoney : Shell and BP will have to go nuclear if they want to remain 'supermajor' leaders of the global energy industry. That is the startling finding of a major report into the energy industry in the age of climate change by JPMorgan. The US investment bank envisages that 'Big Oil' will play a significant role in the future redevelopment of nuclear power. The JPMorgan report suggests that within 10 years, nuclear will be at the top of the agenda for a world preoccupied with clean, green energy and replacing diminishing global stocks of oil and gas. Nuclear is also likely to come to be seen as the only effective future for the socalled 'hydrogen economy', when powercharged fuel cells replace oil in the global automotive industry and elsewhere. This could definitely be great if oil companies get into the nuclear game. They have plenty of market capital to build new reactors in the first place and would be able to fund billion dollar projects without b...